LOS ANGELES (AP) - Down but not out file-swapping service Napster reached a preliminary deal with the
National Music Publishers' Association on Monday (Sept. 24) worth $26 million which would effectively settle a pending class-action lawsuit against the company in federal court.
While still subject to approval by United States District Court for the Northern District of California, the NMPA board of directors, and the plaintiffs in the suit, the deal would allow songwriters and music publishers to license songs to Napster's planned membership-based service.
In the deal, Napster would pay $26 million in restitution for past, unauthorized use of music as well as a $10 million advance against licensing royalties in the future.
"We are very grateful for the encouragement provided by these legislators, all of whom helped to ensure that the parties kept talking productively until an agreement could be reached," said NMPA President and CEO Edward P. Murphy in a statement released Monday.
"The good faith displayed by Napster while negotiations proceeded, and its agreement to pay fair compensation to creators and copyright owners for past and future uses of musical compositions on its service, led to a proposal that songwriters and music publishers can embrace. We are excited that songwriters will be able to reach new fans in the digital age through Napster."
The NMPA represent a plethora of songwriters, many of which are behind the scenes rather than in bands or groups themselves. Songwriters of such classics as "Can't Help Falling in Love," "The Lion Sleeps Tonight," "Stand by Me," and "You Ain't Nothin' But a Hound Dog," to name a few, are all represented by the NMPA.
"We are pleased to have secured such an important element in creating our new service, one that will benefit songwriters, artists, and consumers alike," said Konrad Hilbers, CEO of Napster. "This landmark agreement marks a huge stepping stone toward building a digital music marketplace and we're pleased to have played such a key role in moving the market forward."
Napster has been put of service since July and is still in the process of developing a subscription-based service due to launch by the end of 2001.
