Major record studios sued a five-month-old music company today, claiming that its software creates a black market for illegal copies of digital music. In a lawsuit filed in U.S. District Court in Northern California, the Recording Industry Association of America charges start-up Napster with violating federal and state laws through "contributory and vicarious copyright infringement," because it has created a forum that lets online users trade unauthorized music files directly from their PCs. "We love the idea of using technology to build artist communities, but that's not what Napster is all about," Cary Sherman, senior executive vice president and general counsel of the RIAA, said in a statement. "Napster is about facilitating piracy and trying to build a business on the backs of artists and copyright owners."...

Read the full story here -