The failure of Napster and its caused

There are many companies extremely successful in the e-commerce business such as eBay, Amazon.com, Google and so on. On the other hand, there are also a large number of the companies’ failures to maintain their e-commerce. One of the company failures in the e-commerce is Napster.

Napster was a website provided online music file sharing service created by Shawn Fanning while he was attending Northeastern University in Boston and operating between June 1999 and July 2001. It was the first widely-used peer-to-peer sharing service, and it made a major impact on how people, especially university students, used the internet. It is a technology allowed music fans to easily share MP3 format song files with each other.

The primary reason that caused the Napster shut down is because leading to the music industry's accusations of massive copyright violations. In 2000, A&M records and several other recording companies sued Napster for contributory and vicarious copyright infringement under the US Digital Millennium Copyright Act (DCM Act). The music industry made the following claims against Napster:
(1) That its users were directly infringing the plaintiff's copyright;
(2) That Napster was liable for contributory infringement of the plaintiff's copyright; and
(3) That Napster was liable for vicarious infringement of the plaintiff's copyright.

Finally, Napster lost the case and the District Court ordered Napster to monitor the activities of its network and block access to infringing material when notified of that material’s location. Napster unable to do that, and so finally shut down its in July 2001 and declared bankrupt in 2002.

A company actually can avoid the pitfalls that plagued Napster by choosing a corporate culture which would insure that a similar situation doesn’t happen to your company. The companies, who interest to create a successful e-commerce, can entitle into the success company to refer them how to manage their business through internet and take up certain necessary action to maintain it.