LONDON (Brand Republic) - A US court has upheld an injunction ordering internet company Napster to stop operating its controversial internet song-swapping service.
The Ninth Circuit Court of Appeals in San Francisco reinstated the injunction which was originally ordered in July. At that time, the company appealed and was granted a stay of execution pending yesterday’s hearing.
The injunction does not explicitly mean the end of Napster, as it is only in place during the copyright court battle between the company and the Recording Industry Association of America. However, Napster’s opponents have greeted yesterday’s ruling as an indication of the final outcome of the case.
The case will now be returned to Judge Marilyn Patel, who issued the original injunction, and Napster will face a full-blown court trial which could sound its death knell.
While the recording industry celebrated, Napster’s chief executive Hank Barry said the company would pursue every legal avenue to keep Napster going.
German media group Bertelsmann -- one of the companies that filed the original lawsuit -- said yesterday it would continue to work with Napster to develop a legitimate, subscription-based song-swapping service.
Bertelsmann had signed a deal with Napster, agreeing to drop the lawsuit once a legal commercial model was reached.