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ExtraTorrent.cc > Articles > RIAA Recouped Only 2,5% Spent on Litigation in 2008

RIAA Recouped Only 2,5% Spent on Litigation in 2008

RIAA Recouped Only 2,5% Spent on Litigation in 2008

Added: Sunday, July 18th, 2010
Category: Recent Headlines Involving File Sharing > Current Events
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
The litigation campaign appears to come in a worse form for the RIAA than it was imagined. The figure presented below will make you understand why the RIAA announced to contest the fine reduction in the Joel Tenenbaum case,though it wouldn’t make you understand why it started it in the first place. Actually, the figures provide quite a clear picture, explaining why the outfit behaves this way in the cases in question. However, it should be pointed put that the legal fees are not exclusive only to the Joel or the Thomas cases for that matter.


As we can see from the page 8 of IRS papers, the Record Industry Association of America has spent almost $9,5 million on Holmes Roberts & Owen in expenses, as well as $7 million on Jenner & Block and over $1 million on Cravath Swain & Moore. Meanwhile, the page 9 informs that the total revenue in anti-piracy restitution amounts to mere $400,000, which gives us an approximated rate of 2,5%.

A lot of people figured it out long ago that the only winners in all the anti-piracy campaigns are lawyers, but not consumers or copyright holders. As you can see, the labels lose much, too. And it wasn’t just a single year of losses – 2006 came similar to the RIAA, as it spent over $19 million in legal fees plus over $3,5 million in investigative operations and only recovered $450,000.

It looks like the RIAA just gambled on the success of the litigation in the US, just like in poker. The RIAA’s shareholders should probably open their eyes and argue that, if also take into consideration the damages awarded in trial, it’s just the right time to take the spending under control and reconsider the strategy out there, maybe giving the labels an advice to focus on promotion instead of enforcement, as the latter looks like a lost cause in today’s situation. The group can’t make any money from enforcement, which is increasingly obvious. In fact, what the labels do at this point is handing over amazing amounts of money to numerous legal firms. That would be for sure that part of the RIAA that’s actually losing money is litigation.

What can make us smile after this review is that there are not many totally happy legal firms from the other side either. Even compared to the RIAA, which is losing so much in money, it’s clear that it’s a PR-losing situation for the firms, hurting their wallets as well.

July 18th, 2010

Posted by: 

Date:  Sunday, July 18th, 2010

Comments (3) (please add your comment »)

posted by (2010-07-18 17:46:31)
netcobold avatarsimilar to what I've wrote on your Tenenbaum-aticle (many thanks, btw)

This is not about earnings for RIAA, they don't try to make any money. The studios and related industry consider the losses RIAA is making as much lower than the benefits achieved through less illegal downloading - if this could ever be achieved. At least that's the theory. Frighten people, discourage them from illegal downloading - than they will buy more legally again = higher earnings. And these costs are even tax-sensitive! So at the end the tax paying citizens are paying for RIAA and their lawyers.

How realistic would it be for RIAA to ever collect that kind of fines? Someone who could pay 675k or 1.5m or anything in that region get never suit by RIAA. They would have a proper legal team, perhaps settle before trial.

So, the only once getting suit are little people unable to pay such kind of fine, and those are most likely ruined for life. If RIAA would be after money, it would be much smarter for them to go for 'affordable' fines and to collect. That let me think that they are in fact only interested in setting examples to frighten and discourage others. And they don't care that they destroy peoples life's on the way.

And because it is not about making profit for RIAA, they will only stop if or when the public pressure becomes to big for their clients and is not worse it anymore.

posted by Blocked (2010-07-18 20:19:37)
2die4 avatarits not about the money the nwo are only intrested in spying on us they (nwo) are using copyright as the method of gaining control of the internet and complete legalized syping of the citizens for now you are guilty until proven innocent.

posted by (2010-07-19 13:16:09)
dubbsizzle avatarGood point netcobold: but i have a problem with that in my mind. Spending millions to get back maybe 1/2 a million is troubling. If it is to prevent people from downloading that's one thing but even if you discourage 1000 people a year to stop downloading you still don't make that money back. And I'm sure for every person that hangs up getting downloads two people take their spot with new ways of doing it. I don't see them every getting this money back. Cause even if you get people like us to stop downloading doesn't mean we go out and buy the product like we should. I could stop downloading completely and still never pay a dime for movies and music. Downloading is just faster and easier to find what you want and need.

I think they should have spent this money on promotion of their products and setting up their own pay per download site that has their entire catalog on it. Why is that so hard? Set up a campaign in elementary and middle schools that tell people about illegal downloads and how it affects everything.

It just don't seem profitable to go after those consumers that you want buying your music. Piss them off and you really think they are going to start acting right? NOPE. This negative campaign is probably costing them more than the $ they are spending and there is no way of telling what the impact will truly be.

The only reason the record companies are still alive is that artist have not made that step yet in getting rid of them. I think once we see about 10 groups go record company free and make millions putting their stuff out for download others will follow once their contract is up. Problem is whatever music they made with the record companies belong with the record companies. They could not re-record the songs and sell them.

Bottom line is the RECORD COMPANIES are going to loose this war with the people. There is no way I can see this coming out good for them. They need to change their ways while they still can.

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