Print 51 comment(s) - last by mithunchetan.. on Jul 28 at 1:50 AM

The cold hard numbers show the RIAA's legal campaign to be about as successful financially as burning money in a pit.  (Source: Views Skewed)
"That does not make sense!"

In the infamous Recording Industry Association of America's (RIAA) 2008 IRS tax filing, the organization revealed the stunning financial futility of its battle against piracy.  The document[PDF], obtained by P2PNet, reads like a lawyer's dream and like a financial officer's worst nightmare.

At the end of the day, RIAA paid Holmes Roberts & Owen $9,364,901 in 2008, Jenner & Block more than $7,000,000, and Cravath Swain & Moore $1.25 million to pursue claims against music pirates.  That's a total of over $17.6M USD.  And there were more law firms listed -- those were just the top three fees. 

In return, it received a mere $391,000 USD in compensation from its pirate victims.  In other words -- the RIAA spent over 45 times on lawsuits and threats than what it received in return.

The document proves similar to those obtained from past years.  For example in 2006 the RIAA in excess of $19M+ USD in legal fees and $3.6M USD investigative fees to pull in $455,000 (Source [PDF]).  And in 2007, it recovered $515,929 after spending $21M+ USD on legal fees and another $3.5M USD on its investigation (Source [PDF]).

In total, from 2006 to 2008 the RIAA spent $64M USD to make $1.361M USD.

Unless you're an electric car company, those kind of financials would typically spell the end of your company or organization.  However, the music industry seems more than happy to keep pouring money into the hole, as they feel they're overall preventing an even greater loss of revenue at the hands of pirates.

Unfortunately for them this may not be true at all.  Time and time again studies have shown that pirates will continue to pirate music and movies despite the RIAA's best efforts.  Piracy shows no sign of slowing down, despite all the lawsuits.  And likewise BitTorrent traffic continues to grow.

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RE: And .. 3.. 2.. 1..
By inperfectdarkness on 7/14/2010 9:49:46 AM , Rating: 5
as with malpractice suits, frivolous class-action suits, patent-troll suits, etc; the only parties benefitting are the lawyers.

an american businessman, a russian businessman, a cuban businessman and an american lawyer were all riding on a train together. after much discussion and friendly banter with the group, the russian businessman gets up, pulls a bottle of vodka out of his briefcase, pours each man a glass, and throws the remainder of the bottle out the window. the american businessman asks him why--even though the russian economy is suffering--he can afford to waste vodka. the russian businessman replies, "we have more vodka in russia than we could ever drink in several lifetimes."

upon seeing this, the cuban businessman gets up, pulls a box of cigars out of his briefcase, hands one to each man, and throws the rest of the box out the window. flabbergasted, the american businessman asks him why--in spite of the dreadful state of affairs that cuba is in--can he afford to waste cigars. the cuban businessman replies, "in cuba, we have more cigars than food...and every citizen can get them for free."

the american businessman pauses several moments for reflection. then he gets up, and throws the american lawyer out the window.

RE: And .. 3.. 2.. 1..
By djc208 on 7/14/2010 1:41:34 PM , Rating: 2

For every leagal justice some lawer achieves 100 more are causing more harm than good, and keeping most of the money involved.

RE: And .. 3.. 2.. 1..
By erple2 on 7/14/2010 2:22:37 PM , Rating: 2
I think it's the other way around - for every 100 lawyers that achieve legal justice quietly, one blows up into causing more harm than good, keeping more money than due in the process.

For every 100 people I drive with on the highway, that 1 person drives like a psycho-jerk. That leads me to make the loud and incorrect assessment that everyone on the highway is a maniac.

"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone

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