The Napster Model - The Napster Model For many years the...

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The Napster Model For many years the record companies have fixed record prices to avoid competing with each other and to maximize their profits. Currently, the record companies are collaborating in order to force Napster to shut down. The record companies are claiming that Napster is breaking copyright laws. Napster is a peace of software available for free on the Internet, which allows you to download almost any song you can think of. All you need to get Napster is a computer and Internet connection, the faster the better. Should people feel sympathy for the record companies because of the supposed starvation as a result of Napster file sharing? Or should the sympathy lie with the users of Napster? Let us examine who is trying to shut down Napster and for what reasons. Let us also determine the reasons why people want Napster to remain open. The Record Company is strongly opposed to Napster for one reason and one reason only. Apparently, the record companies are losing more and more of the market to Napster file sharing on the Internet. Record companies justify their lawsuits against Napster with the line so often used in press conferences, "Napster breaks copyright laws." This phrase seems like a legitimate argument. One could understand the reasons for feeling this way. For simplicity sake, we will use Dave as an example. Dave developed a product and sells it, and, at first, his product does very well. His product is then duplicated again and again by a person who purchased his product. Dave watches his sales plummet and, of course, feels cheated. Should Dave have the right to sue the person who copied his product? Most people would say yes. This is the argument the record companies are making in defense of the lawsuits against Napster. However, let us look deeper into the matters of sales within the record companies. Record companies say they are suffering as a result of Napster. The price of a CD has stayed the same for many years as far as I can
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This note was uploaded on 03/14/2012 for the course BUSINESS 100 taught by Professor Fraser during the Spring '11 term at San Mateo Colleges.

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The Napster Model - The Napster Model For many years the...

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