Important Developments Involving Music in Cyberspace

• Publication year: 2001
• Pages: 121

30 Colo.Law. 121 Colorado Lawyer 2001.

2001, July, Pg. 121. Important Developments Involving Music in Cyberspace

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121

Vol. 30, No. 7, Pg. 121

The Colorado Lawyer
July 2001
Vol. 30, No. 7 [Page 121]

Specialty Law Columns
Technology Law and Policy Review
Important Developments Involving Music in Cyberspace
by Ronald P. Oines, Jennifer L. Richter, Paul V. McLaughlin

Most people have heard of MP3.com or Napster.com. These companies have had more than their share of press lately first for their cutting-edge technology and, second, for the lawsuits aimed at preventing the use of such technology. This article discusses recent federal court decisions involving claims of copyright infringement against these companies and certain developments since those holdings

MP3 Format

An increasing number of consumers and audio professionals are using their computers to create, edit, transmit, and store audio files. Prior to Motion Picture Experts Group, Layer 3 ("MP3"), this was difficult due to the large size of uncompressed audio files. An uncompressed audio file of an average song may be approximately fifty megabytes. MP3 allows an audio file to be shrunk down to between one-tenth and one-twelfth of its original size with little decrease in sound quality. As computer hard-drive memory capacity has increased and become more affordable and as compression technology (such as MP3) has improved, it has become feasible to store a library of songs in the MP3 format on home computers. Additionally, many portable MP3 players on the market allow listeners to use MP3 files anywhere

A concurrent improvement in modem technology and the increased use of high-speed digital subscriber lines ("DSL"), or cable lines used for Internet access, has enabled computer users to share MP3 files relatively easily. Computer users ("users") can download MP3 files from the Internet in minutes—or even seconds. Users also are able to upload MP3 files to the Internet. The ease with which users can access and share MP3 files has made the format extremely popular for downloading music from the Internet.

MP3.com

MP3 is not a proprietary format and is not owned by MP3.com. However, MP3. com does own and operate one of the most popular MP3 music sites on the Internet. MP3.com launched a service called "My. MP3.com," which enables subscribers to store, customize, and listen to their compact disk ("CD") collection from any Internet connection. Users must first prove that they own the CD version of the music either by inserting the CD in their computer for a few seconds or by buying the CD online from one of MP3.com's cooperating online retailers. Once subscribers prove they own the CD in question, MP3.com allows subscribers to access MP3.com's copy of the recording via the Internet and play it on a computer anywhere in the world. To offer this service, MP3.com purchased tens of thousands of CDs and copied them onto its computer servers.

Napster

Napster.com owns and operates a website that allows users to share MP3 files with other users who are logged onto the Napster system. Napster charges no fee to share MP3 files or to download the necessary software. The Napster program uses a "peer-to-peer" file-sharing architecture, which means that users can supply and access information and share MP3 files directly with other users rather than seeking files from large centralized information servers. Napster provides a searchable index of song titles and artists that makes it convenient to find the desired selection to download from other users. Napster also allows users to play downloaded music using the Napster software.

Recent Litigation

Record companies and artists are understandably disturbed at the ease with which programs such as Napster and MP3.com facilitate the transfer of copyrighted materials. One record industry group estimates that there are one million illegal MP3 files available for download on the Internet that infringe on the copyright protections of their holders. Also, one purchased CD can generate many illegal copies on the Internet. Troubled by this prospect, the record industry and several prominent artists have initiated lawsuits against both Napster and MP3.com. These suits, discussed below, have met with some initial success.

The Lawsuit Against MP3.com

In UMG Recordings, Inc. et al. v. MP3. com, Inc.,1 a group of record companies challenged the My.MP3.com service based on copyright infringement. On February 28, 2000, the court granted the record companies' motion for partial summary judgment, finding that MP3.com's...