RIAA Sues Usenet.com
Several readers pointed us to Torrentfreak's coverage of the RIAA's latest move: the major record labels have launched a copyright infringement lawsuit against Usenet.com. The complaint, filed in the federal District Court in New York, accuses Usenet.com of providing access to millions of copyright-infringing files and slams it for touting its service as a "haven for those seeking pirated content." Usenet.com has been refusing the labels' requests to block access to alleged "copyright infringing groups."
Most slashdotters that are against the RIAA/MPAA for their tactics would also be against the piracy you described. Typically, this community accepts "personal use" type file-sharing, where the song/movie is not then sold on the black market. In fact, the RIAA would be perfectly in the right to sue in this case. However, they should sue the pirating karaoke bars that are making profits because of piracy, not the medium from which they obtained them. Furthermore, they should not have to pay $220,000 per track in any case, but rather something more along the lines of actual loss (maybe a grand total of $300,000 as you cited in your example).
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This seems like it there may be a precedent for this case already:
http://www.law.duke.edu/journals/dltr/articles/2006dltr0019.html
Let's hope Usenet.com has good lawyers who know about this.
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