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We cannot stand idly by as

our nation's assets

Are in jeopardy or dismissed.

By those who would use them for

their own enrichment.

That's why today's decision

Is so especially important.

Now, napster can take a nap.

I'd like to add a word or

two about the future

Of napster.

We've been developing a napster

service that offers

To members of the community.

And importantly, makes

payments to artists.

I"m focused on building

this better service

And i still hope to have it

in place this year.

The new technologies we

are developing

Are amazing.

I hope that by further review,

or by agreement

We can find a way to share them

with the community.

I would also like to

thank everyone

For being so supportive.

Napster works because

people who love music,

Share and participate.

Many people have said it

would never work.

We've heard that we

couldn't survive before,

When we had 700,000 members

And when we had 17

million members.

Today we have more than 50

million members.

To keep this community growing.

If we work together, i know

this will succeed.

Thanks.

The tipping point for my romance was

uh, after we were injuncted and then

Reinstated and then reinjuncted.

That was it. It was like

being broken up,

Uh, with, with your favorite

girlfriend uh, and

And getting heartbroken and

then her coming back

To you and, and your heart

just like okay,

Maybe i can look past the wound.

And, and nope, we reject you

again and i'm out.

It's like, ahhh, this sucks.

That was the point at which uhh,

i realized

That...

...the cool of what we had done

Was pretty much over.

You know, ritter left

because of all this.

And parker was shown the door

and shawn fanning

Slowly became detached.

He...

...he would just sit at his desk

and strum his guitar.

And if you went up to him, to

ask him a question

Or to talk to him

He would just keep

strumming his guitar.

And he'd look at you, he'd

look at you with like,

Some curiosity as if

you're like an alien.

But he would just keep

strumming his guitar.

And...

i think that, that was his way

of dealing with this.

That sort of pivotal,

pivotal sort of moment,

Where uh, it looked like things

weren't going well

Fanning was...

...on the cover of

time magazine.

Sort of, which is, in

american culture,

Like the peak of public

recognition.

And it all felt, it felt sort

of, it all felt sort of false.

I think fanning probably

felt the same way.

It's like he was going

through the motions

And doing what he had to do...

[clears throat]

Doing a huge amount of press.

But you could tell

That, that the company was

coming unglued.

Well, what's interesting is,

can i just start,

I'm so sorry, man, okay.

Well what's interesting is that,

that's not going to change.

We're going to maintain uh,

napster uh,

In it's current form, what can

i start over again?

I'm sorry. I keep

mixing up my words.

Oh, those days in san mateo,

That was our youth.

We had a lot of energy,

we were excited,

We were like a little kid

running around.

And then we became teenagers

And-And-And then the

lawsuit happened and we

Started going into adulthood.

And we get these adult

figures coming in.

And we start to get older

and by the time

By the time it had gotten

close to the end

It was like, we're old,

we're fragile.

It's the end of days, so we're

just letting the time

Pass. That's what it was like.

And i can remember right up

until the day that

I was fired, thinking,

there must be a shot.

There must, there's just no way

All this can just go away.

Uh, and then i

remember being out

The other end of the company

and still talking

To the folks that were there

And you'd keep hearing about,

you know,

The next bertelsmann loan,

the next label deal,

Discussions, the next and,

and you know,

And once you're removed from it,

you're just like oh,

Like this is not gonna happen.

Uh, but still, maybe

they're right and

Uh, i don't, that, that, it's

amazing to me now

How there was not a

chance in hell

That any agreement was

gonna be come to.

There was a very long, slow

decline of napster at the end.

And ultimately getting shut down

When the filtering

was ineffective

Because the technology

wasn't there yet.

Um, 98 point something percent,

Wasn't good enough.

I called ali aydar and i said,

'You know, we need to turn off

The file sharing here. '

We never talked about this,

but can you do it?

And he said, 'yeah,

i can do it. '

And he left the room

And he came back in a

couple hours and said,

'I turned everything off, but

it's still working. '

And it found, and we found

out that there were

A bunch of open nap

servers out there,

That were not controlled

by the company.

That other people

had implemented

And were around the world,

so the, the

Software client was

still working,

But we, the company had

nothing to do with it.

Today, napster filed

for bankruptcy.

Oh man, we, we had

to have raised

North of a hundred

million dollars.

So and that, i don't

think any of us know

Where that went.

This was such a common

question from people

Which was sort of, how do

you make money

And investment vs.

Actually making money

From service, but you know,

the idea is that

We're not gonna

generate any revenue

Until we can actually

pay artists.

And it's hard to actually think

of a startup that's

Ever raised that amount of money

That went away as quickly.

Like, usually if you raise a

hundred million dollars,

In a startup, like you got

about five years

Of, of runway.

Like you've got a ton of runway.

The thing is 80 million of it

came from bertelsmann.

Thirty million probably went

back to bertelsmann.

Using all their other services,

right?

Yeah. But then the b was 15.

We gave a million dollars to dr.

Dre.

Another million dollars

to metallica.

I have no, i mean

it's just crazy.

This is mind boggling dude.

I mean in, in any

investment calculation,

You say the paying capital let's

say, 115 million dollars.

And then the company did so

badly that it went to zero

And so the money lost, was

115 million dollars.

But wait, there's more. In

napster's case,

You have to now tally the

settlement dollars

That will float out

of bertelsmann

And everyone else and hummer.

You're talking about a 500

million dollar sink hole.

Perhaps more that

went on for years

After the asset was sold out of

chapter 7 bankruptcy.

We went to the uh...

good job.

Yeah, so thanks...

wow, man.

I promised, i

promised i wouldn't,

But yeah, uh, and that's

shawn's fault,

For the record.

- Uh, no.

- That's kind of crazy.

But we went to, we took

this awkward drive

Like a year, i think...

[conversation fades out]

[Ping pong ball bouncing]

[No audible dialogue]

We thought about going to

the supreme court,

We got advice from the lawyers

That the timing wasn't right.

That we should wait until

there was more decision

In the trial.

Do you regret that?

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