RIAA anti-P2P campaign a real money pit

During an occasionally testy cross examination, a Sony executive said what many observers have suspected for a long time. The RIAA's four-year-old lawsuit campaign is costing the music industry millions of dollars and is a big money-loser for the record labels.

One of the biggest bombshells from the cross-examination was Pariser's admission that the RIAA's legal campaign isn't making the labels any money, and that, furthermore, the industry has no idea of the actual damages it suffers due to file-sharing.

"We haven't stopped to calculate the amount of damages we've suffered due to downloading, but that's not what's at issue here," replied Pariser, who was reminded by Judge Michael Davis to answer the questions actually asked by Toder, not hypotheticals.

Toder then pressed the Sony executive on the question of how many people actually downloaded music from the defendant. "We don't know," she replied.

The next line of questioning was how many suits the RIAA has filed so far. Pariser estimated the number at a "few thousand." "More like 20,000," suggested Toder. "That's probably an overstatement," Pariser replied. She then made perhaps the most startling comment of the day. Saying that the record labels have spent "millions" on the lawsuits, she then said that "we've lost money on this program."

As Pariser admitted under oath today, the entire campaign is a money pit.