we both need that back-space. You were closer to the truth than I was, as it turns out. Roxio ended up buying the name, but used it to "brand" their own software. I remembered that someone had made the offer for the company and software (turns out it was Bertelsmann), but had forgotten that that sale was blocked by the court. As usual, you can read all about it on Wikipedia:
http://en.wikipedia.org/wiki/Napster