Dom

"MUSIC INDUSTRY lawyers are still keen to get their pound of flesh from the original file-sharing Napster despite forcing it to close.

Universal Music Group and Capitol Records are suing the backers of Napster Hummer Winblad and Bertelsmann for copyright infringement.

The two companies took over Napster just as the sharks from the music industry disembowelled and enabled it to keep fighting for its life in court for a few months longer.

The original Napster went offline permanently in the summer of 2001. Roxio bought the Napster brand name and re-launched it as a legitimate service.

But it seems the record companies are still fuming about the money they think they lost to the file-sharing company and claim Hummer and Bertelsmann knew about the infringement and fuelled the operation with cash.

Now Judge Patel, who ruled against Napster in the first place, has allowed the case against Hummer and Bertelsmann to proceed.

Legal analysts are a little worried about his one as it sets a precedent that means that investors in technology start ups could find themselves footing a legal bill if anything goes pear shaped."

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Source: TheInquirer