Price-Fixing Settlement Checks in the Mail 269
toastyman writes "Remember the Music Industry $67m settlement from way back in 2002? Seven months later than planned, your $13.86 check is finally on its way. In addition to the cash settlement, the defendants in the suit are also giving 5.6 million CD's to educational programs."
Wonderful! (Score:5, Funny)
Not that I'm complaining, since it's great we finally get to stick it to those thieving bastards. My brothers and sisters all should be getting checks too, as well as my father. I for one am going to put the money towards a new hard drive to store all the music I download.
YIPPY (Score:2, Funny)
Re:YIPPY (Score:2)
Re:YIPPY (Score:2)
I can bitch all I want, and I do, and they can't stop me. What are they going to do, ask for their $14 back? I suppose I can't sue them in the future for price fixing. But I stopped buying their CDs a few years ago anyway, it's used and independent only now.
Re:YIPPY (Score:3, Insightful)
Please explain your statements. I used to purchase CDs produced by RIAA member studios, as recently as 2000. This entitles me to the settlement amount. So I claimed it. In so doing I believe I waived the right to sue them over unfair prices in the future. But I can still stand on the corner and bitch that they gouge their customers and treat the artists like shit. It's called free speech and
Re:YIPPY (Score:5, Insightful)
As far as I've seen, CD prices are exactly where they were a year ago, if not slightly higher. Anybody who thought this lawsuit would accomplish anything other than making a few scumwad lawyers rich was a naive fool.
This is why I never participate in class-action lawsuits unless I was actually wronged in some way. Accepting my money for an overpriced item I choose to buy of my own free will is not something I should be able to sue you for.
Re:YIPPY (Score:5, Informative)
Of course, I usually buy new music from iTMS if at all, so I don't spend all that much time comparing CD prices. Anything I want is $.99 per song.
Re:YIPPY (Score:5, Informative)
Re:YIPPY (Score:5, Informative)
In 1989 when I started buying CDs, they were about US$13 to US$18. So, after inflation, they have gotten cheaper.
On top of that, most LPs in the 70s and 80s were 35 to 40 minutes; the average CD I'd reckon on 50 to 70 minutes. So, again, you're getting more music for your money these days.
Re:YIPPY (Score:5, Informative)
"Anybody who thought this lawsuit would accomplish anything other than making a few scumwad lawyers rich was a naive fool."
On the contrary, it was extremely successful -- people just don't understand why the suit came about, and what it meant.
Due to the success of the suit, the record companies are no longer allowed to set MAPs, and Wal-Mart and Best Buy are now free again to run ads for CDs at loss-leading prices. It wasn't about what price that stores were able to sell at, but about what prices they could advertise. The record companies set MAPs to protect smaller retailers. It all transpired a couple of years ago and the checks are just now being mailed.
The biggest effect of this action is that Wal-Mart and Best Buy will continue to dominate the retail market for CDs, because they can afford to sell CDs at margins that smaller stores simply cannot support to survive. This action is great news for the Wal-Marts and Best Buys of the world, and great news for consumers, as long as they buy from stores like Wal-Mart and Best Buy. It's not-so-good news for specialty retailers, ranging from the Tower Records chain (who were busted along with the record companies and have recently filed for bankruptcy), to the indie record stores. Wal-Mart can afford to sell a CD for $10.99 or $11.99 because they'll make the money back on the other stuff you'll buy while you're there. Your favorite local indie record store cannot.
Not to sound overly dramatic, but if your favorite local indie record store has gone out of business or is on the ropes, the results of this price-fixing lawsuit may have a lot to do with it. Enoy your $13.86, folks. See you at Wal-Mart.
Re:Wonderful! (Score:5, Funny)
"I for one am going to put the money towards a new hard drive to store all the music I download.
Forget that. I think 13.86 is the exact price, with tax for 100 cd-rws at the fry's near my house.
You may think that 13.86 isn't a lot of money, but I'll make it back...
Re:Wonderful! (Score:5, Insightful)
What a slap on the wrist! No... It's not even a slap on the wrist. It's even cheaper than the money they spent greasing the wheels at Congress to solidify their tyranny to begin with. It's 30 million dollars cheaper than their annually budgeted legal department.
64.7 million dollars is less than 1 % of their yearly gross. Cheap price to pay to get away with price fixing for decades. THis price fixing has allowed them to make what, A billion extra dollars PER YEAR?
Re:Wonderful! (Score:2)
$67M is chump change to those thieving bastards. They could wipe their ass with it an not miss it. They can keep it and I'll remain a thieving bastard myself on Kazaa.
Re:Wonderful! (Score:2, Insightful)
Congrats to all those of you who joined the class action lawsuit. That mean, naughty music industry duped you into buying all those CDs - you had not the will power to say no.
Next week you should receive your check from McDonald's for forcing you to lead a life as a fatty.
[/end rant] I mean, come on. Yeah, they should pay. But why to you? Why not to a charity?
Re:Wonderful! (Score:5, Interesting)
Re:Wonderful! (Score:5, Funny)
No need to assume. I'll end your questioning right now.
Re:Wonderful! (Score:3, Insightful)
Just because I didn't purchase their products BECAUSE they gouged the price, does not mean I am any less entitled to the money, which is now the EFF's.
Re:Wonderful! (Score:5, Insightful)
What part of "price fixing" don't you understand?
This isn't some weird products liability case (e.g., you McDonald's analogy.) This is a case about the RIAA using its monopoly power over the CD market to set an arbitrarily high price of CDs. It's what happens in the absence of competition. (Another consequence is that the RIAA can abuse its customers and treat us all like scoundrels, without fear of us taking our business to a competitor.)
This crime was complete when the first CD was offered for sale at $20 - even before it was purchased. So your sarcasm is poorly aimed.
David Stein
Re:Wonderful! (Score:3, Interesting)
I bought an assload of CDs in the 90s. But it was all my choice - I saw a CD, looked at the price, and made a conscious decision that I was willing to part with $15.99 to buy it. I could have just as easily decided that it was too much, and that maybe, just maybe, I can actually live without it.
Re:Wonderful! (Score:4, Insightful)
We are entitled to a country in which corporations obey the laws applicable to them because of their monopoly status. If we have to sue corporations as citizens because our law enforcement turns a blind eye, so be it.
Re:Wonderful! (Score:3, Interesting)
I agree with that. It's just too bad that the people who are actually passionate about the cause are (more than likely) well-outnumbered by the people who simply see this as Free Money.
The public can work for something better too. (Score:3, Insightful)
While you raise good points about what happens in the absence of competition, and that the crime happened before the first copy of the CD was purchased, I think the parent poster had a good point too. The parent poster should not be chided for observing that people could have rejected these CDs in the first place.
People need to be introduced to musicians that don't sign with RIAA-affiliated labels. The public needs to hear about independant distributors that treat the public like partners, not criminals
We still got stuck with it.. (Score:3, Interesting)
how does the cost of ONE cd make up for what i was screwed out of over the years?
Oh, i wasn't one that signed the petition either... i *never* agreed to that ludicrous of a settlement. ( notice cd prices haven't dropped since then.. )
We should all (Score:5, Interesting)
EFF (Score:3, Informative)
Why not donate your check to the EFF? Not that individuals can't have noble causes, but your money might be better spent at an NPO or similar organization that fights for your rights as a consumer...
$i3.86? (Score:5, Funny)
Refund! (Score:5, Funny)
Re:Refund! (Score:2, Interesting)
Yeah, (Score:2, Funny)
Big bloody deal. (Score:5, Interesting)
the defendants in the suit are also giving 5.6 million CD's to educational programs.
I bet these will be the first CDs to sport the New & Improved FBI Anti-Piracy Seal [slashdot.org]
Jokes aside, the story doesn't quote the exact number of people getting cheques ("More than three millions") so I'll err to averages that 3.5 millions people will get $13.86. That's $48,510,000. Who gets the other $18,490,000? The lawyers.
Another nit to pick is that they'll be giving out 5.6 million CDs. big deal, they can write that off in the accounting office. What they'll donate are discs that are sitting in warehouses because of poor sales. After all, a write off is better than dumping them in a landfill.
The recording industry isn't taking a bit hit on this by any stretch, the only ones to profit are the lawyers.
Re:Big bloody deal. (Score:2)
Re:Big bloody deal. (Score:5, Informative)
No, since the award is compensation for damages you've already suffered, its even and no taxable event occured... Unless you wrote off the "damage" already in a previous tax year. (IANATA - I Am Not A Tax Accountant...)
Re:Big bloody deal. (Score:2)
Somehow, I don't think the IRS would be amused.
Oh yeah, lawyers are Bush's second biggest $source (Score:4, Funny)
Pull your head out.
...giving 5.6 million CD's to educational programs (Score:5, Interesting)
Why not sell those 5.6 million cds and give the profit to educational programs instead?
Re:...giving 5.6 million CD's to educational progr (Score:4, Insightful)
Because we're not the only ones who know their product is worthless.
Re:...giving 5.6 million CD's to educational progr (Score:4, Funny)
Re:...giving 5.6 million CD's to educational progr (Score:5, Insightful)
For the same reason that Microsoft gives $xM worth of free software whenever possible to settle their lawsuits:
It's not a "real" penalty, it just looks like one to the rubes who don't realize that each physical software package/music CD costs practically nothing to produce, but is counted at its full retail value when given away.
Giving away profits as penalty for corporate wrongdoing? In George W. Bush's America? Ha!
~Philly
5.6 Mil CDs... (Score:5, Funny)
A public service announcement (Score:5, Funny)
"Pretty soon I had me eyepatch and started swashbuckling. I spent all me bullion on spiced rum and me ship, a fine seafaring vessel she be. Yaarr, I thought I could stop, but now it's gone to far. Now I am stuck in an endless loop of pillage, sack and plunder, yaaarrr."
Remember kids, only pirates wear eyepatches. Don't be a pirate, YAAAR!
A whole $67million settlement? (Score:5, Funny)
Re:A whole $67million settlement? (Score:3, Funny)
That's a lot of CDs (Score:5, Funny)
The same people... (Score:5, Insightful)
Then they are condemned for price fixing. Ain't life grand? The inmates are running the asylum, the foxes are guarding the hen house, and so on and so forth.
(Yes, I know that the RIAA is probably not involved in this settlement, but the RIAA bosses... er... members are the one who are condemned in this case)
Re:The same people... (Score:3, Funny)
True. But according to the article:
The settlement...also bars the defendants from entering future agreements to fix CD prices.
So you don't have to worry anymore.
Best way to spend $13.86 (Score:5, Funny)
Why? (Score:2, Insightful)
Re:Why? (Score:2)
superfluous apostrophes bother me (Score:4, Informative)
Re:superfluous apostrophes bother me (Score:2)
what you find easy to read isn't the same for anyone. since the apostrophe is incorrect, it slows me down a little while I "error-correct".
i's thi's ea'sier to read?
What the heck? (Score:5, Insightful)
I'd love to see what those albums are, and what their educational value truly is. Unless they're delivering symphony recordings and classical masterpieces for a music class, I can't see how that's an advantage for consumer me.
At least when MS donated OS licenses and things, one could argue that Windows machines can actually facilitate learning in all sorts of areas (let the MS flaming begin). This sounds like a cop out to me. Blah.
Re:What the heck? (Score:3, Funny)
Come now, "I'm gonna get you naked by the end of this song" is at least as educational as Microsoft Encarta.
Re:What the heck? (Score:3, Insightful)
It's like Microsoft "donating" their own software product to schools as a "penalty" in their anti-trust cases. And the ice-cream company who settled a "your product is too fatty" class action with coupons for more ice cream.
We need to outlaw these donation penalties in anti-competition cases. They really just work to entrench the guilty corporation in the market, the problem instead of mitigate the problem. The penalties should not be calculated in retail or street value, but in the actual bottom lin
By the way.. (Score:5, Insightful)
I hate the way people can get away with giving away "content" at inflated prices. If they gave away $5.6M in MEDIA costs of CDs to educational entities, I'd feel like they were punished. This is like MS giving away a bunch of software.
I've written this many times before, but it's not a punishment/loss of revenue if there was never any money in the first place. If the CD's cost $.10 each for them to make (made that number up, but it seems reasonable), then it really cost them $560K. A large number, but not nearly as large s 5.6M. If they had to REFUND $5.6M back to educational groups that had purchased CDs, that would be the way to really punish them.
This is just like MS offering to give a bunch of money's worth of software to schools. It doesn't cost 'em anything to give stuff to a place that would have never bought it in the first place, since initial R&D is the cost, and that's constant. Distribution is a trivial cost at the end.
Re:By the way.. (Score:2)
5.6 million CDs. Not $5.6M in CDs.
I'm going to shoot myself now.
Thank you, and have a nice day.
Re:By the way.. (Score:3, Informative)
imagine...
Judge: you are hereby fined $100million
MS: okay, we've just made a new educational office suite. all the business tools/server parts have been removed. our Sugested Retail Price is 1million, so I guess 100 licenses* will cover that fine.
*only 1 CD, no manual. Do not make illegal copies of the CD.
Re:By the way.. (Score:2)
If these disks were like textbooks, and it saves the schools $5.6M in costs that they'd have to pay anyway, then it really is worth something to the schools and, simultaneously, costs the RIAA money that they would have had coming in. The language CDs by Pimsleur, for example, are expensive but worth the money.
On the other hand, if these are a bunch of remaindered country-funk-ska-polka CDs that are primarily saving the
I'll double it up (Score:2)
Or maybe 13 DRM infected iTunes tracks (yeah, right).
Re:I'll double it up (Score:2)
So... (Score:5, Insightful)
I figure that CDs should be no more than $6.00/ea (before tax) so I should get back at least 50% of the money I spent.
Instead these idiots get off by shelling out $67 million plus free CDs to educational institutions so that they can have kids listen to their music? I hope that these CDs aren't ones they own... I want them to be TRULY taxed when they have to give away that money.
Re:So... (Score:2)
Nevermind.
That said, I still feel ripped off.
Re:So... (Score:5, Funny)
You're doing the math wrong. Here are the equations you should use; it's actually quite simple:
If you are a customer and (potentially) screw a record company by infringing a copyright, you owe $150,000 times the number of incidents.
If you are a record company and (actually) screw a customer by illegally overcharging, you owe the customer $13 times the number of incidents, then divided by the total by the number of incidents.
You left out the denominator.
Re:So... (Score:3, Informative)
"I purchased well over 50 CDs in my lifetime. I get back $13? From my quick calculations I feel that I should be getting back about $300 instead."
Only if you bought all fifty at TWE, Tower Records or MusicLand, and you haven't bought any CDs in the past two years. If you've largely bought the CDs elsewhere, the price fixing didn't affect you.
"I figure that CDs should be no more than $6.00/ea (before tax) so I should get back at least 50% of the money I spent."
Do you think it's possible to be prof
Yippee. (Score:2, Redundant)
Maybe I'll spend it on a CD! I might even have enough money left over to tip the cashier a few nickels.
Yea!!! (Score:2)
We 0wN RIAA!!
Who's next!?!
Re:Yea!!! (Score:4, Insightful)
So we didn't 0wn0rz anyone.
Great! (Score:5, Funny)
$100,000.00
- $13.86
-----------
$99986.14
Yipee!
Nice, but... (Score:3, Funny)
Oh, wait, but if they actuallly had something resembling a worthwhile product, they probably never would have felt the need to engage in price-fixing. Silly me.
Maybe I'm wrong. But has any major label released anything halfway decent in the last ten years?
I want a check from the RIAA for the pain and suffering caused every time I've been within earshot of a Top 40 radio broadcast.
Demand Justice!
Re:Nice, but... (Score:3, Offtopic)
Sure. Zero 7 and Kinobe (Zomba) kick ass. I think Tantric is pretty good too. There's Moby, Fatboy Slim, Massive Attack/Tricky, Joe Satriani, ... Jet's single is kinda cool. There's pleny of decent suff. It's just mostly drowned out by the crap that gets over-marketed to ensure high sales figures.
Priceless (Score:5, Insightful)
Re:Priceless (Score:2)
But I've moved! (Score:2)
I have to wonder if they were hoping this would happen with a lot of the settlement checks.
A complete rip-off (Score:5, Insightful)
Personally, a check that small is a slap in the face. They did nothing to account for the number of CDs purchased during the time in question. I checked. I added well over 200 CDs to my collection during that time. Yet I get the same amount back as someone who bought just a few.
-S
But.... (Score:3, Insightful)
... for EDUCATIONAL???? programs? (Score:3, Interesting)
"OK kids, for next week you need to write a 2 page report on the latest 'Britney' CD."
Pointless.
Get over yourself. (Score:4, Interesting)
"OK kids, for next week you need to write a 2 page report on the latest 'Britney' CD."
You do know that the RIAA also sells classical music, audiobooks, educational children's songs, discs that teach you how to learn to speak a foreign language, and all sorts of other material than the latest pop music, right?
Maybe if your education and purchasing habits were broader and deeper, you'd know these things and appreciate that there actually is a wealth of material that the RIAA could donate to schools.
(Of course, I'll bet you that it's still a slap on the wrist because the value of the discs for purposes of the settlement is probably the value they sell them for instead of make them for, but I digress.)
Trust / law fund... (Score:4, Insightful)
A bunch of small donations to EFF maybe?
In a related story (Score:5, Funny)
Oops. it is not April 1. Sorry, "DarlDay" has not yet happened.
I won't receive any money :-( (Score:2)
So I think I won't receive any money, but wait, I didn't gave them anything in the first place
EFF, here I come! (Score:5, Insightful)
I guess I will just donate it to the EFF, and hope that everyone does. It would be great if they made a few million straight from the record company - would really make the settlement sting more.
$13.86 (Score:2, Informative)
give it to an unsigned musician! (Score:5, Insightful)
Here's a better idea. Look at all those musicians who let you download music legally and dash them an email, saying I want to give the money to you as a way of saying thanks for being so generous and talented.
To love the music, you must share the music. Sharethemusicday [geocities.com].
it's all about the lawyers.... (Score:3, Insightful)
Track how much the law firms involved keep in legal fees, and then you'll know in whose interest these cases are really brought.
Great ! send out cd's to schools.... (Score:2, Insightful)
Anyone know what kind of cd's these will be? I don't care for 5.6 million Ludicrus cd's with "Sticking up" or "Freaky Thangs" going to my daughter's school, or yours for that matter...
Put your money where your mouth is (Score:5, Informative)
Electronic Frontier Foundation
454 Shotwell
San Francisco, CA 94110
You can also make a donation at their website:
https://secure.eff.org/
5.6 million CD's? (Score:2, Informative)
So here's a simple guide to some basic grammar, you illiterate morons. [angryflower.com]
: )
A drop in the bucket... (Score:5, Insightful)
Murphy's law (Score:2)
Re:Murphy's law (Score:2)
Re:Murphy's law (Score:4, Informative)
If you have a change of address after you submitted a claim, you need to provide your new mailing address to the Administrator at the address below. Additionally, it is recommended that you update your mailing address with the U.S. Postal Service.
Compact Disc MAP Litigation Administrator
PO Box 1650
Faribault, MN 55021-1650
better hurry!
'Price-Fixing Settlement' (Score:4, Interesting)
You say the prices have been fixed, but the local Sam Goody still has eveything at $14 and up!
*sigh*
Of the CDs (Score:4, Informative)
Curses! I've Moved (Score:2)
So, in that seven months time it just so happens that I have moved, as probably numerous individuals which leads to a higher probability of people not cashing their checks which means that the RIAA is out only $0.37 for the stamp....
Is it really possible that they delayed this as long as possible knowing that, statistically speaking, a larger portion of the checks would remain uncashed and their penalty be lessened? What a load of crap, I just hope the new tennants a
so what does that fix? (Score:4, Insightful)
Big fucking deal. I want to try small claims court (Score:5, Interesting)
No, I did not sign up for the lawsuit as I correctly assumed it would be a waste of my time and they would probably just sell my personal info for a profit.
Now that they have been convicted, perhaps it would be a simple matter to sue and win in small claims court? Any lawyers out there?
Re:Big fucking deal. I want to try small claims co (Score:4, Informative)
"I bought about 200 CDs during the time when they were convicted for price fixing and over charging by up to $5 per CD. So, having been robbed of $1,000 in late 1990's dollars, I am offered $13.86 in 2004 dollars. Woo fucking hoo."
There's a lot of misunderstanding of what happened here. A lot of people think this has to do with the margin that the record companies charged channel-wide. Reading the original article does provide some of the details, but it doesn't cover everything. I posted the below as a response to another message but I think it bears repeating. The article covers the basics: also named were Tower Records, TWE and MusicLand. Why just those three?
Set the way-back machine to the early days of the 21st century...
Putting this in black-and-white terms for /. readers, in this case the "bad guys" were the record companies, as well as TWE, Tower Records, and MusicLand, who originally complained to the record companies regarding unfair competition from the big box retailers. The "good guys" are Best Buy, Wal-Mart, and the other large retailers who used CD sales as a little-or-no margin incentive to bring customers into the stores. I am generally not a fan of Wal-Mart and its business practices, but in this case, they've won one for the free market economy.
The price fixing affected what you paid if (a) you bought those 200 CDs Tower Records, MusicLand, etc. who kept their prices high in a (sometimes successful) effort to stay in business. If, like many other people, you shopped around for the lowest price, then it's less of an issue.
By the way, if a manufacturer sells an item into the distribution channel for a fixed price (for CDs, it tends to be around $8), if the retailer marks it up by 10%, 20% or even 100%, it does not affect how much the original manufacturer made when they sold it to the distributor. I'm not privy to the price that record companies sell in to Wal-Mart vs. specialty retailers, but the price difference between stores is often more about the store's profit margin, not the manufacturer. For the record companies, this was less about how much they made per CD, and more about protecting their retailers, so that they could ultimately sell more CDs.
What a great scam this was! (Score:3, Insightful)
So they skate again, by abusing our legal system. Yeah, I know, it wasn't a huge check, but as Geddy Lee said in "Take off to the Great White North,", "Hey, ten bucks is ten bucks, eh?"
Bah.
Re:geeks at work! (Score:4, Funny)
Geeks and Attorneys! Together, we're unstoppable.
Re:geeks at work! (Score:3, Insightful)
There were NO geeks at work here. Just a bunch of lawyers, who got what they came for. 13 dollars is what you got if you bought 5 CDs or 5000. That's winning?
Please, do the minimum amount of research before you post. This is not your blog.
Get a RIAA Education (Score:4, Informative)