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Business Law- Fair Use of Copyrighted Material

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In A & M Records, Inc. v Napster, Inc., the Ninth Circuit Court of Appeal determined that Napster, Inc.'s MusicShare software which allowed users to make MP3 music files stored on individual computer hard drives available for copying, search, and transfer by other Napster users, did not result in "fair use" of the copyrighted material. Explain the Court's conclusion.

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Solution Summary

The solution examines the business law for fair use of copyrighted material for A&M Records, Inc.

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Business Law

Napster defended their subscribers engaged in "fair use" of copyrighted [music] material; however, the district court's "holding that Section 1008 of the Audio Home Recording Act does not excuse [them] from liability." Thus, the Court of Appeals of the Ninth Circuit [denied Napster's appeal and] agreed with the district court's original decision.

"Napster, Inc.'s MusicShare software allowed users to make MP3 music files stored ...

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