"The German media giant says it will loan money to Napster
to develop a secure file-sharing service and will drop its suit if
the service is implemented."
"Bertelsmann, the German media and publishing giant, broke ranks
today with the major record labels by announcing a strategic
alliance with Napster, the song-sharing company it had been suing.
Together, the two companies will develop the file-swapping
service's commercial potential."
"Napster has pointed the way for a new direction for music
distribution, and we believe it will form the basis of important
and exciting new business models for the future of the music
industry," said Bertelsmann CEO Thomas Middelhoff in a
"Under the terms of the agreement, Bertelsmann will assist
Napster in developing a membership-based service that compensates
artists, record labels and publishers each time a song is traded.
As soon as Napster implements the service, Bertelsmann's music
division, BMG, will withdraw its lawsuit and make its catalog
Some of the products that appear on this site are from companies from which QuinStreet receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. QuinStreet does not include all companies or all types of products available in the marketplace.