Music giants to set up Napster rival

The future of copyright protection on the internet looks more healthy after two major music labels revealed plans to start MP3 downloading services.

Two of the largest labels, Universal and Sony, rejected a $1bn offer from Napster, and unveiled plans for their own music download service, called Duet. Universal said it hopes to offer subscription and pay-per-listen models by the summer.

Napster had offered to charge its 50 million users a small subscription fee to continue downloading MP3 files. It would then pass on $150m a year for five years to the major record companies, plus a further $50m a year to independent labels and artists.

But the Sony/Universal announcement, combined with a US court's decision that Napster's service infringes copyright, suggests that any mutual agreement is a long way off.

Napster must stop publicity-grabbing delaying tactics before the labels will talk, says an open letter to Napster's management from Hilary Rosen, chief executive of the Recording Industry Association of America.

"Stop the infringements, stop the delay tactics in court, and redouble your efforts to build a legitimate system," she said. "Our member company plaintiffs have always said that they stand ready and willing to meet individually with you to discuss future licences. This path would be more productive than trying to engage in business negotiations through the media."

The billion dollar offer "does not strike me as being in the ballpark", Richard Parsons, chief operating officer at AOL Time Warner, told the New York Times.

See also:

Internet copyright rules take effect

Civil liberties groups cry foul  06 Mar 2002

Napster: A musical revolution online

Napster, the website, was built as a central host for users wishing to swap MP3 music files. It has sparked an almighty legal battle over its legitamacy and has changed the way people obtain music.  01 May 2001

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