Except it probably can't - I realize that it can be used as precedent, but even several thousand people all counter-suing the RIAA won't make much of a difference - it's that big.
Perhaps.
But the RIAA is scared of this, by all reports, so perhaps it's not as simple as you make it sound. Particularly as people are abandoning the sinking ship already.
Based on
this transcript which is further supported by
this article:
What are the terms of the settlements? Are violaters paying fines? What are the typical terms of a settlement?
Up until now, the average settlement has been about $3000 -- but we take each case on an individual basis. This is not a revenue-generating exercise. We're trying to send a message that the activity is illegal and can have consequences.
I also found some sites saying up to $4000 so we'll use that.
$1,000,000/$4,000 = 250 settlements to make up for each million lost due to a class action lawsuit.
But that's not counting the cost of attorneys, IT personnel, clerks, offices, bandwidth, and so on that are all required for the RIAA to find and sue those people and produce enough evidence for it to be successful.
So the RIAA is going to be out a lot of money if that class action lawsuit goes through, and there will also be more precedent for people to fight the lawsuit on. At the very least, people won't be as likely to cave if there is one well-publicized lawsuit that succeeds against the RIAA, which will force the RIAA to spend more $$$ to deal with them.
It will also hurt their publicity, obviously.
It may be small but these are people who are trying to hold on to CDs that cost $20.