Recording Industry Can Use ADR After All

LimeWire was the most recent file-sharing service to incur the wrath of the recording industry. The industry sued and pursued its outrageous claims (it originally sought more than one trillion dollars in damages) to trial. Midway through trial, the parties settled the case for $105 million following a successful mediation. What’s interesting about that is that last fall St. John’s hosted a conference on the use of ADR to resolve conflicts over digital downloading, and the recording companies refused to engage in any way. It seemed they had several reasons for not wanting to participate: they clearly did not want to share a dais with their little-guy nemeses Joel Tenenbaum and Charlie Nesson, and they were concerned about making any statements that could be used against them in court. But beyond those pragmatic concerns, they have consistently conveyed the sense that they see litigation (i.e., intimidation and/or demolition) as the only way to protect their interests. But clearly there are some circumstances in which they recognize the value of ADR. Could they have reached a solution that better served their interests by mediating earlier? We won’t know, and it will be very difficult to explore that question if they continue to insist that litigation is the only viable option.

One thought on “Recording Industry Can Use ADR After All”

  1. Well, the recording industry certainly had more money behind it to go to trial. Maybe they thought they would just out-spend their opponents?

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