Google and RIAA Reach Historic Deal; Labels to Receive Billions in Reparations
APRIL 1, 2013, LOS ANGELES
In a surprise move today Google announced a joint venture with the RIAA.
In exchange for the RIAA giving a license to all recorded music in all of its affiliated labels for one dollar ($1) Google will tender $14.75 Billon in preferred stock at a strike price of 25% below OTC value.
This is effectively and net profit of $32 billion for RIAA affiliated labels.
No press release was issued and the deal was announced only at a private stockholder meeting. Both parties agreed on the value of the deal, which neither party called a “settlement,” based on the estimated amount of revenue that Google earned from advertising sales derived over the past decade by diverting traffic away from legitimate stores like iTunes, Rhapsody, etc. and to ad-sponsored illegal peer-to-peer file-sharing networks.
This deal mimics the settlement made with the Department of Justice in 2011 over similar circumstances regarding Google’s sponsored ads for foreign pharmaceuticals.
Calls to the office of the Attorney General as to whether or not this private deal was to fend off a pending legal action against Google were not returned.
The money is to be paid out in installments over the next six years. 7% of the fund has been earmarked to go towards The Moses Avalon Company for continued efforts in artist rights advocacy and public awareness on this issue.