San Francisco - A federal appeals court has ruled that German media conglomerate and one-time Napster investor Bertelsmann does not have to disclose its lawyers' communications regarding a $50 million loan it provided Napster in 2001, the Associated Press reported.

The major record labels still have a lawsuit pending against Bertelsmann, who they say is guilty of abetting copyright infringement through its support of the then-unlicensed and free file-sharing service.

The 9th Circuit Court of Appeals on Wednesday ruled that Bertelsmann's attorney-client privilege cannot be broken in this instance, as it was not compelled by the labels' argument that a crime or fraud had been committed.

In addition to Bertelsmann, the labels also sued Hummer Winblad Venture Partners for facilitating copyright infringement over its investment in Napster.

Related Links:
http://tinyurl.com/29wgtx (AP)

http://www.bertelsmann.com