Motley Fool Says RIAA Hitting a Brick Wall

NewYorkCountryLawyer writes "The Motley Fool business site says that the RIAA's litigation campaign is in the end game. Monday it reported that 'the music industry's lawsuit crusade against defenseless college students and housewives appears to have hit the skids,' predicting that the RIAA's tactics are 'all about to change.' Today the Fool confirms that 'the change is happening in Internet time, which is somewhere between "instantly" and "yesterday,"' noting that the RIAA's abandonment of its 'making available' theory shows that the end is near. And this is before the RIAA faces its first jury trial, set to begin Oct. 2 in Duluth."

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They've created a pirate culture

[astrashe]

The Motley Fool points out that most people are honest, and want to pay for their music, so long as they can get what they want.

I think that's mostly true, but that it's far less true than it would have been if the industry had pursued different polices over the past several years.

There's a whole generation out there now that's grown up with piracy, and that's totally comfortable with it. Because this fight has polarized people so much, it's pushed a lot of people into the pro-piracy side who wouldn't have been there otherwise.

Re:They've created a pirate culture

[david_thornley]

Yup. Why would somebody pay for music when they can get it for free?

• They could be paying for a better copy, but in fact the pirate copies are better. (No DRM, for starters.)
• They could be paying because it's the right thing to do, but the prosecutions are firmly establishing the labels as the bad guys, and it's really hard to sell morality when you're running a campaign of indiscriminate terror.
• They could be paying because they're scared of the RIAA, but the RIAA's tactics are increasingly seen as ineffective.
• They could be paying to support the artists, but I suspect increasing numbers of people are aware of how much money the artists actually see from the CDs.
• They aren't going to be swayed by annoying ham-handed messages that try to make law-abiding customers feel like criminals, not in a culture where Reefer Madness became something of a cult hit.

The RIAA seems to be meticulously removing any reason anybody would have for buying their stuff. It's worse than watching the business practices of Major League Baseball. It's fascinating, much like a ship having a disagreement with an iceberg.

(Yes, all my music has been acquired legally. Why do you ask?)

Re:And we should care why?

[NewYorkCountryLawyer]

I am a big fan of the Motley Fool website, but these guys are an "investment website", which really means they're simultaneous trying to attract readers to entertain them and hopefully sell their various investment newsletters. Generally I think they have a fair bit of credibility, focusing on things like investing over a decade-long time horizon, not piling into the "next big thing" and watching things like mutual fund expenses. That being said, I'm not sure why we particularly care about this particular article, other than the fact that it parrots the party line here at Slashdot. These guys aren't lawyers, and don't spend a lot of time examining the recording industry. In fact, over the 7 years that I've been reading their articles, this is the *only* one I can recall that discusses the music industry at all. It strikes me very much as an op-ed piece rather than a serious legal or business study of an industry, and I don't give it any more credibility than some guy ranting on his blog. To be sure, the RIAA has suffered legal defeats and setbacks, but just because a financial news and opinion site happens to pick up on it does not mean that the industry is going to collapse, nor does it mean that those who are being/will be sued should stop worrying.

Here's why I care.

The fact that an investment web site like Motley Fool and a business program like "MarketPlace" (which just did a 3-part series last week on the record industry's grand mistake) take hold of the issue isn't necessarily of interest from a legal point of view or a scientific point of view, but it is of great interest to shareholders and would be shareholders.

The impetus for dropping this campaign won't come from
-the lawyers who have been the principal beneficiaries of this juggernaut,
-techies,
-the entrenched management who would never admit to their shareholders that they've been on a fool's errand for the past 4 1/2 years,
-the RIAA which has been destroying the record companies, or
-anyone else.

It will come from shareholders when they come to realize they are being taken for a ride by a handful of morons who were too dumb to (a) realize the business opportunity the internet represented for them until it was too late, and/or (b) create a new business model that could harness the internet's energy.

The investment community is coming to realize that the big 4 record companies stocks -- all referred to in the Motley Fools articles -- won't be worth a damn until the record companies leave the past, enter the present, and work to survive into the future.

That's why the article means something.

PS As a lawyer, I think the Motley Fool author's understanding of the legal issues was pretty good, certainly a lot better than that of the RIAA lawyers I've met.