Ever wonder why the big labels waste money funding trade groups like the RIAA? EMI, the British record company that was recently taken over by a private equity firm does, and a unnamed source tells Reuters that the new investors are thinking of cutting funding to the RIAA and other, similar trade groups.
The groups, the International Federation of the Phonographic Industry (IFPI), the Recording Industry Association of America (RIAA) and other national associations, represent music companies and the fight against illegal piracy.
They receive funding from the four major music groups — EMI, Warner (WMG.N: Quote, Profile, Research), Sony BMG and Universal — and hundreds of small independent labels.
The IFPI said it believed the four majors give approximately 64 million pounds ($132.1 million) each year to itself, the RIAA and many other national associations.
Absolutely no one was available for comment, so this could just be a rumor. If EMI were to cut funding, however, the RIAA’s seemingly bottomless pool of lawyers would get a wee bit shallower.