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RIAA Paid $16M+ in Legal Fees to Collect $391K

by - source: Tom's Hardware US

Lawyers love the recording industry.

Over the years that we've heard stories of the RIAA going after the little guy for illegal music downloads. Sure, the RIAA has the right to protect the interests of who it represents, but its efforts thus far seem rather… wasteful.

According to documents and figures obtained by P2PNet, the RIAA has spent a exorbitant amount of money defending musical copyrights, but has only raked in a small, minor fraction that back in winnings from infringers.

In 2008, the RIAA paid law firms Holmes Roberts & Owen, Jenner & Block, and Cravath Swain & Moore a combined total of more than $17.6 million. In return, it recovered just $391,000 back from its legal action.

DailyTech tallied up what the RIAA spent on its offensive and compared it against its haul from the pirates. Between 2006 and 2008, the RIAA spent $64 million to get back $1.36 million.

In the end, it seems that the true victor are the lawyers.

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asjflask 07/15/2010 3:05 PM
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"In the end, it seems the true victor are the lawyers."

You think? Hasn't this always been the case? No pun intended.

brad799 07/15/2010 3:10 PM
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That'll teach them...to download a law for dummies book.

Hiniberus 07/15/2010 3:12 PM
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g00fysmiley 07/15/2010 3:12 PM
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they probably think they are actually acomplishing their goal by scaring people into not pirating.

it'd be hard to prove if they are or are not mkaing this goal. but if they spent that much on legal fees and it somehow resulted in more revenue from fear of being caught then they are successful and mademoney despite losing money

inversly if those people who usually pirate would have never paid for thier media in the first place and they spent more on legal fees than they would have in sold media to people persuaded to buy instead of download then it is in fact a fiscal loss

Hatecrime69 07/15/2010 3:12 PM
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and to think, if they only had common sense they'd see this is a waste of time and resources, shame they don't have any

Sabiancym 07/15/2010 3:14 PM
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hiniberus :
Oh so this is why Americans have to pay through their nose with taxes on an everything, the money for the Lawyers has to come from somewhere. At least I'm pretty sure the RIAA/MPAA are financed by the tax-payers



American Taxes are nothing compared to other first world countries.

quiky87 07/15/2010 3:15 PM
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I don't think the RIAA's true intent was monetary restitution as much as discouraging future pirates (which can't be calculated monetarily). Although in the end they just end up looking like the greedy assholes they really are.

duckmanx88 07/15/2010 3:18 PM
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hiniberus :
Oh so this is why Americans have to pay through their nose with taxes on an everything, the money for the Lawyers has to come from somewhere. At least I'm pretty sure the RIAA/MPAA are financed by the tax-payers



O_o they aren't.


treefrog07 07/15/2010 3:21 PM
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Great ROI! Well it is for the lawyers. I guess RIAA likes capitalizing on the economies of scale.

appletree_88 07/15/2010 3:39 PM
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I think Steve Jobs should pick up the legal tab because he got quite a windfall from all this legal activity through Itunes.

back_by_demand 07/15/2010 3:41 PM
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Epic FFF-FAIL!!!!!

velo116 07/15/2010 3:48 PM
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Yeah, but think about how many people aren't downloading music because they are afraid they'll get sued.

Nightsilver 07/15/2010 3:52 PM
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hiniberus :
Oh so this is why Americans have to pay through their nose with taxes on an everything, the money for the Lawyers has to come from somewhere. At least I'm pretty sure the RIAA/MPAA are financed by the tax-payers



You can't be serious.

accolite 07/15/2010 3:53 PM
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hiniberus :
Oh so this is why Americans have to pay through their nose with taxes on an everything, the money for the Lawyers has to come from somewhere. At least I'm pretty sure the RIAA/MPAA are financed by the tax-payers



There you go making assumptions, what makes you think that the taxpayers are financing the MPAA, it's not a government institution therefore has no ties to taxpayers?!?!

nimbus77 07/15/2010 4:04 PM
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Its a futile battle that RIAA is waging. People will continue to resist buying music when a CD is 20 dollars with one track on there that is good. Sell the music at a lower cost and people wouldn't be pirating.

noodlegts 07/15/2010 4:05 PM
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Pei-chen 07/15/2010 4:09 PM
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grieve 07/15/2010 4:17 PM
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Take that RIAA says this "little guy".

Now excuse me i need to find stuff to download.

MU_Engineer 07/15/2010 4:30 PM
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hiniberus :
Oh so this is why Americans have to pay through their nose with taxes on an everything, the money for the Lawyers has to come from somewhere. At least I'm pretty sure the RIAA/MPAA are financed by the tax-payers



Some countries such as Canada do directly fund their equivalents of the RIAA with actual taxes on goods like blank CDs, but AFAIK the U.S. is not one of those countries. Lawyers do levy a "tax" on everything, but it's not a tax like a sales tax or income tax that is mandated by the government. The lawyer tax is that the price of everything is higher because of the cost of employing legal staff to try to prevent and defend against lawsuits or pay for liability insurance is passed on to the customers.

jojesa 07/15/2010 4:32 PM
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RIAA = IDIOTS
I will use that money to lower prices and make music available even in a grocery store.

DjEaZy 07/15/2010 4:41 PM
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... go figure...

sliem 07/15/2010 5:03 PM
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RIAA should be disbanded. It represents the word 'fail' no truer than any others.

Anonymous 07/15/2010 5:06 PM
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10 years ago~they wanted a tax per gig on everything. I rarely even use disks anymore and when I did it was mostly for backup which pissed the hell out of me when they started taxing me for disks. As far as I am concerned I paid more than a lifetime worth of the music I "May" download, which is pretty much nothing considering what is out there now.

cookoy 07/15/2010 5:08 PM
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it's like a traffic cop who is out there to remain crazy drivers like me that i cannot drive like hell and that there are traffic laws to obey. and please don't tell him he's supposed to issue traffic fines to cover his payroll and his bosses' too. Not at my expense!

koss64 07/15/2010 5:13 PM
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If youre going to make such a massive loss the only logical conlusion is that its being done out of pure spite.

TemjinGold 07/15/2010 5:22 PM
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nimbus77 :
Its a futile battle that RIAA is waging. People will continue to resist buying music when a CD is 20 dollars with one track on there that is good. Sell the music at a lower cost and people wouldn't be pirating.



While this might reduce piracy, I guarantee you this won't end piracy. Even if you sell CDs at 1 cent each, there will still be pirates. They will sell more copies at the lower price but the volume gained may not make up for the margin lost.

gmarsack 07/15/2010 5:24 PM
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proof the RIAA has to much money to know what do with...

BoJl4apa 07/15/2010 5:31 PM
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and we say: wtf?!
possibly some sort of laundering via the law firm,
no1's that inefficient.

plznote 07/15/2010 5:36 PM
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hiniberus :
Oh so this is why Americans have to pay through their nose with taxes on an everything, the money for the Lawyers has to come from somewhere. At least I'm pretty sure the RIAA/MPAA are financed by the tax-payers

LOL! You AMerican have to pay nothing Taxes in Canada are way higher

saran008 07/15/2010 5:37 PM
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asjflask :
"In the end, it seems the true victor are the lawyers."You think? Hasn't this always been the case? No pun intended.


Ya


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