Konrad Hilbers

The company shut down its service three weeks before he arrived, prompting millions of customers to defect to competitors. To get it restarted, he must persuade suppliers to change their business models and customers to pay for something they can get for free. The suppliers, meanwhile, are suing for copyright infringement, putting the company at risk for the largest damage award in the history of U.S. copyright law.

The company shut down its service three weeks before he arrived, prompting millions of customers to defect to competitors. To get it restarted, he must persuade suppliers to change their business models and customers to pay for something they can get for free. The suppliers, meanwhile, are suing for copyright infringement, putting the company at risk for the largest damage award in the history of U.S. copyright law.

Napster Inc. said Tuesday that it recruited a former executive from BMG and America Online to take over the reins of its besieged song-swapping service, which remains suspended as a result of a legal dispute with the major record labels and music publishers. The new chief executive, Konrad Hilbers, said one of his top priorities is settling Napster's crippling legal dispute with the music industry and striking deals with the major labels and music publishers.

Napster Inc. said Tuesday that it recruited a former executive from BMG and America Online to take over the reins of its besieged song-swapping service, which remains suspended as a result of a legal dispute with the major record labels and music publishers. The new chief executive, Konrad Hilbers, said one of his top priorities is settling Napster's crippling legal dispute with the music industry and striking deals with the major labels and music publishers.

Troubled music-swapping service Napster Inc. laid off 30 employees in the third round of job cuts since October. Napster Chief Executive Konrad Hilbers said the company remains committed to launching a revenue-generating, membership-based service but needs to streamline operations.

Richard Griffiths, president of Bertelsmann Music Group's European division, quit Thursday after six months on the job, becoming the second senior executive this month to abruptly exit the record conglomerate. The departure of Griffiths signals new turmoil in the management team established six months ago by BMG Chairman Rolf Schmidt-Holtz. Schmidt-Holtz, a former chief of Bertelsmann's TV unit, was appointed to his post after the sudden death of record executive Rudi Gassner.

Napster Inc., the Internet music-swapping service shut down in a dispute with record companies, may seek bankruptcy protection in Delaware as early as today as part of a proposed $8-million buyout, people familiar with the matter said. A Chapter 11 filing would allow Napster to be bought by Bertelsmann, Germany's biggest media company, and reorganize under current management, the people said.

Bertelsmann, Germany's biggest media company, expects its income from operations to rise to $3.1 billion, boosted by its television business. Operating profit--earnings before interest, taxes and amortization--is expected to remain unchanged at about $940 million, said Bertelsmann spokesman Oliver Herrgesell. He would not provide comparable figures for 2000. Sales are to rise 31%, to $18 billion.

Napster Inc. creditors won two more weeks to solicit bids for the company's assets and stave off liquidation. U.S. Bankruptcy Judge Peter Walsh delayed ruling until Sept. 27 on a motion by federal officials to shut the firm down for good. A committee of unsecured creditors, including one of Napster's former law firms, said bid solicitor Trenwith Securities had received strong "expressions of intent" from companies willing to bid millions of dollars for Napster's technology and other assets.

Napster Inc., the beleaguered online song-sharing company, laid off 15% of its work force to "strengthen resources" for its long-delayed subscription service, Chief Executive Konrad Hilbers said. The Redwood City, Calif.-based firm also disclosed that it won't revive the controversial free service that drew more than 70 million registered users, along with a crippling copyright-infringement lawsuit from the major record labels and music publishers.

Napster Inc., the Internet music exchange service, said Monday that it has filed for bankruptcy protection as part of the planned sale of its assets to German media giant Bertelsmann. The closely held Redwood City, Calif.-based company listed $7.9million in assets and about $101million in debt as of April 30, according to papers filed with its voluntary Chapter 11 petition at the U.S. Bankruptcy Court in Delaware.

Napster Inc., once the copyright-flouting bad boy of the music world, is relaunching its online song-sharing system today as a subscription service that pays for music and deters piracy. The launch is limited to an invitation-only trial with about 20,000 participants, who will receive the service for free. The service will have a familiar look and feel but far fewer songs to download.