Napster Operational for Now Court Agrees Napster Infringed, But Won't Stop Service Yet Byron Alley
February 12, 2001 - Despite ruling that Napster infringed on copyholder's rights, judges from San Francisco's 9th Circuit Court of Appeals decided to allow Napster to keep operating until a revised lower court injuction is implemented.
Although the 19-page ruling agreed with the lower court's assessment that Napster had broken copyright law and that an injunction was required, the appeals court said that the previous injuction had been "overbroad." However, the judges also suggested Napster could be required to pay damages as well, which might number in the millions or even hundreds of millions.
Napster had attempted to use VCRs as an example of applicable legal view of similar technology, arguing that as with VCRs, both legal and illegal copying are possible. However, since Napster was aware of the degree to which the service was used for the transfer of copyrighted material, it may still be liable.
The new injuction which is expected from the lower court will be limited to forcing Napster only to stop the exchange of songs that have been specifically pointed out as copy-protected works. The company will still have some responsibility to oversee its own system for copyright violations, but the extent of this responsibility remains unsure.
