Nearly a year after the Supreme Court issued a landmark ruling against online music file-sharing services, the CEO of the Recording Industry Association of America says unauthorized song swapping has been "contained."
"The problem has not been eliminated," says association CEO Mitch Bainwol. "But we believe digital downloads have emerged into a growing, thriving business, and file-trading is flat."
That's an optimistic view from an industry that saw its numbers slide to near oblivion after the launch of the original Napster in 1999. CD sales fell as much as 30%, and the RIAA pressed Congress and the courts for relief against what it said was rampant piracy.
After the Supreme Court ruled that the services could be liable for piracy by their users, the RIAA sent cease-and-desist letters to several firms. Most — including BearShare, WinMX and Grokster — shut down. EDonkey and others said they would switch to a licensed, paid model.
EDonkey, which along with BitTorrent is one of the most-used file-sharing services, has yet to make the switch.
Garland says the RIAA has made some inroads. "They have removed the profiteers from online piracy," he says. "They've also embarked on a very successful education campaign. Kids now know about copyright, and the consequences."
The RIAA has sued just over 18,000 individuals for sharing songs online, with 4,500 settling for about $4,000 per case.
Album sales are still down — about 3% this year. But Bainwol says digital sales — up 77% — make up for the shortfall.
News source: USA Today
