can be adapted to the benefit of all of the parties involved, the artists, the industry, and the users. >> napster should have been an early version of itunes. it's kind of a tragedy it didn't happen back then. >> today the u.s. court of appeals ruled napster is infringing on copyrighted music, in essence letting its users steal songs. >> the music label executives absolutely didn't want any kind of itunes-style distribution infrastructure that would fit with the internet, because they were terrified of unbundling the single from the album. so for a long time they've been able to take one hit song like "complicated." ♪ tell me why did you have to go and make things so complicated ♪ >> if that song comes out in the late '90s, it's going to move 20 million albums at $10 each. five or six years later, it's no longer going to move 20 million albums. it's going to move 20 million songs at 99 cents each. so you've just lost 90% of your revenue. >> cd sales have dropped almost one-quarter in just three years.