The Asylum is still growing. Welcome Napster, our first MP3 champion. You are now our first MP3 Lunatic reversion.

We all remember 1999 when this P2P caught fire and turned the conventional music business into the “MP3 lynch mob.” In 2000, BMG pulled a surprise move and bought the fledgling company, front cutting the other major record labels. While BMG and Napster creator Shawn Fanning were still all smiles, the “not included” RIAA brethren got a paralyzing injunction from Judge Patel. BMG then swallowed Napster whole. The acquisition turned into a disaster. The geek culture, the music biz types, and venture capitalists couldn’t stand each other. So after ruining the P2P, BMG sells Napster to Roxio. Roxio relaunches Napster. They choose a DRM schema, Pressplay, to create a music subscription model.

Now in yet another 180 reversal, Napster returns to it’s MP3 Lunatic status. Napster’s CEO Chris Gorog has announced the company has returned to the MP3 format for their music sales. The MP3 Lunatics welcome you back Napster, and we note what a long strange trip it’s been.

The Lunatics wonder… what if the record companies didn’t panic and sue Napster? Would their businesses be much healthier charging Napster users instead of suing them?