Bertelsmann, parent of music company BMG, has announced that it is dropping its part in the piracy lawsuit currently being waged by the record industry against MP3 music firm Napster.
Bertelsmann, parent of music company BMG, has announced that it is dropping its part in the piracy lawsuit currently being waged by the record industry against MP3 music firm Napster.
The two former enemies have struck an alliance to develop Napster into a membership-based service which will make payments to record artists, songwriters, recording companies and music publishers. BMG will withdraw its suit against Napster once it has successfully implemented the new service.
The news will no doubt infuriate the rest of the record industry which is still fighting in court to get Napster shut down.
The Recording Industry Association of America's argument against Napster will be fuelled by the latest market research figures from PC Data.
The researchers surveyed 120,000 US home-based web surfers and found that Napster users soon cut the number of albums they buy once they become proficient at downloading songs from the MP3 sharing service. The case continues.
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