RIAA Dumps Unsold Inventory to Settle Anti-Trust Case
theodp writes "A music windfall promised to WA public schools and libraries from last year's $143M anti-trust settlement with the recording industry wasn't all it was cracked up to be. While WA got 115,241 music CDs out of the deal, folks aren't quite sure what to do with the odd collection, which includes 387 CDs containing explicit lyrics by Big Pun, 310 copies of Will Smith's Willenium and 48 copies of Spooky Scary Sounds for Halloween from Martha Stewart."
They could use the Big Pun CDs as part of English class and how not to speak. Classics such as "Nigga Shit", "You Was Wrong", and "Off Wit His Head" are excellent examples of poor grammar. So it's obvious that the RIAA was thinking about our school children there.
The Spooky Scary soundtrack can be used to frighten children away from prison. "Listen to Martha screaming as she is tackled by larger more 'friendly' inmates!" Again, point for the RIAA.
114 copies of Meredith Brooks' "Blurring the Edges," which includes the Grammy-nominated song, "Bitch."
It was nominated for a Grammy so it must be good! The RIAA was doing them a favor obviously.
Farley's regional district, which covers 35 school districts, received 1,355 copies of Whitney Houston singing "The Star-Spangled Banner." The hit single, which Houston sang before the 1991 Super Bowl at the height of the Gulf War, was 5 percent of the district's cache.
Yes, let's promote a current drug abuser with a husband that likes to stay in prison. That's the sort of lesson we want to be teaching our children. "Look kids, you too can be a successful musician *and* be a crackhead!"
While these examples are a small part of the 115,000 total CDs I still have to say, "way to go RIAA, you are corrupting our children with crappy music in stores, radio, and now even in the classroom! Thanks!"
From the Article: Raunchy music wasn't what anyone in education or the Attorney General's Office had in mind when they announced that a windfall of music was coming to public schools and libraries from last year's $143 million anti-trust settlement with the recording industry.
Yes, but it's exactly what the RIAA had in mind, so couldn't the Attourney General charge the RIAA with the intentional corruption of youth? Gosh if the world was perfect, the RIAA would be charged criminally for trying to push explicit lyrics on children.
The dangers of knowledge trigger emotional distress in human beings.
I think fire is the solution.
This is surprising how? Not only can the RIAA pay their settlements, but they can also take a tax write-off on unsold product. It's a win-win for the RIAA, and a dubious victory for the lawsuit winners.
Is that this was one huge tax write off for the RIAA. They get to declare full retail price on these CD's on taxes, AND they clear out inventory
The RIAA has to be seeing these CDs and thinking, "If people aren't buying Willenium, what are we doing wrong?"
They try to spin this component of the settlement as a heroic act, giving back to the community. Now they won't be able to do even that.
I had to look at the calendar to make sure it was not April 1. What on earth are schools going to do with Big Pun, and Will Smith cds? Besides use them for coasters in Chemistry class? Even when the RIAA loses, they still win. They are like a cat that always lands on it's feet. So they have to "pay" by clearing out warehouse space and writing off the "losses", ouch.
I hate sigs.
..the kids didn't get a copy of Marthas next album..."Not Quite Spooky Sounds from Cellblock 11."
Considering they have several Billboard charts this is very subjective. I'm guessing that they sent CDs based upon the Billboard chart subjective to their music genre. Because I know that Wilson Pickett, "In the Midnight Hour", Yanni, "In the Mirror", "Chicken Soup for Little Souls", or Martha Stewart's Halloween sounds haven't made it anywhere close to the Billboards TOP charts. Unless we were looking at a very large Top Billboard chart.
Hmmm.
Didn't Microsoft have a similar payout in one of its settlement cases? At least people can use software, nonoby, and I mean nobody can use 300 copies of a crap CD that didn't sell very well to begin with. What a rip-off!
They might as well have sent them 10,000 AOL CDs.
what? what I thought we were in the trust tree in the nest, were we not?
... if you're at all surprised by this.
:)
Nobody? That's what I thought
An who in the gov't decided that shitty music that doesn't sell is an appropriate method of payment?!?!
Disgusted. I'm going to go steal some music off of the internet now.
Blar.
Spooky Scary Sounds for Halloween is the shit! I blast that on my 15s while sippin' on 40s.
What with deranged strangers bursting into your home and smashing all of the copies they can get their hands on (before trying to induct you into their cult and sell you aluminum siding), there is always the danger that you will be without an actual copy of "Willenium" at a vital moment. I find absolutely nothing wrong with the RIAAs actions in this settlement. I just wish I could share in the windfall. I've personally purchased over 15,000 copies of "Willenium" since it's release. I'd buy 15,000 more when necessary.
See the "creativity corner" at the bottom of this page. ;)
This might keep them busy for a while
Trolling using another account since 2005.
..is why God invented handguns.
can the schools refuse/demand something else rather than the explict lyrics material? Isn't it illegal to sell it to minors? What is a school going to do with it?
I had a great sig.. then I lost my penmanship.
"Now listen closely children as I am forced to toss Bertha's salad. Definitely NOT a good thing."
Is it just me, or does this sound scarily familiar to Microsoft's failed attempts to "settle" by giving free copies of Windows to schools? I hope that no more companies are allowed to "atone" for their sins by giving out freebies to further secure their footholds in the marketplace. Not that Will Smith was going to do much for that anyways, but its the principle of the matter.
Help a college student
I wonder if they had duplicates of the same CD there.... like... this story!
It still might be a tax write off and a way to get rid of dead inventory, but they have an excuse. *smile*
"You can now flame me, I am full of love,"
...which was to just pay cash. But in pennies.
Peace
What do you mean?? This is a once-in-a-lifetime opportunity for schoolkids to conduct important research on compact disc aerodynamics and durability! Take them up to the roof and see how far they'll fly. See what the old magnifying-glass-in-the-sun trick does to them. Or you could lay them all down data-side up on a grass hill, turn on the hose and make a kickass Slip N' Slide!
What are they going to do with these CD's? The answer is obvious! Rip 'em and put 'em on KaZaA!!
My Quadra 950 can beat up your honor student.
The point is, just because the RIAA says these CDs are worth $17.00 doesn't mean they can be used as currency. I mean, isn't that sort of artificial valuation what got them in trouble in the first place?
I've decided that one pound of my crap is worth a couple of thousand dollars. When next month rolls around, I think I'll give a pile to my landlady and tell her to keep the change.
The CB App. What's your 20?
Oops. I hope my parole officer doesn't read this post.
as many copies of those cds as possible and sell them for a dollar each. Turn 115,000 cds into thousands and maybe even millions of real US $$$ for the school district. Then put up a monument to RIAA for assisting in the birth of WA-School E. Wabbit Music Store.
I am not offended by profane lyrics, but why give hundreds of copies of cds rather than a financial donation they could actually put toward... um, MUSIC!!!!
I know, my apologies for using logic and expecting some reasonability and rationality from an organization worried about from where Big Pun's next meal is coming, and whether Justin Timberlake 's entourage is properly pimpin'.
Thanks RIAA for reestablishing my distaste for the corporate world.
He who confuses his religion with his science knows neither.
So if you had to give someone $500 worth of your stuff, wouldn't you pick a bunch of stuff you didn't want to begin with? (Well, assuming you don't care about the recipient.)
While I didn't RTFA in true /. style I have got to guess that the RIAA valued each one of these CD's at full markup price rather than what they actually cost to make.
So in addition to the fact that they get to clean out their warehouses to make room for new crap they are distorting the economics by valueing each of these CDs higher than what anyone would have paid for them.
In reality these things would have sat around until it became cheaper to sell them off for next to nothing. Instead they are getting full value, granted for a lost court case, for something that never had that much value to begin with. They win again...
Really, I know what I'm doing...Ohhhh, look at the shiny buttons!
So if the RIAA is giving away CDs instead of a cash payment, shouldn't the artists receive the royalties on those CDs as if they were sold at the stated value?
Of course, if they're excess inventory, the point is probably moot as the royalties wouldn't have covered the recording and promotional expenses yet, so it's not real money yet.
Robert Frost's parole officer doesn't read that.
No, that is not exactly what RIAA had in mind. The school districts do not *have* to expose children to these CDs. The RIAA intended no such thing; they were just grudgingly complying with a court settlement. What use could the district have for those CDs? Well, they could sell them on eBay and then use the profits for books, couldn't they?
A NYC lawyer blogs. http://www.chuangblog.com/
from the article:
Included in the shipment: 84 copies of an album by rhythm-and-blues artist Samantha Mumba, 69 by Lenny Kravitz and 48 copies of "Scary Sounds for Halloween" from Martha Stewart.
from Martha Stewart's "Scary Sounds for Halloween" CD, track 1:
"Ms. Stewart, SEC on line 1..."
Do you think RIAA has CDs worth listening to? Maybe this was the cream of the crop. Seriously, why didn't the settlement let schools and libraries specify which titles they want?
This is just like the Nintendo case a long time ago. Nintendo was puttin' the squeeze on the little guy, in a blatantly illegal manner, and the remedy was that they were forced to provide coupons for their own products to the consumers.
See, their punishment was that they received more sales. Which is kind of what has happened here. The RIAA's punishment is to clear out old inventories as a part of a tax writeoff. The old "You've been bad, here's a dumptruck full of money" punishment.
That's the American way. Of course, if I stiff someone out of thousands of dollars (or even steal one dollar from thousands of people), it's off to ol' pound-you-in-the-ass prison for me. Maybe I just need to wear a tie, smile, and not pay taxes while I do it.
I don't think I fully understand the point of the settlement.....didn't WA accuse the RIAA of selling music at really high prices?? First off why would the RIAA settle this lawsuit, I think they were in the right on this one....if I want to make a music CD and sell it for $100,000,000 a copy and you're dumb enough to buy it, that's your problem, not mine! It really pisses me off when consumers claimed they were ripped off because the prices were too high (eg Microsoft Windows lawsuits)....nobody, and I mean nobody, is forcing you to buy anything and there is absolutely no need to buy those products, most things are either for entertainment or to increase your productivity and if you want to have fun and be lazy then you're going to have to pay for it. So if you don't like the price of something and want to not only send a message to the company selling the item, but the whole industry, then don't buy those types of products....that'll force the company(s) to lower their prices. And what WA attorney would even say "give me a warehouse full of old CDs and we'll call it even"...how does that even remotely benefit anybody, especially the consumers that were supposedly ripped off?!?!?!
"Remember, moms, after you've returned from the English countryside with your hand picked wild pumpkins, only use platnium carving knives (available online from buymarthascrap.com) for maximum effect. Now, of course you're thriving hives out behind the pool house have led to a bumper crop of natural beeswax candles this year, so..."
There was a rumor that Stewart cut an album with Snoop Dogg or Dogg Pound or Mighty Dogg or one of those Dogg people. It's a concept album where Whatever Dogg plays Satan and Stewart is his little demoness bitch. It's called "Fook Dat Beyatch Upp!" and it's sung entirely in Aramaic with instrumental arrangements by Yani.
Maybe that one is in the collection. Or maybe it's something that floating into my brain last week when I hit my head.
--- Ban humanity.
and three more, CONTEMPT OF COURT. RIAA officials should be jailed for this bullshit until they come up with educationally significant materials, like the full catalog of classic recordings. this is like being required to post a deposit at the clerk of court's office and doing so by taking their pants down.
if this is supposed to be a new economy, how come they still want my old fashioned money?
They can use them in science class, for example to build a CD Spectroscope.
All of those CD's are already in my collection. :(
Despite the clear and overwhelming artistic content of Willenium I contest the schools would have been better served with 100,000 blank CDs. Then educators could scour the P2Ps for music with actual educational value and burn them. This is the auditory equivalent of donating your stick pre-internet stack of Hustlers to the local kindergarten.
This should be viewed as a precedent. The next time RIAA sues file-swappers, they should be paid in any old junk those folks happen to have around. Dead car on blocks? Value: $10,000. Couple of old 486's lying around? Value: $2,000 each. Spoiled potato salad in the back of the fridge? You get the idea...
Tired of FB/Google censorship? Visit UNCENSORED!
If my friends ever get an RIAA suit I'll just suggest they settle, then pay in "Dave Recites Computer Code" CDs valued at $1000 each. That's 150 per violation at the full price, or only 2 if they drop it down.
"Whoever would overthrow the liberty of a nation must begin by subduing the freeness of speech."--Benjamin Franklin
So, if I were sued by the RIAA, could I give them $3000 worth of "merchandise" as payment instead of giving that stuff to Goodwill? For starters, I think my old underwear is worth $1 a pair.
I struggled for days and days and all I got was this lousy sig.
The public library system got a bunch of CDs dumped on them, but the district attorney said that they're not allowed to put out the ones by Eminem or other profane artists. So not even adults could borrow them. God forbid we be allowed to decide for ourselves... (and down here in the South, they decide that God does forbid quite a bit of free-thinking)
-jls
Techno-pagan
The lawsuit in question involved suing a number of specific labels, as well as a few retailers. Scroll down for a list of defendants If you want to get riled up about this, do so by all means, but target the correct group. You don't like it when the RIAA accuses all file-swappers of being criminals, so make yourselves look better than them by not doing the same thing.
/. groupthink, not everything you don't like in the recording industry comes from the RIAA.
Despite the
Due to changes in the moderating system, Funny doesn't help Karma. But modding a funny comment as Insightful is a way of skirting the issue and rewarding those that amuse.
"Let them eat cake." You know, its one thing to lose a lawsuit, its another thing to say you'll make up for it by helping out the public interest that are normally have hard times finding appropriate funds during recessions or have to consider the logistics of their operation sometimes before inventory, or attaining their desired goals of education. This act could have been a reasonable one, there are a tremendous number of very enlightening recordings such as historical e-books, instructional materials, etc. that would have done well to improve the RIAA's claim recipients (whom, I might add, weren't the lawyers settings the case.) The "poor recording artists" that RIAA claims to protect the interest of who could have benefitted from this are countless. Instead, they've used the educational system as a junkyard, snubbed their noses at the recording artists whom the value of their contribution could have been recognized and appreciated. And because they are being used as a junkyard, the task of sorting through all these inappropriate CDs and disposing of them are left in the hands of people who have enough troubles already. Its like giving beggars video game tokens or something, and they'll probably be snapped at by the RIAA for being ingrates.
Quote the article "Part of the settlement the recording industry made with states' attorneys general was that the giveaway CDs couldn't be junk, Larson said. Titles had to be on a Billboard chart for at least 26 weeks and had to peak in the top half of the chart."
I don't know about the rest of you but I've always regarded the Billboard chart as the height of quality control. I personally was skeptical about such musical masterworks as "Rock Me Amadeus" and the timeless classic "Macarena" until I saw their prominent standings on the Billboard chart. My only hope is that the RIAA will be forced to also release the gold master special edition box sets of Vanilla Ice's "Cool As Ice" which can only be truly appreciated in 22 channel surround sound.
Why not bring those CDs down to the wood shop and gather additional observations on the ability of CDs to handle speed? Its surely more amusing than building a bread box. And, with 115,241 observations, I'm pretty sure the central limit theorem will give you a more reliable sample estimate of the true failure point.
I wonder if your shop teach has the cojones ...
All the district needs to do is Google for "What to do with AOL CDs". For instance, this site.
... that if I get sued by the RIAA I can settle out of court and pay them with MP3s?
FLR
OK, I've got some questions, and maybe you've got the answers:
* Why is a public school system involved with a settlement about monopoly pricing? That has nothing to do with consumers!
* Since when is donation at the discretion of the "guilty" party an acceptable remedy for price fixing, even if the donated items were in BillBoard's Top 10?
I really don't get it. I think the RIAA is the head of a cartel, but if the gov't was accepting this as a remedy, then they really deserved to get cow dung as a settlement. Just like with the tobacco company settlements, it was done "in the name of...", but it was mainly about the transfer of wealth to someone other than the [allegedly] represented parties. Well, this time it backfired. This is why it's better to indirectly set up the market to fix the issue instead of trying to do it directly. In other words, if you can't fix it, then get the hell out of the way. The RIAA is powerful because they've got a big, fat revenue stream from people who do buy legal copies of the music. That's the problem, and there isn't a way to fix it as long as people think a $20 CD is a good deal. And since the RIAA is so powerful in the US, they can bury a tax in the cost of CD-Rs. It'd be nice if the tax was listed separately on a CD-R package, like the phone company did with the USF tax.
Fred
"A fool and his freedom are soon parted"
-RMS
Your idea has already been taken.
In 1961 Piero Manzoni sold his own excrement in cans for more than it's weight in gold. If you want more info, google the old turd...
Democracy is a sheep and two wolves deciding what to have for lunch. Freedom is a well armed sheep contesting the issue
Why this could revolutionize the economy and charitable contributions. We can return to something closer to the agrarian barter system where wheat could be traded for eggs. Only this is even better!
Let's say the government decides to extract taxes from the populace... hypothetically of course, since everyone needs groceries, we can pay in groceries! But wait, the best part is that we can allow the groceries to pass through our distribution system and allow our bodies to extract all that we can from them and only have to give the government that portion of the groceries that we couldn't find a use for (I was going to say that portion we couldn't move, but the context was all wrong).
Hey! Maybe we could buy music that way too! Hmmm. Nah, doesn't make sense to trade like items.
--
As a matter of fact, I am a lawyer. But I play an actor on TV.
Class-action lawsuit settlements are one of the biggest scams out there. Friends, family and I have been in 3 or 4 of these over the years and every time and in every settlement I've heard of the cunsomers get crap like coupons -- to buy more products from the people who screwed the consumers to begin with!
The only people that profit are *gasp* the lawyers.
http://www.popularculturegaming.com -- my blog about the culture of videogame players
They could've given them this (windows media player required, sorry).
"And a voice was screaming: 'Holy Jesus! What are these goddamn animals?'" - HST
That RIAA settlement is worse than nothing. It's a slap in the face.
They say the first thing to go is your penis. Well, it's either that or your brain. I forget which...
The courts did not think that the RIAA would be this sleezy. Hopefully they will learn from this and give them *NO* slack in the future. Since they never defined what was to be donated, they got all that worthless junk that goes into the cutout bins. I am surprised that they did not send a few John Ashcroft or orin Hatch albums along to increase the pain level. (Or maybe that was too much even for them.)
As for what to do with all these worthless crappy CDs...
Remember the old "Star Trek disc guns" they sold back in the 70s? They need to make a few that shoot CDs hard and fast. Then line up the RIAA lawyers and executives and have a little target practice.
Of course, they were never very accurate. But they provided plenty of ammo.
"Trademarks are the heraldry of the new feudalism."
... when a class action suit results in a settlement/judgement which is a joke for the plantiffs? The only people who ever get anything worth having out of these things are the lawyers.
When defendants can just clean out their storage locker and use unwanted crap to "pay off" their debts these verdicts aren't even going to serve as a punitive measure and preventative for scofflaw companies.
I can imagine one CEO to another - "Hah, we were going to have to charge off all those crap CDs when we discarded them anyway, all we did was change a description in the budget!"
Bad management trumps ideology - Show the world you want better leadership. http://www.timefornewmanagement.com
What to do will 100,000-plus useless CDs?
Send them to AOL!
Remain calm! All is well!
I only had to read the first paragraph and now I have that goddamned "Mr Bojangles" tune running through my head AND I CAN'T GET RID OF IT!!!
The RIAA does not have an inventory. They are not a record label. These CD's had to come from RCA, Warner or Sony. (And from the sounds of it, possibly all of the big seven labels put some releases in.)
"Hey, Bill, this is Kathy with the RIAA. We're settling that suit... can we get 10,000 copies of Willenium? How about a few hundred thousand one song cd's of Whitney Houston singing the National Anthem at the 1991 Super Bowl? Great, I'll send a truck."
http://cassettefetish.com
This type of settlement is common place in large class action law suits. Which is fine.
But the parties are bound by the settlement they enter into. And is sounds from the article, that RIAA has breached its obligations under the settlement agreement (especially with the notched/promo CDs).
Somewhere in the settlement agreement there should be a clause specifying what happens if one party or the other does not live up to the terms of the settlement agreement.
It's time to dust off that clause, and head over to see your local friendly judge (preferably one with a child in the school system). With a little legal wrangling, the children of American regain their right to listen to really, really, crappy music.
Fourteen tons of tritonal explosive coupled with plastique, electronically fused. Zirconium fragments and easily-made napalm, with multiple thermite grenades attached for maximum incendiary effect.
"Do you agree, or do you think I'm taking it too far?"
I agree fully on the Consumerism rant. I know people who need both their incomes to cover their mortgage. But then again that was a choice. I have plenty of friends and relatives who say they have no choice. But if asked they're forced to concede that no, nobody is forcing them at gunpoint to live in a 5-bedroom cul-de-sac lot. Or a 3-bedroom home in coastal California.
The problem is that Americans have a VERY skewed perspective of what is a need vs. what is a luxury. Then the "needed luxuries" lock people into a lifestyle that prevents one of them from being able to stay home and focus on raising their own kids for the first several critical years.
Also those "needed luxuries" lock them into jobs and careers they may hate. What a wasted life.
Great saying: "There are two ways to be rich - Make more, or want less."
And before someone starts pissing and moaning about how "I just don't know what it's like", I recently had to live in a 1-bedroom apartment for a few years with my kids because that's all we could afford. We've since rebounded, and yes that extreme was a challenge for us. But you know what? We're still here and we're a tight family. And we had fun. Parks, trails, community swimming pools, all kinds of essentially free stuff. How about flying a kite? Books from the library? And actually doing those things WITH them?
I also know a couple who job-share, so they both get to have a hand in raising their kids. They don't have a huge house, live in an upscale community, or own a big SUV hauling a rarely-used power boat, yet mysteriously they're very happy. And they have great kids. Go figure.
This settlement crap won't end until it is required that the lawyers be paid in kind (CD's, vouchers, weird rebate certificates, tiny discounts on future airline travel, Windows upgrades, etc.) that the winning plaintiffs are paid with.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
I think the RIAA has provided a great example of how to settle a lawsuit. If I'm ever sued by the RIAA, I will offer to settle with them for a cash equivalent in my fecal matter, valued at $15.99 per ounce.
Money.
They have it, and they know how to use it.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
I work in a library that just received 1800 CD's, 30 to 40 copies of each CD (we have nine branches), and mostly junk, and even lots of remaindered stuff. These guys obviously just cleaned out their warehouses of dead wood. The AG of WA state is running around saying what a great win-win deal this is. Nonsense. I won't claim every single title is bad, but it's mostly junk. Lots and lots of junk.
How about a moderation of -1 pedantic.
I think this is a good precedent. If I ever get sued by the RIAA for my occasional "sample" of music before purchase, then I at least know that I can pay my fines by sending them back all of the crap CD's that I had purchased before I had the internet to screen the CD's.
(+1 Funny) only if I laugh out loud.
If I ever get sued I can't pay with pocket lint or any old thing laying around my house, why do large organization get to? Would it have been acceptable if the tabacco industry had paid in cigarettes when they were sued by the states?
*cough* *cough* Here you go just suck on one of these.
Other sources (MSNBC) have already pointed out that the motives ascribed to the record companies in this article are just not there. Rather, it was a screw-up in their allocation scheme
So, nothing to see here. Just keep moving. [via BoingBoing and my weblog]