Let me talk you about a little history about music file-sharing. In 1998, a computer science major at Northeastern University, sat in front of his computer and started to create a program that would help the common man, spark controversy, and change and revolutionize the music industry. His name is Shawn Fanning, and his creation was Napster. Napster would forever change the way people would listen, share and acquire music, and the music industry would never again be the same. Napster, launched early in 1999, allowed Internet users to share and download MP3 files (music files) directly from any computer connected to the Napster network. The software is used by downloading a client program from the Napster site and then connecting to the network through this software, which allows sharing of MP3 files between all users connected to the network. While Napster does not condone copyright infringement, there is no opportunity in the software to stop this from happening, or for a percentage to be paid to artists whose songs are being duplicated for free. .
The reaction from recording artists, record labels and other music industry players has been varied, but primarily anti-Napster. The first action to be taken against Napster was by the band Metallica. In April of this 2000, they sued Napster Inc for copyright infringement. The case was settled out of court when Napster agreed to ban some 300,000 users who had allegedly downloaded Metallica songs. Again in June of 2000 Napster Inc was sued for copyright infringement by The Recording Industry Association of America (RIAA), a trade group representing the US recording industry, alleging "Napster is enabling and encouraging the illegal copying and distribution of copyrighted music". Napster claims that Audio Home Recording Act that permits copying of material for personal use, allows it's uses to swap MP3s.
After several court meetings in April 2001 the court agreed that Napster had to shut down operations.