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Old 01-06-2007, 12:59 PM   #1
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Default RIAA probed by Senate

A FILE SHARING court case is getting the RIAA deeper into hot water, this time over the matter of pricing.

For ages the RIAA has been claiming in court that the amount of damages it needs from pirates is $750 per song.

This figure is being challenged in the case of UMG v. Lindor where the RIAA is being told that it must come up with a more realistic figure and closer to the actual damages involved based around the wholesale price for a single.

Observers have been wondering why the RIAA has been fighting to keep its wholesale pricing secret.

Many assumed that it is because the figure is only 70 cents a single. However, according to Ars Technica, the reason might be a bit more important than the problem of file sharing.

Any proposed order would force the labels to turn over contracts with their 12 largest customers. While most details would be kept confidential, the pricing information and volume would not.

This would reveal to the world if any price shenanigans were going on between the RIAA members and could cause them more problems with regulators than it would like.

Already investigations into industry pricing have revealed a Byzantine system of backscratching between record labels and distributors and the last thing the RIAA wants is to have details of this information made public.

If Lindor wins then the most the RIAA would ever be able to charge a pirate in the US will be between $2.80 and $7.00 per song. However the RIAA might also find itself up in front of a Senate inquiry.
More here.
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Old 01-06-2007, 01:39 PM   #2
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Finally the RIAA is getting what they deserve!
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Old 01-06-2007, 02:01 PM   #3
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The TRUTH will always win cause it's cheaper. Just like a lie, the cost to keep it up seems to increase exponentially.
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Old 01-06-2007, 06:29 PM   #4
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Welcome news!! Lets shine a little light in there...
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Old 01-06-2007, 06:35 PM   #5
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The RIAA is the devil. I hope they get all of what they deserve.
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