Judge Denies Motion to Dismiss Napster Case

LOS ANGELES (Reuters) - A federal judge in San Francisco on Wednesday denied motions to dismiss lawsuits claiming past Napster investors like Bertelsmann AG and venture capital firm Hummer Winblad kept the song-swap site going, costing the music industry $17 billion in lost sales.

In her ruling on Wednesday, U.S. District Judge Marilyn Patel, who issued an injunction against the original Napster in 2000, permitted the case to proceed through its discovery phase, saying the plaintiffs, including music publishers, songwriters and record labels, had the right to try to prove their allegations.

Details here from Yahoo! News.