New Wave of Record Industry Lawsuits Brought Against 532 Illegal File Sharers

WASHINGTON - January 21, 2004 - The Recording Industry Association of America (RIAA) today filed a new round of copyright infringement lawsuits against 532 individual computer users who have been illegally distributing copyrighted music on peer-to-peer networks. The move is part of the RIAA's ongoing effort to protect the rights of copyright holders, while at the same time creating a level playing field on which the numerous existing legitimate online music services can compete and thrive.

The 532 suits filed today employ the "John Doe" process, which is used to sue defendants whose names aren't known. The lawsuits identify the defendants by their numerical computer address, known as an "IP" or Internet Protocol address. Once a "John Doe" suit has been filed, the plaintiffs (a variety of record labels) can subpoena the information necessary to identify the defendant by name. The move follows a decision by a federal appeals court that the information subpoena process allowed by the Digital Millennium Copyright Act (DMCA) cannot be used in infringement cases involving peer-to-peer networks.

"Our campaign against illegal file sharers is not missing a beat," said Cary Sherman, President, RIAA. "The message to illegal file sharers should be as clear as ever - we can and will continue to bring lawsuits on a regular basis against those who illegally distribute copyrighted music."

"The context as we move forward has improved dramatically," said Mitch Bainwol, Chairman and CEO, RIAA. "The debate isn't digital versus plastic. It isn't old versus new. Here's what it is: Legitimate versus illegitimate. It's iTunes and the new Napster and Wal-Mart, Amazon, Dell, Real, Microsoft and others versus Kazaa, Imesh and Grokster. It's whether or not digital music will be enjoyed in a fashion that supports the creative process or one that robs it of its future."

"Continuing this education and enforcement campaign is critical to fostering an environment where both legal online music services and traditional retail outlets can flourish," added Sherman. "Virtually every week, we see evidence that the music community's anti-piracy program is having its intended effect. Awareness and legal downloads are up, while many analysts are finding that file sharing is down."

Because of the nature of the "John Doe" litigation process, the RIAA will no longer be able to pre-notify illegal file sharers and give them an opportunity to settle in advance of the formal filing of the lawsuit. Nonetheless, Sherman said the recording industry wants to go "the extra mile" to develop a variation of the program that has so far been successful. After learning the identity of an illegal file sharer through a "John Doe" lawsuit, but prior to amending the complaint to reflect the infringer's name and address, the RIAA would offer the opportunity to settle the case before proceeding further with the litigation.

"We intend to continue to offer illegal file sharers an opportunity to settle," Sherman said. "Our enforcement program has been ongoing for many months and awareness that this activity is illegal has skyrocketed. Illegal file sharers cannot so easily claim ignorance now.

"The 'John Doe' legal process is a well-established mechanism for aggrieved parties to enforce their rights," Sherman added. "The process by which we obtain the identity of defendants has changed, but the enforcement program has not."

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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.