‘RIAA’ is short for Recording Industry Association of America, owned and operated principally by Vivendi Universal (France), Sony (Japan), EMI (Britain), and Warner Music’s (US, but controlled by a Canadian).
p2pnet recently published two RIAA IRS form 990s, more commonly known as ‘financials’.
After going through the numbers, Beckerman pointed out they made it clear the RIAA’s “business plan” is even worse than anyone had suspected.
“The RIAA paid Holmes Roberts & Owen $9,364,901 in 2008, Jenner & Block more than $7,000,000, and Cravath Swain & Moore $1.25 million, to pursue its ‘copyright infringement’ claims, in order to recover a mere $391,000″, he said, also noting, “there were many other law firms feeding at the trough too; these were just the ones listed among the top 5 independent contractors”.
To considerably understate the situation
“If the average settlement were $3,900, that would mean 100 settlements for the entire year”, Beckerman observed.
Now, “The amounts of money the RIAA spent on legal fees from 2006 to 2008 — approximately $20,000,000 per year — were in the ballpark with my estimates (I’d estimated $15,000,000)”, he says in a Recording Industry vs The People update, continuing >>>
But the amounts collected from the settlements were not; they were far lower.
I would have expected the RIAA to have been collecting in the neighborhood of $5,000,000 per year during that period, rather than a mere $450,000 per year.
What if my estimates were correct, and 90% of the moneys collected were turned over to the Big 4 record labels who were the plaintiffs?
If so, it would mean the RIAA membership was spending membership money to help just a few of its members.
Surely not. Would the RIAA sink so low?
But for the sake of argument, if that was the case it would, says Beckerman, raise problems with >>>
- The Internal Revenue Service; and,
- The RIAA membership.
“So”, he says, “it must not be the case. Right?
“If the RIAA lawyers out there could clarify this for me, I’d appreciate it.”
Definitely stay tuned.
… and identi.ca
IRS form 990s – RIAA boss Bainwol paid $2 million in 2008, July 12, 2010
anyone had suspected – Ha ha ha ha ha. RIAA paid its lawyers more than $16,000,000 in 2008 to recover only $391,000!!!, July 13, 2010
Recording Industry vs The People – An afterthought about the RIAA’s financial “disclosures”, July 15, 2010
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