Testifying in Capitol Records v. Jammie Thomas (formerly known as Virgin v. Thomas), Jennifer Pariser of Sony BMG, admitted that the RIAA's lawsuits against file sharing result in a net loss for the organization.
Here's an excerpt from "RIAA Anti-P2P Campaign a Real Money Pit, According to Testimony":
One of the biggest bombshells from the cross-examination was Pariser's admission that the RIAA's legal campaign isn't making the labels any money, and that, furthermore, the industry has no idea of the actual damages it suffers due to file-sharing. . . .
The next line of questioning was how many suits the RIAA has filed so far. Pariser estimated the number at a "few thousand." "More like 20,000," suggested Toder. "That's probably an overstatement," Pariser replied. She then made perhaps the most startling comment of the day. Saying that the record labels have spent "millions" on the lawsuits, she then said that "we've lost money on this program."
Source: Bangeman, Eric. "RIAA Anti-P2P Campaign a Real Money Pit, According to Testimony." Ars Technica, 2 October 2007.
