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December 29, 2006

RIAA Wants a cool $1.65 Trillion from AllOfMP3

posted by MR WAVETHEORY at 12/29/2006 02:45:00 AM
Wow. $1.65 trillion. You have to love the RIAA for knowing how to pick the numbers. $1.65 trillion is slightly less than the GDP of the UK and 1000 times more than what Google (Nasdaq GOOG) paid for YouTube.

The RIAA came up with the number by seeking $150,000 for each of the 11 million tracks offered by AllOfMp3.com. The suit seeks damages in New York against the owner of AllOfMp3.com which is a company called MediaServies.

Meanwhile, AllOfMP3 responded on their blog that they don't operate in New York and don't intend to show up. "Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3 operates legally in Russia. In the mean time, AllofMP3 plans to continue to operate legally and comply with all Russian laws."

The whole splat has some pretty big implications for the music industry because the big grand daddy of the industry of course is iTunes, which is owned by Apple Computer Inc (Nasdaq AAPL) and sells songs for $1 each. Apple has everything to gain from winning the suit and everything to lose if the RIAA loses because AllofMp3 sells entire albums for under $1! Talk about a killer business model!

You have to wonder who's behind the splat. I smell a conspiracy.

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