States Sue Record Companies For Price Fixing

Logic Bomb writes: "Twenty-eight states filed a federal lawsuit today against the five largest record labels alleging price fixing on compact discs. The Federal Trade Commission has dealt with this before, through an out-of-court settlement that was supposed to fix the problem. A Reuters article provided by Yahoo gives good details."

Comments

Re:A couple questions

[Silver A]

My question is, why were they doing this? Why would juggernauts like Sony and Warner Brothers do a damn thing to help out small stores at the expense of huge business partners like Wal-Mart? What was in it for them?

Because business "partners" like Wal-Mart are too powerful for Sony and WB's taste. Mom'n'Pop have to take the prices that the record companies charge; Wal-Mart can tell Sony how much they're willing to pay, and cut off a significant amount of their sales by not accepting a higher price.

Inevitable given the Attention

[Badgerman]

Considering how the Napster lawsuit focused the public eye on record companies (the Napster lawyer, Courtney Love's salon.com article, etc.) this was inevitable.

1. The public knows how the record companies have shafted people and won't be sympathetic.
   
2. The states know the record companies have shafted people and smell a chance to make money and/or impress the public.
   

The companies shined attention on themselves by going after Napster, and I rather imagine they aren't enjoying the results now.

Don't expect this to be the last lawsuit either - you know that once people smell an easy target, those things multiply.

Negativland essay

[Kevin T.]

An essay describing the history of CD manufacturing and price-gouging can be found at:
http://www.negativland.com/minidis.html

Lots of other information on the record industry, copyright, and intellectual property issues is available on their site.

quoted verbatim

[adimarco]

This comment is quoted verbatim from an RIAA website. The original page can be found here.

Frankly, this is a big load of shit, and doesn't deserve a +2 insightful ;)

Anthony

Well, this is certainly interesting

[revscat]

A careful consideration of the facts in the case, as well as the legal precedents set forth beforehand can lead to only one reasonable reaction to this decision by the states:

BWAAAAAHAHAHAAHAHAHAAHAHAHAHA!!

You fucking greedy bastards! We knew it all the time! You have absolutely no moral authority to tell Napster users what to do when you're criminals in your own right! Take a long walk off a short cliff, you RIAA scum!

Wow, that was totally juvenile. But I feel SO much better.

- Rev.

Re:But will anything come of it?

[xtal]

One might also argue that the advertising and distribution might not be necessary but for the big name labels and their promotion of crap like the Spice Girls. How many ads have you seen on TV for Johnny Welfare Garage Band? Not to many. You might have seen them in your local pub though - and the RIAA didn't have diddly to do with that.

I can't quote you what a recording session at a studio costs, but I would hazard a guess you can get reasonable work done for less than 100 kilobucks - maybe 25? That's not a justification for record prices as I see them. Especially given most artists only see a few dollars at most - and all those promotions, ads, and radio play are taken off THEIR cut - because that money was an advance from the label. Hole had a pretty good rant about that (linked of some /. article last time we all debated this).

The industry is a crock of shit and screws over a lot of people that care about their music. Don't think otherwise. They're scared shitless the internet is going to take away their "distribution model" aka "gravy train", and all the power to them.

Ever ask yourself why you can't walk into Sam's with a Rio, download a song for $0.50, and walk out?

Government Intervention

[JohnG]

Alot of people complain when they see the government doing something like this. They say that the government is sticking it's nose where it doesn't belong and such. I think that you have to step back and look at the whole picture. I for one am comforted by the fact that I live in a country/state whose government looks out for the rights of the people. Sometimes they might do something "for us" that we don't agree with, but it's better than them doing nothing for us at all.
As far as this case goes I am glad to see it happen. I think that the whole Napster ordeal should have been a clue to the RIAA that they need to lower their prices but it wasn't. Though the record companies might not see it this way, this case is going to help them. If the prices are lower people might not feel the need to pirate. And if you sell more product, even at a lower cost, you can still make more money.
Besides this issue has been huge, Napster versus RIAA is huge. The government has already been made involved by the RIAA and thier actions against Napster, if they don't do something that could stop the madness, then they will have to put up with Napster cases until the end of time. Just be thankful that they are doing something that helps us instead of something that hurts us... like shutting down anything with the name MP3 in it.

Re:Price fixing, shmice fixing

[Ian Wolf]

Oh joy, yet another US-centric article griping about imagined flaws in the American legal system.
Did it ever occur to you that Slashdot is based in the US and is obviously going to be a little slanted in that direction? This is news that is happening in our "backyard", its important to us.
When I see an article about things going on in France or England or anywhere else in the world, I look at it as an opportunity to learn a little about the problems facing the people and the country. I don't make an annoying post about how much coverage that country has been getting lately.
Furthermore did it ever occur to you that all legal systems are flawed and that only through critical discussion can those flaws be found. Its much more productive to discuss the problem then to whine about it.
Price fixing is normal in other countries, and, believe it or not, none of them have been taken over by massiv evil corporationsy et.
Well now that's settled we'd might as well start homogenizing the world. What's good for one country must be good for everyone.
Come on! There are a lot of things in this world that are completely normal in one country, but are completely alien to others. Some of us call it culture, and some of us even respect other people's culture.
Whether or not Price Fixing is normal in Japan is irrelevant. In the US its illegal, and as long as its illegal we as citizens and consumers have a right to ask that the law be upheld. We aren't always listened too, but it certainly is nice when we are.
For example, many sectors of Japan's economy are controlled by huge monopolies (yes, including the record companies), and people the world over look up to Japan's amazing economic success.
Some people look up to Microsoft too. Some people thought what Adolf Hitler did with Germany in the Pre-World War II days was something to look up to. He even got Time's "Man of the Year". You know what though? The end doesn't justify the means.
It's only when the government tried to deregulate the economy that it crashed.
Isn't oversimplification grand. I suppose that the Boston Tea Party was the only cause of the American Revolution. That the invasion of Poland was the only reason World War II got under way.
Price fixing is not the end of the world.
No it isn't, but it is illegal.
Sure, it might mean higher prices for consumers,
Which is precisely why it is illegal.
but it doesn't mean that there's some huge illuminati-like conspiracy out there trying to "get" consumers.
Damn, did I walk into a Katz article by mistake..
So you have to pay more for a crappy CD. Who cares? Price fixing happens -- get over it!
Another brilliant statement.
Cop: "I'm sorry Mrs. Smith, but murder happens, you'll just have to find another husband and get over it."