Napster, Inc is San-Mateo based small company that distributes a free software called ¡°MusicWare¡± that allows users to exchange MP3 music files stored on their own computer hard-drives directly among users. Napster maintains a server that maintains only names of music files and location, which becomes available when users with ¡°MusicWare¡± software logs in to Napster server. This facilitated free music file sharing among users. Recording companies, in this case A&M Records Inc, argued …showed first 75 words of 1807 total…

…showed last 75 words of 1807 total…is Napster cannot be fully protected by AHRA because it doesn¡¯t meet all criteria. As for DMCA, Napster doesn¡¯t completely meet the protection of DMCA because first, it had actual knowledge of infringing material and activity, but failed to stop it, and second, it had direct financial benefit from the infringing activity. Therefore, although my personal preference is for systems like Napster to exist, reasoning concludes that Napster had engaged in contributory infringement.