In Law.com, Fred von Lohmann asks: Is Suing Your Customers a Good Idea?
As a matter of win-loss percentages, the lawsuit campaign has been wildly successful. Record industry lawyers have found that the defendants tend not to defend the suits at all, opting instead to settle for amounts ranging between $3,000 and $11,000. Many other defendants default. After all, hiring counsel to defend costs more than settling, even setting aside the hassles of litigation and chances of losing. Reliable sources tell me that the recording industry is breaking even on the litigation costs, as well, with settlements from each round of suits paying the costs of the next.
