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Breaking News

Napster Founder Shawn Fanning Holds News Conference

Aired February 12, 2001 - 3:08 p.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

JOIE CHEN, CNN ANCHOR: All right, Bobbie, we want to take you out now and following up on that Napster story. The guy who founded and created Napster, Shawn Fanning, is speaking with reporters now. Let's listen.

SHAWN FANNING, NAPSTER FOUNDER: The new technologies we are developing are amazing. I hope that by further review or by agreement with the record companies, we can find a way to share them with the community.

I would also like to thank everyone for being so supportive. Napster works because people who love music share and participate. Along the way, many people have said it would never work. We've heard that we couldn't survive before when we have 700,000 members. And then we had 17 million members.

Today, we have more than 50 million members, and we'll find a way to keep this community going. If we work together, I know this will succeed. Thanks.

UNIDENTIFIED MALE: Let's do some questions.

UNIDENTIFIED FEMALE: All right, let's open it up to Q&A, please. Yes, you.

HANK BARRY, NAPSTER INTERIM CEO: You say you wanted to continue to provide access to music. How can you do that?

UNIDENTIFIED MALE: Well, we're going to look at the scope of whatever injunction is issued and we'll work within the scope of the injunction to try to do that.

QUESTION: Can you talk about this idea of it shutting down? How do you see this ruling possibly forcing Napster to shut down? Can you explain that? You said it could.

BARRY: Well, I would ask everyone -- I know it's difficult, but really reading the opinion is the best way to get a sense of what the instructions of the circuit court were to the district court. And I'll defer to John on some of the specifics of that, but I think it's worth reading.

UNIDENTIFIED MALE: The court is going to have to -- the trial court is going to have to look at this decision and explore what the limits of the system -- the Napster system are in dealing with what injunction they issue. And what we say is that Congress has protected Napster and other ISPs from having to do searches by virtue of privacy and by virtue of burdens on the system. At trial, we will bring out expert testimony that show the burdens on our system from doing the kind of name search that the court of appeals envisioned in its opinion. And that's one of the bases on which we're going to seek further review by the court of appeals, the entire court of appeals.

UNIDENTIFIED FEMALE: One follow up question.

QUESTION: If the...

CHEN: All right, for our viewers who have been watching this, these are the latest developments in the Napster story. For those of you who are not as well versed in all this sort of music swapping on the Internet, this is done largely by young people through the Internet that they're able to get music from different sites, other people's sites and trade it, swap it, in effect, through the Internet.

What's been happening here is a court injunction was planted to try to stop Napster from doing that. Today, a court ruling is that this injunction was drawn too broadly and the case must be returned to district court. What you've been listening to are some of the principals from the Napster organization, including Shawn Fanning, the founder of Napster, speaking with reporters today about their hopes that Napster at some point will continue to go on. CNN is going to continue to follow this story, bring you details throughout the afternoon as we get more on it. Now let's go back to TALKBACK LIVE with Bobbie Battista.

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