RIAA fights to keep wholesale pricing secret

Found on ArsTechnica on Tuesday, 02 January 2007
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A proposed order in a file-sharing lawsuit would force the recording industry to divulge closely-held details of their wholesale pricing arrangements. UMG v. Lindor is one of the highest-profile file-sharing cases in the news today, due in no small part to the efforts of Marie Lindor's attorney Ray Beckerman, who maintains the Recording Industry vs The People Blog along with Ty Rogers.

The record labels are strenuously opposing Lindor's attempts to gain access to the pricing information. They have argued that it shouldn't be divulged, and if it is, it should only be done so under a protective order that would keep the data highly confidential. The RIAA regards the wholesale price per song-widely believed to be about 70¢ per track-as a trade secret.

The pricing data really may not be all that secret. Late in 2005, New York Attorney General Eliot Spitzer launched an investigation into price fixing by the record labels, alleging collusion between the major labels in their dealings with the online music industry.

The pricing information could be crucial for Lindor as she makes the argument that the damages sought by the RIAA are excessive. In this and other cases, the labels are seeking statutory damages of $750 per song shared. Lindor argues that the actual damages suffered by the RIAA are in line with the wholesale price per song, and if that is indeed the case, damages should be capped accordingly-between $2.80 and $7.00 per song-if infringement is proven.

Well, if you sue thousands of people, you shouldn't be surprised if a few stand up and defend themselves. And what's coming out there is hurting your business more than those fictional losses which seem to be based on faked numbers to make everything look worse than it is. Prices aren't much of a trade-secret at all, so roll them out or give up.