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A Wall Street Journal article this week chronicled the continuing decline in sales of CDs, which dropped 20 percent in the first quarter of 2007 relative to a year ago. A big part of this recent decline is certainly due to the closing of about 800 music stores, including 89 former Tower Records stores, over the course of 2006. There’s also little doubt that the root cause of both those closings and the overall decline in music sales is illegal music downloading; for more on the details of just how much of an effect downloading has on music sales, see Stan Liebowitz’s page.
Whenever a product is being illegally distributed, no one should be surprised if those harmed by that distribution take legal steps to try to stop it. The Recording Industry Association of America has done so several times over the past several years, and though no one really knows how effective those lawsuits have been in thwarting illegal downloading, they certainly don’t seem to have resulted in increased sales of CD’s. As long as millions of RIAA songs are being distributed without any form of compensation to the owners, we can expect these suits to continue.
Due to the nature of the crime and the nature of the media, these lawsuits are unlikely to create a positive image of the RIAA in the public mind. Piracy is so rampant that there’s no way even one percent of the perpetrators of the crime will ever be sued, so to compensate for that the RIAA will have to seek damages that will strike most of us as enormous. And the anonymity with which the crime can be committed means that mistakes will be made in determining who can be sued. Of the hundreds of suits made by the RIAA, there are bound to be cases where a low-income grandmother or ignorant child is fined hundreds of thousands of dollars for something they probably didn’t do. And we can be certain that those cases will be the ones that gain the media’s attention.
After reading a typical report of these RIAA lawsuits, most people will find the whole situation bizarre, and it’s not difficult to cast the RIAA as a villain. Ironically though, what the RIAA does actually helps out small, independent music makers just as much as it does the Christina Aguileras of the world. Illegal downloading affects the bottom line of every single album that’s been made in the past few years. Even though most of the sales dollars lost come from a handful of top name artists, there are thousands of albums that sell less than 2,000 copies who are harmed as well.
It’s hard for many to feel sympathetic about protecting intellectual property rights when those rights belong to a large corporation or a wealthy pop songstress. Although the RIAA does protect their interests, it also protects the interests of countless music makers who aren’t making lots of money from their music- musicians who aren’t on major labels, who don’t tour constantly, and who don’t have the resources to make sure their music isn’t being shared without their permission. They are victims of piracy as well, and though you probably won’t hear their side in the debate too often, they represent a growing (“Long Tail”) portion of the losses that result from illegal downloading.
posted by Dan Britton @ 11:13 AM | Internet: P2P, Search Engines...
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