Some of you may not realize it, but record companies (like EMI, Warner, Sony BMG and Universal) pay rather large amounts of money each year to trade groups like the RIAA and the IFPI which funds their operations. In return, these groups support the artists and labels and spend some of their money to help stop piracy. We all know how the RIAA operates and how they’ve been spending big dollars fighting piracy, but the people are fighting back and they’re not coming away with a win every time. Without money from record labels, trade groups would not have the funds to sue.
The RIAA is in business because of the record labels that fund them, so what would happen if these labels started to back out? They may be having to figure this out it other labels follow in the footsteps of EMI. Recently, the British label announced that they were considering cutting the amount of money that they provide trade groups because they’re not too happy with what they’re getting in return for the amount that they pay. Considering the IFPI alone says they get about $132.1 million each year from the big four record labels, EMI’s decision could prove to put groups like the RIAA struggling to make ends meet.
As Pieter points out in the forum, “Is RIAA’s reign of terror finally coming to a halt? Probably not, but EMI is considering to slash funding for the RIAA.” If the RIAA doesn’t have all of the funding that they’re used to, they’re not going to have the money to pay for the lawyers and employees that make the cases against accused music pirates. I wouldn’t say that they’ll just drop dread, but trade groups could be in for some rough times as record companies reevaluate their spending and find ways to to save money. If they don’t feel that trade companies are doing enough, they may do exactly what EMI is doing and cut back on the amount they give. Could this mean less people brought to court by the RIAA?