|
Napster gets license deal
|
 |
September 24, 2001: 4:25 p.m. ET
Song-swap site and several publishers reach licensing deal, may settle suit
|
NEW YORK (CNNfn) - Napster, the song-swap services site that is reinventing itself to provide a secure online music service, said it reached a preliminary licensing deal with several music publishers on Monday.
Under terms of the agreement, Napster agreed to pay $26 million to songwriters and copyright owners to settle damages for past, unauthorized uses of music and also an advance of $10 million against future licensing royalties for music used on a new secure, fee-charging service it hopes to launch this year.
"We are pleased to have secured such an important element in creating our new service, one that will benefit songwriters, artists and consumers alike," said Konrad Hilbers, CEO of Napster.
The Los Angeles-based company said the licensing agreement may also settle a class action lawsuit on behalf of publishers against Napster.
Napster, which in its heyday enabled millions of users swap songs for free, has seen usage grind to a halt due to a copyright infringement lawsuit filed against it by the labels.
Napster began its negotiations with publishers months ago following the filing of a class action lawsuit on behalf of thousands of publishers against the service.
But even as Napster continues to hit various milestones, experts believe its chances of survival are still slim given the billions of dollars in damages it will likely face once the recording industry's copyright lawsuit is concluded. 
-- from staff and wire reports
|
|
|
|
|
 |
|
