JOIE CHEN, CNN ANCHOR: A federal appeals court has granted a stay to Internet music-sharing service, Napster, negating a preliminary injunction that would have closed down the operation at midnight Pacific time. CNN's Casey Wian is in San Francisco, California, where the decision was handed down a short time ago -- Casey.</s>CASEY WIAN, CNN CORRESPONDENT: Joie, two days after Napster received what many said was an effective death sentence, the online music-swapping service has been given new life by the U.S. Court of Appeals. Just about 30 minutes ago, two judges granted Napster's request for a stay of a temporary injunction won by the record industry that would have effectively shut Napster down at midnight local time tonight. The judge ruled that Napster raised substantial questions about both the merits and the form of that injunction. Napster had argued that the original injunction was too broad and that there was no way it could monitor whether copyrighted material was being traded on its service by its users. Napster also said the injunction would unfairly force it out of business, because it was forcing it to change a technology that could be used for legal, legitimate purposes. And Napster said that the federal judge ignored legal precedence that supported its case. Now, all along the recording industry has maintained the position that Napster service amounts to little more than online piracy being legitimized. Their lawyers were very confident this morning that the injunction would be upheld. This has got to come as a shock to them. We have got calls in to both Napster attorneys and attorneys for the recording industry -- haven't heard back from either one. As for what happens next, the Court of Appeals has scheduled hearings beginning next month. So, for now, Napster has a new lease on life -- Joie.</s>CHEN: CNN's Casey Wian for us in San Francisco, California.
Napster Granted Stay of Execution