Indie Records Sue Limewire; Feeling Left Out From RIAA Settlement

from the mo-money dept

Mon, Jul 18th 2011 3:44am — Mike Masnick

Back in May, the big record labels settled with Limewire for $105 million. We questioned how much of that money would make it to artists... but there's a separate question too: what about the indie labels who weren't a part of the lawsuit. Apparently, the labels had asked indie labels to stay out of the lawsuit, and Limewire made a promise that it would offer similar settlement terms to those indies. Apparently, that hasn't happened.. and so the indies are suing Limewire as well. I'd be surprised if this didn't settle relatively quickly.

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Filed Under: copyright, indie labels, lawsuits
Companies: limewire

23 Comments

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xenomancer (profile), 18 Jul 2011 @ 4:13am

Clearly those indie labels deserve to be paid too. I mean think of the artists!
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Forgotten Voter, 18 Jul 2011 @ 4:20am

Oh gee, it's not like the indie labels have/had any stake in the crux of the matter. I mean, what ever would the RIAA do, if they allowed every little indie/startup label to act exactly like they do? Where would the artists be?
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cofiem (profile), 18 Jul 2011 @ 4:32am

Tribute to Dark Helmet
So no matter what industry you might be in
The solution when you cannot compete
Is to sue or threaten or try to win
However you can; thinking takes a seat.

If competitors are showing you up
and you are too lazy to innovate,
stick your head in the sand, no way, nup,
it's illegal, it's not fair, don't tell us we're too late.

If piracy is killing you
just start treating fans like crooks,
It's what the lawyers say you must do!
Spend money on lawsuits, hang them on hooks!

Don't mind that there are ways to embrace
this funny digital infinite supply
ignore or dismiss case after case
and stoop to FUD, lobbying and the occasional lie.

Digital is not analog or physical
What it allows cannot be constrained
So much content - important and whimsical
The trick is to innovate and see what can be gained.
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Lawrence D'Oliveiro, 18 Jul 2011 @ 4:34am

Re: Think Of The Artists!
Mmmmm ... artists ...
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out_of_the_blue, 18 Jul 2011 @ 5:11am

You're cloaking a defeat for your notions with focus on money.
The RIAA came out ahead on that lawsuit, didn't they? But in your prior piece, you shift the focus to where the money goes -- which is a good question, but totally ignores that your notions got shot down yet again in court.
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out_of_the_blue, 18 Jul 2011 @ 5:20am

Re: Tribute to Dark Helmet: Not only a Mutual Admiration Society,
but by fourteen year old girls with crushes on each other.
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azuravian (profile), 18 Jul 2011 @ 5:52am

Re: You're cloaking a defeat for your notions with focus on money.
Actually, this was a settlement, so nothing got shot down "in court". Limewire thought, rightly or wrongly, that it was easier to settle than fight.
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Dark Helmet (profile), 18 Jul 2011 @ 6:30am

Re: Re: You're cloaking a defeat for your notions with focus on money.
Which doesn't even touch on the question of how this is our "notions" getting shot down in court.

Did all of us black out a few years back and buy Limewire?
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Anonymous Coward, 18 Jul 2011 @ 6:43am

Why were the indies asked to stay out of the lawsuit?
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Rabbit80, 18 Jul 2011 @ 6:48am

Re:
So the big labels could bleed Limewire dry then there would be no money left for the Indies?
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Chris Rhodes (profile), 18 Jul 2011 @ 7:07am

Re: You're cloaking a defeat for your notions with focus on money.
your notions got shot down yet again in court

What notions?
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Chris Maresca (profile), 18 Jul 2011 @ 7:37am

Where is Limewire getting all this money?
That's what I don't understand... Was it such a profitable operation that there are hundreds of millions just laying around in the bank?
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Anonymous Coward, 18 Jul 2011 @ 8:08am

Re: Re:
Well duh! ;) I thought maybe it was something more clever than that, but...sigh.

From the article (which I've read and apparently cannot comprehend properly):

"According to the complaint, Merlin [the firm representing indies] and its members originally agreed not to pursue legal action against LimeWire. Instead, the indie music community all owed the RIAA to pursue its own higher-profile case against LimeWire."

Emphasis mine, but it seems fishy and/or slanted, that article, like they had any say in what the RIAA did or something. *snort*

"After LimeWire agreed to pay $105 million to the majors, Merlin wanted a $105 million offer too."

That just made me bark out a laugh.
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Anonymous Coward, 18 Jul 2011 @ 8:10am

Re: Re: Re:
Bolded word above should be 'allowed', not sure why it separated like that. I suspect operator error.
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Huph, 18 Jul 2011 @ 8:49am

Re: Where is Limewire getting all this money?
Limewire was owned and operated by Mark Gorton, who also owns a stock brokerage, a hedge fund, and a medical software company. Limewire was a very corporate operation. Gortan has a personal net worth of 10 million dollars, and I'm sure his companies are worth much much more. The 105 million dollar settlement is not much of a setback for him or his companies.
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Anonymous Coward, 18 Jul 2011 @ 9:24am

Re: Re: Re: You're cloaking a defeat for your notions with focus on money.
There was enough in the court rulings against Limewire that it is clear they didn't have a legal leg to stand on. Settling for an amount rather than having the court come to that decision is the only intelligent thing they did in the whole process.

Limewire wouldn't be paying out anything if they thought their service was legal and above board and beyond reproach. You can draw your own conclusions from there.
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Jordan (profile), 18 Jul 2011 @ 10:59am

Re: Re: Think Of The Artists!
The "Law Artists"
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Chris Maresca (profile), 18 Jul 2011 @ 1:27pm

Re: Re: Where is Limewire getting all this money?
So did the courts pierce the corporate veil? I fail to see how the owner of the company could be held liable if the corporate structure was OK.

And if his net worth is $10 million, how is he paying out 10x that?

Very strange all around.

Chris.
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Chris Maresca (profile), 18 Jul 2011 @ 1:32pm

Re: Re: Re: Where is Limewire getting all this money?
Never mind, looks like he was the sole director and owner. What an idiot.
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HothMonster, 18 Jul 2011 @ 2:27pm

Re: Re: Re: Re: You're cloaking a defeat for your notions with focus on money.
oh I agree they were going to lose, but i think the question is when did anyone here ever say limewire was legal? What notion was shot down? That a obvious, open, and massive infringement tool that is profited on by a corporation is going to get its ass sued off?

What is the next piece of brilliance from captain ootb? That the industry hates thepiratebay?
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cram, 18 Jul 2011 @ 9:29pm

Baidu Launches Landmark Licensed Music Service

http://www.prnewswire.com/news-releases/baidu-launches-landmark-licensed-music-service-12 5789699.html
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Anonymous Coward, 18 Jul 2011 @ 9:30pm

http://www.prnewswire.com/news-releases/baidu-launches-landmark-licensed-music-service-125789699.htm l
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Anonymous Coward, 19 Jul 2011 @ 12:20am

Re: Re: Tribute to Dark Helmet: Not only a Mutual Admiration Society,
DNFTT
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