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RIAA Loses Bid To Keep Revenues Secret

NewYorkCountryLawyer writes "The RIAA's motion to keep secret the record companies' 1999-to-date revenues for the copyrighted song files at the heart of the case has been denied, in the Boston case scheduled for trial July 27th, SONY BMG Music Entertainment v. Tenenbaum. The Judge had previously ordered the plaintiff record companies to produce a summary of the 1999-to-date revenues for the recordings, broken down into physical and digital sales. On the day the summary was due to be produced, instead of producing it, they produced a 'protective order motion' asking the Judge to rule that the information would have to be kept secret. The Judge rejected that motion: 'the Court does not comprehend how disclosure would impair the Plaintiffs' competitive business prospects when three of the four biggest record labels in the world — Warner Bros. Records, Sony BMG Music Entertainment, and UMG Recording, Inc. — are participating jointly in this lawsuit and, presumably, would have joint access to this information.'"

29 of 229 comments (clear)

  1. Show us the money! by pilgrim23 · · Score: 4, Interesting

    I will believe it when the smoke and mirrors are actually changed to some hard data. This seems more an Emperor's new clothes thing to me though. The RIAA does not wish to reveal that the hand they are playing is a busted flush

    --
    - Minutus cantorum, minutus balorum, minutus carborata descendum pantorum.
  2. I wonder if ... by TomTraynor · · Score: 5, Insightful

    I wonder if they told the artists one set of numbers and need more time to make sure what they give to the court matches that set.

    --
    Panic now, beat the rush!
    1. Re:I wonder if ... by elrous0 · · Score: 4, Insightful

      That would be pretty typical in show business. A major motion picture can have a HUGE box office and still mysteriously show no profit when it comes time to give out the money to the people with "points" in the movie. Peter Jackson had to sue New Line to get his fair share of the The Lord of the Rings movies, after they tried this with him (and he won).

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    2. Re:I wonder if ... by ewilts · · Score: 4, Interesting

      I wonder if they told the artists one set of numbers and need more time to make sure what they give to the court matches that set.

      Herein lies the issue. If they go with the artist numbers, then revenues might be small. Punitive and compensatory damages will likely be small as a result. However, if they want to claim higher numbers, then the artists will turn around and sue them for the stolen revenue. They're caught between a rock and a hard place, and that's good...

      --
      .../Ed
    3. Re:I wonder if ... by Nefarious+Wheel · · Score: 4, Interesting

      Herein lies the issue. If they go with the artist numbers, then revenues might be small. Punitive and compensatory damages will likely be small as a result. However, if they want to claim higher numbers, then the artists will turn around and sue them for the stolen revenue. They're caught between a rock and a hard place, and that's good...

      You could expand that as well. If there is a *cough* significant difference between the two numbers, the disclosure could open the RIAA companies to accusations of conspiracy to defraud on a grand scale. Passing the hot potato between holding companies until fees eat up the value that would otherwise be distributed as profit is an old trick. A very old trick, and one that wouldn't be treated sympathetically by a court that enforced visibility of the transactions as a group. The term, I think, is "forensic accounting" and firms like KPMG (disclosure: once was employee, long ago) have practice groups that are used by prosecutors for just this purpose.

      I don't think it would be the first time that the discovery part of a lawsuit triggered new proceedings. Sort of like "Well, I was just on my way to a burglary when the guy ran into me..."

      --
      Do not mock my vision of impractical footwear
  3. Not only that ... by taniwha · · Score: 4, Insightful

    because music copyright usually results in a monopoly situation there is not competition - no one else is publishing the same track in competition to them, so the information is not commercially sensitive

    1. Re:Not only that ... by sqlrob · · Score: 4, Insightful

      It is commercially sensitive, but not in a direct manner.

      "They only made how much? I'm not going to sign with you for that"

    2. Re:Not only that ... by TomTraynor · · Score: 4, Insightful

      It would allow the artists to see what someone else got and then go...

      They only had xxx unit of sales and got $$$, but, we sold more units and got less... Lets talk and please explain to us why!

      --
      Panic now, beat the rush!
  4. I object! by Anonymous Coward · · Score: 5, Funny

    Reede: Your honor, I object!

    Judge: Why?

    Reede: Because it's devastating to my case!

    Judge: Overruled.

    Reede: Good call!

    1. Re:I object! by Em+Emalb · · Score: 5, Funny

      Cop: You know why I pulled you over?
      Fletcher: Depends on how long you were following me!
      Cop: Why don't we just take it from the top?
      Fletcher: Here goes: I sped. I followed too closely. I ran a stop sign. I almost hit a Chevy. I sped some more. I failed to yield at a crosswalk. I changed lanes at the intersection. I changed lanes without signaling while running a red light and *speeding*!
      Cop: Is that all?
      Fletcher: No... I have unpaid parking tickets.
      [groans]
      Fletcher: ... be gentle.

      Bum: Got any spare change?
      Fletcher: Absolutely!
      Bum: Could ya spare some?
      Fletcher: Yes I could!
      Bum: Will ya?
      Fletcher: HMM-MMM!
      Bum: How come?
      Fletcher: Because I believe you will buy booze with it! I just want to get from my car to the office without being confronted by the decay of western society!... Plus I'm cheap! AHHH!

      --
      Sent from your iPad.
  5. Ain't that obvious? by Opportunist · · Score: 4, Insightful

    They'd have to show what they actually gain from "honest" business and have that compared to their extortion schemes. It could even show that the "claimed losses" exceed what one person could possibly cause in damages.

    And that in turn could mean that their insane claims (and the verdicts that ensued) could be up for review, they could end up with far more sane sentences and that in turn would make the whole "shock and awe" deterrent a joke.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  6. hollywood accounting by croddy · · Score: 4, Insightful

    haha! well, maybe now their hollywood accounting will come back to bite them in the ass as they struggle to show that the songs are now worth massive damages, when they were worth nothing or less as they computed royalties for the artists they were screwing.

  7. cracks in the dam by Dan667 · · Score: 4, Informative

    Sony, EMI, Warner Bros, and Universal are in real trouble. Make sure you check http://riaaradar.com/ to make sure when you purchase music you don't buy anything from these companies that fund the RIAA.

    1. Re:cracks in the dam by Chris+Burke · · Score: 5, Funny

      But so long as you check it out at http://riaaradar.com/ if they say it's cool, it's cool. If they say it's RIAA-tainted, stay away.

      Yeah, not falling for that one again after I was hanging out with an riaaradar.com maintainer and they kept trying to tell me that my pants were RIAA-tainted.

      --

      The enemies of Democracy are
  8. But Sir by kenp2002 · · Score: 5, Funny

    MAFIAA: But sir we sold 4 million digital downloads and made 2 million in revenue from those downloads.

    JUDGE: So your are saying you made about 50 cents each download right?

    MAFIAA: Yes sir.

    JUDGE: So we can roughly say the value of each download is 50 cents right?

    MAFIAA: Yes sir.

    JUDGE: So even if we get "Biblical" in damages of 40 fold we are looking at about $20 a track right?

    MAFIAA: Errr well....

    JUDGE: So for 24 tracks at $20 bucks each Jammie owes you about $480 bucks right?

    MAFIAA: You have to take into account everyone that downloaded them.

    JUDGE: Ok so lets say 10 people downloaded each one, that's about so that's about $4800 right?

    MAFIAA: Sir that isn't enough!

    JUDGE: How much is enough?

    MAFIAA: IT'S NEVER ENOUGH!!! (Rips off the mask to reveal he's infact a tenticle demon!!)

    --
    -=[ Who Is John Galt? ]=-
    1. Re:But Sir by Colonel+Korn · · Score: 5, Insightful

      MAFIAA: You have to take into account everyone that downloaded them.

      JUDGE: Ok so lets say 10 people downloaded each one, that's about so that's about $4800 right?

      By definition, the average participant in a peer sharing network uploads one copy. There's no way around that. If the actual number of uploads is unknown, the only remotely reasonable assumption for damage calculations is 1.0000000000000000000000000.

      --
      "I zero-index my hamsters" - Willtor (147206)
  9. Is this Legit, or Contempt? by Anonymous Coward · · Score: 5, Interesting

    Ray--if I was ordered by a judge to produce a detailed breakdown of my accounting (say a trial for tax evasion) practices over the past years by 7/31, and on the 31st I came to court with just a "protective order motion" asking that my accounting practices be kept secret...

    Wouldn't I be held in contempt?

    I mean...I can see producing the motion *with* the information...or...before it...but... tell me why it is these guys appear to have rights in the legal system that everyone else doesn't... More importantly, what piece of paperwork do I have to file so I can ignore court orders like they do and get off scott free?

    1. Re:Is this Legit, or Contempt? by NewYorkCountryLawyer · · Score: 4, Interesting

      Ray--if I was ordered by a judge to produce a detailed breakdown of my accounting (say a trial for tax evasion) practices over the past years by 7/31, and on the 31st I came to court with just a "protective order motion" asking that my accounting practices be kept secret... Wouldn't I be held in contempt? I mean...I can see producing the motion *with* the information...or...before it...but... tell me why it is these guys appear to have rights in the legal system that everyone else doesn't... More importantly, what piece of paperwork do I have to file so I can ignore court orders like they do and get off scott free?

      If I were the Judge I probably wouldn't have held them in contempt, but I probably would have issued a discovery sanction. Since in this case the material is needed to assess the fair use defense, which would be a complete bar to the action, I would have issued an order striking their complaint, dismissing the case.

      --
      Ray Beckerman +5 Insightful
    2. Re:Is this Legit, or Contempt? by RIAAShill · · Score: 5, Informative

      Moreover, the summary is again biased and sensationalized, part of a pattern that shows increasingly unprofessional conduct on the part of the submitter. The RIAA offered a proposed order that was greater in scope than what they had argued for. Had the judge and her clerks read only the moving papers and then just signed the order, the RIAA would have had that order amended upon discovery of the inconsistency. The RIAA actually got the protective order it had argued for--it just didn't get the overbroad proposal they submitted.

      Be nice. NYCL has a viewpoint and he likes to express it loud and clear, but accusations regarding professionality are uncalled for. He's not representing anyone in the case or publishing information that one couldn't get through PACER.

      It isn't any use arguing what the RIAA would have done had the judge signed off on their prosed protective order. They should have vetted it before submitting it to avoid any appearance of deceptive behavior. Since they didn't, then they deserve a little nose tweaking.

      And no, they did not get everything they wanted. The judge refused to protect the revenue information of the plaintiffs. They did seem to get what they wanted with regards to the non-revenue information.

  10. What are these other documents? by yuna49 · · Score: 5, Interesting

    Gertner's ruling states that "[the Court] will, however, order the second set of documents, which implicate the business interests of third-party artist-owned companies, shielded from disclosure."

    What are these documents, and who are these "third-party artist-owned companies?"

  11. There, RIAA shit. by unity100 · · Score: 4, Interesting

    the judge has corrected a MAJOR malfunction in your logic circuits. next time when you accuse someone of damaging your profits, you will remember to actually prove EVIDENCE to back up your case. that is, unless your leashholders are afraid of being proven wrong about all the shit you have been perpetrating. enjoy.

  12. Forcing them to show their hands by erroneus · · Score: 5, Interesting

    This could be the beginnings of an interesting new strategy against the RIAA. Forcing the RIAA to produce the verifiable truth about various things and to pull their skeletons from their closets and put them on display can likely act as quite a deterrent against RIAA actions.

    Still. How is the judge taking their failure to produce the data? Does making a motion instead of producing the data result in an automatic extension somehow? Is this an unwritten part of due process now?

  13. Re:Come on Ray! by hosecoat · · Score: 5, Funny

    Spill the beans already, how much are we talking? Anyone down for taking bets?

    It's obviously $23,148,855,308,184,500.00

  14. Re:Come on Ray! by RabidMoose · · Score: 5, Funny

    Your post, it smells like new meme.

  15. Re:Come on Ray! by Kabuthunk · · Score: 5, Interesting

    I'm putting my money on "case is dropped, RIAA gets to keep things secret"

    --
    Planet Zebeth - Metroid with a twist
  16. Re:Come on Ray! by NewYorkCountryLawyer · · Score: 4, Interesting

    I'm putting my money on "case is dropped, RIAA gets to keep things secret"

    That's an interesting thought. Hard for me to imagine them doing that, though.

    --
    Ray Beckerman +5 Insightful
  17. Re:Come on Ray! by jamstar7 · · Score: 4, Funny

    Spill the beans already, how much are we talking? Anyone down for taking bets?

    It's obviously $23,148,855,308,184,500.00

    Oh, then just pay for it with a Visa card.

    --
    Understanding the scope of the problem is the first step on the path to true panic.
  18. Re:Come on Ray! by Xebikr · · Score: 5, Insightful

    Hard for me to imagine them doing that, though.

    Yeah, but they do a lot of things that are hard for me to imagine until they do them.

  19. Taxes too by phorm · · Score: 4, Interesting

    It's not just the royalties/payments to the artists, it's the taxes, which could become an even bigger issue.
    While big corps might be able to get away with shady practises to hide their real profits, if they try to stick with a large penalty by announcing revenues of several times what was declared on their taxes they're likely going to be in deep trouble

    Not only that, but showing huge profits is going to blow away their pleas of "piracy is killing the industry and we're losing money/profits/etc", which is probably the real point here....