Reference no: EM131662382

Question: Confidentiality and Privilege. Napster, Inc., offered a service that allowed its users to browse digital music files on other users' computers and download selections for free. Music industry principals filed a suit in a federal district court against Napster, alleging copyright infringement. The court ordered Napster to remove from its service files that were identified as infringing. Napster failed to comply and was shut down in July 2001. In October, Bertelsmann AG, a German corporation, loaned Napster $85 million to fund its anticipated transition to a licensed digital music distribution system. The terms allowed Napster to spend the loan on "general, administrative and overhead expenses." In an e-mail, Hank Barry, Napster's chief executive officer, referred to a "side deal" under which Napster could use up to $10 million of the loan to pay litigation expenses. Napster failed to launch the new system before declaring bankruptcy in June 2002. Some of the plaintiffs filed a suit in a federal district court against Bertelsmann, charging that by its loan, it prolonged Napster's infringement. The plaintiffs asked the court to order the disclosure of all attorney-client communications related to the loan. What principle could Bertelsmann assert to protect these communications? What is the purpose of this protection? Should this principle protect a client who consults an attorney for advice that will help the client commit fraud? Should the court grant the plaintiffs' request? Discuss.