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Essay on Ethical Issues in E-commerce - Napster
One of the most eagerly anticipated decisions in 2001 was the Ninth Circuit's ruling in A & M Records, Inc. v. Napster, Inc. (A&M Records v. Napster, Inc. 1004) The outcome of the case would not only affect millions of individuals who had become accustomed to the availability of free music, but also would determine the business enterprises that might become the dominant players in the dawning age of digital distribution. Perhaps this explains why the appellate court's opinion mixed clarity with confusion, and maintained much of the fog overhanging the digital arena.
Napster is a Web service that enables users to find audio MP3 files on the hard drives of other participants and then download selected files from the remote hard drives to their own computers. Napster provides the necessary software. It also posts a directory containing the names of MP3 files stored in the hard drives of users that are on-line. Napster does not determine the names of the files posted on its directory; rather, the users make those designations.
Napster does not directly copy or distribute copyrighted material. However, customers who use its service allow the public to make copies of copyrighted material in remote locations. In this way, Napster users engage in public distributions of copyrighted material without permission. In addition, those customers who download selected copyrighted songs make reproductions of copyrighted materials without permission. Thus, the behavior of Napster participants is only lawful if it may be defended as a fair use or is protected by some other legislative provision. These individuals were not the subject of the lawsuit, however, due to the economics and practical realities of enforcement. Instead, the music industry sued Napster, hoping to cut off the air supply for the entire pirating effort. Thus, the question in the Napster litigation was whether Napster should be held responsible for the copyright violations....
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