September 29, 2004

Suing customers as a business model

From Fred von Lohmann at the EFF:

The campaign appears to have hit its stride, with the Recording Industry Association of America announcing roughly 500 new suits each month.

Suing large numbers of "regular folks" is relatively unprecedented in the annals of intellectual property law. But we could be watching the makings of a new trend. DirecTV, for example, has in the last three years sent more than 170,000 demand letters to individuals who are allegedly "stealing" satellite TV. The letters deliver an ultimatum: pay $3,500 or face a lawsuit. So far, DirecTV has filed more than 24,000 suits against people who have called their bluff.

So it looks like the recording industry may be lifting a page from DirecTV's playbook. But have the lawsuits worked for the recording industry?

It's an interesting read about how the legal punishment strategy isn't being all that effective.

Thanks to Cory for the tip.

Posted by Casper at September 29, 2004 09:33 PM
Comments