RIAA Sues LimeWire Over Copyright Infringement
August 4, 2006 9:13 PM
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The RIAA has sued another P2P software company and is asking $150,000 per illegally downloaded song discovered
The RIAA has filed
yet another lawsuit
in its crusade against peer-to-peer file sharing networks, this time targeting the popular LimeWire network.
In the complaint the RIAA alleges that Lime Group LLC and its associates "actively facilitating, encouraging and enticing'' its users to steal music and that the company is doing nothing to block access to copyrighted works. The RIAA further alleges that Lime Group LLC has built a business model that allows them to directly profit from piracy.
LimeWire began operating in 2000 and has since become the program of choice among P2P users as other P2P companies have shut down or changed their business models to allow legal file trading. Last year the US Supreme Court ruled that P2P companies could be sued for copyright infringement if they were found to encourage piracy when the court ruled in the Gorkster case. The RIAA is seeking damages including at least $150,000 for each illegally downloaded song.
The suit comes only days after the
RIAA settled a lawsuit with Sharman Networks
, the company that distributes Kazaa. Record labels Sony BMG Music Entertainment, Vivendi Universal, Warner Music and EMI Group are behind this latest file sharing related lawsuit. As part of "going legit," the P2P network Kazaa recently agreed to pay record labels $100M USD in a bulk settlement.
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RE: South Park anyone?
8/7/2006 9:41:14 PM
> "The reason for that is the greedy record-companies take almost all the money."
Primarily because those "greedy" companies spend billions to promote those artists. There's a word for an artist who hasn't been promoted by a major label...its called "starving". The only artists who have ever gotten rich off music are those who've
Record companies quite often lose money on an artist, despite receiving the lion's share of the sales receipts. In addition to promotional costs, there's the actual recording cost of the album itself. Studio time isn't cheap, and an album can easily cost $100,000 just to record. Many labels tend to "throw bread on the waters", and sign quite a few bands, most of which they lose money on, in the hopes of having a few big hits.
There are plenty of smaller, independent labels that give artists a much larger share of the pie. You don't exactly see people lining up for their contracts though. If the major labels are so "greedy", why are artists still clamoring for their services?
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