Indie Records Sue Limewire; Feeling Left Out From RIAA Settlement

from the mo-money dept

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

    Clearly those indie labels deserve to be paid too. I mean think of the artists!

     

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    Forgotten Voter, Jul 18th, 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), Jul 18th, 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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    out_of_the_blue, Jul 18th, 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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      azuravian (profile), Jul 18th, 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), Jul 18th, 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, Jul 18th, 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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            HothMonster, Jul 18th, 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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      Chris Rhodes (profile), Jul 18th, 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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    Anonymous Coward, Jul 18th, 2011 @ 6:43am

    Why were the indies asked to stay out of the lawsuit?

     

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      Rabbit80, Jul 18th, 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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        Anonymous Coward, Jul 18th, 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, Jul 18th, 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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    Chris Maresca (profile), Jul 18th, 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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      Huph, Jul 18th, 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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        Chris Maresca (profile), Jul 18th, 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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    cram, Jul 18th, 2011 @ 9:29pm

     

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