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Napster files for Chapter 11 bankruptcy

Joey Patterson writes "CNN Money reports that Napster has filed for Chapter 11 bankruptcy." Thank god the industry shut them down... now that piracy has been stopped they can all sleep much better.

28 of 438 comments (clear)

  1. soooo.... by matth · · Score: 4, Insightful

    If I understand this correctly.. Napster is gone... which leaves now... wait.. no it doesn't get rid of sharing software.. instead we now have access to tons of FREE (napster was to be pay) sharing software for MUCH more then napster ever dreamed of when they came out..
    Want paintshop? Ok.. let me fire up KaZaa!
    Want videos? Ok.. let me fire up KaZaa!
    Want sheep? er.. that's not my department but you can probably find that on KaZaa too.

  2. Oh you so funny... by essdodson · · Score: 1, Insightful

    You're sooo funny. Of course napster isn't why piracy exists. But until recently Napster's sole purpose was to feed piracy. blah blah about fair use. Just admit it, everyone used Napster to pirate the latest and greatest from Eminem, and our favorite homeboys of LimpBizkit.

    I'd have a lot more sympathy when you guys whine and moan if you'd just go ahead and say it "They suck because they're shutting down my favorite piracy outlet." Noone really believes that you're just downloading backups, or whatever other lame excuse you've got. You're stealing, you know it, I know it, now be a man about it... or something like that.

    --
    scott
  3. It's just a vehicle for theft by Gorbie · · Score: 2, Insightful

    (jumps up on soapbox)

    Folks, I am sorry, but Npaster was truly only a place where people stole copyrighted material. The arguements that it helped/hurt the industry do not matter. The arguements that they weren't hurting anyone do not matter.

    Right now sharing music in the way that we want to share software is illegal. There is no musical GPL. Even if there were, the artists who's music we want would not be released under it. Napster could have been a great place for budding artists to get some coverage. Instead it was used to get the Staind tracks onto CD without ever making it to Sam Goody.

    One of the things that would help this community tremendously is to respect the laws and try to get done what needs to be done within the framework of them. Crying out as a group because some poor little business that was struggling along broke a law and that aided in their demise is worthless.

    1. Re:It's just a vehicle for theft by cyborch · · Score: 2, Insightful

      Maybe, just maybe, people steal music because it is too expensive in their eyes. I believe (I have no facts to base this on) that many man-hours are spent calculating the right price for music (and other copyrighted material that can be pirated in this fasion) in order to make sure enough people buy the music and few enough people pirate it.

      People ignore the speed limits if they are set "unreasonably" low, and people ignore the copyright law if the copyrighted material is sold at too high a price. This is the way it is going to continue to be. P2P apps are just the latest way for people to break the laws the do not feel are just.

    2. Re:It's just a vehicle for theft by WebWiz · · Score: 5, Insightful

      I'm a songwriter, and I considered Napster to be a really great vehicle to get my music to others that would normally not get the opportunity hear it. I own my music, and I wanted to give it away free. That is my right. Are you telling me that this argument doesn't matter? Also, Napster didn't break "a law". There were no laws governing P2P file sharing technology. The people using Napster and downloading copyrighted material that they DIDN'T ALREADY OWN were the ones breaking the laws. Not the company itself....if I use my Jeep Wrangler as a getaway car in a robbery maybe we should sue Jeep for "Breaking Laws" and giving me the opportunity to commit a crime. Those Vehicle Making Bastards.

    3. Re:It's just a vehicle for theft by Xaoswolf · · Score: 2, Insightful
      Maybe, just maybe, people steal music because it is too expensive in their eyes.

      I really want a Humvee, but I probably couldn't even afford the tires for one. Does that mean it's ok if I just rip one off at the lot?

      Just because it's easy to break a law, does that mean that you should??

    4. Re:It's just a vehicle for theft by Rude+Turnip · · Score: 4, Insightful

      Everything Jesus did was illegal.

      The Boston Tea Party was illegal and involved stealing.

      The American Revolution was illegal and would be considered stealing from the king.

      Freeing slaves through the Underground Railroad in the 1800s was also considered stealing and illegal.

      See a pattern here? In the grand scheme of things, history has been determined by those who followed their hearts and did what they felt was right, rather than following the orders of another man.

    5. Re:It's just a vehicle for theft by Erasmus+Darwin · · Score: 4, Insightful
      "I own my music, and I wanted to give it away free. That is my right. Are you telling me that this argument doesn't matter? Also, Napster didn't break "a law"."

      You're allowed to give your music away. However, the reason Napster was so popular was because of the illegal mp3 trading. There were and are venues (such as mp3.com) that try and keep things constrained to legal mp3s. Furthermore, the filtering imposed on Napster (which is a big part of what killed it) should've theoretically had a minimal impact on legitimate trading (but unfortunately, the filtering was overly broad). So in reality, the only reason why Napster was a good venue for legitimate trading was because it was using illegitimate trading as a form of marketing/bundling.

      Also, it's my understanding that Napster did get nailed for breaking laws relating to contributory and/or vicarious copyright infringement. These issues were hashed out on Slashdot awhile back. It basically boiled down to Napster being aware of the copyright infringement going on and unwilling take means to stop it when confronted on the issue.

    6. Re:It's just a vehicle for theft by TWR · · Score: 4, Insightful
      And the difference between all of these things and Napster?

      Profit.

      Napster's business model was based on stealing. Let me repeat that one more time, just in case you didn't get the point. Napster's business model was based on stealing.

      While it's likely that some of the people on the Underground Railroad were in it for the money, helping slaves isn't usually a prime source of income. You'd think turning water into wine would be a money-maker, but Jesus wasn't trying to undercut Manishewitz. And the Boston Tea Party/American Revolution? Becoming independent nearly bankrupted the colonies/states (and many of the Founding Fathers did indeed die broke). Ever heard that popular expression from the 1790's "not worth a Continental?"

      Napster deserved to go under. It's a shame that BMG has rescued them. Personally, I think it shows that BMG is either pretty stupid (as there is nothing in Napster's technology that couldn't be replicated in a matter of weeks by a competent programmer) or that they have a LOT of money to throw around.

      -jon

      --

      Remember Amalek.

    7. Re:It's just a vehicle for theft by Erasmus+Darwin · · Score: 2, Insightful
      "A better analogy might be firearms."

      That analogy falls a little flat in that the gun manufacturer is not party to the event every time a gun is fired. Napster both wrote the software and continued to run the servers.

    8. Re:It's just a vehicle for theft by KelsoLundeen · · Score: 3, Insightful

      Well, the problem with this line of reasoning -- comparing something like Napster to so-called "great" political achievements -- is that I'm not certain Napster is pushing any philosophical, civil, or ethical envelopes. Legal, maybe -- but that's about it.

      It's about information sharing, yes. And I'll agree that information sharing is important. But in the grand scheme of things, I'm pretty certain information sharing is not in the same league as civil rights or human freedom. In fact, I *know* it's not the same league -- much as some folks wish it to were so.

      We're still too close to the Napster "revolution" (so-called) to know what exactly happened, but my guess is not much. Not much happened.

      On a more personal note, I'm repulsed by the notion that "Napster" is in the same league as slavery. It's not. Nor is it anything like a legitimate "freedom" struggle. Information is not the same thing as a human being, and the only real "struggle" at work with this P2P stuff is a struggle for control.

      There's nothing particularly interesting, provocative, or important in a struggle that pits big corporate greed against so-called "innocent" youth. The demise of Napster is not even a "triumph of capitalism." Nor is it a "triumph of global corporate control."

      It's really a triumph of nothing. And in light of human rights abuses across the globe -- including abuses here in America -- I'm not sure we can really derive any "lesson" from the demise of Napster except that, well, there's other, more important battles to fight.

      P2P is not a revolution -- not in the sense, at least, that Napster-advocates would like it to be.

      The only "triumph" at work with Napster is the "triumph" of the corporate lawyers. And unless you're one of them, pulling a paycheck from all of this, it's not much of a triumph at all.

    9. Re:It's just a vehicle for theft by malfunct · · Score: 2, Insightful
      I wouldn't have a problem if #1 there was more than 1 or 2 tracks on an album worth listening to, #2 I didn't know that the cost to make an distribute a cd is more like $2 than $20, and that the artist got a resonable chunk of the proceeds (unless the artist is amazing or owns the record company its amazing if they get a per record royalty at all).

      That coupled with the fact that I know if albums were $5 on the shelf I'd buy 2 or 3 a week because it would be junk money in my pocket where at $15 I have to pull out a check and that makes me think twice.

      That said I think stealing music is wrong and thats why I support sites where artists can use alternative distribution methods. MP3.com is not the best example of this but you can sort of see what I mean.

      --

      "You can now flame me, I am full of love,"

    10. Re:It's just a vehicle for theft by xinit · · Score: 4, Insightful

      Yes, but if you drink at a bar, drive, and kill 20 schoolkids, why is the bartender sued?

      --
      --- http://foo.ca
    11. Re:It's just a vehicle for theft by Erasmus+Darwin · · Score: 4, Insightful
      "Everything Jesus did was illegal.
      The Boston Tea Party was illegal and involved stealing.
      "

      Sure, and everything that Albert Fish, Ed Gein, and Paul Bernardo did was illegal, too. That doesn't mean it was right.

      In this case of copyright law, there's this great notion that if you don't agree, you can just refuse to play the game. Just as Richard M. Stallman takes a strong position against commercial software without resorting to piracy, you can elect to only download music from artists who make it freely available. Even better is the fact that you don't have to worry about the interoperability concerns that plague the software realm of this issue -- there's no real equivalent to someone emailing you an MSWord document.

    12. Re:It's just a vehicle for theft by Anonymous Coward · · Score: 1, Insightful

      OK, I realize some of you don't seem to grasp this so let's put it like this:

      Little Johnny has a drawing of a goat he made.

      Little Susie likes the drawing of the goat and wants it.

      Little Johnny is an ignorant pissant future capitalist pig and makes Susie pay 5 twizzlers for a copy of the drawing.

      Little Sally comes over and sees Little Johnny's drawing and would like a copy too.

      Little Johnny offers it to her for 5 twizzlers as he did with Susie.

      Sally says "Are you fucking nuts? It's just a drawing of a goat."

      Susie, being the nicer of the two offers to share her version and lets Sally copy her drawing for free.

      Johnny gets upset at this and sues Sally and Susie in US District Court for 5 million twizzlers for stealing his drawing!

      The US District Court tells little Johnny that he's a fucking idiot and should have sued for copyright violate of his intellectual property. They throw the case out and Johnny kills himself.

      See, in the end Johnny and Susie both had the same drawing and because Johnny was a greedy fucking capitalist pig, Sally got it from Susie because she was nice and shared it. Johnny still had his drawing and Susie had hers! Sally wouldn't have paid 5 twizzlers anyway because the goat drawing wasn't THAT good.

    13. Re:It's just a vehicle for theft by Happy+go+Lucky · · Score: 3, Insightful
      Because the bartender is not supposed to serve liquor to someone who is drunk. In some states the law says "visibly drunk". The bartender is supposed to know when the person is drunk. If the bartender makes the person drunk, that's one thing but if the person is drunk and then the bartender serves some more then they can be liable.

      More than civilly liable. Here in Colorado, it is a CRIME for a visibly-drunk person to be served alcohol on licensed premises. Bartenders (in theory) can go to jail and businesses (in practice) can lose their liquor licenses.

      It's akin to shooting an intruder more than once - once is considered self defense, more than once can be considered murder.

      They're not that close. Especially because the alcohol thing is true and the "if you shot him once you meant to murder him" is crap and nonsense. If you were legally justified in using deadly force to protect yourself, then you were legally justified in shooting as many times as was required to control the threat.

  4. So? by 72beetle · · Score: 4, Insightful

    Don't tell me nobody didn't see this coming - the innovator is rarely the successful party in any technology leap, usually it's the follow-ups that jump on the bandwagon and streamline/fine tune a process that make the big bucks.

    Napster paved the way for P2P, but really, who thought they'd get rich doing it? Well, besides Shawn Fanning, anyway.

    -72

    --
    -Those who dance are considered insane by those who can't hear the music.
  5. Re:Ah, well. by Anonymous+Cowrad · · Score: 4, Insightful

    "Once the RIAA shut down the filesharing service, Napster, Inc. had no means of turning a profit that I could see."

    How were they making money before they got shut down? I'm astonished they lasted as long as they did, too.

    --

    --
    pants ahoy
  6. The Music Industry has Lost by Alien54 · · Score: 3, Insightful
    With the Recent court ruling in the netherlands that Kazaa cannot be held reponsible for the actions of it's users, the Music industry has lost.

    They will never again have the opportunity that they let slip through their fingers because they killed Napster. Napster had the widest selection where anyone could find anything, and it worked well. They threw away the opportunity of a lifetime because they got greedy.

    Instead of working out a system where they could have gotten paid something somehow, they grasped for millions, throwing away billions

    It is a typical case of the big fish in the small pond fearing the ocean

    There will probably never be the same chance to create a market and integrate it all into one service again.

    There was a pretty good interview with John Lanning on CnetRadio that is worth listening, goes into the history, and where he sees things going from here.

    --
    "It is a greater offense to steal men's labor, than their clothes"
    1. Re:The Music Industry has Lost by Ooblek · · Score: 5, Insightful
      ith the Recent court ruling in the netherlands that Kazaa cannot be held reponsible for the actions of it's users, the Music industry has lost.

      Don't count on that. They still have more money and time to throw at the problem. My guess is that they will do so, at whatever level it takes. They are a big part of the US economy, so I would guess there will be some sort of political pressure through treaties or something.

      For now, though, the seas are open and there is loot to be reaped.....er, music to be downloaded.

    2. Re:The Music Industry has Lost by Anonymous Coward · · Score: 1, Insightful
      They are a big part of the US economy...

      No, they are a very small part of the US economy. If I'm not mistaken, video games have surpassed their earnings. The music industry is loud and connected, but nowhere near essential.

  7. Re:A Business Failure; Not a Technological One by gabec · · Score: 5, Insightful
    I just wanted to note that this is not the death of Napster, it's simply that it's the planned way for Napster to shirk its debts before they're officially bought up by Bertelsmann... or that's what I got out of this ZDNet article.

    " Bertelsmann stepped in on May 17 with $8 million to buy Napster's assets. As part of that agreement, Napster was to voluntarily seek bankruptcy protection and emerge as a wholly owned unit of Europe's second-largest media group. "

  8. Are you insane? by Gorbie · · Score: 5, Insightful

    you are comparing music theft with Jesus' acts, the boston tea party, and the freedon of slaves?

    Thanks for making my point. You really did just fall off the turnip truck.

  9. lame slashdot editor's comment by astrashe · · Score: 5, Insightful

    Whatever you think about Napster, the editor's comment on this story is lame.

    Putting a murderer in jail doesn't put a stop to all murders. Does that mean it's a waste of time?

    We're blowing this argument, and when we lose, everyone's going to blame the record companies, but it's going to be our own fault.

    Defending stealing is wrong, and as much as everyone likes free stuff, it's just not possible that the "stealing is ok" argument is going to fly in the courts and in congress over the long run.

    The other lame argument that people make is that "the record companies would be better off if they allowed sharing." Maybe. Probably not. But the point is that it's their property, and they get to decide what to do with it.

    There are two issues on the table. The one that everyone talks about is piracy. There's no way to win this in the law, although technology will probably make it possible to steal music and share it over the net for the foreseeable future.

    The other one, and the one that is winnable, is about whether or not there will be open electronic distribution systems. Right now entertainment companies control distribution, and that's how they make their money.

    Movie studios make money by controlling access to the multiplexes -- indpendent films have to make "distribution" deals if they want to be seen. And if you want your CD in the Virgin Megastore, you've got to cut a deal with a big label. That's the toll booth.

    The entertainment companies are using the piracy issue to cover up their other agenda, which is to avoid open distribution at all costs.

    And their biggest allies aren't corrupt senators, they're whiny assholes with a sense of entitlement, sitting on their asses, believing that the world owes them free eminem records.

    The arguments for stealing marginalizes the people who make it. It marginalizes the public's interest. It's suicidal politically and morally bankrupt.

    Take my karma. I don't care.

  10. Libraries completely killed the book publishers... by Futurepower(R) · · Score: 5, Insightful


    "Thank god the industry shut them down... now that piracy has been stopped they can all sleep much better."

    Remember what happened when Carnegie endowed thousands of libraries across the United States? Well, people could then get their books free! And the obvious thing happened: The book publishing industry never sold another book, except to libraries.

    Not!

    Then there was that second socially destructive technological advance, TV. Once people could get their entertainment at home, and without paying extra, the movie industry almost completely disappeared, except for sales to TV broadcasters.

    Not!

    Well, the movie industry was already dead, of course, but another technological advance, the VCR, killed it again. When people found that they could record perfectly good movies on video tape, they stopped paying for movies! It was completely logical and understandable that this would happen.

    Not!

    The fact is, no one completely understands the issues surrounding intellectual property. We can't write a good law if we don't understand. Someone must sit down and do the thinking, and the thinking hasn't been finished.

    The music industry is so abusive that I tend to stay away from music. I find that, when I have access to free music (tapes and CDs from the library), I become interested in a particular type of music and buy more, not less. Maybe there are a lot of people like me, because, during the height of Napster, the U.S. music industry had its best year.

  11. Re:A Business Failure; Not a Technological One by Zeinfeld · · Score: 3, Insightful
    Napster was, at worst, a means for the long-standing fact of exploitation of artists by record labels to become common knowledge. Even teeny-boppers are familiar with the concepts of mechanical royalties, publishing contracts, and "recoupment".

    Napster had good effects as performance art, however I always thought that the idea that Napster would make money out of the scheme was kinda wierd.

    Napster became popular by offering people something for nothing. While a lot of the criticism of the record industry is valid the justification of Napster rapidly became an exercise in rationalisation 'the record industry rips off artists, so I am morally justified in ripping them off as well'.

    The recording industry did not help in their response which completely failed to understand that the principle mechanisms that cause laws to be respected are psychological and not technical.

    However the business plans that Napster dreamt up to 'monetize' the user base they built up were pretty slimy, and it is no suprise that their replacements all specialize in propagating scumware that will report your every move to advertisers (and with the recent Ashcroft changes J. Edgar Mueller's FBI), bring up pop up ads at every turn and redirect your DNS to an Idealab! startup so that if and when new.net goes the way of Pets.com your machine will stop working and you won't know how to fix it.

    Napster as a political statement worked, but as a business it was never going to survive. Even if it had won the copyright case the inevitable outcome would have been a change in copyright law to outlaw their business - which inevitably would contain even more clauses to push copyright law in the direction of Disney and Time Warner against the public interest.

    --
    Looking for an Information Security student project suggestion?
    Try http://dotcrimeManifesto.com/
  12. My how the times have changed. by bons · · Score: 3, Insightful
    "Thank god the industry shut them down... now that piracy has been stopped they can all sleep much better."

    It seems to be a far cry from the old days when the free software/open source movements were about letting the creators of a work choose the license and the distribution methods.

    Apparently, some of us have decided that that is a freedom that should be reserved for some of us, and not for everyone.

    If the large corporations in the music industry want to limit their distribution method and use antiquated licenses, we should respect their decision. They do not have a monopoly on music. There are alternatives and just as the open source community would prefer people using open source software, other musicians would like to get their music heard.

    For once, lets consider treating others the way we want to be treated.

  13. Re:The funniest part... by kz45 · · Score: 2, Insightful

    i can produce an album just fine. record guitars, drums and vocals with cool edit, mix them with cool edit. burn with nero. f**k the record labels

    too bad you won't make any money. Recording labels or not, the music pirates of the world will always have an excuse.