1. Background The Napster software (http://www.napster.com), launched early in 1999, allows internet users to share and download MP3 files directly from any computer connected to the Napster network. The software is used by downloading a client program from the Napster site and then connecting to the network through this software, which allows sharing (uploading and downloading) of MP3 files between all users connected to the network. While Napster does not condone copyright infringement, there …showed first 75 words of 2062 total…

…showed last 75 words of 2062 total…encourage artists to embrace online distribution. I would recommend that Napster subsidises the cost of the royalty payments by showing advertising within the application (much like GetRight (http://www.getright.com/) and CuteFTP (http://www.cuteftp.com) do). This advertising could be used by advertisers to target music enthusiasts, meaning increased revenue for Napster. I believe that if the royalty option, subsidised by advertising is implemented, Napster will be able to continue safely and profitably.