A. The Napster Litigation I: Bertelsmann
The music industry hated Napster with a vengeance when it arrived on the scene in late 1999 because it allowed free-for-all downloading of copyrighted works. n144 The five largest record companies quickly sued their [*108] "No. 1 enemy" n145 within weeks for copyright infringement. n146 Within a year, Napster agreed to adjust its path, become a pay-for-use service, and distribute part of the fee as royalties. n147 German media giant Bertelsmann reversed its position, agreeing to drop its suit and partner with Napster, lending an at-first-undisclosed sum to the company to develop the technology to permit copyright owners to get compensated for the tracks shared over Napster. n148 While some hailed the deal as worthy of "praise," n149 Napster users fretted the end of the free service n150 and internally there was discord at Bertelsmann. n151
A. The Napster Litigation I: Bertelsmann The music industry hated Napster with a vengeance when it arrived on the scene in late 1999 because it allowed free-for-all downloading of copyrighted works. n144 The five largest record companies quickly sued their [*108] "No. 1 enemy" n145 within weeks for copyright infringement. n146 Within a year, Napster agreed to adjust its path, become a pay-for-use service, and distribute part of the fee as royalties. n147 German media giant Bertelsmann reversed its position, agreeing to drop its suit and partner with Napster, lending an at-first-undisclosed sum to the company to develop the technology to permit copyright owners to get compensated for the tracks shared over Napster. n148 While some hailed the deal as worthy of "praise," n149 Napster users fretted the end of the free service n150 and internally there was discord at Bertelsmann. n151
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