Napster offers music industry deal
By Sara Jeanblanc | February 22, 2001In a move that could complicate Internet music sharing, Napster offered Tuesday to settle with the recording industry. To avoid a court order that may shut down Napster permanently, the file-sharing service said in the settlement it will pay $1 billion to major record labels, songwriters and independent labels and artists over the next five years. Five major recording labels would divide $150 million a year among themselves and independent labels would divide another $50 million a year. If the settlement is accepted, Napster users would have to start paying fees to use the service.