Napster, Bertelsmann scout out more players

From...

by Andrew Morse

(IDG) -- Music-swap service Napster and major recording company parent Bertelsmann continue to solicit the participation of other music groups for their vision of a secure file-sharing community, executives of both companies said Monday at the Webnoize conference in Los Angeles.

Both companies have been quiet on details of the proposed service and about negotiations with other recording companies, whose participation is needed if the new Napster is to have enough content to attract paying users. None of the other recording companies has agreed to join the Napster-Bertelsmann alliance, but both firms say talks are continuing and that they are optimistic.

	MESSAGE BOARD
MP3 wars

Napster and Bertelsmann also have been mum on how the proposed service would track downloads of songs across Napster's peer-to-peer system, though the startup's lawyers have told judges that such oversight is not possible within the system's current architecture.

However, Napster interim CEO Hank Barry said at Webnoize on Monday that the company is working to solve the issue. "There are lots of ways to do it," Barry said. "A couple of people have come forward, and we've got some ideas ourselves."

MORE COMPUTING INTELLIGENCE

IDG.net home page

The Standard.com

TechInformer: The Thinking Internaut's Guide to the Tech Industry

Reviews & in-depth info at IDG.net

E-BusinessWorld

Industry Standard email newsletters

Questions about computers? Let IDG.net's editors help you

Industry Standard daily Media Grok

Search IDG.net in 12 languages

News Radio

Fusion audio primers

Computerworld Minute

Some of those ideas deal with Napster's architecture, which unlike other leading file-sharing systems, such as Gnutella and Freenet, uses a server. Because Napster employs both client and server software ö applications that reside on a user's hard drive as well as on Napster's servers ö the company would have to be able to distribute any tracking function to both sides of the program.

Andreas Schmidt, head of Bertelsmann's e-commerce group, which forged the deal with Napster, dismissed concerns about how a new system would protect files being traded so that they would stay within the community of paying users. "Sometimes when it comes to the security concern, the industry approaches this as the National Security Agency," he said. "As we have to compensate the rights holders and artists, there needs to be some level of security."

Napster and Bertelsmann surprised the music and Internet industries two weeks ago when they announced a broad alliance to develop a secure file-sharing environment that would compensate artists and copyright holders. The new service, if it can be developed, has the potential to radically alter the way music is promoted, sold and consumed. The Big Five recording companies, including Bertelsmann's BMG unit, are suing Napster for allegedly contributing to copyright infringement.

Barry, who is a partner at venture capital firm Hummer Winblad, also said Monday that he is looking to turn over Napster's reins as CEO. "We're recruiting a new CEO," Barry said. "So we're accepting resumes."

Napster deal: What now for Internet music?
November 1, 2000
U.S. presidential candidates debate Napster online
October 19, 2000
Scour repositions itself amid Napster controversy
October 10, 2000
Tech glitch brings Napster down
October 4, 2000
Report: Retailers in for bumpy ride with digital music distribution
October 3, 2000

Online music execs question Napster deal
(The Industry Standard)
Top Bertelsmann executives resign
(IDG.net)
Sleeping with the enemy
(The Industry Standard)
ASCAP willing to issue license to Napster
(InfoWorld)
Morgan Stanley likes Bertelsmann-Napster deal
(The Industry Standard)
Napster's marketing VP resigns
(The Industry Standard)
Keeping the Napster faith
(The Industry Standard)
Bertelsmann forms alliance with Napster
(IDG.net)

Bertelsmann AG
Napster Inc.
Hummer Winblad Venture Partners

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.