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RIAA Goes for the Max Against AllofMP3

Spad writes "Zeropaid is reporting that as part of its ongoing lawsuit, the RIAA will be seeking the maximum of $150,000 per song for each of the 11 million MP3s downloaded from the Russian AllofMP3.com between June and October last year. This amounts to roughly $1.65 trillion, probably a tad more than AllofMP3 has made in its lifetime. A representative of AllofMP3 stated: 'AllofMP3 understands that several U.S. record label companies filed a lawsuit against Media Services in New York. This suit is unjustified as AllofMP3 does not operate in New York. Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3 operates legally in Russia. In the mean time, AllofMP3 plans to continue to operate legally and comply with all Russian laws.'"

18 of 777 comments (clear)

  1. How excessive. by jb.hl.com · · Score: 5, Informative

    $1.65trillion is a fair bit more than the GDP of Russia as a whole.

    How fucking ludicrous and excessive. Jesus.

    --
    By summer it was all gone...now shesmovedon. --
  2. Meanwhile AllofMp3 offers 20% bonus by Anonymous Coward · · Score: 5, Informative
  3. It is ridiculous by ntufar · · Score: 5, Informative

    Russia's yearly gross domestic product is $1.576 trillion. RIAA's claim is little more than that, $1.65 trillion.

  4. Shows the Absurdity by miyako · · Score: 3, Informative

    I know that most of us on slashdot realize how absurd the RIAA and MPAA's claims are about the losses caused by piracy, but if this is publicized I think that it could go a long way toward aptly demonstrating the absurdity of their claims.
    I mean, I don't think anyone, except apparently the RIAA lawers, could possibly believe that in a few months- or even in a year or two, one single (not all that well known) russian website caused the RIAA to lose over a trillion dollars in revenue.

    --
    Famous Last Words: "hmm...wikipedia says it's edible"
    1. Re:Shows the Absurdity by kebes · · Score: 5, Informative

      Indeed. According to the RIAA's stats: http://www.riaa.com/news/newsletter/pdf/2005yrEndS tats.pdf (warning: PDF), the total industry is something on the order of 12 billion $US per year. How can they claim with a straight face that the *damages* are about 100 times greater than the size of the industry being damaged?

      As you said, I hope this gets publicized because it really demonstrates how ridiculous the dollar value associated with infringement really is.

    2. Re:Shows the Absurdity by Dhalka226 · · Score: 4, Informative

      How can they claim with a straight face that the *damages* are about 100 times greater than the size of the industry being damaged?

      They're not claiming that at all. $150,000 wasn't a random number, nor was the fact that it was called "the maximum" in the article summary just word choice. In fact, anybody at all familiar with copyright law--even just the little trickles that make it through on sites like this--will have their ears twitch in recognition at hearing the number.

      $150,000 is the maximum allowed statutory damages according to US copyright law. It has nothing to do with how much their losses were.

      Further, realize that damages come in two parts: compensatory (what you actually lost) and punitive (punishment for the act). Punitive damages are almost always substantially higher than compensatory damages in situations like this. Even if they only claimed $11 million punitive damages ($1/download, the iTunes price), the law says they're perfectly free to claim the other $1.649+ trillion.

      Will they get that much (if they get anything)? Almost certainly not, but that doesn't stop them from asking for it.

  5. trillion by Swimport · · Score: 5, Informative

    Where do they get these numbers? This is over 10% of the GDP of the USA, and 333 times the amount gross retail music sales in 2005. I wonder if the US court will take this companies .com domains.

    http://en.wikipedia.org/wiki/World_music_market

  6. Re:quadrouple dipped by kimvette · · Score: 3, Informative

    OK, to address the point more directly:

    mrshowtime was accused by the esteemed Anonymous Coward (which I referred to as astroturfer) to be stealing, as if depriving someone of belongings.

    However, mrshowtime purchased MP3s through a corporate entity which is operating totally in compliance with Russian law. This is aside from mrshowtime's Fair Use right to simply retain backup copies made in accordance with Fair Use.

    So, how is the esteemed Anonymous Coward NOT astroturfing for the RIAA, since mrshowtime is going out of his way to replace his music collection without even taking advantage of Fair Use?

    I'd argue that mrshowtime may be better off avoiding RIAA materials altogether and buy independent, or listen to classical or talk radio instead, but unfortunately that solution does not work for everyone, due to musical tastes, programming availability, and so forth.

    Equating mrshowtime's LEGAL purchases from a corporate entity which is operating LEGALLY to theft of physical goods is not even close to a fair comparison.

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  7. Re:Russia is still independent by TubeSteak · · Score: 4, Informative
    the USA needs Russia more than Russia needs the USA, so good luck to the RIAA and their money wasting tactics.
    The RIAA has already won the main battle, if not the war
    11/29/2006 http://arstechnica.com/news.ars/post/20061129-8315 .html

    The short version:
    The U.S. wants Russia to join the World Trade Organization.
    One condition is that Russia changes its copyright laws.
    Russia agreed.

    Whether or not AllOfMP3 is going to get shut down by the Russian Gov't is seemingly still up in the air, but the RIAA got what they wanted: IP reform in Russia.
    --
    [Fuck Beta]
    o0t!
  8. Re:Screw them both. by ColaMan · · Score: 4, Informative

    AllOfMP3 gives their required amount as required by Russian law to the Russian equivalent of the RIAA, who then is supposed to distribute it to all the needy artists under their wing. While the method is considered a loophole as such, it's still perfectly legal under Russian law.

    And I believe the Record Industry Association of America is just a little bit out of it's jurisdiction here. Hence the stupid filing in an American court. Try that kind of scare tactic in Russia and as people have already mentioned, AllOfMP3 would simply pay the local mafia a small sum to make the problem.... disappear.

    --

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    There is a lot of hype here.
  9. Re:Hmm? by Anonymous Coward · · Score: 4, Informative

    Not sure why you got moded down.

    Dollar's been falling steadily against rouble for the last four (4) years and currently is at the lowest level in seven years:

    $1 = 26.28

  10. Re:Russia is still independent by Axe · · Score: 4, Informative

    >isn't Russia getting lots of money from the IMF and/or World Bank anymore? No, they do not. They have a positive trade balance bigger then china and foreign reserves larger then Taiwan. Every time you fill up your car, somebody in Moscow smiles.

    --
    <^>_<(ô ô)>_<^>
  11. Re:Hmm? by Shads · · Score: 4, Informative

    They're suing them for... 1.65 TRILLION dollars. Last I checked the GDP (Gross Domestic Product) for the ENTIRE country was about 750 BILLION dollars. Now this is where it even gets better... this only includes the songs from June to October 2006. They're charging $150,000 per song. If they had applied those numbers since the inception of AllofMp3.com which according to a quick whois lookup of the site name, is June of 2000... using the same numbers of sales each month as they have for the time period of J-O then they'd owe roughly the GDP of the entire world. What a joke.

    --
    Shadus
  12. THERE ARE NO LICENSES. FUCKING CHRIST. by Anonymous Coward · · Score: 5, Informative

    Fuck, you fucking people are giving me a brain haemorrhage with this shit.

    Works are fixed in media (see 17 USC 101). These media are called copies. So music and software are fixed on CDs and DVDs (and harddrives and RAM), and novels are fixed in hardcover books, etc.

    When you buy a CD, you buy a CD. Period.
    When you buy a book, you buy a book. Period.

    You can lend your book, your CD, to someone. You can rent it. You can sell it. You can burn it. Etc.

    You do not buy, and do not need, a license for the work on the media unless you plan to do something with that work that would violate the copyright holder's exclusive rights (see 17 USC 106).

    THERE ARE NO EULAs FOR CDs OR DVDs.

    You are buying media. Period.

    You have to understand that. You can do anything with the media you want. That doesn't entitle you to the "work." The work is an intangible thing. It is unownable and unpossessable and therefore nobody owns nor possesses it.

    Copyright grants copyright holders certain rights assoicated with the work -- FROM WHATEVER SOURCE -- but this is separate from the work fixed in a medium: which is a physical thing, just like any other physical thing.

    The reason you can't do whatever you want (eg, make copies) is because the copyright statute says you can't. It's not because a license says you can't. You need a license in order to make copies*, sure, but you're not buying one when you buy a CD.

    * you can also make copies if you have one of the few exceptions under the law, etc.

    If you're allowed to make backups, btw (about which there is no brightline rule, only the fair use test), you're allowed to keep them when you resell your CD, etc. But since there's no general exception to make backups generally (software is an exception IIRC), the whole circumstances have to fit the four factors of the fair use test. So, e.g., if you intended to sell your CD, and made a backup so you could keep the music knowing you planned to sell it tomorrow, that's probably not a fair use.

  13. Nulla poena sine lege by CharonX · · Score: 3, Informative

    Well, if Russia changes its laws so that AllOfMP3's service becomes illegal... the RIAA can't sue for alleged moetary losses before it became illegal, as there was no law to make it illegal before.
    It would be like if the US made recycling of lightbulbs mandatory (giving the lightbulb-makers the right to sue you if you didn't bring broken lightbulbs) and then the lightbulbmakers try to sue you because you threw away a lightbulb ten years ago (instead of recycling it). You cannot break laws retroactively. Even if the lightbulbmakers ran big campaigns and threatened to sue you if you don't recycle those lightbulbs, they cannot sue you for doing something in the past that now would break the law.

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  14. Re:Proof? Proof of what, exactly? by cpt+kangarooski · · Score: 4, Informative

    That's ridiculous. If you have a legal right to a file in another country, and posession of it in this country is not otherwise illegal (e.g., it's not kiddie porn or something), there's no sane reason you can't copy it across the (virtual, and therefore nonexistant) border.

    Well, the law says you are not allowed to copy it across the border, but you may be allowed to physically move a pre-existing copy across the border.

    You might disagree with it, or find it silly, but that is actually what it says. I'd rather you disagree with it, knowing that, than to deny that it exists altogether. I'm a firm believer in the idea that we'll never get these laws fixed until people know what they really are, and what the policy goals for the laws are meant to be. Misinformation and erroneous 'common knowledge' don't help.

    Let's use an analogy: imagine you're on vacation in Europe, and you buy a CD, burn it, put it on your iPod, and bring it back home with you. Is that illegal? Of course not, that would be absurd!

    Actually, it is possible that bringing in the CD itself would be illegal; it would depend on its origins. But in any event, your example is faulty. Allofmp3 involves making copies across a border; you're talking about making a copy and then bringing it over the border. That's not the same thing. There is a world of difference between moving a tangible medium over the border (e.g. a CD, a hard drive, an iPod), and moving intangible information over the border (e.g. reading from a server in Russia and writing to a hard drive in America). The former is importation (a form of distribution), the latter is reproduction. Different exceptions apply to each.

    --
    -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
  15. Re:Not w/ lobbying groups.... by The+Conductor · · Score: 3, Informative

    If the lobbying groups don't buy influence, what exactly is it they are spending money on?


    They don't have to buy much influence. When 533 people are controlling $2 trillion, you only have to steer a very small amount power to be worth spending a good-sized pile of money. Or you keep a lobbying firm on retainer for years, just to have them available to put in your side of the story on the once-in-a-century moment when it can make a difference. It's sorta like patents, they're usually not good for anything, but the megacorps cultivate piles as a form of insurance.

  16. Re:Proof? Proof of what, exactly? by JayBlalock · · Score: 3, Informative
    Now, finally, imagine exactly the same thing, except that AllOfMP3.com just happens to be storing the file for you instead of you doing it for yourself (note: it's still your file, because you bought it). How is that any different? It's not, therefore it would still be absurd for it to be illegal!

    I just have to point out that, though it is indeed absurd, MP3.com back in the good old days got legally smacked down for doing *exactly that*. And the precedent stood.

    You put in a CD in your computer, MP3.com verified it was legit, and gave you access to an MP3 copy they had previously made. Court ruled that format shifting is only legal if you do it yourself, and even though the end result was *exactly the same*, just saving the consumer some time and effort, they were ordered to stop.

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