The whole reason that Napster is so popular is because fans have recognized that music in a downloadable format is much more convenient to collect than compact discs. It also removes a lot of the barriers that keep lesser known musicians and niche types of music from being heard by more people. When so much of the value of the American economy is tied up in intangibles assets, how these assets are perceived is really the driver of value. If the market is being driven more by perception than by the principles and rules that artists, consumers, government, industry and professionals have set out, then effective governance no longer works and anarchy has taken over. This is not fair to individuals and is not reflective of our nation s democratic values.
Intellectual property is an extremely important part of our nation s export economy.
I doubt that even Napster s investors and employees and consumers want anarchy at the end of the day. Their consumers want a reliable service and those with a vested interest in Napster wish to see a return on their investment. Whether it is Hollywood in southern California or Silicon Valley in northern California, ideas and intellectual property are drivers of our nation s economic growth and international economic influence. While I am not in favor of any new governmental role here or in any new body charged with setting rules or standards for digital music distribution, we do need to work together in a new way to develop a better understanding of where music and other forms of digital intellectual property are going in this country and around the world.