A&M Records, Inc. v. Napster, Inc. (2001)

“A service that enables widespread copyright infringement is liable, even if users act independently.”

Short Description :

This case determined that companies providing peer-to-peer music sharing platforms could be held liable for contributory and vicarious copyright infringement.

Facts :

Napster offered a peer-to-peer network for users to share MP3 files. Millions of copyrighted songs were shared without authorization. A&M Records and other music companies sued Napster for enabling large-scale copyright violations, claiming the company facilitated infringement and profited indirectly.

Findings / Reasoning :

The Ninth Circuit held that Napster was liable for contributory and vicarious infringement. Even though users performed the actual infringement, Napster had knowledge and control over the network, profited from it, and actively encouraged sharing of copyrighted material.

Suggestions / Observations :

Digital platform providers must implement mechanisms to prevent infringement. Providing a network that substantially enables illegal sharing cannot be justified by claiming that individual users commit the act.

Judgment & Date :

Judgment in favor of A&M Records and plaintiffs.

Date: July 9, 2001.