Napster files for bankruptcy

Napster Inc. filed for bankruptcy today, seeking court protection from creditors as music industry heavyweight Bertelsmann AG followed through on a plan to take over what was left of the company.

The Internet music-swapping service has agreed to sell its assets to Bertelsmann for eight million dollars (£5.7 million) in cash and the assumption of certain liabilities, according to papers filed in a Wilmington, Delaware, court.