TELECOM Digest OnLine - Sorted: Music Industry Strikes Again! 8000 New Lawsuits Filed

Music Industry Strikes Again! 8000 New Lawsuits Filed

Kate Holton (
Tue, 17 Oct 2006 12:21:10 -0500

By Kate Holton

The music industry has launched a fresh wave of 8,000 lawsuits against
alleged file-sharers around the world, escalating its drive to stamp
out online piracy and encourage the use of legal download services.

The International Federation of the Phonographic Industry (IFPI),
which represents the world's music companies, said on Tuesday the new
cases were brought in 17 countries, including the first ones ever in
Brazil, Mexico and Poland.

The trade group said more than 1 billion music tracks were illegally
downloaded last year in Brazil, the largest market in Latin America.
Record company revenue has nearly halved in Brazil since 2000, IFPI

IFPI has said some 20 billion songs were illegally downloaded
worldwide last year.

The industry has now filed about 18,000 lawsuits in the United States,
the largest market for music sales, and 13,000 in the rest of the

The legal proceedings involve both criminal and civil suits and are
aimed at "uploaders" -- people who put copyrighted songs onto Internet
file-sharing networks to offer to music fans without permission.

The IFPI said many of those targeted for legal action were parents
whose children had been illegally file-sharing. Others facing law
suits included a laboratory assistant in Finland and a German parson.

The group added that more than 2,300 people had already settled their
case for illegally file-sharing copyrighted material with an average
payout of 2,420 euros ($3,034).

John Kennedy, chairman and chief executive of IFPI, told Reuters in an
interview he was encouraged by the group's progress, although he said
the fight against online piracy would be an ongoing battle.

"It's not getting easier but we are encouraged enough by the results
to keep on going," he said via the telephone from a trip to
Brazil. "It will never go away completely."

He said the success of high-speed broadband was combining with the
threat of legal action and fears of computer viruses to encourage more
and more users to opt for legal online services.

While the cost of pursuing individual legal cases has been very
expensive, he said the music industry had benefited from its settlement
of more than $100 million in July this year with long-time antagonist
Kazaa, one of the world's best known file-sharing networks.

"It put some money back into the war chest to try to clean up the
online world," he said. "Legal offerings will only thrive and open in
different countries if there is a chance of them succeeding."

Legal downloads represent about 11 percent of total music sales, but
still do not make up for declining CD sales. Total music sales
declined 4 percent in the first half of 2006.

Kennedy said the drive to see digital sales make up for the loss in
the physical format was the "holy grail" for the music industry and
said he hoped to see it happen by 2007.

Copyright 2006 Reuters Limited.

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