Hearing Set for July 28. Napster is the Internet service that allows people to freely swap MP3s -- or digitized computer files containing music -- many of which are pirated versions of copyrighted music. Facing a July court date, Napster is working to strike a deal with the Recording Industry Association of America The Recording Industry Association of America, a Washington, D.C., trade organization representing the big record labels, along with several musicians, has filed a series of legal actions against Napster that could lead to the site's closure. The federal judge presiding over the case, who thus far hasn't been sympathetic to Napster's legal arguments, has set the next hearing for July 26. Napster officials have long said they wanted to compensate artists and others for music that is downloaded on the site and have talked about several ways to make that happen, from a per-song charge to a monthly subscription fee.