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Napster Says It Will No Longer Be Free

Internet site also offers to pay artists, record labels $1 billion to settle suit

"Our member company plaintiffs have always said that they stand ready and willing to meet individually with you to discuss future licenses," Rosen said.

It is not clear if Napster's efforts will be sufficient to convince the record label plaintiffs to drop their lawsuit.

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Under Tuesday's proposal, five major labels would each receive an annual share of $150 million determined by the portion of total Napster traffic attributable to their works. $50 million a year would be similarly set aside to be distributed among independent music companies and artists.

The reaction from Harvard students to the Napster proposal is mixed.

"It's the right thing to do," said Brad W. Rodriguez '04. "It's not fun, but it's understandable."

But some doubt that even altering Napster will solve the problem of copyright infringement via file-sharing Internet programs.

"Even if [Napster] shuts down, there will always be other places to download music," said Ben G. Hanley '02.

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