U.S. District Court Judge Marilyn Hall Patel has set a hearing date of March 2 in San Francisco to modify the preliminary injunction against Napster, Billboard Bulletin reports. The injunction went ba

U.S. District Court Judge Marilyn Hall Patel has set a hearing date of March 2 in San Francisco to modify the preliminary injunction against Napster, Billboard Bulletin reports. The injunction went back to Patel for retuning after Napster lost its appeal with the Ninth Circuit Court of Appeals last week.

At the hearing, attorneys from Napster, the RIAA, and music publishers will provide their input on the terms of the injunction, which could go into effect that day. On Feb. 12 the appellate court ruled that Napster must stop trading in copyrighted material and may be held liable for "vicarious copyright infringement."

"Under this decision Napster could be shut down -- even before a trial on the merits," Napster CEO Hank Berry said of the ruling. "The Court today ruled on the basis of what it recognized was an incomplete record before it. We look forward to getting more facts into the record. While we respect the Court's decision, we believe, contrary to the Court's ruling today, that Napster users are not copyright infringers."

Earlier this week, in an apparent effort to show consumers that it is attempting to settle the copyright-infringement lawsuit filed against it by the major record companies, Napster put a $1 billion offer on the table. Under the proposal, the file-sharing service will pay the five major labels -- BMG, Sony, Universal, EMI, and the Warner Music Group -- a lump annual sum of $150 million for the next five years for non-exclusive licenses to their catalogs, and pay independent labels and artists $50 million over the same period.

Napster says money for the settlement will be raised from consumers signing up for its subscription model, expected to launch in July.