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September marks the 20th anniversary of the RIAA launching litigation against consumers in a bid to extinguish — or at least dampen — the flames of peer-to-peer (P2P) file sharing. The consumer litigation was part of a multi-pronged effort that targeted internet service providers, the P2P providers like Napster and Limewire and music fans. In early 2003, nearly 40% of internet users in the United States had used a P2P service to download music, or an estimated 54 million individuals. Upon the RIAA’s announcement of consumer suits, parents began asking their children what they were doing with those stacks of blank CDs; coverage of the pending litigation stifled file sharing before the first notice was filed.

Much has been written about the P2P era, but one thing is for sure: The vast majority of downloaders knew it was illegal. If there was any uncertainty in consumer’s minds, the RIAA litigation helped to clear it up. Perhaps that is the greatest legacy of the consumer litigation, which ended in 2008. The actual law was contested for some time, with arguments about technological innovation and the promotion of that technology for purposes of copyright infringement.

By the 10th anniversary of the consumer litigation in 2013, the record labels had largely won the battle against P2P file sharing. After settlement of the Limewire copyright infringement case in May 2011, the number of people using the remaining services rapidly fell in the United States, and by 2013 had dropped 60% from the peak in 2003. Litigation was one of many contributing factors. The P2P file sharing experience was awful for users, fraught with spoofed files, pop-ups, malware, incomplete and incorrect files, and other maladies. iTunes downloads revived the singles era by offering $.99 tracks. Pandora had been at the top of app store charts for several years, and Spotify was gaining momentum. By 2013, half the U.S. internet using population was streaming, and a handful were beginning to pay for subscriptions. The RIAA moved on to other battles, notably the YouTube “Value Gap.”

As the 20th anniversary of the consumer suits approaches, there has been a stunning reversal in progress in the war to limit consumer access to unlicensed music. An estimated 55 million people in the U.S. acquired or accessed “free” music files in the past year, according to MusicWatch research — the same amount as in 2003. What went wrong? There is an abundance of apps and sites that permit consumers to obtain unlicensed music. Apps that permit YouTube stream-ripping are widely available. Mobile apps available with “free downloads” frequently contain unlicensed content. The very social platforms that the industry relies on to promote artists also harbor unlicensed content. Unlike in the P2P era, the law is clear when it comes to these forms of copyright infringement and licensing requirements, though the DMCA still provides a shield to services that rely on content uploaded by fans.

The problem is the consumer. The teenager who knew that they were committing piracy while downloading In Utero from Limewire is now an adult. Today, they can be easily confused. Their Google music searches may include content that infringes on copyright. Same for the app store on their phone. The recent spate of Taylor Swift Eras tour livestreams on TikTok, while technically the same as a stream-rip of “Cruel Summer,” does not register the same in fans eyes. On top of the unlicensed content, MusicWatch studies indicate 20 million streamers are sharing logins to music streaming services.

The industry has not been silent. The RIAA has litigated against stream-rippers. Mixtape app Spinrilla was successfully sued for infringement and shut down in May. Sony and Universal just sued the Internet Archive for copyright infringement. And as an alternative, streaming companies offer family plans, which raise ARPU and blunt the impact of unauthorized account sharing.

Unlike 2003, however, the industry isn’t paying much attention to the infringing consumer. And why should it? There hasn’t been a collapse in revenues as was experienced during the aughts. Most infringing consumers are active streamers and many pay for a subscription — and a vinyl record or two. There’s not much reason to target music fans. But that doesn’t mean that more shouldn’t be done to educate consumers and further protect the rights of artists and copyright holders.

Russ Crupnick is the principal at market research firm MusicWatch.

Napster announced that it acquired Mint Songs, a music NFT marketplace that aims to help artists establish a thriving Web3 presence, on Wednesday (Feb. 15). The acquisition brings together a streaming service with a platform focused on creating digital collectibles. 
Jon Vlassopulos, CEO of Napster, said in a statement that Mint Songs “have done groundbreaking work helping thousands of artists get their start in Web3, reach their fans in new creative ways through collectibles, and unlock significant new revenue streams.”

“We feel that the natural next step for the Napster service is to include collectibles that fans can get as rewards for engaging with artists they love or that they can purchase to collect and share,” he added to Forbes. “We already have hundreds of thousands of artist storefronts where our fans go to listen to music every day so adding collectibles is very contextual in the fan experience.”

Garrett Hughes, co-founder and CTO of Mint Songs, said in a statement that Napster has “the vision to finally take Web3 music to the mainstream.” “Our goal all along has been to create deep, engaging, and innovative ways for artists to connect with fans that also offer them an opportunity to monetize that fandom,” he continued. “Conversely, we see a demand from fans for a music service to offer more than just on-demand music and podcasts, which makes Napster’s ambitious goals all the more attractive.”

Mint Songs’ Nathan Pham will join Napster to lead Web3 product initiatives, while Hughes will serve as an advisor to the company and “work closely with Vlassopulos to integrate Mint Songs’ technology into the Napster platform,” according to the acquisition announcement. 

Last year, Napster was acquired by a pair of companies with Web3 experience: Hivemind and Algorand. Vlassopulos, who had spent close to three years at Roblox, took over as Napster CEO in September. “We want to bring the community together and enable the artists, with the data we have, to activate their communities around things like access to physical events and digital experiences,” he said at the time. Napster then launched Napster Ventures for the purpose of acquiring Web3 music startups.

Matt Zhang, founder and managing partner of Hivemind, applauded the Mint Songs acquisition on Wednesday. “We are excited for Napster to be a central player in the music Web3 ecosystem and acquiring Mint Songs is a great foundational step,” he said in a statement. “The combination of Napster’s continued innovation that powers the platform currently along with Mint Songs’ technology IP and expertise, will help drive Web3 innovation for the music industry.”