3DsoundSurge Press Release: Gartner Reports Napster Banned at 34 Percent of Colleges and Universities

Gartner Reports Napster Banned at 34 Percent of Colleges and Universities

Internet Policies Reinforced as Web Surfers Return to School

STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 30, 2000--According to a report released today by Gartner Group, Inc. (NYSE:IT and ITB), 34 percent of U.S. colleges and universities have banned Napster to Internet users surfing over campus servers. Gartner polled 50 of the nation's public and private higher education administrations (see Table 1) and found that Napster on campus networks is raising several moral and legal issues that will be at the forefront as students return to campus this fall.

The Gartner report outlines current practices and policies regarding copyright issues and Internet access. Administrators are quickly making the ban/no ban decision and preparing to implement their school policies. Those policies must cover legal issues concerning copyright, censorship, network capacity concerns and moral issues.

``This is a real-world class lesson on campuses nationwide,'' said P.J. McNealy, senior analyst for Gartner's e-Business Services. ``This is where the school policies must address the student or consumer behavior, and national copyright and censorship laws will help shape the outcome for the music industry.''

With Napster's bid to stay in business still alive in the Ninth Circuit at least into September, it means that college students across the United States will have a chance to use school networks, and Internet access, to download and exchange more MP3 music files. As college IT departments prepare for large traffic loads because of Napster, universities must address liability concerns.

``I would not want to be the university president who neglected to update the school policy regarding music downloads this year,'' added Robert Labatt, principal analyst for Gartner's e-Business Services group. ``Long legal battles can be costly, and one school could easily be singled out to set legal precedent this year.''

                               Table 1

              Where Will Napster Be Allowed and Banned?

Napster Allowed                    Napster Banned

Babson College                     Arizona State University
Bates College                      Fresno State
Boston College                     Georgia State University
Boston University                  Hawaii Pacific
Brigham Young University           Kent State
Colgate                            New York University
Columbia University                University of Northwestern
Cornell University                 Notre Dame
Duke University                    Oregon State University
Florida State University           Rice University
Georgia Tech                       Santa Clara University
Harvard                            Seton Hall University
Iowa State                         University of California, San Diego
Michigan State                     University of Mississippi
MIT                                University of Texas
Penn State                         University of Southern California
Princeton                          Yale University
Rensselaer Polytechnic Institute
Stanford University
Texas A&M
UC Berkeley
UCLA
University of Colorado, Boulder
University of Florida
University of Idaho
University of Michigan
University of N.C., Chapel Hill
University of Oregon
University of Pennsylvania
University of Wisconsin, Madison
Villanova University
Washington State
Wellesley College

    Source: Gartner (August 2000)

``Schools must consider the implementation of ethical standards and policy guidelines, even written agreements, that explicitly state that copyright infringement is illegal and will not be tolerated,'' McNealy said. ``Corporate managers should learn from the experiences of their collegiate counterparts and ensure that copyright policies within their own organizations are created and adhered to.''

Additional analysis is available in the Research Brief titled ``Colleges and Universities Prepare for Napster's Sophomore Year.'' This document examines the liability issues involved when deciding if a university should allow students to use Napster on campus networks.

This Research Brief is available to subscribers of Gartner's e-Business Services. These programs are part of a wide range of Gartner services examining the e-business industry. These programs are designed to help senior executives, strategic planners and investors capitalize on emerging opportunities by providing research and analysis on electronic commerce and Internet marketplaces. Additional information on these programs is available on Gartner's Web site at www.gartner.com/public/static/home/ggebiz.html. To purchase this specific document or subscribe to these services, please call 800/419-DATA or 408/468-8009.

Additional analysis on the outlook for the e-business industry will be provided during Gartner's Symposium/ITxpo 2000, October 16-20 in Lake Buena Vista, Florida. This event is the IT industry's largest and most strategic conference providing business leaders with a look at the future of IT. Some of the speakers at this year's event include Hewlett-Packard's chairman and CEO, Carly Fiorina; Sun Microsystems' chairman and CEO, Scott McNealy; and Microsoft's president and CEO, Steve Ballmer. To register for Gartner's Symposium/ITxpo 2000, please call 800/778-1997 or 203/316-6757, or go to www.gartner.com/symposium. Members of the media can register by contacting Lisette Kwong at 212/320-2330 or lkwong@tsicomm.com.

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Contact:

     Gartner Group
     Carol Wallace, 203/316-3575
     carol.wallace@gartner.com
     Tom McCall, 408/468-8312
     tom.mccall@gartner.com