Court Rules Against Napster

Feb. 12, 2001-- The party could be over for Napster.

In an appeals court ruling handed down late this morning, Napster has been ordered to stop trading in copyrighted material.

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And if it fails to patrol its system, the court said it may be held liable.

The Recording Industry Association of America calls it a clear victory. The big music companies had sued because they were not getting royalties from the free music downloaded from Napster.

Napster says it's "disappointed" in today's ruling. The company says it's going to appeal.

A Napster statement says, "We will pursue every avenue in the courts and Congress to keep Napster operating."