A&M Records, plaintiffs, are in the business of the commercial recording, distribution, and sale of copyrighted musical compositions and sound recordings. It filed suit against Napster Inc. (Napster)...

A&M Records, plaintiffs, are in the business of the commercial recording, distribution, and sale of copyrighted musical compositions and sound recordings. It filed suit against Napster Inc. (Napster) as a contributory and vicarious copyright infringer. Napster operates an online service for “peer-to-peer file sharing” (www.Napster.com) so that users can, free of charge, download recordings via the Internet through a process known as “ripping,” which is the downloading of digital MP3 files. MP3 is the abbreviated term for audio recordings in a digital format known as MPEG-3. Napster’s online service provides a search vehicle for files stored on others’ computers and permits the downloading of the recordings from the hard drives of other Napster users. Napster provides technical support as well as a chat room for users to exchange information. The result is that users, who register and have a password through Napster, could download single songs and complete CDs or albums via the peer-to-peer file sharing. The district court granted a preliminary injunction to the plaintiffs, enjoining Napster from “engaging in, or facilitating others in copying, downloading, uploading, transmitting, or distributing plaintiffs’ copyrighted musical compositions and sound recordings, protected by either federal or state law, without express permission of the rights owner.” Who won? A&M Records v. Napster, 239 F.3d 1004 (9th Cir. 2001).