Boston University student goes up against the recording industry

July 28, 1:18 PMBoston Economic Policy ExaminerAleksandra Balyanova

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Photo: Manuel Cernuda

A Boston University graduate student is going to trial against the recording industry after four major record labels have accused him of illegal downloading and sharing of music; opening arguments were heard this morning. This is the second such case to go before a federal court; other accusations by the RIAA have been settled out of court for $3000 to $5000. In the worst-case scenario, the student may have to pay $4.5 million to the record companies. In the only other case to be heard in a federal trial, the defendant had to pay $1.92 million.

If this worst-case scenario is realized, even if it is the just outcome, it will nevertheless reinforce a dangerous precedent. Part of the reason that settling out of court with the record labels has been so popular with those accused of illegal downloading is that going to trial against the recording industry is so scary. They have ample financial resources and expensive lawyers specialized in copyright law, which is far more than can be said about the college students they usually target. If the only two cases in which someone dared to go to trial against them are decided in the recording industry’s favor with immense damages awarded to them, it will only serve as proof of their might. Settling out of court with them will become the only viable option, which will mean they can ask for even more cash as a settlement.

There are two problems with these kind of cases being settled out of court. Whenever a organized, financially-endowed entity is settling out of court with a single individual, the chips are stacked in the large entity’s favor. It can afford to go to court, whereas in most cases, the single individual cannot. This means that the individual would prefer to pay a large settlement than go to trial, even if he thinks he may win. It is akin to legally-sanctioned extortion. Secondly, it is difficult to set legal precedents on the issue if the cases never see the courtroom.