LimeWire Writes a Check for $12 Million to Warner Music Group - The UpStream

LimeWire Writes a Check for $12 Million to Warner Music Group

posted Friday Aug 5, 2011 by Nicholas DiMeo

LimeWire Writes a Check for $12 Million to Warner Music Group

We have finally reached the end of the small battle between RIAA and LimeWire this week, as they have reached a payout agreement. You may recall that LimeWire has been on the hook for $105 million from several record labels and RIAA was so proud of themself from putting that together, that they felt they could pretty much do anything, so long as they got help from the crazy legislators in California.

This week we learned that LimeWire had to write a check for $12 million over to the Warner Music Group. That might not be as close to the $1 billion in damages Warner claimed to have had done to them at the hands of the former P2P software, but I suppose that's better than nothing. However, $12 million is only 1.7% of the amount of revenue Warner does in a quarter. So in the end, it's more like a drop in the Atlantic Ocean.

No matter how much money would be issued to these labels, though, it feels like they'd never be happy. Warner may have claimed $1 billion, but you know they would complain until they saw $3 billion in their account. Good news for them is that they were up 5% in revenue for the second quarter, attributed to digital sales that were up 13%. The number that is important is that they still were able post a net loss of $47 million. Seems like that $12 million might have helped them out more than they thought.

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