Napster chief executive Hank Barry says the company has offered several different financial and business proposals to the individual labels. The company has been working on business models that involve a subscription service, in which Napster users would pay a small monthly fee for access to much or all of the service. Assuming this fee was just $4.95 a month, Napster could potentially pay record companies close to $500 million in 2001, Barry says.

But the record companies haven't bit. They've cordially listened to the ideas but haven't gone so far as to offer counterproposals, Barry says.

"It's been basically me negotiating against me," he said. "I don't think this is about money. I think this is about control."