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If you can't beat 'em, join 'em. Two music-industry giants---Bertelsmann">http://www.bmg.com/">Bertelsmann Music Group and Seagram Ltd.'s Universal">http://www.unistudios.com/">Universal Music---have agreed to pool their resources in a joint Internet venture. GetMusichttp://www.getmusic.com/">GetMusic;, as the website will be known, will sell compact discs in direct competition against traditional retailers, other Internet music services, and mail-order music clubs.

For the entertainment industry, every perceived threat produces an overblown reaction. After a protracted and very public struggle, file-sharing upstart Napster was cowed into submission; MP3.com's "personal music library" was rendered ineffective through a combination of legal pressure and co-option; other Internet music experiments are threatened with lawsuits too costly to contest.

For the music industry, copyright and royalty litigation is like an endless war fought on many fronts. During early November, as four of the industry's "Big Five" continued their pursuit of the file-sharing service Napster, a parallel trial in US Federal Court in New York against music archiving-and-accessing site MP3.comhttp://www.mp3.com/">MP3.com; by Universal">http://www.umusic.com/">Universal Music Group entered its penalty phase, that segment of the proceeding in which aggrieved plaintiffs seek to extract money from guilty defendants. Other plaintiffs in the trial—Sony Music Entertainment, BMG, Warner Music, and EMI—have all settled with the San Diego-based Internet service for an average of $20 million each.

In January 2008, Electronic Frontier Foundation's (EFF) Senior Intellectual Property attorney, Fred von Lohmann filed an amicus">http://www.eff.org/deeplinks/2008/01/eff-files-brief-atlantic-v-howell-… brief in Atlantic v. Howell, a case that hinged on the Recording Industry of America Association's (RIAA) contention that offering files on a P2P sharing network was in and of itself evidence of copyright violations, whether or not it could prove the files were ever downloaded by others.

The music industry was much in the news in late May, with file-sharing lawsuits launched, Web royalties deferred, the payola system attacked, and an artists-and-record labels coalition questioning the homogenization of radio.

In a never-ending quest to control what it believes is an epidemic of piracy, the music industry in recent years has gone after Internet file-sharing startups, fly-by-night CD duplicators, foreign pirates operating on an industrial scale, college kids with too much time on their hands, and street-corner vendors hawking badly-duped cassettes. At times the anti-piracy campaign has reached the fervor of a witch hunt, with blame laid on the innocent as well as the guilty.

We've heard the sad tales from the record labels and distributors about their ever-weakening music sales, but there are other players in the market who are also feeling the pinch: retailers.