I. INTRODUCTION AND SUMMARY OF ARGUMENT
In the fall of last year Napster introduced its
revolutionary peer-to-peer file-sharing technology based on a
real-time directory of Internet files created, named, and
controlled by individual Internet users that are available
for immediate sharing with other Internet users on a
one-to-one basis.
Because of the advantages of peer-to-peer technology and
the extent to which it empowers individual Internet users,
theimportance of Napster's technology has been widely
recognized. Intel Chairman Andy Grove: "The whole Internet
could be rearchitected by Napster-like technology." Yahoo
President Jeff Mallett: "Peer to Peer is going to change
traditional companies' models ... and change the model for
Internet companies as well." (Washington Post, July 18, 2000
p. 2) Even Recording Industry Association of America
President Hilary Rosen acknowledges with respect to Napster
technology that:
"Not only could it be used legitimately, there are
certainly no illusions by me or anybody else that I
work with that somehow, depending on the outcome of
this lawsuit, file sharing or file copying gets put
back in the box. ... Innovation is certainly here
to stay. Peer-to-peer is here to stay." (CNET
News.com July 20, 2000)
Although Napster's Internet directory can be used
for a large variety of files, the primary initial use of the
technology (and the purpose for which it was initially
designed) is to provide Internet users with a list of other
users who are prepared to share, on a one-to-one
noncommercial basis, certain music files. Noncommerial
sharing of music among individuals is common, legal
(expressly approved, inter alia, by 17 U.S.C. §1008), and
accepted. Even the RIAA's President says: "It's cool to
make tapes, it's cool to trade them with your friends. It's
good to share music." (National Public Radio broadcast, June
7, 2000)
The District Court entered a preliminary injunction
against Napster, based on its conclusion that Napster
contributed to the illegal distribution of copyrighted music.
In so doing the court resolved several issues of first
impression against Napster, in favor of the record industry,
and in a way that limits the exchange over the Internet of
information that could indisputably be lawfully exchanged in
other ways.