RECORDING INDUSTRY SUES TWO INTERNET SITES FOR COPYRIGHT INFRINGEMENT One Site Ignored Cease and Desist Warning; Other Posted 1,100 Unauthorized Recordings Music Archive Site Q&A WASHINGTON, May 11, 1998 -- In its ongoing effort to foster a legitimate marketplace for sound recordings on the Internet, the Recording Industry Association of America obtained separate temporary restraining orders against two Internet sites violating the rights of hundreds of artists. These sites were illegally distributing the full-length songs of top artists such as Mariah Carey, Boyz II Men, the Eagles, Meredith Brooks, Kenny G, and Elton John without permission. The two lawsuits, filed on May 5, 1998, seek permanent injunctions and damages. As of Friday, May 8, both sites were down and both sets of defendants appear to be cooperating with the RIAA to resolve these claims. "The Internet can't be a viable avenue for distributing music unless artist and record company rights are respected," said the trade group's President and CEO, Hilary Rosen. The two Music Archive Sites (described in detail on page two) allow users to download full-length songs, in near-CD quality, without permission of the copyright holder. The sites are being sued for violating federal copyright laws through the unauthorized reproduction and distribution of copyrighted sound recordings. "We're doing everything in our power to educate the Internet community that copyright has a legitimate place in this new frontier," said Rosen. "We envision an Internet where artists and fans can become closer than ever, a place where creativity is rewarded and entrepreneurs have a chance to expose the world to the pleasures of music without the threat of piracy." Rosen went on to say that filing these suits is a reluctant, but a necessary part of the association's strategy to create a legitimate online marketplace for music. "Unfortunately it often takes the force of litigation to penetrate the current Internet culture," said Rosen. "A culture that says, it's OK to steal the creative works of others because there's no apparent harm, or it's OK to steal because you don't like record labels, or it's OK because you're a fan promoting artists, or because you plan on buying the CD, or just because you won't get caught. "Our message is simple: No one is off the RIAA's radar screen. Regardless of how large or small your site, whether it's 50 recordings or a 1,000, whether you try to protect yourself with a disclaimer -- if you are distributing music without the permission of the copyright holder -- you're breaking the law." Arizona ISP Ignores Warnings and Continues Operating Illegal Site The first case was filed May 5 in U.S. District Court for the District of Arizona in Phoenix, against Arizona Bizness Network, a Phoenix-based Internet Service Provider. The ISP's home page links to another page on the ISP that offers a "song of the week." The option allows users to download a different song each week that can then be played though a computer's speakers with near-CD quality sound. Previous weekly selections are also accessible, bringing the number of recordings available for download to more than 50. The RIAA sent a cease and desist letter to defendant Frederic David Cohen, the ISP's operator, informing him of the illegal activities occurring on the site, which appears to have been established and operated by the ISP, and the potential civil and criminal liability for providing unauthorized recordings. The Music Archive Site eventually came down, however it was relaunched several weeks later. "In this case, the ISP appears to be actively involved in running the infringing site," said Steve D'Onofrio, RIAA executive vice president and director of Anti-Piracy. "Clearly this ISP was aware of the illegality and the ramifications of its conduct, but chose not to heed our warning." Washington State Site Posts More Than 1,000 Infringing Recordings The second case, which was filed May 5 in the U.S. District Court for the Western District of Washington in Seattle, was brought against a Music Archive Site that offers more than 1,100 songs for download. The site also permits users to request songs not found on the site. "There's enough stolen material here to create 100 CDs of top acts in every genre," said D'Onofrio. "In fact, the site's homepage boasts, 'You'll find absolutely all kinds of music from Country to Billboard's top 20, and tons more!'" D'Onofrio added the site operator knows the recordings are copyrighted and includes an erroneous welcome message to users that reads, "Please be aware that currently you must own the copyrighted material you download here in some form." D'Onofrio explained that disclaimers, like this, do not immunize site operators from prosecution. Previous Litigation Against Internet Infringers In January of this year, the RIAA settled three other separate federal lawsuits against Music Archive Sites that violated federal copyright laws by reproducing and distributing copyrighted sound recordings without authorization. In each of the cases, federal courts issued decisions and consent judgments in favor of the RIAA's position. As part of the judgments, each of the site operators agreed to refrain from any further infringements and to destroy any unauthorized sound recordings in their possession. In addition, each defendant agreed to pay $100,000 in damages for each infringed sound recording identified in the complaint, representing damage awards totaling more than $1 million against each defendant, if further infringements occurred.