Federal Judge Orders Napster Shuttered
Blocks Sale to Bertelsmann AG

SEPT 4, 2002
Napster is likely to be broken up and sold off after the music industry insisted a federal judge block a last ditch sale that could have revived the once dominant music trading service.

On Tuesday, September 3, 2002, a bankruptcy judge bowed to the pressure of the creditors (the record labels themselves) and blocked the sale of Napster to German media conglomerate Bertelsmann AG, killing a deal that might have brought the song swapping service back as a legitimate music sharing network. Bertelsmann had sought to purchase the remains of the defunct Napster network for an additional $8 million after having already sunk $85 million into the Redwood City, Calif.-based company to keep it afloat.

This whole affair would make a great comedy, worthy of an Adam Sandler or Jerry Seinfield.... if it were just fiction. Tragically, the events of the last two years are real and show the complete ignorance of a music industry determined to put itself out of business. Under no circumstances will the industry even attempt to offer the consumer services they have shown an insatiable desire to receive.

Instead they put a knife to one of their own, seriously wounding Bertelsmann AG. And they've done little to offer consumers any alternative to free file swapping. Instead, the RIAA and their members have sunk multimillions into lawsuits and legal fees and millions more into the war chests of friendly Congressmen and Senators. And they've watched sales rapidly sink into the toilet from record levels during the heyday of Napster.

the WIZARD, fkap once again urges the major record labels to rethink their positions. Naturally they won't, but we thought we'd try one more time. One major artist will eventually break rank with these losers and the game will quickly be over.

Meanwhile the WIZARD, fkap urges you to support great artists like Emilie Autumn who are willing to sell their music on-line.