3DsoundSurge Press Release: Napster and Its Users Not Violating Copyright Infringement Laws, According to a Survey of the Online Community by InsightExpress

Napster and Its Users Not Violating Copyright Infringement Laws, According to a Survey of the Online Community by InsightExpress

GREENWICH, Conn.--(BUSINESS WIRE)--June 21, 2000--The majority of online consumers don't believe Napster, or its users, are guilty of copyright infringement, according to a new survey from InsightExpress, the world's first fully-automated, online market research service.

Reaction to the lawsuit filed by the Recording Industry Association of America against Napster - the Internet software community that allows music fans to swap and download music for free - was contingent upon the respondent's relationship with Napster and similar download sites: the greater the use the more avid the support of the technology.

                          Online        Music            Napster
                          Community     Downloaders      Users


Respondents saying           25%           34%              49%
that Napster
is not guilty of
copyright infringement

Respondents saying           30%           37%              53%
that Napster users
are not guilty of
copyright infringement

``These data are not surprising in and of themselves; one would expect the users of Napster would defend the technology they enjoy,'' said Charles Hamlin, President and COO of InsightExpress. ``What is telling, however, is that 52% of the online community already knows of Napster and that the technology has - in a few short months - captured nearly 20% of the download market. As use and share of Napster increases, public sentiment for the company and its technology may make halting the technology impossible.''

In addition, the greater the use of Napster-like sites, the greater the impact on the recording industry. Only 19 percent of those not currently using Napster believe that software-trading Web sites like Napster and MP3.com, will have a negative effect on their purchase habits. Conversely more than a quarter (28 percent) of Napster users say their purchase of music, videos, and books will decrease as a result of the technology. Also, 64 percent of Napster users and 60 percent of general online respondents say they will not pay to download music.

                          Online        Music            Napster
                          Community     Downloaders      Users


Respondents saying that      19%           19%              28%
Napster-like sites
will decrease their
purchases of music,
videos and books

Respondents saying that
they are unwilling to        60%           64%              60%
pay for downloading music

``The recording industry should rightfully be nervous,'' continued Hamlin, ``The trend is clearly moving away from traditional music stores. And the more the music industry tries to prevent these types of software-sharing communities, the more popular they're becoming.''

The study of adult online consumers was conducted on June 19, 2000. The 300 responses were collected from a cross section of adult online consumers in just under five hours.

About InsightExpress

Affiliated with NFO Worldwide, InsightExpress is the nation's pioneering provider of fully automated market research. Through its application of Internet-based technologies, market research acumen, and respondent management expertise, InsightExpress provides clients fast, affordable, and reliable insights into the needs, behaviors and attitudes of their targeted consumers, customers and employees. Through its end-to-end, patent-pending process, InsightExpress enables users to access the consumer input they need to make better decisions. Visit InsightExpress on the Web at www.insightexpress.com.

Contact:

     InsightExpress, Greenwich
     Anne Petray, 203/618-8511
     apetray@insightexpress.com
       or
     Edelman PR Worldwide, New York
     Jamie Cryan, 212/704-4566
     james_cryan@edelman.com