Napster signs record deal despite major legal setback

150 independent labels will provide music for the online party...

Controversial peer-to-peer website Napster today signed a major deal with European recording artists that will allow its users to download entire catalogues of digital songs legally. The news came despite a major legal setback. Napster has hooked up with independent artists represented by the UK's Association of Independent Music (AIM) and the Europe-wide Independent Music Companies Association, in preparation for its launch as a subscription-based service later this summer. According to Napster, music from independent artists such as Tom Jones, the Stereophonics and Moby will be available to download for an undisclosed fee. Yesterday a US federal appeals court rejected Napster's request to challenge an injunction by the music industry against its mp3-swapping service. Napster will now face a full trial in the record industry's copyright infringement suit. Napster once boasted 17 million users during its peak but since it was ordered to implement filtering software by court officials to stop the trading of copyrighted material, numbers have all but died. Research firm WebNoize estimates that just 360 million files were traded through the service in May, versus 2.8 billion in February. For related news see:
Napster: A loud enough wake up call for media giants?
http://www.silicon.com/a44882
EMI invests to protect digital downloads
http://www.silicon.com/a44876
Napster accepts its corporate destiny
http://www.silicon.com/a44862