You don’t have to sue them all, they only have to sue a few of them in order to scare everyone else into ceasing their use of the service.
It’s a good tactic and one that I’m confident will prove successful if they carry it out as they have threatened (which is to sue indiscrimatly, regardless of whether you share 1 file or 10,000). If you know there’s a chance, even a very small chance, that you (or your family if you’re under 18) could be sued into bankruptcy just for swapping a single song people aren’t going to risk it.
But… what the music companies don’t get and have never gotten is that this is a battle they can’t win - it doesn’t matter if the law is on your side. It doesn’t matter how big your army of lawyers is, if you’re outnumbered 10 million to 1 you’re still going to lose. For every service they figure out how to shut down, many more services spring up to take their place, services which are designed to be immune from the method of attack used on the previous generation. The RIAA’s efforts to stamp out piracy are actually increasing it due to the fact that P2P networks are being forced to evolve into services that are decentralized, resistant to attack, and now (well, soon anyway), totally anonymous.
Think about it - way back when we had Napster. Napster was great. Napster could have been the record label’s new big thing. It was completely centralized and had web content and chat integrated right into the program. Napster could have taken the record companies into the 21st century if they had embraced it, but instead they attacked it and destroyed it with relative ease.
The execs went home. When they woke up in the morning, people were already working on decentralized networks that could not be shut down. This gave rise to various GNUtella clients and the current more popular Kazaa.
They tried to sue them too, but due to their decentralized nature it was ruled (on several occassions) that they could not be held liable for piracy occurring on their networks. The people making P2P software had succeeded in covering their own asses. So now the RIAA is trying a new trick - going after individual file swappers. When you download a file from the current P2P networks it’s sent directly from the sender to the reciever, thus, the person downloading the file can ‘see’ the person who sent it. Like I said, the RIAA doesn’t have to sue everyone, just enough people to scare everyone else.
So… the next generation of P2P services will be anonymous. Good luck trying to figure out how to shut them down. I’m sure they’ll try something, but it doesn’t really matter because the demand is still there and people will figure out how to get what they want.
This whole mess could have been avoided in the first place if the record labels had made friends with Napster instead of shutting it down. They would have had a nice, centralized, hugely popular service to do… whatever they wanted with. Everyone would have been fat, dumb, and happy. Apple has recently launched a new pay music service which is proving to be successful as it doesn’t have many of the moronic restrictions which doomed the music industry’s early attempts at online music distribution, but it’s years late and has a lot of ground to cover, if it makes the cut in the long run at all.
But… who knows.