This is very interesting. A Sony executive is put on the stand in the lawsuit Capitol Records vs. Jammie Thomas, and she admits all sorts of funky things. Doesn't she know you can lie under oath?

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 admission came during questioning over the amount of damages the RIAA is seeking in the case. Toder asked Pariser how much Sony was suing the defendant for, and she replied that the amount was for the jury to decide and that the labels weren't suing for actual damages. As is the case with the other file-sharing lawsuits, the record industry is only seeking the punitive damages available via the Copyright Act, which can range from $750 to $150,000 per song. "What are your actual damages?" asked Toder.

"We haven't stopped to calculate the amount of damages we've suffered due to downloading, but that's not what's at issue here," replied Pariser, who was reminded by Judge Michael Davis to answer the questions actually asked by Toder, not hypotheticals.

Toder then pressed the Sony executive on the question of how many people actually downloaded music from the defendant. "We don't know," she replied. "I can't identify any other entities aside from what SafeNet reported, but I know that many others did... that's the way the system works." [...]

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."

This is fascinating. One of the theories for why the sue-your-customers strategy continues is that the lawsuits pay for themselves with so many out-of-court settlements. Clearly that's not the case.

Let's see,they don't have any idea what actual damages they're suffering, the lawsuits are costing them millions, they're throwing away any goodwill they may have had in the marketplace ... why do they keep it up? Who was it who said that a functional definition of insanity is repeating the same action and expecting a different result?