Part 11 (2/2)

”[Jobs's] stock went from $8 billion to $80 billion”: Author interview with Roger Ames.

”He feels they got cheated”: Confidential source.

”Stealing music is not [what's] killing music”: Author interview with Robert Pittman. 181 ”Who Let the Dogs Out?” vs. ”Stacy's Mom”: Author interview with Steve Greenberg.

Big Music's Big Mistakes, Part 7: The RIAA Lawsuits Charli Johnson background: From author interview with Johnson as well as Knopper, Steve, ”RIAA Will Keep on Suing: The Music Industry Has Targeted 11,456 Illegal Downloaders-Has It Done Any Good?,” Rolling Stone Rolling Stone, June 9,2005, p. 26.

More than 38,000: From RIAA, as of late 2008.

”But I know one thing”: Scott Ba.s.sett quoted in Knopper, Steve, ”261 Music Fans Sued: Record Biz Busts Everyday People,” Rolling Stone Rolling Stone, October 16, 2003, p. 25. ”My stomach is all turning”: Brianna LaHara quoted in Mongelli, Lorena, ”Music Pirate: N.Y. Girl, 12, Sued for Web Songs Theft,” New York Post New York Post, September 9, 2003, p. 1.

”We knew that the press would find poster children as a result of this program”: Cary Sherman quoted in Knopper, Rolling Stone Rolling Stone, October 16, 2003, p. 25. Settlement figures, from RIAA.

”These are very nasty one-sided cases”: Author interview with Ray Beckerman.

BigChampagne.com peer-to-peer numbers courtesy of Eric Garland.

Roger Ames's opposition: Author interview with Hilary Rosen, confidential source, Leeds, Jeff, ”Warner Strategy Set Pace for Action on Downloaders,” Chicago Tribune Chicago Tribune, September 14, 2003, p. 9. Series of meetings in New York and Sony Music headquarters: Author interviews with three confidential sources.

”I think everybody was on board with the lawsuits”: Rosen quoted in Knopper, Rolling Stone, Rolling Stone, June 9, 2005, p. 26. ”Everyone felt like it was too bad”: Confidential source, Ibid. Chelsea and Cindy Lundstrom, Ibid. June 9, 2005, p. 26. ”Everyone felt like it was too bad”: Confidential source, Ibid. Chelsea and Cindy Lundstrom, Ibid.

”It's effective-at trying to bully people”: Jason Schultz quoted in Knopper, Steve, ”RIAA's Campus Crackdown,” Rolling Stone Rolling Stone, April 5, 2007, p. 15.

”It seems like the punishment is way disproportionate to the crime”: Confidential source.

”The answer would have been so easy”: Author interview with Thomas Middelhoff.

”The lawsuit stopped me from downloading music”: Charli Johnson quoted in Knopper, Rolling Stone Rolling Stone, June 9, 2005, p. 26.

Chapter 6 20032007: Beating Up on Peer-to-Peer Services Like Kazaa and Grokster Fails to Save the Industry, Sales Plunge, and Tommy Mottola Abandons s.h.i.+p Raid on Phil Morle's home and office: Author interview with Morle.

60 million, including 22 million in the United States: From Woody, Todd, ”The Race to Kill Kazaa: The Servers Are in Denmark. The Software Is in Estonia. The Domain Is Registered Down Under, the Corporation on a Tiny Island in the South Pacific,” Wired Wired, February 2003, p. 104. Downloaded some 370 million times: From Rosenbush, Steve, ”Skype: On the Block: The Web Phone Service Has Discussed a $3 Billion Deal with News Corp., but an IPO May Be the Most Likely Scenario,” businessweek.com, August 10, 2005. [S]hadowed owner Bermeister, backpack cameras, and an $8 million mansion: From Montgomery, Garth, ”When the Music Stops,” The Age The Age, March 23, 2005, page number unknown. ”It was a tough time”: Author interview with Bermeister.

Kazaa background and ”I hired actors to come here”: From Woody, Wired Wired, February 2003, p. 104.

”21st-century piratical bazaar” and ”the sheer magnitude of this haven for piracy is overwhelming and unknowable”: From Metro-Goldwyn-Mayer Studios Inc. et al. vs. Grokster Ltd. et al. Metro-Goldwyn-Mayer Studios Inc. et al. vs. Grokster Ltd. et al., US District Court, Central District of California, October 2, 2001.

Niklas Zennstrom and Ja.n.u.s Friis background: From Woody, Wired, Wired, February 2003, p. 104, and ”How Skype and Kazaa Changed the Net,” BBC News, June 17, 2005 (how they met at a British telecom). February 2003, p. 104, and ”How Skype and Kazaa Changed the Net,” BBC News, June 17, 2005 (how they met at a British telecom).

Nikki Hemming background, including Segaworld and $60 million loss: From Montgomery, The Age The Age, March 23, 2005, page number unknown. ”She has done things the hard way”: Author interview with Phil Morle.

”We are a utility”: Nikki Hemming quoted in Johnston, Chris, ”Pirate Queen: Cyber-boss Nikki Hemming Is Defiant. Her Landmark Case Against Hollywood and the Music Industry Will Be a b.l.o.o.d.y Battle. But She Says She'll Win,” The Age, The Age, March 5, 2003, page number unknown. ”I knew the powers of peer-to-peer”: Author interview with Mick Liubinskas. March 5, 2003, page number unknown. ”I knew the powers of peer-to-peer”: Author interview with Mick Liubinskas.

Jeff Ayeroff and melting users' iPods: Author interview with Eric Garland. Confirmed by Ayeroff, although his recollection of the exchange is slightly different, per the footnote in the chapter.

”Shawn Fanning was genuinely a kid with a great idea”: Author interview with Cary Sherman. ”These were p.o.r.nographers and bad guys”: Confidential source.

543 peer-to-peer file t.i.tles having to do with child p.o.r.nography: From US General Accounting Office, GAO-03-351, report to the Chairman and Ranking Minority Member, Committee on Government Reform, House of Representatives, ”File-Sharing Programs: Peer-to-Peer Networks Provide Ready Access to Child p.o.r.nography,” February 2003, p. 1.

”As a guy in the record industry and as a parent”: Andrew Lack quoted in Hansell, Saul, ”Aiming at p.o.r.nography to Hit Music Piracy,” New York Times New York Times, September 7, 2003, p. 1. ”It was one of the big propaganda positions”: Author interview with Phil Morle.

”Being an old press guy”: Author interview with Wayne Rosso. ”[T]he best music file-sharing service”: From Chamy, Michael, ”I Want My MP3s: Audiogalaxy, Austin's Onetime File-Sharing Supernova,” Austin Chronicle Austin Chronicle, January 31, 2003, p. 50. Merhej's next project, based on the same peer-to-peer platform and software, was FolderShare, which he sold to Microsoft in 2005. He works for Microsoft to this day.

”on a gigantic scale” and other background on Grokster case: From US Supreme Court, Metro-Goldwyn-Mayer Studios Inc. et al. vs. Grokster Ltd. et al. Metro-Goldwyn-Mayer Studios Inc. et al. vs. Grokster Ltd. et al., June 27, 2005.

”I've been cautioning people in the industry”: Author interview with Hilary Rosen, 2005.

File-sharing numbers from BigChampagne.com.

”Kazaa lost”: Author interview with Eric Garland.

MediaDefender charged major labels $4,000 to protect an alb.u.m and $2,000 for a track: From leaked MediaDefender emails and Paul, Ryan, ”Leaked Media Defender E-mails Reveal Secret Government Project,” arstechnica.com, September 16, 2007. ”[T]he online guard dog of the entertainment world” and MediaDefender revenues: From Roth, Daniel, ”The Pirates Can't Be Stopped,” Conde Nast Portfolio Conde Nast Portfolio, February 2008, p. 98. ”The hope is, you make the experience so poor”: Author interview with Cory Llewellyn.

”In the beginning, I had no motivation against Monkey Defenders” and background on ”Ethan”: From Roth, Daniel, Conde Nast Portfolio Conde Nast Portfolio, February 2008, p. 98. Details of Ethan's hack into MediaDefender email accounts: Author interview with ”Forrest F.,” who helped circulate the emails via the Pirate Bay.

”This is a stupid industry”: Author interview with Peter Sunde. Details about the Pirate Bay's role in leaking the MediaDefender emails, from Roth, Daniel, Conde Nast Portfolio Conde Nast Portfolio, February 2008, p. 98. Sum 41 and Timbaland t.i.tles: From leaked emails, posted on mediadefender.com, as of January 2008. ”This is really f.u.c.ked,” Randy Saaf's email quoted in Roth, Ibid.

ArtistDirect purchase of MediaDefender and founder salaries: Ibid.

”Whenever you brought up something like Napster”: Author interview with Cory Llewellyn.

Offspring promotion: Author interview with Jim Guerinot.

Don Ienner receptive to internet marketing and ”Whatever it takes”: Confidential source. ”War meetings” and ”We devise a plan of attack”: Ienner quoted in Philips, Chuck, ”Pa.s.sion for Music Drives Columbia Chief to Make Plenty of Industry Noise,” Los Angeles Times Los Angeles Times, January 29, 2001, p. C1.

”Certainly, that was the att.i.tude of majors across the board”: Author interview with Mark Williams.

Robin Bechtel background: Author interview with Bechtel, and Bechtel, Robin, ”The Internet Is a Fad: How the World Wide Web Changed Music,” Flaunt Flaunt, May 2007, pp. 9497.

”I basically built Creed's online fan base one fan at a time”: Author interview with Syd Schwartz.

”Show her a brick wall”: Author interview with Ty Braswell.

”When YouTube came up”: Author interview with Robin Bechtel.

”The funny part is we don't get paid anything for it”: Author interview with Jamie Kitman, 2006. Panic! at the Disco using YouTube: From Hanc.o.c.k, Noelle, ”YouTube Rocks,” Rolling Stone Rolling Stone, July 13, 2006, p. 40. Justin Timberlake using YouTube: Author interview with Timberlake's manager, Johnny Wright, 2006. Universal, too, would find gold: From Graham, Jefferson, ”Q&A with Universal Music's Rio Caraeff.” USA Today USA Today, October 2, 2007, p. B2.

”We've had relations.h.i.+ps with [the labels] since the beginning of Mys.p.a.ce”: Author interview with Chris DeWolfe.

”When we started out in 2002”: Author interview with Martin Stiksel.

”If a record wasn't selling”: Author interview with Randy Sosin.

Jessica Simpson party and ”He did spend a ton of money”: Author interview with Barbara O'Dair.

Sony lost $132 million: From Eaton, New York New York, March 3, 2003, p. 42. Alb.u.m sales and market share figures from Nielsen SoundScan.

<script>