Napster's $1 billion offer to settle ongoing lawsuits with the Recording Industry Association of America (RIAA) has failed to attract the response the company hoped for.
A spokeswoman for the International Federation of the Phonographic Industry (IFPI) said: "We are disappointed that Napster has resorted to a tactic that is little more than a public relations gambit." The IFPI wants Napster to remove copyrighted files from its service before it will negotiate at all.
"The company should comply with the court order and cease offering infringing files so that the appropriate climate is created for discussions about licenses and legitimate business models," the spokeswoman said.
IFPI affiliation The IFPI is affiliated with the Recording Industry Association of America (RIAA), which brought the cases against Napster on behalf of five major record labels.
EMI, one of the labels fighting Napster, agrees. "If in the end there is a compelling and convincing business model EMI would be interested," said Amanda Conroy, an EMI spokeswoman.
With its partner Bertelsmann eCommerce Group (BeCG), Napster is now in negotiations with record companies, said a spokesman for BeCG.