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The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster, Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files--which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital.

The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files -- which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital.

The founders of iCraveTV had a great idea for a potentially lucrative market segment: retransmitting network broadcast television signals to Internet-connected PCs, reaching a worldwide extension market. There were several resourcing obstacles to overcome while entering the fiercely competitive broadcasting industry and building competitive advantage: obtaining rights to the programs, securing paying advertisers, retaining viewers, having sufficient cash and management expertise. Several issues remained unresolved as they moved towards the launch of iCraveTV: negotiating rights from each of the content syndicators or attempting to pay Internet royalties for the programming; and preventing U.S. users from accessing the Canadian site since iCraveTV was legally permitted to retransmit television signals already carried on Canadian cable channels, but due to differences in regulation, it might face U.S. broadcast industry objections if U.S. audiences found access to the iCraveTV signal. A supplemental case, iCraveTV.com (B): The Aftermath of the Pennsylvania Injunction, product 9B01M010, is available.