RIAA Challenges P2P Networks To Finally Act Like Responsible Corporate Citizens

If Networks Filter Out Copyrighted Materials, Change Default Settings and Educate, Lawsuits Against Individuals Can Be Avoided

RIAA to Send Warnings to Lawsuit Targets

WASHINGTON - September 30, 2003 - Mitch Bainwol, Chairman and CEO of the Recording Industry Association of America (RIAA), today challenged the operators of peer-to-peer networks to act responsibly and to proactively take steps to prevent and discourage the copyright theft rampant on the services. Additionally, Bainwol announced that the RIAA will send a notification letter to encourage settlement discussions prior to the filing of the lawsuit.

At the hearing, Bainwol stated: "In advance of filing a lawsuit against an individual we will let them know that we will be suing them. We are trying to be reasonable and fair and allow these cases the opportunity to be resolved without litigation."

"We appreciate Senator Coleman's balanced approach and respect for property rights. We take his concerns seriously," said Bainwol.

In his testimony, Bainwol urged peer-to-peer network operators to voluntarily implement the following reforms:

• Change the default setting for their users so that American children, teenagers and others are not automatically - and often unknowingly - uploading music from their hard drive.
• Institute meaningful disclosure clearly notifying users that uploading and downloading copyrighted materials without permission is a violation of federal law.
• Filter to protect copyrighted works. Technologies are there to block the uploading and downloading of copyrighted materials. No more excuses.

"The law is clear. Yet the understanding of the law is hazy. Why? In large part it's because the file sharing networks like Kazaa deliberately induce people to break the law," testified Bainwol. "These systems should no longer induce music fans to break the law, diminish computer security, disregard privacy or compromise the integrity of content. There is a brighter future just around the corner if the operators of these networks just voluntarily execute these three common sense and easily implemented reforms."

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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.

In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.