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A federal judge cut the $2 million penalty against a Minnesota woman charged with file-sharing.

A federal judge on Friday drastically reduced a nearly $2 million verdict against a Minnesota woman found guilty last year of sharing 24 songs over the Internet, calling the jury’s penalty “monstrous and shocking.”

U.S. District Judge Michael Davis reduced the $1.92 million penalty a jury imposed against Jammie Thomas-Rasset of Brainerd to $2,250 per song, or about $54,000.

“The need for deterrence cannot justify a $2 million verdict for stealing and illegally distributing 24 songs for the sole purpose of obtaining free music,” Davis wrote.

Davis also denied Thomas-Rasset’s request for a new trial. He gave the Recording Industry Association of America seven days to either accept the smaller penalty or to ask for another trial to set new damages.

Cara Duckworth, spokeswoman for the RIAA, said the group’s attorneys were still analyzing the ruling and would have no immediate comment. Reached on her cell phone, Thomas-Rasset said the ruling was positive but that her attorneys are planning an attempt to get it lowered further. “Whether it’s $2 million or $54,000, I’m a mom with four kids and one income and we’re not exactly rolling in that kind of dough right now,” she said.

Thomas-Rasset’s two principle attorneys did not immediately return phone messages seeking comment.

This case was the only one of more than 30,000 similar lawsuits to make it all the way to trial. The vast majority of people targeted by the music industry had settled for about $3,500 each. The recording industry has said it stopped filing such lawsuits and is instead working with Internet service providers to fight the worst offenders.

Under federal law, the recording companies are entitled to $750 to $30,000 per illegally downloaded song — but the law allows the jury to raise that to as much as $150,000 per track if it finds the infringements were willful.

That’s led to other large verdicts, including one against Rhode Island graduate student Joel Tenenbaum, who last year was fined $675,000 for downloading and distributing 30 songs. His lawyers are seeking a new trial or reduced damages. Davis wrote that he arrived at the $54,000 figure by tripling the $750 minimum, thus arriving at $2,250 per song. He wrote that were it his decision, he might have reduced it even further.

“It was the jury’s province to determine the award … and this Court has merely reduced that award to the maximum amount that is no longer monstrous and shocking,” he wrote.

Ken Port, director of the Intellectual Property Institute at William Mitchell College of Law in St. Paul, said it could take a bit of steam out of recording industry’s efforts to discourage illegal file-sharing.

“They don’t have as heavy as a stick to wave around anymore,” Port said. “But like Jammie, most people don’t have $54,000 any more than they have $2 million — so I’m not sure what the direct impact is going to be.”

Showing 28 comments

  1. Thomas at 6:11am 8th February 2010 The whole story, I guess, is the consequence of pure FEAR.
    fear of not making as much profit, fear of dealing with a situation that can not be (and will never be) controlled.
    This isn't justice, it's just setting an example.
  2. dang at 7:05pm 6th February 2010 Well, the problem with $2 is it is not much of a deterrent. This whole mess happens not just because she downloaded the songs, but mainly because she shared them out.

    In any case, I do think there should some kind of deterrent, just one that makes sense and is reasonable.

    This poor lady could never pay back a $2M judgment. And are those songs really worth $2M in damages? I don't think so.
  3. dang at 6:44pm 6th February 2010 I think many people think Artists are rich, but really many of them pretend to look well off. It's part of the image. Most artist don't make much off their music alone. Just look at TLC as an example.
  4. kdarden at 11:53am 6th February 2010 Who's complaining? Merely making an observation based on the posts saying the artists get rich and should allow people to download their songs for free.
  5. Ian Bell at 11:09am 6th February 2010 The music biz has been this way for a while though, why complain now? If the artist is any good, and truly wants to make money, they need to promote themselves, get distribution etc just like any other business out there. No one is going to "discover them" like most artists think.
  6. kdarden at 10:59am 6th February 2010 As someone who writes daily about the music biz I can assure you most artists do NOT make much money on their albums after the record company, distributors, book stores, publicists, graphic designers, recording studios, session players and everyone else gets their piece of the income.
  7. surveying tools at 3:50pm 5th February 2010 Yes the level of punishment should fit the crime,i think $2 is too high....
  8. Tolak at 4:58am 4th February 2010 There has to be some sense of punishment.
    otherwise, when caught shoplifting, just offer to pay, and all will be right. And the times you weren't caught, you're home free!

    However, the level of punishment should fit the crime. How did the judge decide to treble the minimum value? What justification is there for that? And what (financial) benefit did the woman gain?

    Penalties reflecting her benefit (for example 2x market cost of her benefit) might seem suitable; if she downloaded 100 songs based on her offer of the 20 songs, she has directly benefitted approx 100 USD, and so a fine of 200 USD would seem a suitable penalty. The penalty ratio could be a sliding scale; the level of damage to the injured party might be a factor. But getting the money might still be a different thing; a drug dealer would only have one set of high-value assets to seize, so a multiple level penalty would not be efective.

    Just taking back the "goods" or the cost of the "goods" has no penalty effect.
  9. Tim at 10:43am 25th January 2010 You also left out most of the spaces after periods and commas. You know that makes it harder to read and makes you seem illiterate?
  10. Sensibility at 5:36am 24th January 2010 This is ridiculous. The woman downloaded 20 songs, her penalty should be 20.00.
  11. webterractive at 2:37am 24th January 2010 And the RIAA is wondering why music sales are slumping... It's very simple you sue your customers they'll stop being your customers, sure you can stop and punish them for downloading "free" music, but you have no power when they refuse to buy. So long mega-million dollar contracts, so long.
  12. Josh at 11:04pm 23rd January 2010 A few of my friends are "amateur" artists--mostly make music for their own enjoyment--have supplemented their incomes by selling and marketing their own music. I don't think the industry has a real future.
  13. JusticeToday... at 6:04pm 23rd January 2010 I wonder what the penalty would be if she had been caught stealing a couple CDs from a local store? Certainly not $1.92 million and certainly nowhere near $54,000. I don't condone either action but the penalties towards her and the countless others reamed by the RIAA do not ever fit the crime.
  14. Gonzobot at 5:37pm 23rd January 2010 Artists can ABSOLUTELY rent space in a studio, and record and distribute their own works. There is nothing stopping them. NOTHING AT ALL.

    Do you know why they do not do this?

    Because the music industry has made it impossible to make a living doing this.

    This is why bands starting out will have home-burned CDs, hand-assembled cases, wrapped in blow-dried shrinkwrap; these discs are homemade, and sold directly to record stores. But the kicker is, record stores won't buy music that hasn't already been guaranteed to sell, because of persistent marketing and design-by-committee 'artists', who can't write, play, OR sing. Everybody wants Nickleback, because Nickleback is put on the TV and the Radio by the Corporations that own their 'music'. Nobody wants to hear new music these days, because nobody tells them they want to.

    Don't forget about your precious amazon and itunes stores! The ones that charge you to upload, AND to keep your music in the database...AND that take percentages of sales. Which, if you aren't paying attention, IS JUST WHAT RECORD COMPANIES DO. Except you're expected to promote yourself. Out of your own pocket. Which means, you're paying to get famous, AND you're paying for people to POTENTIALLY access your works! If they know who you are!
  15. Legendary Rapper at 5:32pm 23rd January 2010 Sorry I left out "not",in definately NOT a jury of her peers.
  16. Legendary Rapper at 5:31pm 23rd January 2010 That was definately a jury of her peers.But a group of selfrightous assholes.And even if the fine was recoverable,how much of it goes to the artists that have been surposedly wronged? It doesn't seem right to fine someone for a wrongdoing against an artist,and then when the fine is collected.None of it actually goes to said artist.Isn't that like stealing too?
  17. Gonzobot at 5:29pm 23rd January 2010 The sex offender registries beg to differ. Nevermind that they're peopled with such unfortunates as 15 year olds who were dating and had sex, and fathers that 'inappropriately' touched their own children at a public park (according to other people who have no training or right to impose such judgment on strangers).

    But really. You can rape somebody, and be free in five years, and this is almost a sure thing if you play your cards right. While you're in jail, you can still earn money, or collect interest on savings/investments, you could even attend classes for educating yourself. All your meals are paid for, and then you get to leave.

    I'd rather do that then get fined 2 million dollars by the corporations. Don't pretend like a jury of her peers gave her that sentence; if they were her peers in any way shape or form, they would have known what utter bullshit that trial was.
  18. Gonzobot at 5:29pm 23rd January 2010 The sex offender registries beg to differ. Nevermind that they're peopled with such unfortunates as 15 year olds who were dating and had sex, and fathers that 'inappropriately' touched their own children at a public park (according to other people who have no training or right to impose such judgment on strangers).

    But really. You can rape somebody, and be free in five years, and this is almost a sure thing if you play your cards right. While you're in jail, you can still earn money, or collect interest on savings/investments, you could even attend classes for educating yourself. All your meals are paid for, and then you get to leave.

    I'd rather do that then get fined 2 million dollars by the corporations. Don't pretend like a jury of her peers gave her that sentence; if they were her peers in any way shape or form, they would have known what utter BS that trial was.
  19. Josh Alexander at 4:10pm 23rd January 2010 They're are laws that are fair and laws that are just INSANE ed smith. Copyright law is out dated and completely out touch with modern day technology. Punishment for a crime, but their punishment is WAY over the top.

    Those copyright laws were first created to not allow other companies to steal music and sell it. It wasn't created to punish individuals. This is something the RIAA has been pushing.

    Your "screw them" mentality is not only uncompassionate, it's completely out of touch with modern society. Go grab your own island and live by yourself.
  20. cal at 12:16pm 23rd January 2010 ed smith,how long has amazon been selling them for 99 cents. "On May 16, 2007 Amazon announced its intention to launch Amazon MP3" When did she download these songs? "February 21, 2005" Hmmm, looks like she didn't have that option at the time. Itunes started in 2003, but with all those DRMs on the files it wasnt worth even buying because you didnt own your music.I don't think you understand the incentive to make music. Most artist are not making it to make money, they do it because they love and enjoy it. And yes making money is a good side effect of it, but music will not dissappear if it stops being profitable from sales (which is why there is concerts.)No muscian would directly record to mp3 that is a compressed file, just saying that means you dont really know what you are talking about..
  21. none at 12:09pm 23rd January 2010 if you steal a CD at the store, you get a night in jail. if you share a CD, you get a $54,000 fine.
  22. johnwoods66 at 11:42am 23rd January 2010 Dude that is like way cool!

    RT
    www.total-anonymity.de.tc
  23. ed smith at 10:57am 23rd January 2010 You can download mp3 files legally from amazon.com for 99 cents each, whole albums for a few bucks. That is cheap. Why download it illegally? These people KNOW that they are breaking the law. They are willing to risk it, but when they get caught their attitude changes rather quickly. I say screw them. Give them the max fine per song. If you enjoy something, pay for it. Otherwise, there is no longer any incentive for the artist to continue cranking out new material, and eventually the whole system collapses. I'm not exactly a fan of the recording industry. I think that artists should be able to rent space in a soundproof room, and record their music directly to mp3 format, and distribute it on their own. However, that is not how it works. Obey the lay, or face the consequences and don't complain about it. It's your own damn fault.
  24. ed smith at 10:57am 23rd January 2010 You can download mp3 files legally from amazon.com for 99 cents each, whole albums for a few bucks. That is cheap. Why download it illegally? These people KNOW that they are breaking the law. They are willing to risk it, but when they get caught their attitude changes rather quickly. I say fuck them. Give them the max fine per song. If you enjoy something, pay for it. Otherwise, there is no longer any incentive for the artist to continue cranking out new material, and eventually the whole system collapses. I'm not exactly a fan of the recording industry. I think that artists should be able to rent space in a soundproof room, and record their music directly to mp3 format, and distribute it on their own. However, that is not how it works. Obey the lay, or face the consequences and don't bitch bout it. It's your own damn fault.
  25. Transplanted 'Nuck at 10:41am 23rd January 2010 I'm sorry, but I don't know many cases of murderers and rapists who get off with a slap on the wrist. Take it easy with the hyperbolic nonsense, man.
  26. Noman at 10:21am 23rd January 2010 The artist doesn't actually make much off of sales...Most profits are going to the record companies....The artist makes a lot of his/her money through touring.....so it seems counterproductive to the artist to restrict access to their music.....
  27. DamnClever at 10:08am 23rd January 2010 If anything has lost its way its Copyright. It may be the law, but its not fair. A lot of people generally don't see why you should be paid over and over for a job done once. Take a carpenter who makes a door. Does he get money each time someone uses the door? Of course not. Would he call it stealing when people use the door? No. But if you listen to a music track you have to pay again and again. That should probably have to change.
  28. Mike at 5:56am 23rd January 2010 There are a few things wrong here. How is it a law abiding person can be penalized so greatly for sharing songs that the artist makes way too much on and a real criminal, murder, rapist, DUI can get off with a slap on the wrist. Can you believe federal law allows up to $150,000.00 per song in damages? Secondly, if the system is going to make an example out of someone, at least go after someone who has the money to pay the fine, oh wait that won’t work they would be able to afford a team of attorneys who could win the case. Okay then if that’s the case then how about charging a music artist’s son or daughter or cousin. You can’t tell me that there isn’t some CLOSE relative of an artist sharing music or worse, selling it. Come on people, is this really justice?
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