RIAA Brings New Round of Cases Against Illegal File Sharers

WASHINGTON - March 23, 2004 - The Recording Industry Association of America (RIAA), on behalf of the major record companies, brought a new round of legal action against individual computer users offering substantial amounts of copyrighted music files for free on peer-to-peer networks, including illegal file sharers at 21 different universities.

A total of 532 illegal file sharers were included in today's action, including 89 individuals who were using university networks to illegally distribute copyrighted sound recordings on peer-to-peer services. The university networks used for this illegal activity include schools in Arizona, California, Colorado, Indiana, Maryland, Michigan, New York, Pennsylvania, Tennessee, Washington, D.C., and Wisconsin. Lawsuits against 443 illegal file sharers using commercial ISPs were brought in California, Colorado, Missouri, Texas and Virginia. Like the lawsuits filed earlier this year, the RIAA is again utilizing the "John Doe" litigation process - which is used to sue defendants whose names are not known.

"There is an exciting array of legal music services where fans can get high-quality online music," said Cary Sherman, President, RIAA. "Lawsuits are an important part of the larger strategy to educate file sharers about the law, protect the rights of copyright owners and encourage music fans to turn to these legitimate services.

"It's important for everyone to understand that no one is immune from the consequences of illegally 'sharing' music files on P2P networks," added Sherman. "Piracy, which is particularly rampant on college campuses, continues to hurt retailers, musicians, producers, record labels and the thousands of less-celebrated individuals involved in making music. It undermines the ability of the music community to invest in the great, up-and-coming artists of tomorrow - a real loss especially for fans who look for fresh, new music."

While levels of piracy on college campuses remain high, there has been real progress during the last two years. Schools across the country are taking proactive steps to better educate students about illegal file sharing and are stepping up enforcement of their rules against copyright violations. Many university administrators have installed computer network management technologies such as bandwidth shaping. Other schools have implemented, or are exploring, partnerships with legal, online music services. Lawsuits remain a key component of the music industry's effort to protect its rights and legitimize the online music marketplace.

"The expansion of legal online music services to college campuses is an extraordinary and exciting development," said Sherman. "Delivering legal online music directly to students and expanding the opportunities for digital services is a win-win for everyone."

The new wave of lawsuits - just one element of a multi-pronged strategy designed to migrate fans from the illegitimate to the legitimate music marketplace - comes amid continued signs that the industry's education and enforcement campaign is having an impact. According to a March survey by Peter D. Hart Research Associates, those who say it is illegal to "make music from the computer available for others to download for free over the Internet" stands at 63 percent, with only 15 percent saying they think it's legal. Sixty-two percent of the subgroup of students also thought the activity was illegal; but 28 percent thought it was legal, suggesting that more education is required.

By a more than two-to-one margin, the public supports the record companies' legal efforts, according to the Hart poll. Fifty-six percent say they are "supportive and understanding" when told that the "record industry is gathering evidence and preparing lawsuits against individual computer users who are illegally sharing substantial amounts of copyrighted music online" compared to 19 percent who say they are "unsupportive and negative." Among students, 50 percent are supportive and understanding, while 27 percent are unsupportive and negative.

The first round of "John Doe" litigations filed in January is proceeding along. All four courts in that round have granted the record companies' preliminary request to issue subpoenas to Internet Service Providers (ISPs) to learn the identity of illegal file sharers. The record companies plan to send letters to identified individuals offering to settle with them before litigation continues any further. If an illegal file sharer rejects the settlement overture, the record companies will proceed with litigation against that individual.

For the second round of suits brought in February, courts in Georgia and New Jersey have approved the RIAA's motion to begin issuing subpoenas. The court in Florida has requested additional briefing. In Philadelphia, the RIAA is asking the court to re-consider an initial decision that the RIAA needed to file individual complaints for each illegal file sharer.

ADDITIONAL BACKGROUND: The individuals included in today's legal action were on the networks of the following universities (listed in alphabetical order of state or name): University of Arizona; University of California, Berkeley; California State University -- Northridge; University of Colorado at Colorado Springs; Drexel University; George Mason University; George Washington University; Georgetown University; Indiana University; University of Indianapolis; Loyola Marymount University; Marquette University; University of Maryland; University of Michigan; New York University; University of Northern Colorado; University of Pennsylvania; University of Southern California; Stanford University; Vanderbilt University; and Villanova University.

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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.