Napster and Spotify

Napster is a name given to two music-focused online services. It was originally founded as a pioneering peer-to-peer file sharing Internet service that emphasized sharing audio files, typically music, encoded in MP3 format. The original company ran into legal difficulties over copyright infringement, ceased operations and was eventually acquired by Roxio. In its second incarnation Napster became an online music store until it merged with Rhapsody on 1 December 2011. 

The music industry made the following claims against Napster:

1. That its users were directly infringing the plaintiffs' copyrights.
2. That Napster was liable for contributory infringement of the plaintiffs' copyrights.
3. That Napster was liable for vicarious infringement of the plaintiffs' copyrights.

Napster lost the case in the District Court and appealed to the U.S. Court of Appeals for the Ninth Circuit. Although the Ninth Circuit found that Napster was capable of commercially significant non-infringing uses, it affirmed the District Court's decision. On remand, the District Court ordered Napster to monitor the activities of its network and to block access to infringing material when notified of that material's location. Napster was unable to do this, and so shut down its service in July 2001. Napster finally declared itself bankrupt in 2002 and sold its assets. It had already been offline since the previous year owing to the effect of the court rulings. 


Spotify is a Swedish DRM-based music streaming service offering streaming of selected music from a range of major and independent record labels, including Sony, EMI, Warner Music Group, and Universal. Launched in October 2008 by Swedish startup Spotify AB, the service had approximately ten million users as of 15 September 2010; about 2.5 million of whom were paying members. The service is, as of November 2011, available in Austria, Belgium, Denmark, Faroe Islands, Finland, France, the Netherlands, Norway, Spain, Sweden,Switzerland, the United Kingdom and the Unites States. 


A six month free trial period is activated upon initial login with a Facebook account, where a user can listen to an unlimited amount of music supported by visual and radio-style advertising. After the trial, Spotify will make tracks unavailable once they are played 5 times and has a listening limit of ten hours per month. 


An active Facebook account is required to use Spotify, unless the user has registered for a Spotify-only account before 22 September 2011. Subscriptions are restricted to people with credit/debit cards or PayPal accounts registered in certain countries.