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RIAA Backs Down In Texas Case
Posted by
timothy
on Wed Mar 25, 2009 02:00 PM
from the ain't-room-in-this-town-for-both dept.
from the ain't-room-in-this-town-for-both dept.
NewYorkCountryLawyer writes "After receiving a Rule 11 Sanctions Motion (PDF) in a Houston, Texas, case, UMG Recordings v. Lanzoni, the RIAA lawyers thought better of proceeding with the case, and agreed to voluntarily dismiss the case 'with prejudice', which means it is over and cannot be brought again. The defendant's motion papers detailed some of the RIAA's litigation history against innocent individuals, such as Capitol Records v. Foster and Atlantic Recording v. Andersen, and argued that the awarding of attorneys fees in those cases has not sufficiently deterred repetition of the misconduct, so that a stronger remedy — Rule 11 sanctions — is now called for."
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NewYorkCountryLawyer writes "In Capitol v. Foster, in Oklahoma, the RIAA has been directed to pay the defendant $68,685.23 in attorneys fees. This is the first instance of which I am aware of the RIAA being ordered to pay the defendant attorneys fees. The judge in this case has criticized the RIAA's lawyers' motives as 'questionable,' and their legal theories as 'marginal' (PDF). Although the judge had previously ordered the RIAA to turn over its own attorneys billing records, today's decision (PDF) made no mention of the amount that the RIAA had spent on its own lawyers."
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Your Rights Online: RIAA Pays Tanya Andersen $107,951 312 comments
NewYorkCountryLawyer writes "Well, Phase I of the RIAA's misguided pursuit of an innocent, disabled Oregon woman, Atlantic v. Andersen, has finally drawn to a close, as the RIAA was forced to pay Ms. Andersen $107,951, representing the amount of her attorneys fee judgment plus interest. But as some have pointed out, reimbursement for legal fees doesn't compensate Ms. Andersen for the other damages she's sustained. And that's where Phase II comes in, Andersen v. Atlantic. There the shoe is on the other foot, and Tanya is one doing the hunting, as she pursues the record companies and their running dogs for malicious prosecution. Should be interesting."
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They don't need the litigation anymore (Score:5, Insightful)
They're getting to the point they don't need the litigation anymore. They're setting it up so either everyone is forced to pay into their welfare system for a failed industry through a tax on all internet connectivity or they can, without proof or recourse, have you disconnected from the internet.
Re:They don't need the litigation anymore (Score:5, Funny)
Your ISP still allows breathing?
Parent
Re:They don't need the litigation anymore (Score:5, Informative)
"I consciously don't buy music anymore."
Do as I do. Buy used CDs. Here in the Greater Boston/Cambridge/Somerville Co-Prosperity Sphere, there are several used CD/DVD shops. Sure, you may have to wait a few weeks to get the latest CD, but RIAA never sees a penny of your money.
And many artists sell CDs on their websites. Yeah, they buy them from the record companies, but they, the artists, get to keep the money from the CD sales.
Finally, local bands almost always have CDs they burn themselves. Supporting local artists with purchases is the best thing you can do to keep independent artists making music.
Parent
And this means what? (Score:5, Interesting)
And a question, what is the impact of these sanctions? Could this cost the RIAA enough to really act as a deterrent? Also, if at all how is this relevant in future cases?
Re:And this means what? (Score:5, Informative)
First to NewYorkCountryLawyer, thanks from all of us for fighting the good fight!
Thanks. And thank you for your support.
And a question, what is the impact of these sanctions?
Sanctions weren't awarded; the motion was withdrawn because the RIAA, rather than risk sanctions, withdrew the case within the "safe harbor" period.
Could this cost the RIAA enough to really act as a deterrent?
Absolutely. There is nothing a lawyer should fear more than a sanctions ruling.
Also, if at all how is this relevant in future cases?
Highly relevant. This incident will encourage other defendant's lawyers to make early Rule 11 motions. And the attorney, veteran IP litigator Sid Leach, prepared excellent discovery documents and motion papers, which the rest of us will be able to consult and borrow from in the future.
Parent
Re:And this means what? (Score:5, Interesting)
Ray,
I'd be curious to know if you have any wisdom to share regarding the new direction that RIAA seems to be taking. Namely that of signing agreements [slashdot.org] with ISPs to get them to do the dirty work instead.
This seems like something that the end user will have very little recourse over. Virtually every ISP agreement I've ever read gives them the right to deny you service for whatever reason they wish -- but how is that remotely just if it's based on the same lack of evidence that RIAA failed to use in the court system?
How (if at all) can the people who inevitably wind up being wrongfully accused fight this?
Parent
Re:And this means what? (Score:5, Insightful)
I'd be curious to know if you have any wisdom to share regarding the new direction that RIAA seems to be taking.
The only wisdom I have to share at this point is : if you find out your ISP is in league with the RIAA, change ISP's, and let them know why you left.
Parent
Re:And this means what? (Score:5, Interesting)
The only wisdom I have to share at this point is : if you find out your ISP is in league with the RIAA, change ISP's, and let them know why you left.
The only problem being that for most people the options are very limited and the way it's set up now it's nigh on impossible to start an ISP outside of the incumbent cable and phone companies. So if both members in your area (most people are lucky if they have 2 options: cable and phone company) of the current oligarchy opt into the RIAA system your options are much slower broadband at best or dialip.
.
Parent
waste of money (Score:5, Insightful)
When will the RIAA stop wasting money on these cases? There is no way they are ever going to win settlements or recover damages that offset their cost it takes to litigate. I guess the RIAA lawyers are making money though, not like they are going to recommend to stop the pursuit.
Re:waste of money (Score:5, Insightful)
They don't need to make money on the cases. In fact, they can spend $1m on legal fees for a $100k judgment and still come out ahead.
Why?
Because it motivates the other 99,999 people that got 'settlement offers' of $5-10k to pay up. Sad, but true.
Parent
Re:waste of money (Score:5, Insightful)
From the RIAA's point of veiw, they are not "wasting money". The organization makes a profit from these lawsuits (and the associated settlements). It's only when either:
1. The lawyers are likely to lose their licenses or:
2. The lawsuit/settlement program stops being profitable.
that they will stop the lawsuits.
Parent
Re:waste of money (Score:5, Interesting)
When will the RIAA stop wasting money on these cases?
They won't. The old business model is dead, and the new business model is brain dead. The old model was that it cost uberbucks to record an album, so the artist couldn't make a record without the labels.
Now, the price of recording has come down to the point that anybody can record an album in a professional studio and have the CDs professionally pressed and packaged for as little as $1 per copy.
This leaves the labels to distribute and market, and marketing means radio. You have to be on a major label to get on the radio.
The independants have the internet and P2P, and THIS is what the labels are trying to kill; it's about stifling the competetion.
The new business model is paid downloads. The trouble with this is the indies are giving FREE downloads for promotion and making their money off CDs and live shows.
The music industry as we knew it is dead, and I for one am glad. The RIAA labels' days are numbered, and they won't be able to steal from their artists and customers for too much longer.
Lawrence Lessig talks about the four reasons for P2P in his book Free Culture. Cory Doctorow talks about it in the preface to his book Little Brother, which has been on the NYT best seller list. You can buy either book at any bookstore, or check it out for free at your local public library, or download them for free from the authors' prospective websites.
Both books are making a handy profit. As I said, Doctorow's is a best seller, which kind of puts the lie to the RIAA's pathetic whining.
Parent
So what happens with Rule 11? (Score:5, Interesting)
A few questions for anyone who might know:
1. Does voluntarily dismissing the case with prejudice prevent them from getting sanctioned?
2. Independent of #1, what happens if you are sanctioned under Rule 11?
3. How often is a party sanctioned this way?
Re:So what happens with Rule 11? (Score:5, Informative)
A few questions for anyone who might know: 1. Does voluntarily dismissing the case with prejudice prevent them from getting sanctioned?
Yes so long as they do it within the 21-day "safe harbor" period, which they did.
2. Independent of #1, what happens if you are sanctioned under Rule 11?
There are many possible penalties, from nominal to crushing... but for any attorney it's a huge black mark on his or her record.
3. How often is a party sanctioned this way?
Rarely. Rule 11 motions are rarely made. It is an extreme thing. I've only made a couple in my 30 years as a lawyer. One of them was against the RIAA lawyers.
Parent
I've always wondered (Score:5, Insightful)
Re:I've always wondered (Score:5, Funny)
I think you answered your own question.
Parent
Could have been a lot worse (Score:5, Funny)
They could have received a Rule 34 sanction.
Defendant's lawyer wins, defendant loses (Score:5, Informative)
The defendant has lost time and money on this case and gained nothing. Even if every case is resolved like this, the intimidation strategy will still be effective.
So they can still walk away from this? (Score:5, Insightful)
So, just to get this straight, the RIAA pursued a questionable case that has already costed the defendant money to prepare for, and as soon as credible resistance emerges they quickly run and do it again to someone else - without sanctions?
Or did I miss something?
Re:So they can still walk away from this? (Score:5, Informative)
So, just to get this straight, the RIAA pursued a questionable case that has already cost the defendant money to prepare for, and as soon as credible resistance emerges they quickly run and do it again to someone else - without sanctions? Or did I miss something?
No you didn't miss anything.
Parent
From wikipedia (Score:5, Informative)
For what it's worth, here is what wikipedia has on Rule 11 Sanctions
Rule 11 requires all papers to be signed by the attorney (if party is represented). It also provides for sanctions against the attorney or client for harassment, frivolous arguments, or a lack of factual investigation. The purpose of sanctions is deterrent, not punitive. Courts have broad discretion about the exact nature of the sanction which can include consent to in personam jurisdiction, fines, dismissal of claims, or dismissal of the entire case. The current version of Rule 11 is much more lenient than its 1983 version. Supporters of tort reform in Congress regularly call for legislation to make Rule 11 stricter.
Basically, it's a federal rule meant to deter abuses of the justice system and the fines can be practically whatever the judge wants them to be. That's a pretty scary prospect if you are concerned that you might have pissed off the judge enough that he would impose the sanctions on you, since you don't know how much money you stand to lose.
Parent
Re:Spiffy! (Score:5, Insightful)
Given the fact that the size of the fines rule 11 sanctions are set by the judge (not predetermined) I'd say it's more like they leveled a howitzer on the RIAA and the RIAA blinked. Sure, the howitzer might not be loaded, but is it really worth the risk?
Parent
Re:Spiffy! (Score:5, Funny)
Somehow I don't think it was the howitzer that was at risk of being leveled. Now, the RIAA, on the other hand...
Parent
Re:Spiffy! (Score:5, Insightful)
The size of the fine is set by the judge, but here's what the plaintiff asked the judge for (taken from the last paragraph of the pdf.)
"In this case, the Court should award Defendant Lanzoni all of her costs and expenses in defending this lawsuit. In addition, this Court should make a finding that the use of an IP address to identify the defendant in a peer-to-peer copyright infringement case is not sufficiently reliable for the Plaintiffs to rely upon..."
Maybe I'm just not that good at reading legalese, but if that means 'I don't want $big$money$ from the RIAA, I want the court to rule that from now on nobody can be sued based on their IP address' then I'm very impressed with the defendant's decision to place the greater good over their own financial gain.
Parent
Re:What about the financial harm caused? (Score:5, Insightful)
Parent