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People in masks cannot be trusted
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RIAA in trouble x2
First article
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Things will get very ugly over the next few months for the RIAA, if one disgruntled file sharing lawsuit victim gets her way.
Tanya Andersen, the single mother who filed a countersuit against the RIAA after the organization mistakenly sued her for sharing music online, attempted to hold it responsible for all sorts of heavy infractions ("RICO violations, fraud, invasion of privacy, abuse of process, electronic trespass, violation of the Computer Fraud and Abuse Act, negligent misrepresentation, the tort of 'outrage,' and deceptive business practices").
According to Mike Ratoza, a copyright lawyer with Bullivant, Houser and Bailey who teaches at the University of Oregon, Andersen is close to forcing the RIAA into the discovery phase of her countersuit, after having her original complaint dismissed on Feb. 19. Andersen's amended complaint, due March 14, will not be a layup, and there are no guarantees in litigation. But assuming her lawyer is able to craft the pleading to the judge's specifications, Andersen will have another chance to tilt at the RIAA windmill, with the case proceeding into the discovery phase. If that happens, the RIAA could be forced to release potentially incriminating details about its techniques for investigating alleged file sharers.
This information would likely be held under a confidential seal, but if lawsuits over mold, tobacco, and asbestos are any indication, the RIAA's secrets will likely leak out into the legal community at large, potentially culminating in a class-action lawsuit.
Once Tanya Andersen files her amended Complaint, which the RIAA is barred from contesting this time around, the organization could have to explain the following details by producing documents and allowing major-label anti-piracy executives to be deposed:
- How much the RIAA's lawyers make
- Why the average file sharing settlement fee is $4-5K
- How it decides which file sharers to sue, and which ones not to sue
- Where the settlement money goes (i.e. whether any of it makes it to the artists)
If it turns out that the RIAA is paying its investigators (such as MediaSentry) a percentage of the settlements that result from their investigations, it is in even more trouble. That's illegal in many states, according to Ratoza, including New York.
Things could get even worse for the RIAA. Andersen isn't likely to be granted class action certification for her suit, because federal courts (where copyright-related proceedings take place) are not friendly to class-action suits. But another RIAA lawsuit victim could use the information divulged in Andersen's case to countersue the RIAA for specific allegations (fraud and RICO violations) in a state court, where class action certification is more likely.
Even without a class action lawsuit, the RIAA nutshell is likely to split wide open after Andersen's case hits the discovery phase, causing problems in subsequent cases. Ratoza expects the discovery phase in Andersen's case to start in about 90 days, and said it will last 4-6 months. The judge isn't likely to rule until early next year, but the RIAA's secrets could leak out a lot sooner.
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Their secrets might get out, which can open them to get sued, as well as potential illegal activity.
Second article
Quote:
February 27, 2008 -- Artist managers are girding for battle with their music overlords over when their clients are going to see some of the dough negotiated last year in copyright-infringement settlements with a host of Web sites.
Universal Music, Warner Music and EMI - either collectively or individually - settled claims with Napster, Kazaa and Bolt.com. Napster alone had to cough up $270 million.
The fourth major label, SonyBMG, was not part of the suit because Napster was owned by BMG parent company Bertelsmann.
All four struck separate deals with YouTube that included revenue participation.
A contingent of prominent artist managers claims that little to none of that money has trickled down to their clients. They are now considering legal action.
"Artist managers and lawyers have been wondering for months when their artists will see money from the copyright settlements and how it will be accounted for," said lawyer John Branca, who has represented Korn, Don Henley, and The Rolling Stones, among others.
"Some of them are even talking about filing lawsuits if they don't get paid soon."
Record label sources said corporate bosses are still deciding on how best to split the money. In determining the payout, they said not every artist is owed money and it must be calculated with regard to the level of copyright infringement for each artist.
What's more, these sources said that after the labels recouped their legal expenses, there wasn't much left to pass along to the artists.
But a source on the artists' side said that is an argument heard all too often in the music business.
Getting money out of the major labels is never easy, but given the industry's downward financial spiral it is exponentially more difficult now, the source said.
"The record labels are experts at transferring money around and putting the onus on artists managers to find it."
Irving Azoff, the legendary talent manager for The Eagles and Jewel, among others, echoed that sentiment.
"They will play hide and seek, but eventually will be forced to pay something," Azoff said. "The record companies have even tried to credit unrecouped accounts. It's never easy for an artist to get paid their fair share."
Reps for the three labels dispute the notion that they are withholding settlement money.
A spokeswoman for EMI said the label has started the process of "sharing proceeds from the Napster and Kazaa settlements with artists and writers whose work was infringed upon."
Warner Music's representative said the label "is sharing the Napster settlement with its recording artists and songwriters and at this stage nearly all settlement monies have been disbursed."
A Universal Music spokesman said the label's policy "is to share its portion of various settlements with its artists, regardless of whether their contracts require it."
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This is the funnier one, the fact that the artists who they are defending, are not getting the money. Between the 2 of them, I am going to love to see what happens in the next few months!
Last edited by Xazy; 03-20-2008 at 12:21 PM..
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