The first peer-to-peer case was A&M;Records v. Napster, 239 F.3d 1004 (9th Cir. 2001). In the Napster case, the 9th Circuit considered whether Napster was liable as a secondary infringer. First,
646-665 exam the court considered whether Napster was contributorily liable for copyright infringement. To be found contributorily liable, Napster must have engaged in "personal conduct that encourages or assists the infringement.
642-456 exam "The court found that Napster was contributorily liable for the copyright infringement of its end-users because it "knowingly encourages and assists the infringement of plaintiffs' copyrights."The court goes on to analyze whether Napster was vicariously liable for copyright infringement. The standard applied by the court is whether Napster "has the right and ability to supervise the infringing activity and also has a direct financial interest in such activities.
650-393 exam "The court found that Napster did receive a financial benefit, and had the right and ability to supervise the activity, meaning that the plaintiffs demonstrated a likelihood of success on the merits of their claim of vicarious infringement.The court denied all of Napster's defenses, including its claim of fair use.