Napster, Inc.,

Paper Summary:

Napster is a computer application that enables users to copy music files that are stored on the hard drives of other users or via the internet. This paper examines how because the service is free and no money changes hands; not between the user and Napster, Inc., and also not between the internet site, the major record labels assert that they are losing a substantial amount of money.

From the Paper:

"The introduction of Napster has destroyed the monopoly that was prominent in the industry structure before last year. Until last August, the record label companies controlled the quantity and destiny of music under their labels. Compact disks were available only from stores, catalogs and online sites, and sold at a price that covers production, marketing, distribution, and royalties to the artist and a generous markup for the record company and retailer. As long as the only way to get that music was through those channels, a pure monopoly existed."

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