One of our goals at the RIAA is to provide timely and accurate information on the issues affecting the music labels and the creative artists we represent that are of interest to the public and the media.
The letters cite individuals for online music theft via peer-to-peer services such as Ares, BitTorrent, Gnutella, Limewire, and Morpheus.
The RIAA’s thirteenth wave of letters went to the following colleges this week: Boston University (35 pre-litigation settlement letters), Columbia University (50), Drexel University (33), Indiana University (40), North Carolina State University (35), Ohio State University (30), Purdue University (28), Tufts University (20), University of Maine System (32), University of New Hampshire (32), University of Southern California (50), and the University of Virginia (16).
The pre-lawsuit letters, sent to individuals at more than 150 schools, are one piece of a multi-faceted industry campaign to encourage fans to enjoy music legally. Despite years of warnings, educational campaigns and the availability of multiple legal options, online music theft, especially on campuses, remains a major problem for the music community and saps opportunities for investment in new bands.
Recipients of the letter have the opportunity to avoid a potential lawsuit by settling out of court for a reduced fee. Formal lawsuits have been filed against 2,465 letter recipients. These individuals either disregarded settlement opportunities or were not given the option to settle early because the university failed to forward the letters. Of the 5003 letters sent in prior rounds, the RIAA has reached settlements with more than 2,300 of those individuals.
“One year into our legal campaign, we’ve seen an emerging legal marketplace that would have struggled to gain traction were it not for our efforts to clamp down on online music theft,” said Cara Duckworth, Director of Communications, RIAA. “The exponential growth of illicit peer-to-peer has stabilized and music lovers know what they can and can’t do when getting music online. This has fostered a climate that helps music companies earn a fair return so that they can invest in the next generation of artists and new bands can have a shot at realizing a dream.”
“Unfortunately,” added Duckworth, “too many students continue to ignore the law and get music from illegal services like Limewire that do not invest a penny in nurturing music or compensating the artists, labels and the thousands of behind the scenes workers bringing music to the public.”
Record companies have partnered with innovative services to offer fans an unprecedented array of compelling alternatives. According to global music trade body IFPI, there are now more than six million tracks available on 500 different services. In the United States, today’s music enthusiasts can enjoy their favorite music via download services like Amazon.com, iTunes.com and Wal-Mart.com, subscription services like Rhapsody and Napster, social networking sites such as iMeem, satellite and Internet radio businesses like XM, Sirius, and Last.fm, and even legal peer-to-peer sites such as iMesh.
“The future of music is brimming with innovation,” said Duckworth. “For those who choose to ignore all the content-rich alternatives and get music the wrong way, they run the risk of legal action, potential disciplinary enforcement from a university and crippling both their computer and the university network.
“This month’s 50th GRAMMY celebration is a reflection of music’s integral and timeless nature. The creative collaborations of past and present artists remind us of the need to preserve the future of one of America’s greatest cultural symbols,” she added.
A survey by Student Monitor from 2006 found that more than half of college students download music and movies illegally. According to market research firm NPD, college students alone accounted for more than 1.3 billion illegal music downloads in 2006. Additionally, the Institute for Policy Innovation (www.ipi.org) recently estimated that the global theft of sound recordings cost the U.S. economy $12.5 billion in lost revenue and more than 71,000 jobs and $2 billion in wages to U.S. workers.
Since launching its deterrence program in February 2007, the RIAA has sent approximately 5,404 pre-litigation settlement letters. The letters are in addition to the lawsuits that the RIAA continues to file on a rolling basis against those engaging in music theft via commercial Internet accounts.
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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Contact: Jonathan Lamy Follow @LamyJ Cara Duckworth Follow @TweetCDuck Liz Kennedy Follow @LizSKennedy 202/775-0101
This year’s report, available on the IIPA website at www.iipa.com, outlines problems in a wide variety of countries but particularly stresses continuing problems in Russia and China, and emerging issues related to digital distribution in global markets. The RIAA issued the following statement from Neil Turkewitz, Executive Vice President, International: “This year's filing identifies the key issues that limit economic opportunities in foreign markets for U.S. creators and creative industries. While this year's report continues to highlight the failure of some governments to take effective action against physical piracy, it increasingly identifies key barriers faced by creative industries in expanding legitimate electronic distribution of copyright materials. In the current environment, it is critical that governments provide clear rights with respect to all forms of digital transmissions, along with effective means of enforcing such rights. Effectively addressing piracy on the Internet and through mobile platforms requires a high level of cooperation between rights holders and service providers, and this year's filing stresses the need for accountability at all levels of content delivery.” “There have been some very important developments in the past year that are helping to drive a new paradigm for network accountability, from agreements on user-generated content in the U.S., to proposed legislation in France mandating the termination of service for repeat infringers, to court ordered network filtering in Belgium. Service providers are increasingly aware of the risks of maintaining a wholly passive role in the face of massive unauthorized transactions taking place over their networks. We hope and expect that 2008 will be a year in which the level of cooperation between rights holders and network service providers will continue to greatly expand to help drive legitimacy, security and trust in the digital space.” “In addition to the issues that RIAA members confront in the digital marketplace, this year's report continues to highlight problems in countries where we face "old-fashioned piracy" like CD-R burning and illegal optical disc production by organized criminal enterprises. Many markets continue to be dominated by piracy, including in particular China where piracy rates remain at more than 90 percent of the market, and Russia where despite some gains in reducing physical piracy, U.S. record labels continue to lose more than $300 million a year in a marketplace where over half of the records sold are pirate copies. The piracy rate in Mexico, notwithstanding the tremendous efforts of the Attorney General, has climbed back to 71 percent, greatly destabilizing Mexico's entire music community.” “This year's filing also highlights key legislative issues. Top among these is Canada's continued failure to amend its copyright law to meet the challenges of new technologies, despite repeated calls from Canada's domestic copyright community, producers, creators and unions, and numerous promises by the Government that they would do so. We also identify important shortcomings in a number of countries, including: inadequate provisions on the circumvention of technological protection measures (TPMs); lack of sufficiently clear rules on secondary liability and contributory infringement; and problems with securing information necessary to take actions against direct infringers. The need to achieve immediate progress in the fight against online piracy is particularly critical in a handful of European nations, including Spain, Germany, Sweden and Italy.” “We hope that governments will take our recommendations on board as they consider how to enhance economic prosperity and cultural production, and how to advance the rule of law in environments, both physical and virtual, that have been relatively – or in some cases, completely – lawless. We simultaneously recommend to the United States Trade Representative, and other U.S. government agencies, that they continue to hold our trading partners accountable on the critical issue of intellectual property. While we believe that it is in the interest of all nations to address copyright piracy in all of its forms for their own domestic purposes, it is sometimes, however disappointingly, necessary for the United States to ensure that there are ramifications for failure to meet international obligations.”
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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Contact: Jonathan Lamy Follow @LamyJ Cara Duckworth Follow @TweetCDuck Liz Kennedy Follow @LizSKennedy 202/775-0101
The hearing’s purpose was to shine a light on the statewide economic toll caused by the illegal trafficking of counterfeit goods and the theft of copyrighted works online in order to determine and prioritize acute areas where action is most needed in the fight against piracy throughout California.
Flatow, the RIAA’s Senior Vice President, Artist & Industry Relations and General Manager, West Coast Operations and Cohen, Counsel, Anti-Piracy, RIAA each testified before several attending members of the Select Committee, chaired by Assemblyman Paul Krekorian (D-43).
Flatow and Cohen spoke on two separate panels on the pervasive impact of music theft on the industry and also private sector participation in piracy cases, respectively. The hearing also featured testimony by Wendy Greuel, L.A. City Councilmember and L.A. Anti-Piracy Task Force Chairwoman; Rocky Delgadillo, L.A. City Attorney; Al Schmidt, legendary Grammy-winning producer and sound engineer; and Jack Kyser, Senior Vice President, Chief Economist of the Los Angeles Economic Development Corporation (LAEDC), among others.
The music industry – one of California’s most important economic engines – continues to be hurt locally by piracy that then triggers a harmful domino effect throughout the country. According to a 2006 LAEDC study on the extent of traditional physical goods in the L.A. area, the local black music market costs the industry more than $851 million in revenue, 6,500 local jobs and more than $352 million in lost wages to L.A. workers.
At the national level, according to a recent study by the Institute for Policy Innovation, the theft of sound recordings costs the U.S. economy $12.5 billion in revenue, 71,000 jobs and more than $2 billion in wages to U.S. workers.
The historic Capitol Records Building served as a symbolic venue for the discussion.
“The heart of the impact of music piracy is perhaps felt most significantly right here in this building where music is discovered, created, and nurtured; where music is literally brought to life with passion and nuance,” said Flatow. “When cheap counterfeit copies are sold with impunity, or other forms of piracy occur, everyone is affected: the songwriters who pen the music and lyrics; the background musicians who perform it; the engineers who texture, layer and refine it; the artists who make it soar; and the labels who invest in, market, promote and distribute the music. We thank Assemblyman Paul Krekorian and the entire Committee for holding this hearing, for their leadership, and for the opportunity to share with you the challenges and opportunities we face as a community.”
On the hard goods piracy front, Cohen spoke to the important relationship between law enforcement officials and industry agents in the enforcement and execution of piracy cases. Cohen also discussed the increasing connection between piracy cases and high-profile criminal activity while highlighting the need for tougher sanctions against these criminals and more resources for law enforcement authorities who handle the cases.
“The illegal trade of counterfeit goods is big business, attracting various types of criminals who increasingly have connections to drugs, guns and in some cases even terrorist activities,” said Cohen. “These are crimes that require strong collaboration between law enforcement, government and the intellectual property industries so that a sustained pressure is consistently applied on those who steal in this manner. The illegal trafficking of counterfeit music and other goods drives local retailers out of business and deprives cities and states of important tax revenue generated from legitimate purchases. California is the entertainment capital of the world and we need to lead not only in production but also in the protection of these valuable state resources.
“We value our relationship with California law enforcement and look forward to our continued work with them to bring to justice those involved in the illegal trafficking of counterfeit goods.”
In 2007, the RIAA assisted law enforcement in more than 2,000 incidents of physical piracy and was involved in more than 1,000 music piracy cases that are currently pending throughout the state.
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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Contact: Jonathan Lamy Follow @LamyJ Cara Duckworth Follow @TweetCDuck Liz Kennedy Follow @LizSKennedy 202/775-0101