Bertelsmann AG and Napster, Inc. have formed a strategic alliance to further develop the Napster person-to-person file sharing service. Once the service is operational, Bertelsmann said it would withdraw from its lawsuit against Napster.com
Bertelsmann has agreed to loan money to Napster in exchange for an equity portion.
RIAA – which represented Bertelsmann’s BMG Entertainment as well as EMI Recorded Music, Sony Music Group, Seagram’s Universal Music Group and Warner Music Group – in the lawsuit against Napster, is not a part of the alliance.
Bertelsmann intends to seek support from others in the music industry to establish Napster as a subscription-based service.
Laura Dely
Bertelsmann, Napster Cozy Up; To Withdraw From Lawsuit
Bertelsmann, Napster Cozy Up; To Withdraw From Lawsuit
