There is also no way to regulate how many files a person possesses or what they do with these files. This is good news for the consumer, who is given a large amount of freedom to acquire music on their computer. The existing structure of the music industry consists of artists borrowing money from a record label under contract in order to record an album. As the album is sold, the artist earns a small commission that immediately pays for the production of the album, management, and tour costs. Due to the incredible difficulty to succeed outside this system, the record labels have the power to underpay, overwork, and control the art of these musicians.
Many bands make little or no profit from the direct sales of CDs.
Other than the presentation of their art, recorded music serves only as a promotional tool for tours, sponsorships, and other financial opportunities for its creators. Therefore, Napster is actually harmful to an already inefficient model for artist profit. Napster may cause a catastrophic economic failure in the media industry. One of the primary obstacles in the RIAA's case against Napster is the lack of true legal precedents. The lawsuit of the RIAA v. Napster will set much of the legal ground on how digital content is handled.