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How Much Is Your Stolen Music Worth

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RIAA Lawsuits from a John Doe's Perspective
Meet John Doe
The RIAA runs its lawsuits as a volume business, and sometimes downloaders just gotta settle
by Nick Mamatas
March 7th, 2005 2:05 PM


Of the millions of people who illegally download free music using various peer-to-peer (P2P) networks, only about 8,400 have been sued by the recording industry?including, last month, an 83-year-old dead woman from West Virginia. Those odds seem pretty good, until it happens to you. This past October, my former Internet provider alerted me that they had been subpoenaed by the Recording Industry Association of America (RIAA) on behalf of its member labels with the demand to turn over the names and addresses of 100 "John Does" that the RIAA had detected sharing music. The RIAA is now appealing an 8th Circuit Court decision, which ruled that Internet services providers don't have to reveal names of customers who have not yet been sued.

"We surf peer-to-peer music networks," Jonathan Lamy of the RIAA communications office says. "We look for people who are offering songs, and if they have a substantial number of songs, we take note of all the songs they are offering for distribution and their IP addresses." Suits are filed against the anonymous file-sharers in bulk and then the RIAA goes to court to get names and addresses from ISPs. From there, the RIAA offers downloaders a chance to settle the complaint, or they can go to court and fight it.

For me, the experience of settling with the RIAA was almost painless?except for the thousands I agreed to pay. Dragging my "shared" folder to the trash icon, promising not to download anymore, and acknowledging that illegal downloading is wrongful were easy enough. I happened to know an intellectual-property lawyer who agreed to handle the negotiations pro bono. He was the one who called the RIAA settlement center number and spoke not to a lawyer, but to a staffer empowered and trained to negotiate. "It feels like they're doing a volume business," my lawyer told me.

Lamy says that of the 8,400 suits filed (8,100 of which were filed against John Does) there have been about 1,700 settlements to date. The process, from detection to settlement, can take months, but its critics believe the RIAA moves far too quickly. Annalee Newitz, policy analyst for the civil liberties group the Electronic Frontier Foundation, says the practice of suing not just a single anonymous person but dozens at a time is called "spamigation." "That's one of the slimier things that entertainment companies are doing," she says, because mass lawsuits allow "companies to sue hundreds of people for the same cost as suing only one. So instead of respecting the defendants' due process rights and suing them individually, the companies are able to cut down on court fees and sue them as a group. This makes it much easier for companies to sue people willy-nilly, even if they aren't sure that the person being sued is in fact infringing, because it doesn't cost them any extra money to add another name to their suit." The EFF has helped compel entertainment companies to file individual rather than group lawsuits in Northern California, and has also worked with other John Does to have the RIAA and other entertainment company cases moved to their home states.

Most settlements top $3,000, and according to Newitz, some can go as high as $7,000. The RIAA wouldn't confirm these figures, but it didn't dispute them either. Lamy says that of all the John Doe cases so far, "none have come to trial." And indeed, it is hard to imagine going to trial doing much good for a hypothetical Doe, since millions of users are illegally downloading and sharing music. Frequent downloader Cecilia Gonzalez didn't settle against the RIAA, and on January 7, she received only a summary judgment in a U.S. District Court. Throwing out Gonzalez's claims that she was simply "sampling" songs to see if she wished to buy them and that she was an "innocent infringer" unaware that she was violating record company copyrights, the court ordered her to pay damages of $750 for each of 30 songs she was found to have downloaded illegally, for a total of $22,500. That's more than the poverty line income for a family of five in 2004 ($22,030), but it is worth pointing out that damages of $750 per infringement is the minimum the RIAA could have received, and that the original complaint filed against Gonzalez claimed that she had nearly 2,500 downloaded songs. Damage payments could potentially be much higher. Finally, courts have found that the "cumulative effect" of downloaders makes individual downloaders liable for damages, even if their personal downloading has only a marginal impact, so even penny-ante downloaders are potentially at risk.

The RIAA is not eager to go to trial, according to Lamy. "We would prefer to settle sooner rather than later. . . . We make numerous attempts to engage downloaders throughout the process." The RIAA is even eager to adopt P2P technology, he says. "Record companies are aggressively licensing digital music," and even Napster founder Shawn Fanning has come in from the cold with SNOCAP, a clearinghouse of properly licensed digital music. The problem is that legal digital music firms have to compete against P2P outfits with "parasitical business models." It's cheaper to distribute stolen free stuff than it is to pay up front, after all.

For all the furor over the suits, they may not be having that much effect on the amount of illegal downloading. Newitz says that "recent reports indicate that file sharing is bigger than ever?and so are the record industry's profits. As a result, it's hard to see the suits as anything other than a wrongheaded attempt by the old media industry to push upstart innovators out of the marketplace rather than working with them." The RIAA points to the rise in legal downloading to show that its strategy is working. In a December press release, RIAA president Cary Sherman said, "With legal online retailers still forced to compete against illegal free networks, the playing field remains decidedly unbalanced. . . . That's why continued enforcement against individuals stealing and distributing music illegally is essential, as is holding accountable the businesses that intentionally promote and profit from this theft."

The EFF has its own suggested model for legal downloading, called "voluntary collective licensing." P2P users would pay a flat rate, say five dollars a month, for use of the networks, and that money would be passed on to ASCAP or some other suitable association representing artists and producers. "This is exactly how radio works, except that radio stations pay the licensing fees rather than listeners," Newitz says. "It would be easy to figure out how much to pay artists using a VCL for P2P technologies, because it's simple to use current software to track how many times a song is downloaded"?a method that would make such a scheme even more precise than the estimates radio uses. But the RIAA isn't going for it. "We do oppose compulsory licensing schemes that would set a specific price" for a license to download, says Lamy. SNOCAP and other pay-for-play systems like iTunes is what the industry supports.

And downloading? Well, I'm done with it now, except for legal amazon.com freebies, but even my close friends haven't been scared off. One scoffed at my settlement, and said that if she were sued, she'd fight the RIAA in court. For her, downloading is "civil disobedience" in protest against the legal digital music systems that just don't have all the music she wants. Of course it's easy to strike a rebel pose like that . . . until you become just another John Doe.http://www.villagevoice.com/music/0510,mamatas,61813,22.html



Music Piracy Unit Raids ISP in BitTorrent Assault
more http://slashdot.org/articles/05/03/11/0154230.shtml?tid=141&tid=95
 
Originally posted by: Amused
People invent for altruism? People make music for no other reason than to make people smile?
Sometimes, yes. It's human nature to share, and to create things. Sure, financial gain is one of many different things that serve to motivate people, but not everyone in this world is motivated purely by financial gain, such as (apparently) yourself. You're starting to sound like Scrooge McDuck here.

If what you say is true, then how do you explain the rise of open-source software, and the so-called "gift culture"? According to your theories, they should not exist, nevermind gain in popularity. Perhaps capitalism is not the end-all and be-all of the human condition, and not everyone chooses to play the "game" strictly according to its rules. Humans are grey, not black-and-white. Some people (including myself, btw, have difficulty seeing that sometimes.)
Originally posted by: Amused
Communism is an abject failure because it fails to address, no it simply denies a major driving force in human nature: Ambition.
I think that you mis-spelled "selfish greed".
 
In many cases open source software is actually BETTER than the bloatware concocted by these 100 programmer, million dollar projects. Good analogy.

Anyway, every time I download a piece of music illegally, a small part of my conscience says, "this is wrong". That said, I believe I would get the death penalty if the RIAA ever got a look at my hard drive. I realize it's theft, but it's just so damn easy. I can have almost any movie, album or piece of software at my fingertips in a matter of hours. It's just too hard a temptation to resist.
Upside: It's fast, effortless,relatively safe and FREE.
Downside: It's wrong.
 
Originally posted by: Amused
Originally posted by: Vic
Originally posted by: Amused
It will keep increasing in pressure until people stop believing they have a right to the work product of another.
So am I stealing when I rip my legally purchased CDs into mp3's on my hard drive, simply for my own listening convenience, and never share them with anyone?

It's true that no one is entitled to another's work without payment or permission, but this sh!t is getting out of hand... again.

The MPAA and RIAA are only targeting people who distribute/download. I highly doubt they'll come after people who make copies for personal use only and do not post them online.

surely if I own the rights to some music, I should have the right to make that music available on-line? while it may be a crime to download and keep music, I cannot see how it is a crime to (passively) allow others to inspect the contents of one's hard drive

 
Originally posted by: Vic
Originally posted by: IAteYourMother
See, if the porn industry pulled this sh!t off, then i'd be really scared 😀
Unlike the music industry, the porn industry isn't stupid. They know that a small amount of piracy increases their actual sales dramatically. There is no better form of advertising than letting the customer have a little free taste upfront to get their interest going. This is why the music industry still allows a small semblence of music radio to continue existing.

wonder if the p2p networks could sue the RIAA for a % of the increased revenues generated as a result of p2p file sharing (the process of users discovering new music via p2p)?


 
I only download music that I otherwise wouldn't buy. Of course, my new source is AllOfMp3 🙂 For ~$4, how can you go wrong? And it's LEGAL! 🙂
 
Originally posted by: Amused
Originally posted by: AFB
Originally posted by: Amused
Originally posted by: VirtualLarry
"Remember kids - 'Sharing' is Communism. Don't share. Be a good consumer and always buy your own."

Without intellectual property rights all incentive to innovate, create and invent is gone.


That's BS.

It is?

People invent for altruism? People make music for no other reason than to make people smile?

Will you work for free? Do you work for free? If not, you're the one spouting BS.

People do these things for fame and fortune. If you think they don't you're simply denying reality.

Communism is an abject failure because it fails to address, no it simply denies a major driving force in human nature: Ambition.

some of history's greatest artists and novelists received no recognition or payment during their own lifetimes. what drove those people to create? desire for money or fame alone is not a satisfactory explanation.
 
Originally posted by: 3chordcharlie
Originally posted by: aidanjm
out of interest, is it illegal to play my purchased music to other people?

If it can be construed as a public showing/listening, then yes.

I woukd LOVE for that to happen. When the RIAA sues someone for playing music in the public... as in thier car's windows rolled down or something, it will have gone entirely too far, and the public may finally open thier fvcking eyes. Suing your customers is a damn stupid business model.
 
Originally posted by: Amused
Originally posted by: Czar
Originally posted by: Amused
Originally posted by: AFB
Originally posted by: Amused
Originally posted by: VirtualLarry
"Remember kids - 'Sharing' is Communism. Don't share. Be a good consumer and always buy your own."

Without intellectual property rights all incentive to innovate, create and invent is gone.


That's BS.

It is?

People invent for altruism? People make music for no other reason than to make people smile?

Will you work for free? Do you work for free? If not, you're the one spouting BS.

People do these things for fame and fortune. If you think they don't you're simply denying reality.

Communism is an abject failure because it fails to address, no it simply denies a major driving force in human nature: Ambition.

take a look at open source software

How they choose to finance their business model is their choice. They are, however, making money and/or notoriety from it. Do you think they do it for altruism?

imo, in some cases, yes, people donate their time and skills because they want to create a better community, or they want to be involved in what they consider to be a better way of doing things.

the open source software movement is not about individuals making money.
 
(to get it out the way, in regards to some posts earlier, the main reason communism has failed is because the people that tried to instigate it wernt communists, they were a group of power hungry fools that wanted to be totally elite and have power over the masses, bit like facism but a group of people rather than a single leader figure)

On the music side, someone posted worrying about ripping MP3's for their own use.... this is fine, you cant be arrested for it, at least not in the UK, technically when you pay for a CD/record/tape/etc, you are paying for the licence to listen/watch what you have bought, you are not paying for it to be restricted to that medium, however with a DVD for example, you cannot show it publicly....legally this means even having a mate over to watch it would infringe that law.....lol....and lending it to a friend likewise is against the law. But you would actually be allowed to copy a VHS film to DVD so you can watch it on your in-car entertainment system. same with CD's, you can rip/record to MP3 or tape to use on a personal player/in-car audio system. Certain film companies might have a disclaimer on their VHS recordings that prohibits any copying of the film whatsoever, but this infringes on your rights, likewise if the tape breaks/screws up, if you can show a receipt and prove that it wasnt through your own neglect then the company has to replace that tape for free. Same with DVD's, for instance i had a film on a poorly made disc, the inner part of the disc was made of too cheap a plastic and the case the film came in had a really bad style of hold-in centre clip....so the disc fractured, i contacted the UK arm of the company and told them about it and that i would like a replacement, first of all they said it would cost me £5......i said no way, you provided a disc and box that could not but fail to shatter and could have caused problems in my machine had i not noticed, either replace it free or i'll go through the trading standards council with a claim of you supplying discs not capable of performing as they should do. They said ok, where do you want the free disc sent to 🙂

i now have two copies of Lost in Space.....lol......one i can watch, and one i cant...heh

 
While I am a rampant pirater I'll admit (50 gigs of music and growing, but I'd say about 85% plus is from a non RIAA label 🙂), I just fail to see how it is so difficult to grasp the fact that not paying for something that someone else created and is trying to sell is well, wrong. Some of you are trying to make the most out there, roundabout arguments I've ever heard trying to avoid this.

Now many artists support p2p because it is a great way to get their music out, especially those that aren't on a major label with the luxury of being played on Clear Channel stations and MTV. But then again if the labels don't like it, then the labels don't like it. They are the ones controlling the albums. I will still download though because at the time it is the only way for me to check out a majority of my music since like I said most of it doesn't get any airplay, but I don't try to fool myself that what I'm doing isn't wrong.
 
$150k a song is 1.8 million dollars an album. Robert Durst paid 1.8 million to beat a murder rap. So you can kill someone and get off for the same cost of downloading an album.
 
Originally posted by: UglyCasanova
While I am a rampant pirater I'll admit (50 gigs of music and growing, but I'd say about 85% plus is from a non RIAA label 🙂), I just fail to see how it is so difficult to grasp the fact that not paying for something that someone else created and is trying to sell is well, wrong. Some of you are trying to make the most out there, roundabout arguments I've ever heard trying to avoid this.

Now many artists support p2p because it is a great way to get their music out, especially those that aren't on a major label with the luxury of being played on Clear Channel stations and MTV. But then again if the labels don't like it, then the labels don't like it. They are the ones controlling the albums. I will still download though because at the time it is the only way for me to check out a majority of my music since like I said most of it doesn't get any airplay, but I don't try to fool myself that what I'm doing isn't wrong.

I must have fooled myself very well, cos I don't think what I'm doing is wrong 🙂
 
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