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RIAA Backs Down In Texas Case

NewYorkCountryLawyer writes "After receiving a Rule 11 Sanctions Motion (PDF) in a Houston, Texas, case, UMG Recordings v. Lanzoni, the RIAA lawyers thought better of proceeding with the case, and agreed to voluntarily dismiss the case 'with prejudice', which means it is over and cannot be brought again. The defendant's motion papers detailed some of the RIAA's litigation history against innocent individuals, such as Capitol Records v. Foster and Atlantic Recording v. Andersen, and argued that the awarding of attorneys fees in those cases has not sufficiently deterred repetition of the misconduct, so that a stronger remedy — Rule 11 sanctions — is now called for."

48 of 221 comments (clear)

  1. Spiffy! by MHaz · · Score: 4, Funny

    Wow... They were stared down, and blinked...

    1. Re:Spiffy! by MozeeToby · · Score: 5, Insightful

      Given the fact that the size of the fines rule 11 sanctions are set by the judge (not predetermined) I'd say it's more like they leveled a howitzer on the RIAA and the RIAA blinked. Sure, the howitzer might not be loaded, but is it really worth the risk?

    2. Re:Spiffy! by jd · · Score: 4, Funny

      Somehow I don't think it was the howitzer that was at risk of being leveled. Now, the RIAA, on the other hand...

      --
      It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
    3. Re:Spiffy! by Andy_R · · Score: 5, Insightful

      The size of the fine is set by the judge, but here's what the plaintiff asked the judge for (taken from the last paragraph of the pdf.)

      "In this case, the Court should award Defendant Lanzoni all of her costs and expenses in defending this lawsuit. In addition, this Court should make a finding that the use of an IP address to identify the defendant in a peer-to-peer copyright infringement case is not sufficiently reliable for the Plaintiffs to rely upon..."

      Maybe I'm just not that good at reading legalese, but if that means 'I don't want $big$money$ from the RIAA, I want the court to rule that from now on nobody can be sued based on their IP address' then I'm very impressed with the defendant's decision to place the greater good over their own financial gain.

      --
      A pizza of radius z and thickness a has a volume of pi z z a
    4. Re:Spiffy! by netruner · · Score: 5, Funny

      "you've got to ask yourself one question. 'Do I feel lucky?', well, do ya punk?"

      Dirty Harry, its characters and quotes are copyrights of Warner Brothers(TM). The above quote is only meant as a humorous reference to a pop culture icon and is not meant as a performance of copyrighted material.

      --



      DISCLAIMER: This post was not checked for speling and grammar- if you complain- you're a whiner
  2. They don't need the litigation anymore by greenbird · · Score: 5, Insightful

    They're getting to the point they don't need the litigation anymore. They're setting it up so either everyone is forced to pay into their welfare system for a failed industry through a tax on all internet connectivity or they can, without proof or recourse, have you disconnected from the internet.

    --
    Who is John Galt?
    1. Re:They don't need the litigation anymore by flyingfsck · · Score: 3, Informative

      Actually, disconnection could be appealed to the FCC. Interfering with communication systems (jamming, disconnecting) is illegal for freedom of speech reasons.

      --
      Excuse me, but please get off my Pennisetum Clandestinum, eh!
    2. Re:They don't need the litigation anymore by ggraham412 · · Score: 3, Interesting

      They're setting it up so either everyone is forced to pay into their welfare system for a failed industry through a tax on all internet connectivity or they can, without proof or recourse, have you disconnected from the internet.

      It could actually be a good development. If everyone were forced to pay, everyone would share an interest in stopping RIAA. The way things are now, only people unlucky enough to have been sued have an interest in stopping them.

      I consciously don't buy music anymore. I don't pirate it either. I just do without. Why? Because I can't bring myself to give my hard earned money to the thieving cocksuckers that comprise the RIAA and contribute to their program of turning the internet into a police state. Nothing that they can possibly produce is worth giving up on our freedoms.

    3. Re:They don't need the litigation anymore by tripdizzle · · Score: 3, Informative
      Have you read at TOS? Its hard to even breathe and not break it, at least for me and this one

      http://www.comcast.net/terms/use/

      --
      "A claim for equality of material position can be met only by a government with totalitarian powers." Hayek
    4. Re:They don't need the litigation anymore by jd · · Score: 4, Funny

      Your ISP still allows breathing?

      --
      It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
    5. Re:They don't need the litigation anymore by Chris+Tucker · · Score: 5, Informative

      "I consciously don't buy music anymore."

      Do as I do. Buy used CDs. Here in the Greater Boston/Cambridge/Somerville Co-Prosperity Sphere, there are several used CD/DVD shops. Sure, you may have to wait a few weeks to get the latest CD, but RIAA never sees a penny of your money.

      And many artists sell CDs on their websites. Yeah, they buy them from the record companies, but they, the artists, get to keep the money from the CD sales.

      Finally, local bands almost always have CDs they burn themselves. Supporting local artists with purchases is the best thing you can do to keep independent artists making music.

      --
      Guaranteed! This comment 100% Anthrax free!
    6. Re:They don't need the litigation anymore by esocid · · Score: 4, Informative

      RIAA radar is your friend. Look for the labels not on the MAFIAA's payroll and support them for doing something right.

      --
      Absolute power corrupts absolutely. indymedia
    7. Re:They don't need the litigation anymore by grenthar · · Score: 5, Insightful

      My favorite line was the part where you are forbidden to:
      * undertake or accomplish any unlawful purpose. This includes, but is not limited to, posting, storing, transmitting or disseminating information, data or material which ... in any way constitutes or encourages conduct that would constitute a criminal offense, or otherwise violate any local, state, federal, or non-U.S. law, order, or regulation....

      Good to know that in order to be eligible for Comcast service, you you must submit to the laws of China, North Korea, Iran, and the orders of every other petty dictator on the planet....

    8. Re:They don't need the litigation anymore by houstonbofh · · Score: 3, Interesting

      They're getting to the point they don't need the litigation anymore. They're setting it up so either everyone is forced to pay into their welfare system for a failed industry through a tax on all internet connectivity or they can, without proof or recourse, have you disconnected from the internet.

      Your recourse is a libel suit. Now thay have to prove you are a pirate, or pay you off.

    9. Re:They don't need the litigation anymore by NewYorkCountryLawyer · · Score: 4, Funny

      Good to know that in order to be eligible for Comcast service, you you must submit to the laws of China, North Korea, Iran, and the orders of every other petty dictator on the planet....

      You forgot to mention the laws of the Intergalactic Federation under His Grand Emporer Malicon IX.

      I for one welcome the total control of our totalitarian overlords.

      --
      Ray Beckerman +5 Insightful
  3. And this means what? by Dusty00 · · Score: 4, Interesting

    First to NewYorkCountryLawyer, thanks from all of us for fighting the good fight!

    And a question, what is the impact of these sanctions? Could this cost the RIAA enough to really act as a deterrent? Also, if at all how is this relevant in future cases?

    1. Re:And this means what? by NewYorkCountryLawyer · · Score: 5, Informative

      First to NewYorkCountryLawyer, thanks from all of us for fighting the good fight!

      Thanks. And thank you for your support.

      And a question, what is the impact of these sanctions?

      Sanctions weren't awarded; the motion was withdrawn because the RIAA, rather than risk sanctions, withdrew the case within the "safe harbor" period.

      Could this cost the RIAA enough to really act as a deterrent?

      Absolutely. There is nothing a lawyer should fear more than a sanctions ruling.

      Also, if at all how is this relevant in future cases?

      Highly relevant. This incident will encourage other defendant's lawyers to make early Rule 11 motions. And the attorney, veteran IP litigator Sid Leach, prepared excellent discovery documents and motion papers, which the rest of us will be able to consult and borrow from in the future.

      --
      Ray Beckerman +5 Insightful
    2. Re:And this means what? by 644bd346996 · · Score: 4, Informative

      So, in other words, this won't dissuade the RIAA one whit, but it might make it hard for them to find lawyers willing to work for them.

    3. Re:And this means what? by Shakrai · · Score: 5, Interesting

      Ray,

      I'd be curious to know if you have any wisdom to share regarding the new direction that RIAA seems to be taking. Namely that of signing agreements with ISPs to get them to do the dirty work instead.

      This seems like something that the end user will have very little recourse over. Virtually every ISP agreement I've ever read gives them the right to deny you service for whatever reason they wish -- but how is that remotely just if it's based on the same lack of evidence that RIAA failed to use in the court system?

      How (if at all) can the people who inevitably wind up being wrongfully accused fight this?

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    4. Re:And this means what? by NewYorkCountryLawyer · · Score: 5, Insightful

      I'd be curious to know if you have any wisdom to share regarding the new direction that RIAA seems to be taking.

      The only wisdom I have to share at this point is : if you find out your ISP is in league with the RIAA, change ISP's, and let them know why you left.

      --
      Ray Beckerman +5 Insightful
    5. Re:And this means what? by Shakrai · · Score: 3, Interesting

      I have that option -- at least until Verizon joins the bandwagon -- but how many people don't?

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    6. Re:And this means what? by greenbird · · Score: 4, Interesting

      The only wisdom I have to share at this point is : if you find out your ISP is in league with the RIAA, change ISP's, and let them know why you left.

      The only problem being that for most people the options are very limited and the way it's set up now it's nigh on impossible to start an ISP outside of the incumbent cable and phone companies. So if both members in your area (most people are lucky if they have 2 options: cable and phone company) of the current oligarchy opt into the RIAA system your options are much slower broadband at best or dialip.

      .

      --
      Who is John Galt?
    7. Re:And this means what? by TheReaperD · · Score: 3, Informative

      The only wisdom I have to share at this point is : if you find out your ISP is in league with the RIAA, change ISP's, and let them know why you left.

      Well, start the list with AT&T, Comcast and Cox cable.

      --
      "Be particularly skeptical when presented with evidence confirming what you already believe." -
  4. waste of money by FadedTimes · · Score: 4, Insightful

    When will the RIAA stop wasting money on these cases? There is no way they are ever going to win settlements or recover damages that offset their cost it takes to litigate. I guess the RIAA lawyers are making money though, not like they are going to recommend to stop the pursuit.

    1. Re:waste of money by torkus · · Score: 4, Insightful

      They don't need to make money on the cases. In fact, they can spend $1m on legal fees for a $100k judgment and still come out ahead.

      Why?

      Because it motivates the other 99,999 people that got 'settlement offers' of $5-10k to pay up. Sad, but true.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    2. Re:waste of money by whoever57 · · Score: 4, Insightful

      When will the RIAA stop wasting money on these cases?

      From the RIAA's point of veiw, they are not "wasting money". The organization makes a profit from these lawsuits (and the associated settlements). It's only when either:
      1. The lawyers are likely to lose their licenses or:
      2. The lawsuit/settlement program stops being profitable.
      that they will stop the lawsuits.

      --
      The real "Libtards" are the Libertarians!
    3. Re:waste of money by mcgrew · · Score: 5, Interesting

      When will the RIAA stop wasting money on these cases?

      They won't. The old business model is dead, and the new business model is brain dead. The old model was that it cost uberbucks to record an album, so the artist couldn't make a record without the labels.

      Now, the price of recording has come down to the point that anybody can record an album in a professional studio and have the CDs professionally pressed and packaged for as little as $1 per copy.

      This leaves the labels to distribute and market, and marketing means radio. You have to be on a major label to get on the radio.

      The independants have the internet and P2P, and THIS is what the labels are trying to kill; it's about stifling the competetion.

      The new business model is paid downloads. The trouble with this is the indies are giving FREE downloads for promotion and making their money off CDs and live shows.

      The music industry as we knew it is dead, and I for one am glad. The RIAA labels' days are numbered, and they won't be able to steal from their artists and customers for too much longer.

      Lawrence Lessig talks about the four reasons for P2P in his book Free Culture. Cory Doctorow talks about it in the preface to his book Little Brother, which has been on the NYT best seller list. You can buy either book at any bookstore, or check it out for free at your local public library, or download them for free from the authors' prospective websites.

      Both books are making a handy profit. As I said, Doctorow's is a best seller, which kind of puts the lie to the RIAA's pathetic whining.

    4. Re:waste of money by Splab · · Score: 5, Informative

      Actually he is somewhat right.

      Here in Denmark a chain of shops that deal with items costing between $1 and $2 (guess you guys call them dollar stores?) has started its own label - it is a no bullshit label, you get 50% of profit from sales, default print I think is 1.000 CDs or 10.000 and the shop carries the risk.

      CDs are selling like you wouldn't believe it - apparently people are willing to pay $2 for a CD from a group they never heard of (I for one am, heck if it sucks I can use it as a fancy coaster).

      The olden ways are dead, just a matter of time.

  5. So what happens with Rule 11? by mooingyak · · Score: 4, Interesting

    A few questions for anyone who might know:

    1. Does voluntarily dismissing the case with prejudice prevent them from getting sanctioned?

    2. Independent of #1, what happens if you are sanctioned under Rule 11?

    3. How often is a party sanctioned this way?

    --
    William of Ockham had no beard. The most likely explanation is that it was chewed off by squirrels every morning.
    1. Re:So what happens with Rule 11? by NewYorkCountryLawyer · · Score: 5, Informative

      A few questions for anyone who might know: 1. Does voluntarily dismissing the case with prejudice prevent them from getting sanctioned?

      Yes so long as they do it within the 21-day "safe harbor" period, which they did.

      2. Independent of #1, what happens if you are sanctioned under Rule 11?

      There are many possible penalties, from nominal to crushing... but for any attorney it's a huge black mark on his or her record.

      3. How often is a party sanctioned this way?

      Rarely. Rule 11 motions are rarely made. It is an extreme thing. I've only made a couple in my 30 years as a lawyer. One of them was against the RIAA lawyers.

      --
      Ray Beckerman +5 Insightful
    2. Re:So what happens with Rule 11? by Valdrax · · Score: 3, Informative

      1. Yes, if it's within 21 days after the motion for sanctions is filed.

      2. The attorney has to pay fines with a goal of deterrence and not compensation. (If the attorney is poor, they'll be fined less.) The attorney's client can be held joint & severally liable. Your professional reputation as an attorney suffers, and in extreme circumstances, it might serve as pretty bad evidence towards an attorney malpractice suit or a disbarment hearing.

      3. Extremely rarely. It's generally reserved for lawyers acting in very bad faith, and the 21 day safe harbor gives attorneys a way to amend the offending action. Courts are generally willing to give attorneys the benefit of the doubt on whether they did something with a good faith belief that it was true or not. Only a truly stubborn fool gets Rule 11 sanctioned most of the time.

      --
      If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
  6. I've always wondered by dixonpete · · Score: 5, Insightful

    Within a couple of years kids will be able to carry around and exchange thumb drives large enough to hold ALL of the music produced in the last decade. Aside from cavity searches how exactly is the RIAA expecting to stop that kind of sharing activity?

    1. Re:I've always wondered by Anonymous Coward · · Score: 5, Funny

      I think you answered your own question.

    2. Re:I've always wondered by Volante3192 · · Score: 3, Insightful

      There's a reason all the twenty somethings are playing the hits of the '70s, '80s, and '90s rock in the bars to the other twentysomething patrons.

      Let's not overlook the fact that there's always shovelware music made, we just don't remember it because, simply put, it was forgettable.

  7. What sanctions..? by Captain+Centropyge · · Score: 3, Informative
    If you actually read TFA, it says...

    In UMG Recordings v. Lanzoni, a Houston, Texas, case, the RIAA has voluntarily dismissed its case with prejudice, after being served with a Rule 11 motion.

    Defendant never filed the Rule 11 motion with the Court, because the RIAA withdrew its case prior to the expiration of the 21-day "safe harbor" period.

    So, no sanctions will actually be enforced. The defendant's threat of Rule 11 sanctions just scared them out of pursuing this particular case.

    --
    Bite my shiny metal ass!
  8. The RIAA needs by stonewallred · · Score: 3, Insightful

    to be driven into bankruptcy. The BS of dropping the suit because they see they can not win is just that, BS. The judge should prevent them from filing anymore cases in his district, since logically they can't win this one(their POV) so they could not win any others.

    1. Re:The RIAA needs by jonbryce · · Score: 3, Interesting

      In England, there is the possibility of being declared a "vexatious litigant", which severely restricts your ability to bring lawsuits.

      Is there an equivalent in the US, and if so, how close are the RIAA to being placed on the list?

  9. What about the financial harm caused? by commodore64_love · · Score: 3, Insightful

    I just love how RIAA walks-away from a case, with no punishment. How am I... I mean the defendant supposed to recover the 20,000 dollars and 4 years wasted on this case? (At this point a shot to the head of CEO seems like good compensation.)

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    1. Re:What about the financial harm caused? by Drakkenmensch · · Score: 4, Insightful

      This is the legal equivalent of threatening to mug someone at knifepoint, but saying "ha ha ha it was just a joke!" when the person calls the cops, and being let off free.

    2. Re:What about the financial harm caused? by CorporateSuit · · Score: 3, Interesting

      I sure hope her attourney files, and the judge uses a significant multiplier on the fees...

      Perhaps the same multiplier the RIAA uses to calculate damages per mp3?

      --
      I am the richest astronaut ever to win the superbowl.
  10. Could have been a lot worse by serutan · · Score: 4, Funny

    They could have received a Rule 34 sanction.

  11. From wikipedia by MozeeToby · · Score: 4, Informative

    For what it's worth, here is what wikipedia has on Rule 11 Sanctions

    Rule 11 requires all papers to be signed by the attorney (if party is represented). It also provides for sanctions against the attorney or client for harassment, frivolous arguments, or a lack of factual investigation. The purpose of sanctions is deterrent, not punitive. Courts have broad discretion about the exact nature of the sanction which can include consent to in personam jurisdiction, fines, dismissal of claims, or dismissal of the entire case. The current version of Rule 11 is much more lenient than its 1983 version. Supporters of tort reform in Congress regularly call for legislation to make Rule 11 stricter.

    Basically, it's a federal rule meant to deter abuses of the justice system and the fines can be practically whatever the judge wants them to be. That's a pretty scary prospect if you are concerned that you might have pissed off the judge enough that he would impose the sanctions on you, since you don't know how much money you stand to lose.

  12. Defendant's lawyer wins, defendant loses by ral · · Score: 5, Informative

    From the Joint stipulation for dismissal:

    ... each party to bear its/her own costs and fees

    The defendant has lost time and money on this case and gained nothing. Even if every case is resolved like this, the intimidation strategy will still be effective.

  13. So they can still walk away from this? by cheros · · Score: 4, Insightful

    So, just to get this straight, the RIAA pursued a questionable case that has already costed the defendant money to prepare for, and as soon as credible resistance emerges they quickly run and do it again to someone else - without sanctions?

    Or did I miss something?

    --
    Insert .sig here. Send no money now. Owner may sue, contents will settle. Batteries not included.
    1. Re:So they can still walk away from this? by NewYorkCountryLawyer · · Score: 5, Informative

      So, just to get this straight, the RIAA pursued a questionable case that has already cost the defendant money to prepare for, and as soon as credible resistance emerges they quickly run and do it again to someone else - without sanctions? Or did I miss something?

      No you didn't miss anything.

      --
      Ray Beckerman +5 Insightful
    2. Re:So they can still walk away from this? by sbeckstead · · Score: 3, Interesting

      How difficult would it be to get together a class action suit against the RIAA for harassment of the general public (or preferably some more targeted group) Since there seems to be a mass of evidence accumulating indicating that they are not being too careful with the targets of their litigation.

  14. I couldn't possibly do without music by Mateo_LeFou · · Score: 3, Insightful

    Thank god there are thousands of artists making music every single day and sharing it under acceptable terms. Cf. jamendo, magnatune, etc.

    --
    My turnips listen for the soft cry of your love
  15. Two birds? by Mateo_LeFou · · Score: 4, Funny

    While they're in there, maybe they should check for ibuprofen and save our school administrators some trouble?

    --
    My turnips listen for the soft cry of your love