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seemed to be changing,” a top record-industry executive said. The talks never regained momentum, due mainly to inattention on Napster’s part. “It was like someone let the air out of their balloon,” another record executive said. Hilbers remained outwardly optimistic. “I put together a model of what Napster needs,” Hilbers said then. “We need to convince [the labels] that MusicNet and Pressplay didn’t work. I think we are close.” But in March 2002, Hilbers acknowledged that Napster had at least temporarily walked away from work on a deal. He stressed then that Napster had time: Patel had recently allowed Napster nine more months to obtain documents about the labels’ alleged misuse of their copyrights, putting off the possibility of summary judgment until 2003. Yet with every month that passed, the rival pirate services got bigger, while the only thing getting bigger at dormant Napster was the red ink. Soon, the labels learned why Napster had suddenly grown too preoccupied to negotiate.

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