RIAA admits to losing money due to lawsuits

By Justin Mann on
As the case between the RIAA, Capitol Records and one defendant continues, some interesting tidbits regarding the RIAA's tactics have come into the light. With estimates as high as 20,000 cases having been filed and the average settlement being listed at around $3,000, you'd think the RIAA would be raking in the dough.

Apparently that is not the case, and despite them going so far as to even sue innocent people (who may have settled out of intimidation) it seems that their business plan of suing anything that moves is not turning out well for them. In court they have stated that they are losing money on the deal :

The next line of questioning was how many suits the RIAA has filed so far. Pariser estimated the number at a "few thousand." "More like 20,000," suggested Toder. "That's probably an overstatement," Pariser replied. She then made perhaps the most startling comment of the day. Saying that the record labels have spent "millions" on the lawsuits, she then said that "we've lost money on this program."
It gets even better when they bring up the point of the actual amount of money lost. While they sure like to throw around figures about the “billions” it is costing them, it was admitted today that they actually have not calculated how much money they have lost, perceived or otherwise, due to pirating.

So they don't really know how much money they are losing (even though they claim it is in the billions) and their plethora of lawsuits is hitting them in the pocketbook? I find it hard to feel any pity.

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