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12. There are currently about six million active member accounts for the network of servers that are available for free to the public and an estimated seven million registered users with purchased accounts. See id. The Napster system allows users to download music files by selecting them from the hotlists of songs located on Napster servers. See id. Users may also access music files through the Napster's Web site, which is the result of a business relationship between Napster, Inc. and the website operator. See id. at ¶ 15. The Web site houses a music store, where users may download music for free or purchase songs.

13. Defendant accounts for more than 90% of its users. See Kessler Dec. ¶ 15. For a typical user, the average number of songs downloaded is between 50 and 75 per month. See id. Two-thirds of the downloaded music is copyrighted music. See id. at ¶ 11. The court finds that fewer than 3% of the songs purchased by account holders are copyrighted material. See id. at ¶ 15.

11. Defendant's users must first establish an account with the company by paying a one-time access fee of $8.99. See Kessler Dec. ¶ 14. Users are then allowed to download a certain number of songs, depending on the amount of money they have paid, from the Napster network of servers. See id.

4. After receiving the results of these surveys, the RIAA took the position that Napster users are violating federal copyright laws. See, e.g., Hausman Dec. ¶ 9. On August 6, 2000, RIAA counsel Richard Jacobs and counsel for Napster, Inc. Stephen F. Cooper, met with Napster, Inc.'s counsel, John Stemberger, Esquire, and John D. Phillips, Esquire. See Hausman Dec. ¶ 10. At this meeting, the parties discussed the results of the surveys and advised the defendant that it was doing business illegally by offering a service that allowed its users to download or upload MP3 files without permission. See id.

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