Napster controversy (2000–2001)
In 2000, Metallica discovered that a demo of its song “I Disappear”, which was supposed to be released in combination with the Mission: Impossible II soundtrack, was receiving radio airplay. Tracing the source of the leak, the band found the file on the Napster peer-to-peer file-sharing network, and also found that the band’s entire catalogue was freely available.[49] Legal action was initiated against Napster with Metallica filing a lawsuit at the U.S. District Court, Central District of California, alleging that Napster violated three areas of the law: copyright infringement, unlawful use of digital audio interface device, and the Racketeer Influenced and Corrupt Organizations Act (RICO).
Though the lawsuit named three universities for copyright infringement, the University of Southern California, Yale University, and Indiana University, no individuals were named. Yale and Indiana complied and blocked the service from its campuses, and Metallica withdrew the universities’ inclusion in the lawsuit. USC, however, had a meeting with students to decide what was going to happen with Napster. School administrators wanted it banned as its usage accounted for 40% of the bandwidth not being used for educational purposes.
Metallica hired online consulting firm NetPD to monitor the Napster service for a weekend. A list of 335,435 Napster users who were believed to be sharing Metallica’s music was compiled, and the 60,000 page document was delivered to Napster’s office as Metallica requested the users be banned from the service. The users were banned, and rap artist Dr. Dre joined the lawsuit against Napster, which resulted in an additional 230,142 Napster users banned.
Ulrich provided a statement to the Senate Judiciary Committee regarding copyright infringement on July 11, 2000. Federal Judge Marilyn Hall Patel ordered the site place a filter on the program in 72 hours or be shut down. A settlement was reached between Metallica and Napster when German media conglomerate Bertelsmann BMG showed interest to purchase the rights to Napster for $94 million. Under the terms of settlement, Napster agreed to block users who shared music by artists who do not want their music shared. However, on June 3, 2002 Napster filed for Chapter 11 protection under U.S. bankruptcy laws. On September 3, 2002, an American bankruptcy judge blocked the sale to Bertelsmann and forced Napster to liquidate its assets according to Chapter 7 of the U.S. bankruptcy laws.
At the 2000 MTV Video Music Awards, Ulrich appeared in a skit with host Marlon Wayans that blasted the idea of using Napster to share music. Marlon played a college student sitting in his dorm room listening to Metallica’s “I Disappear”. Ulrich walked in and asked for an explanation. On receiving Wayans’ excuse that using Napster was just “sharing”, Ulrich retorted that Marlon’s idea of sharing was “borrowing things that were not yours without asking.” He called in the Metallica road crew, who proceeded to confiscate all of Wayans’ belongings, leaving him almost nude in an empty room. Napster creator Shawn Fanning responded later in the ceremony by presenting an award wearing a Metallica shirt, saying, “I borrowed this shirt from a friend. Maybe, if I like it, I’ll buy one of my own.”
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