Rightscorp Taps Indie Labels to Fuel New Wave of Piracy Settlement Action
After somehow managing to survive years of losses that pushed the company ever closer to bankruptcy, Rightscorp’s piracy settlement model suddenly underpinned recording industry lawsuits against ISPs in the United States. After joining the American Association of Independent Music (A2IM), Rightscorp hopes that the Indie sector will reinvigorate its fortunes.
By attaching settlement demands to DMCA notices sent to ISPs, Rightscorp hoped these would be forwarded intact to subscribers. Rather than demand large sums, Rightscorp requested a relatively small amount, typically around $20, an amount payable through a dedicated portal. Not all ISPs passed the notices on but, thanks to those that did, Rightscorp believed it had a strong base to build on.
Over the next few years, the plan to turn piracy into profit failed to meet its key objective. At the time, Rightscorp was a publicly listed company but was hemorrhaging money. In 2014, the company revealed a $2.2m loss for the previous year, $6.5m in losses since the company launched in 2011.
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