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One of the most revered names in the audio industry is seeking legal protection from its creditors. On November 19, Nakamichi">http://www.nakamichi.com">Nakamichi Corporation Japan "applied to the court of Japan for a civil rehabilitation," in the words of a company press release on the development, issued the next day. On the 19th, Nakamichi stock closed at ¥22/share (approximately 17¢); the Tokyo Stock Exchange announced that the company would be de-listed effective May 20.

Like the audio exhibits at the CES earlier this month in Las Vegas, the NAMM show in Anaheim, California is all about the passion for, and the business of, music. Or, to put it another way, both shows are about making music.

Music file–sharing service Napster">http://www.napster.com/">Napster Inc. appears to be losing its fight against the Record">http://www.riaa.com/">Record Industry Association of America. On May 8, judge Marilyn Hall Patel of the US District Court in Northern California rejected two of Napster's key defenses: that it is a "mere conduit" of information, like a telephone network; and that it had made serious efforts to prevent "repeat offenders" from using the site. Telephone companies, Internet service providers, and other types of information services are exempt by law from being responsible for the information transmitted over their systems, provided they make reasonable attempts to control abuses. Napster doesn't qualify on either count, Judge Patel found.

For months now, the music industry has concentrated all its legal firepower on Napsterhttp://www.napster.com/">Napster;, the Silicon Valley–based software company that lets users share music; and against San Diego's MP3.comhttp://www.mp3.com/">MP3.com;, which lets users upload their music to a central server and then access it from any Internet-connected computer. As of the end of June, it appears that MP3.com will likely be co-opted by the industry's Big Five until it is no longer a threat—two of the major labels have already settled with the startup—but Napster will fight on.

Federal courts long ago established that music fans have certain "fair use" rights when it comes to making copies of recordings they own. They can transfer recordings from one format to another—such as from LP to cassette tape or from CD to MiniDisc—and they can share those recordings with others, provided that the results are only for private, noncommercial use.

The Napster saga continues. As reported">http://www.stereophile.com/news/10725/">reported last week, software maker Napsterhttp://www.napster.com">Napster; and several colleges were looking at a likely court battle, instigated by music group Metallica and others attempting to prevent their songs from being distributed via MP3 audio files without official consent or payment of royalties. After Metallica announced its suit, rapper Dr. Dre also jumped in, giving Napster until last Friday to remove links to his work.

Napsterhttp://www.napster.com">Napster; may have finally won a round in court. The Federal District judge in the music industry's ongoing case against the file-sharing service has allowed for the possibility that the plaintiffs may have abused their own copyright privileges in the launch of their online music services, MusicNet and pressplay.