Napster argued that the original decision was too broad and
violated its right to free speech. It had requested that the
injunction decision be re-tried before the original panel of three
judges, or the broader 11 judge panel of the Supreme Court.
Despite losing this latest round of the case, Napster hopes that
the launch of its new secure membership service in co-operation
with three of the major recording companies in October will
dissuade the recording industry from continuing with the current
lawsuit. However, it has already suffered a massive drop in use
since it began filtering songs, estimated by researchers Webnoize
at 41%.
In a statement, the Recording Industry Association of America
(RIAA) has called the appeal court’s decision “a victory for
copyright holders”. Cary Sherman, Senior Executive Vice President
and General Counsel at the RIAA said: “This decision puts to rest
any questions that Napster has raised regarding the earlier
decision and affirms the rights of copyright holders on the
Internet”.
Meanwhile, file-swapping rival Aimster has won a small court
victory. A federal judge has agreed to hear Aimster’s case in
Albany, New York. The company is seeking a declaratory judgement
that it did not breach copyrights by allowing file transfers. The
RIAA had called for the case to be transferred to Manhattan, where
36 companies have filed copyright infringement claims against
it.
