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RIAA Now Targeting Retailers 490

merodach writes "According to this story on Headlinenews.com the RIAA is now targeting retailers in it's 'war on piracy.' I think everyone will agree this is something that should be done if the retailer is deliberately pirating. The thing I wonder about in hearing this news is how many of the retailers include used copy stores. With the way the RIAA and some artists *cough*Garth Brooks*cough* have labeled these stores as pirates and theives in the past it seems likely they would be the biggest targets. Have any in the /. crowd actually seen one of the letters sent or know how many of the targeted businesses are used stores? Further - how would the RIAA know how much to demand in 'settlement fees' and is it possible these are being used to shut down the mom-and-pop outfits that trade in used CDs?"
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RIAA Now Targeting Retailers

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  • by Anonymous Coward on Tuesday December 17, 2002 @09:58PM (#4912630)
    Yep, they couldn't let this article go by without this:
    Last week, Secret Service agents in New York arrested three men and seized 35,000 illegally copied music discs, 10,000 movies on DVD and 421 compact disc burners that are used to make the counterfeit products.
    Good to see CNN maintaining it's high standards in reporting.
  • Re:FIRST POST! (Score:5, Insightful)

    by realmolo ( 574068 ) on Tuesday December 17, 2002 @09:59PM (#4912641)
    Well, first the public has to know that there *is* an RIAA.

    The Slashdot crowd may be familiar with them, but I guarantee that 99% of the music-buying public has never even heard of them. And I'm sure the RIAA likes it that way.
  • hmm (Score:4, Insightful)

    by serps ( 517783 ) on Tuesday December 17, 2002 @10:00PM (#4912646) Homepage

    Call me a cynic, but this is a handy opportunity to:

    • Get hard data about the stock levels of second-hand music stores (always useful)
    • Hassle the above music stores with compliance costs, eating into their bottom lines
    • Push for the removal/licensing/regulation of the secondary market in order to 'reduce piracy'.
  • It's about time! (Score:3, Insightful)

    by GMontag ( 42283 ) <gmontag@guymo[ ]g.com ['nta' in gap]> on Tuesday December 17, 2002 @10:02PM (#4912660) Homepage Journal
    Commercial outlets (valid copyright infringers) is where they SHOULD have started with in the beginning!

    Back-in-the-day it would torque me to no end buying discount tapes (cassett thank you) in retail stores, only to open them and find they were obvious, cheep bootlegs even before playing them twice before breaking.
  • by rtstyk ( 545241 ) on Tuesday December 17, 2002 @10:04PM (#4912679) Homepage
    The article just talks about *counterfeit* copies.

    RTFA first.

    I think it's good they turn to something they can actually enforce. It's much easier to walk into Bob's Illegal CDs and bust the poor Bob than some dynamically assigned IP of a poor script kiddy.

    [sarcastick grin]Go RIAA[/sarcastic grin]
  • Please... (Score:4, Insightful)

    by aardvarkjoe ( 156801 ) on Tuesday December 17, 2002 @10:04PM (#4912680)
    Could the speculation please be saved for the comments page? The blurb for the article is about 1/3 informative, and 2/3 wild speculation about how it's an evil attempt to shut down used music stores (even though the article said nothing about it.)
  • Legit? (Score:3, Insightful)

    by Shadow Wrought ( 586631 ) <shadow.wrought@g m a il.com> on Tuesday December 17, 2002 @10:06PM (#4912688) Homepage Journal
    Last week, Secret Service agents in New York arrested three men and seized 35,000 illegally copied music discs, 10,000 movies on DVD and 421 compact disc burners that are used to make the counterfeit products.

    Seems like some of these are actions would be legitimate. The problem, of course, is where to draw the line. Personally, I think as soon as you start burning CD's for profit then you are pirating. Burning for your own use? That's when the overzealousness kicks in.

    My own personal theoary as to why CD sales are down has to do with local bands. Your local garage band can now make tonnes of CD's of their music fairly cheaply, by-passing the usual media outlets. People buy the music they want from the concerts they go to, and the particular bands that interest them.

    Until the record labels realize that, however, they are going to continue to bleed green.

  • Desparate Measures (Score:4, Insightful)

    by macrom ( 537566 ) <macrom75@hotmail.com> on Tuesday December 17, 2002 @10:07PM (#4912698) Homepage
    and is it possible these are being used to shut down the mom-and-pop outfits that trade in used CDs

    First they went after colleges and universities, saying that they helped spread piracy by giving students access to fat Internet pipes with which to download songs from Napster. A few colleges panicked and took steps to cut off access to P2P networks, but for the most part that strategy fizzled into the ether.

    Then they went after the P2P networks with moderate success, Napster mainly taking the fall for all of them. Gnutella is untouched, KaZaa still runs free and Usenet is a varitable goldmine if you're patient enough.

    Then they actually tried getting the students. A couple students got hit with suits (some kid from Yale if I remember), but on the whole everyone laughed at them. Success here was minimal.

    So the suits now all sit in some big office around a huge oval table, licking their wounds and wiping the egg off their collective faces. They get the idea that maybe retailers are "helping piracy" by way of their employees. So now they're sending intimidating letters to companies hoping that they get some attention on CNN and BBC World News in their latest efforts to stop piracy.

    One of these days, after all of their avenues have been cut off and all of the barrels are dry, they'll hopefully realize that consumers want something different.
  • Re:FIRST POST! (Score:2, Insightful)

    by hhknighter ( 629353 ) on Tuesday December 17, 2002 @10:08PM (#4912700)
    Remember Napster? I am sure people know about RIAA
  • by ThatKidYouDid ( 617033 ) on Tuesday December 17, 2002 @10:08PM (#4912703)
    I'm kind of surprised they haven't hit store's that sell products like those at http://www.aleratec.com When I heard the story about them recovering the equiv of 400+ burners, I think, Damn, my store has in stock about 3000 ATA burners, and about 200 stand-alone 3-1 dupe machines. How long before they come after us tech stores for selling these products?
  • by Orne ( 144925 ) on Tuesday December 17, 2002 @10:16PM (#4912766) Homepage
    They need to blow Electronics Boutique out of the water for trafficking in used DVDs (including music video DVDs)... not to mention played (and presumably copied) games.

    Then they can go after Walmart because they re-release some of their products after editing the content.

    After that, might as well go after Borders & FYE, because of those machines that let you listen to the music before you buy. After all, not buying a CD because it sucks is bad for business.
  • by Anonymous Coward on Tuesday December 17, 2002 @10:24PM (#4912794)
    "America" has no eyes to open. It takes whatever it is given. You and I are the exception in a place where majority rules.
  • Re:WalMart (Score:3, Insightful)

    by Bios_Hakr ( 68586 ) <{moc.liamg} {ta} {lacitpx}> on Tuesday December 17, 2002 @10:27PM (#4912814)
    It's a tough call, but I kinda agree with retailers not accepting music and software returns.

    If you buy a CD, you know that you are paying $17 for the 2 hits on it. The other 10~12 songs are just fluf. If you don't like it, don't buy music.

    If you buy software, the requirements are listed on the box. If you decide that the game wasn't worth it (Diakatana), too bad. You should have waited for the review before you bought the game.

    Basicly, it is too easy for anyone to buy a CD or a game, make a copy, and then return the original. There is no real way for a retailer to demand integrity from the customer. And a few bad customers will eat away at the profit margin till the companies you love are no longer able to produce products you value.

    I think this is why DRM will prevail. When the RIAA has the music locked down, then you can return a crap CD just because it was crap. When palladium has software locked down, you can return a game just because it crashes. Until then, the retailer will continue to think you are a thief.
  • by Lazlo Nibble ( 32560 ) on Tuesday December 17, 2002 @10:28PM (#4912820) Homepage
    They're just going after stores where RIAA reps have found and purchased unlicensed compilations (BEST OF LATIN HITS!, etc.) or counterfeit copies of commercial releases. It's really not significantly different from the bootleg raids they do now and then. Billboard has a more detailed article [billboard.com].
  • by e271828 ( 89234 ) on Tuesday December 17, 2002 @10:29PM (#4912823)
    Remember the Slashdot story [slashdot.org] from the other day about the RIAA press release touting the capture of the equivalent of 421 CD burners, when only 156 had actually been found?

    Well, in the CNN article [cnn.com] this story links to, that has become simply "421 compact disc burners." No mention of "equivalency" anywhere.

    Sigh.

  • Re:WalMart (Score:3, Insightful)

    by Dachannien ( 617929 ) on Tuesday December 17, 2002 @10:34PM (#4912858)
    Except they won't give you refunds, even with DRM.

    Just remember that DRM isn't about the consumer at all. In fact, it's barely even about people. It's about large corporations demanding too much money for shitty music.

  • by Pinball Wizard ( 161942 ) on Tuesday December 17, 2002 @10:35PM (#4912861) Homepage Journal
    The article specifically mentions these. I've seen these first hand - they're usually poorly produced 'Greatest Hits' collections from defunct artists with typically shoddy artwork.

    I thought they were something specifically produced for this market, but after reading the article I think the RIAA has the right to go after these guys. Its one thing to make copies for personal use, but entirely another to mass produce and sell them in a convenience store chain.

  • more FUD (Score:5, Insightful)

    by fermion ( 181285 ) on Tuesday December 17, 2002 @10:39PM (#4912885) Homepage Journal
    Of course this is more FUD. One wonders why, if the outlets were actually selling counterfeit CDs, they would just not send the authorities to arrest the suspects.

    Rather they seem to be using this as an opportunity to intimidate alternative outlets and spread their unique interpretation fo the truth. I always find it amusing that they continue to blame various forms of piracy for the decline of sales, even in light of continuing revelations to the contrary [theregister.co.uk]. Of course, the sad thing is that the report just regurgitate the alleged facts.

    The RIAA is probably most concerned about lack of control. They went through a lot of trouble insuring that they had control over the record stores. They have lost some of that control though discounters, but managed to minimize the loss through marketing deals. This is just another symptom of their compulsive control behavior. It is impossible to control all these little outlets, and therefor their price fixing policies [com.com] will not be as effective.

    Clearly, the media is not going to fix this. The congress is not going to fix this. I encourage everyone to go out into their communities and find independent music. Buy tickets to local concerts at local venues. Buy the CDs. Do not copy the music. We will only create a new market if we are willing to support the new market.

  • by Dachannien ( 617929 ) on Tuesday December 17, 2002 @10:43PM (#4912909)
    I think your local mom and pop have an excellent opportunity to provide entertainment to their customers, while at the same time supporting musicians who are not under the thumb of an RIAA member's oppressive contract scheme.

    Tell the people who run Geraldi's - as well as the owners of other local stores - to get into the local music scene in your city, and to buy the CDs of unsigned local musicians. Tell them to talk with the musicians and get their approval and blessing to play their music in those local stores and restaurants.

    It's free publicity for the musicians, especially if the merchants put up a sign indicating what CDs they are playing that day (and how to get your own/where to go to listen to a live show), and the merchants provide an interesting feature to attract more customers.

    Then, when Hilary Rosen shows up at Geraldi's and says, I thought I told you to stop playing music here or pay our licensing fees, he can tell her to go fsck herself. ;)

  • by Anonymous Coward on Tuesday December 17, 2002 @10:52PM (#4912959)
    More than likely that law is just requiring the CD store to collect information about anyone they purchase CDs *from*, as opposed to collecting information about people they sell CDs *to*. It's been done in Canada (well, at least Ontario) for years.

    The intent is to dissuade CD stores from purchasing 200 CDs from an unknown source who "just happens to decide he doesn't like any of his collection anymore," as well as to stop thieves from getting rid of CDs in this manner.

    Some friends of mine had their house broken into and lost bunches of CDs and stereo equipment. The cops had a list of the stolen CDs which matched up nearly identically with a bunch of newly acquired CDs at a used CD store. The thief was caught because the store kept records of who they purchased CDs from.

    I haven't seen this Chicago law, though, so I could be blowing smoke...
  • Re:WalMart (Score:2, Insightful)

    by Anonymous Coward on Tuesday December 17, 2002 @10:57PM (#4912988)
    "If you don't like it, don't buy music."

    I don't. I also don't pirate music. Conincidentally, since I stopped, music sales have dropped (no, I don't buy that much music). I now hear the RIAA saying that the drop in sales is due to pirating. Uh huh. How about the economy? Payola and the lack of good, diverse music? Lack of choice, i.e. genres, musicians? The high cost of a CD? I easily about about 20 CDs every 3 months; not much, but still more than probably is typical over the total US population, including your grandmother. Now I buy zero. Zilch. Nada.

    Their business model sucks. Their campaign of bitching at the consumer sucks. Now they are taking it to the retailer. Guess what? They're going to hear from the consumer. It's going to be the slamming of their wallets shut. Why would I dare dish out $15 for a CD on the off chance that it's defective, sucks, or outlandish? I won't. Consumers won't. Or if they do, they will seek out, however slowly, retailers who do accept returns.

    "There is no real way for a retailer to demand integrity from the customer."

    If they think that way, that person you call a customer is nothing more to them than a consumer.

    That is why sales are also known as transactions, a sale or exchange, be goods for money, goods for goods, or some other. Integrity is IN the exchange. If you as the retailer sells a good, I hope you take money. I as a customer expect you to sell me a quality and as stated product. If you don't accept returns, I don't do business with you.

    You want that right and don't accept returns, fine. I won't buy from you. I hear you whining that sales are slow, don't blame me. That's YOUR fault. If Walmart doesn't accept returns of DVDs or CDs, I will never, ever buy from Walmart a DVD or CD.

    For example, Buy.com for awhile didn't do DVD exchanges; when I found out, I stopped buying DVDs from them. They changed their policy (maybe they changed it back again) and I return for exchange 2 DVDs that had problems (cracked case on one, bad press or something on the other).

    I also question how come your right to make a dollar does not supersede my right to return merchandise which was obtained from a government (usually state in the US) licensed business. A store may be a private venture, but it also has to abide by public rules. If you reject returns and become a scrooge, don't be surprised if people buy less.

    The RIAA is learning that if they don't adapt, they are going to get burned. Let them go after retailers. People will just stop buying music and spend their money elsewhere.

    "When palladium has software locked down, you can return a game just because it crashes."

    Foolish one. What if the EULA states you can't? What are you going to do then? You just dished out $44.99 + tax for the game. Darn. You're going to eat the cost. Cost of being a consumer while pretending you're a customer, after all.

    Although you are right in the sense that DRM technology is a problem. I look at DRM like tax laws--it introduces a host of problem, feeds a big money sucking organization, and propels forward a set of experts a la professionals that earn big bucks themselves to figure it all out. The common person is such an idiot and such sheep.
  • by bagofbeans ( 567926 ) on Tuesday December 17, 2002 @11:00PM (#4913002)
    What do customs do if they search luggage and find CDs and/or DVDs that look (to them) counterfeit, such as the passenger bought in China? I'm talking no more than one of each title, ie clearly for personal consumption. If the passenger bought them in good faith (difficult to prove otherwise), unless they are very obviously fake, is the passenger allowed to keep them?
  • by dl107227 ( 632747 ) on Tuesday December 17, 2002 @11:09PM (#4913058)
    When I was in Moscow three years ago I bought the complete works of R.E.M. and Brian Eno in MP3 format for 3 dollars each from a street vendor. I could have also bought Windows ME (except I have better taste than that) and hundreds of other titles for the same price. Mom and Pop, gas stations and the dude with the duffle bag selling pirated music at the bus stops in Richmond, VA (where i'm currently located) have nothing compared to the overseas countfeiters.
  • Good catch (Score:5, Insightful)

    by MacAndrew ( 463832 ) on Tuesday December 17, 2002 @11:11PM (#4913069) Homepage
    Good thing parroting disinformation never happens here.

    Don't get me wrong, I can't stand lazy journalists. Some simply copy press releases into their stories. It is galling when you catch them at it. As soon as you have some expertise in an area, or even read enough, news that previously looked credible falls apart.

    That's a reason to be very distrustful of reporting on legal proceedings. It is so easy to blow the details, especially if you're being lobbied by one side or the other and not trying to hard in the first place. Making deadline becomes everything.

    There are some great reporters, learn their names, follow them if they change employment. Linda Greenhouse at the Times is a superb legal reporter, and a very good writer for everyone. Here [nytimes.com] is her 12/11/02 report on a free speech and cross burning case (this has more in common with the DMCA than you might think!).
  • by nursedave ( 634801 ) on Tuesday December 17, 2002 @11:53PM (#4913334) Homepage Journal
    First, please give us your definition of fascist. I always hear left-wingers throw that about, but rarely do they know the definition. Hint: Even the most far right imbecile you can find doesn't qualify.

    Second, that the US media is dominated by a left-wing ideology is a simple fact that most of them even acknowlege. When polls are done of major media outlet reporters, they almost unanimously (over 95%) agree with the left wing agenda, such as For abortion, For gun control, Against the US military, etc. etc.

    As an aside, I find it funny that the US version of right vs. left is almost completely opposite of the old USSR version.

    >Fox News is right wing propaganda brought to you by facist and sleazemonger, Rupert Murdoch. The idea that any of the corporate media are left wing is absurd.
  • by GuruJ ( 604127 ) on Wednesday December 18, 2002 @12:49AM (#4913598) Homepage

    Here's a thought:

    People should e-mail CNN [cnn.com] or Associated Press [mailto] about their shoddy article [cnn.com] and let them know we prefer reading news reports from people who can regurgitate press releases accurately?

  • by djsable ( 257312 ) on Wednesday December 18, 2002 @02:16AM (#4913950) Homepage
    I hear all this talk of boycotting them, and how they are strangling the industry, etc etc.

    I would like to present an option, or rather How I Fight The System.

    I run my own label. Its a small affair, using the best quality packaging, and CDr with thermal printing for a slick look, use professional quality audio mastering, and work with underground electronic/industrial artists to promote, and distribute their music. All legal, and copyrighted by the artist, I don't "own" the artist like the big labels, its more a partnership. I went with a "supply on demand" model to lessen my financial risk, and am just going out and doing it myself. Screw the big guys, there is tons of good music out there, for cheaper than the bloated greedy recording industry would like you to beleieve that they can be had for! I'm not the only one either, there are a few of us out there..

    Syncromesh Audio [syncromesh.net] is where to find it. I run an internet radio stream as well, featuring mostly small label, or independant electronic/industrial/goth artists, and very little of the big guys generic and hook filled crap.

    You want to stick it to the man? Then support the options. There is some really good music out there, and we don't have billions for marketing to promote it.

    Yeah, so there.
  • by fliplap ( 113705 ) on Wednesday December 18, 2002 @02:18AM (#4913954) Homepage Journal
    Do you even read what you quote?

    "In addition, that section makes it illegal for Federal, state, and local government agencies to deny any rights, privileges or benefits to individuals who refuse to provide their SSNs unless the disclosure is required by Federal statute, or the disclosure is to an agency for use in a record system which required the SSN before 1975. ( 5 USC 552a note)."

    Any business not owned or operated by the gubberment can ask/demand your SSN. What you quote has nothing todo with this. But yeah, they probably won't require your ssn. If they asked for mine I'd give em the finger and leave without buying anything
  • by Anonymous Coward on Wednesday December 18, 2002 @11:57AM (#4915274)
    Forgot to mention:

    My daughter (teenager) - only owns about 5 CDs. Everything else is MP3s, which she downloads to her portable MP3 player and carries around with her.

    The future is here. Record labels need to get with the program or die.
  • by usurper_ii ( 306966 ) <eyes0nlyNO@SPAMquest4.org> on Wednesday December 18, 2002 @01:40PM (#4916268) Homepage
    I used to live in a town with some really good used CD stores. 99.9 % of the used CDs were legit CDs, but you could find rare bootlegs on CD from time to time. These were pressed CDs, not stupid CD-Rs with a cover printed out on an ink-jet printer, and I think they were probably imported at some point before they wound up in the used CD stores.

    Think about the RIAA throwing a big stink over these CDs enough to get some type of settlement out of the stores even though the biggest bulk of the material was totally *legit*.

    Given the state of the market for everything, something like this could force mom & pop stores to close, which is exactly what the RIAA wants.

    Usurper_ii
  • by Quixadhal ( 45024 ) on Wednesday December 18, 2002 @04:14PM (#4917663) Homepage Journal
    Now the RIAA will provide us with EULA's, since they are the only way I can think of to prevent me (legally) from re-selling a cd which is not a pirated copy, nor a demo "not-for-distribution" disc.

    I think the RIAA needs to take a step back from the glue machine, as the fumes are obviously affecting them. You idiots EXIST to provide us with entertainment, that's what we pay you for... not to be called thieves and have even the most basic of property rights twisted and abused to the point where our founding fathers would run screaming in terror. The people who run the RIAA are EVIL "tin-plated dictators with delusions of godhood" (fair-use quote, *ptttb*), and their monopolistic hold over the recording industry needs to be broken.

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