Comments on: RIAA Wants to Increase Filesharing Damages to $1.5 Million an Album, Just for Laughs http://www.gizmodo.com.au/2008/01/riaa_wants_to_increase_filesharing_damages_to_15_million_an_album_just_for_laughs-2/ the Gadget Guide | Technology and consumer electronics news and reviews Sun, 22 Nov 2009 04:52:23 +1100 http://wordpress.org/?v=2.8.6 hourly 1 By: Jack Black http://www.gizmodo.com.au/2008/01/riaa_wants_to_increase_filesharing_damages_to_15_million_an_album_just_for_laughs-2/comment-page-1/#comment-4909 Jack Black Thu, 31 Jan 2008 00:01:09 +0000 http://www.gizmodo.com.au/2008/01/riaa_wants_to_increase_filesharing_damages_to_15_million_an_album_just_for_laughs-2.html#comment-4909 <p>Record companies are not in the business of finding new talent, publishing music or licensing intellectual property. These are common misconceptions.</p> <p>They are in the business of finance. Their recording contracts stipulate that all products and services used by a musician must be bought through them at outrageous markups (up to 10,000 per cent). The artist then has to pay back those amounts. Even if the artist does magically pay back the money lent to them in the recording (finance) contract, they still don't own their songs.</p> <p>Imagine if after 30 years you paid off your mortgage but the bank said: "Sorry, we still own your house. Oh, and we are evicting you. But how would you like another $1 million to buy another one?"</p> <p>That is how the recording companies work. Until you understand this very basic fact you can't understand why the music cartel acts they way it does.</p> Record companies are not in the business of finding new talent, publishing music or licensing intellectual property. These are common misconceptions.

They are in the business of finance. Their recording contracts stipulate that all products and services used by a musician must be bought through them at outrageous markups (up to 10,000 per cent). The artist then has to pay back those amounts. Even if the artist does magically pay back the money lent to them in the recording (finance) contract, they still don’t own their songs.

Imagine if after 30 years you paid off your mortgage but the bank said: “Sorry, we still own your house. Oh, and we are evicting you. But how would you like another $1 million to buy another one?”

That is how the recording companies work. Until you understand this very basic fact you can’t understand why the music cartel acts they way it does.

]]>