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RIAA Paid $16M+ In Legal Fees To Collect $391K

NewYorkCountryLawyer writes "In a rare outburst of subjectivity, I commenced my blog post 'Ha ha ha ha ha' when reporting that, based upon the RIAA's disclosure form for 2008, it had paid its lawyers more than $16,000,000 to recover $391,000. If they were doing it to 'send a message,' the messages have been received loud & clear: (1) the big four record labels are managed by idiots; (2) the RIAA's law firms have as much compassion for their client as they do for the lawsuit victims; (3) suing end users, or alleged end users, is a losing game. I don't know why p2pnet.net begrudges the RIAA's boss his big compensation; he did a good job... for the lawyers."

18 of 387 comments (clear)

  1. Q.E.D. by Anonymous Coward · · Score: 5, Insightful

    Thus proving what we've been saying all along:

    The RIAA's worst enemy is the RIAA.

  2. As a wise man once said... by Pojut · · Score: 4, Insightful

    "What're ya, fucking stupid?" -George Carlin

  3. the point is not the collections by Anonymous Coward · · Score: 5, Insightful

    It's to instill fear, and reduce the (speculative) lost sales.

    If they sell 10 million more albums as a result of spending the 16M in fees, then it's not such a bad deal. (Mind you, I don't think that's the case)

    1. Re:the point is not the collections by Anonymous Coward · · Score: 5, Insightful

      they lose mindshare because people won't buy

      If only we could all remember that half the population has an IQ below 100. Most people don't have much "mindshare" to go around. They don't give a flying fuck about the politics of IP ownership. They learn what buttons to push to download their stuff and that's all they care to know about technology.

      They also don't have very sophisticated taste in entertainment of any sort. This is why so much of the music the RIAA "protects" is recycled, boilerplate crap. The music industry panders to the lowest common denominator. The best stuff for the discerning consumer is on the fringes, made by artists who do it for the love of it, and aren't trying to get retarded rich but would like to earn a nice living.

      Seriously, think about the things that get lots of people to mob up and force change. What are they? Slavery, prohibition, the right to vote, civil rights, wars, and abortion! These are basic and big things. So do you really think there is going to be some kind of grassroots music industry boycott? I don't. It's just not that big a deal for an average person to give much of a flip about.

    2. Re:the point is not the collections by Idarubicin · · Score: 5, Insightful

      It's to instill fear, and reduce the (speculative) lost sales.

      Bingo. The parent post has it correct.

      The purpose of the lawsuits was never to directly recover money from individuals who have engaged in occasional acts of copyright infringement. Rather, it was to create the perception that online infringement could have dire consequences (dealing with even a groundless lawsuit is a tremendous time sink, and even a "small" settlement can run to four or five figures), and thereby (in theory) encourage people to pay for at least some of the music that they otherwise would have downloaded for free.

      While the $16 million appears on the balance sheet as legal fees, it would far more accurately be charged to the marketing budget as an advertising campaign. I doubt that the RIAA members ever expected these lawsuits to directly recoup their own costs. Looked at as a marketing expense, $16 million is a drop in the bucket.

      Whatever you might think of the RIAA's economic model or the ethics of using threats of extortionate legal action to frighten consumers, the bloggers and reporters who are framing this story as "OMG the RIAA are SOOO stoopid! They only got $391K from their $16 million lawsuits! Hahahaha Looosers!" have entirely missed the point. Indeed, they're apparently even more foolish than they accuse the RIAA of being.

      An intelligent analysis of the situation might look at what the RIAA's members did or did not receive in return for this $16 million campaign. Did they receive value for money? Has there been a change in the amount of private, noncommercial infringement? Have sales numbers been improved? Has public perception of, and attitudes toward, copyright infringement changed? Has this campaign generated a lot of free publicity, and has that publicity been a net positive for the 'message' that the labels wish to push?

      --
      ~Idarubicin
  4. Re:Good Heavens! by gandhi_2 · · Score: 5, Insightful

    Just about everyone on slashdot pointed out that the only people who win this game are the lawyers.

  5. To be fair, by pwnies · · Score: 4, Insightful

    This is a pretty common thing legally. Corporations will often pay legal fees larger than the returns of a court case, if it means they can set precedence for the future. The other benefit is it creates fear in those who would have otherwise pirated songs.

    1. Re:To be fair, by biryokumaru · · Score: 5, Insightful

      Doesn't this just emphasize the incredible injustice of the American justice system? Giant corporations get legal protection because they can afford to waste millions fighting pointless legal battles. Joe Shmoe doesn't have that luxury. Isn't this an example of a corporate entity literally buying the law in some way?

      I don't know. That just really, really bothers me.

      --
      When you're afraid to download music illegally in your own home, then the terrorists have won!
    2. Re:To be fair, by Xgamer4 · · Score: 5, Insightful

      That's the thing, though. As far as I'm aware, they've absolutely failed to set any kind of precedent that might even be remotely in their favor and they've completely failed in instilling any type of fear in anyone who might think about pirating music. All they've really done is cost themselves a good chunk of money while flushing any type of good reputation they had down the toilet.

    3. Re:To be fair, by biryokumaru · · Score: 5, Insightful

      I do not have $16,000,000 to blow to protect my copyrights, whether or not the copyright was free. I cannot afford to pursue school children and grandmothers with overblown legal threats either. The average dude lacks the resources of a giant, multi-billion dollar corporation, and because of that they are unable to pursue their legal rights.

      In 18th century England, criminals were not guaranteed legal representation, and thus the poor almost always lost legal battles. Not because they were guilty, but because they were poor. Is the DA going to defend my copyrights? Ya, I'm so sure.

      Seriously. You have got to be kidding me on this one.

      --
      When you're afraid to download music illegally in your own home, then the terrorists have won!
  6. Losing credibility fast... by Darkness404 · · Score: 4, Insightful

    Between the MPAA's style of Hollywood accounting and the RIAA doing things like this, their statistics are losing credibility fast. How about using that 16 million to pay those artists that have been "wronged" by those evil "pirates".

    If the *AA want to really convince people that they are losing money and the "pirates" are in the wrong, they need to get their finances straight before they blame "pirates". If it costs you $16 million to collect $400K-ish, you are running at an extreme loss, chances are that "pirate" didn't cause $16 million in real damages, (or even $10 in damages...) and if the RIAA keeps shooting itself in the foot, eventually people will realize that the real thing harming artists isn't "pirates" but the record companies.

    --
    Taxation is legalized theft, no more, no less.
  7. Money well spent by Weaselmancer · · Score: 5, Insightful

    You're not looking at the expense correctly. It's not revenue they're hoping to regain. If that was the case spending $16M to gain $391k is a losing deal and any idiot could see that.

    This money was spent as advertising, to spread fear about. And for what they've got for their $16M, it's been a bargain.

    Back when Napster ruled the nets and music was free and nobody was getting stripped of their entire future just to listen to Madonna, the music industry was looking at a pretty dire situation. Now significantly fewer people download music. I sure as hell don't. Too rich for my blood - I won't do it. From that point of view it is a win. There are plenty of people who now will pay for music rather than risk having the RIAA's pack of rabid lunatics take an interest in your life. Me, I simply do without. I won't fund these assholes, but I won't risk the future of my family just to hear Rush's latest album either. I simply abstain.

    Remember the "music industry" is nothing more than privileged middlemen. They produce nothing. They are to music what a toll booth is to travel. The whole goal is to keep the scam going. Spending $16M to keep the status quo? Totally worth it. Look at their revenue generated during the period in which they spent the $16M. Pennies on the dollar.

    --
    Weaselmancer
    rediculous.
  8. AC by Anonymous Coward · · Score: 5, Insightful

    Money recovered: $391,000
    Lawyer cost: $16,000,000
    Legal precedence, chilling effect, and erosion of justice & civil rights: priceless!

  9. Re:Good Heavens! by v1 · · Score: 4, Insightful

    Does make one wonder how the artists can see their membership money being pissed away like that and think it's a positive

    --
    I work for the Department of Redundancy Department.
  10. Re:They are aiming way too high. by EdIII · · Score: 5, Insightful

    Everyone knows that downloading is form of theft (of copyright materials)

    No. Not everyone. Some of us know how absolutely and unarguably false and incorrect it is to claim it is remotely anything like theft. I'll just re-post my response to somebody else who was under the mistaken impression that you can "steal" intellectual property by downloading it:

    Theft of intellectual property is in impossibility, by the very definitions of the words involved. The cost, or effort, of copying is also irrelevant.

    When you give your money for the shiny piece of plastic, you are also granted license rights, that we The Peeps (aka Government), granted copyright holders to bestow upon others.

    Only one thing happens when you "pirate" or receive a digital copy of a copyrighted work without compensating the copyright holder: Infringement . The definition, "A violation, as of a law, regulation, or agreement; a breach." does not, and never has, implied Theft which has the definition, "(Law) Criminal law the dishonest taking of property belonging to another person with the intention of depriving the owner permanently of its possession".

    Now a copyright can be viewed as physical property, but that is the copyright itself. To permanently deprive somebody of their copyright means I somehow transferred those legal entitlements to myself and started receiving money and granting others license to use that work, per my newly and illicitly acquired intellectual property rights.

    All of the analogies to physically stealing anything are complete and utter tripe based on fallacious logic, and deliberate misinterpretation of law. Content companies (derogatorily referred to as Big Media) would love to have the act of Infringement conflated with Theft. It serves their purpose to have the public incorrectly associate the two to accomplish fear mongering.

    Of course the fact, that no college student or citizen has ever been convicted of theft of an MP3 seems to make no difference. Defendants are always sued for damages as it relates to the acts of infringement in a civil court and not a criminal court. No district attorney has ever prosecuted criminal charges against an ordinary citizen for what we consider to be piracy because it is pointless. It does not meet the definition of criminal levels of infringement which traditionally require intent to profit financially or large scale distribution. Those have been amended in recent times, but nonetheless, nobody has ever been prosecuted criminally for it, despite the fact that torrents and file sharing have involved distribution at what some consider to be large scale. Even if, IF, somebody were to be prosecuted, the crime would not be theft.

    It makes very little sense, and I don't support piracy.

    Once again, I hope some people are reading this and figuring it out.

  11. Bullshit. by Lythrdskynrd · · Score: 5, Insightful

    This week alone we've read about how Movies always end up in the red (even Harry Potter lost money) http://entertainment.slashdot.org/story/10/07/09/1621218/Hollywood-Accounting-mdash-How-Harry-Potter-Loses-Money

    and this one about how labels avoid paying musicians hasn't even fallen off the front page yet: http://news.slashdot.org/story/10/07/13/1737224/RIAA-Accounting-mdash-How-Labels-Avoid-Paying-Musicians

    There's no way the legal expenses cost $16M in *REAL* money. RIAA uses internal lawyers. In fact, RIAA is just lawyers. They're paying themselves and once again, screwing the artists.

    I mean seriously, to the "editor" who posted this (kdawson) would it kill you to put an ounce of fucking critical thinking into it before you post?

    I'm sorry... I know this must come off as a "troll" ... maybe I'm reading too much slashdot or something.

  12. Re:shareholder lawsuit? by kaizokuace · · Score: 4, Insightful

    As opposed to countries where you get healthcare :/

    --
    Balderdash!
  13. Really? by caitsith01 · · Score: 4, Insightful

    I really, really loathe these guys.

    But do you really think it's not working for them? They've paid $16M to lawyers. For that amount they have received:

    - nominal damages

    - huge amounts of lobbying power with politicians ("look how much we're having to spend to defend our rights!")

    - absolutely massive amounts of anti-piracy PR from their big media pals

    - a hard to measure but very valuable creation of fear in the mind of the average file sharer

    I'm sure I'm not alone in being distinctly more wary about file sharing than I was in, say, the era when Napster and Kazaa dominated.

    I think for $16M they'd be delighted.

    Of course, none of that negates the fact that a much, much, much better approach to selling media would be to make it affordable and DRM-free. Which is why, for example, I spend too much money at Good Old Games.

    --
    Read Pynchon.