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Score One For Napster

Judge Marilyn Hall Patel smells a "monopoly" and orders the record companies to put up or shut up when it comes to just who owns "works for hire."

February 25, 2002
By Michael Singer: More stories by this author:

Call it a reversal of fortune for Napster as the same judge that called the Internet song-swapping service "disgraceful" is now standing up for it.

U.S. District Court Judge Marilyn Hall Patel sided with the Redwood City-based company Friday saying that the five major record labels must prove that they own the rights to some 200 commissioned music pieces - also known as "works for hire."

The ruling extends the discovery period in the copyright infringement lawsuit and now puts the record companies in the hot seat.

How? Well, Judge Patel also determined that the music industry's balking at Napster's music file sharing service while beefing up its own platforms (namely MusicNet and pressplay) is a little bit fishy.

"These ventures look bad, smell bad and sound bad," Judge Patel released in a 32-page ruling. "If Napster is correct, plaintiffs are attempting the near monopolization of the digital distribution market."

For Napster, it was a sigh of relief after what seems a lengthy uphill battle to legitimatize its existence.

"We are pleased that the Court granted Napster's request to examine two critical issues: the record companies' ownership of artists' copyrights and anti-competitive behavior that amounts to misuse of their copyrights," Napster general counsel Jonathan Schwartz issued in a statement.

Napster's revamped subscription-based service is currently in beta testing and is due out this spring.

Recording Industry Association of America (RIAA), which represents the record labels was not available for comment.

The two sides must now submit relevant documents to the court appointed Special Master, A.J. Nichols.

A status conference hearing has been scheduled for March 27.






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