"Earlier this week, the well known San Francisco,
California-based Hummer Winblad Venture Partners agreed to pour $15
million (US$) into popular music-swapping site Napster, stirring up
another hornet's nest of controversy in the music industry. "
"Hummer Winblad's action begged the question: Why would anyone
invest in a music company that is struggling to defend itself in a
climate of acrimonious legal battles? Napster and its cohort,
file-swapping software maker MP3.com, are facing lawsuits from such
big name artists as rock group Metallica and rapper Dr. Dre, as
well as the powerful Recording Industry Association of America
"It was hardly surprising that the announcement of Napster's
much-needed cash infusion immediately drew fire. A large
contingent of people in the music industry feel the San Mateo,
California-based company is lining its pockets by making it easy
for consumers to rip off artists via the Internet."
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