There've been two significant news stories regarding the Inducing Infringment of Copyrights Act (IICA, née INDUCE Act) in the past couple of days.

WIRED interviews the principles of growing New York-based P2P company eDonkey (P2P Company Not Going Anywhere). Although the INDUCE Act would certainly affect his business, Sam Yagan, president of the company, believes that legislation won't stop P2P:

"I don't know of a single precedent in which legislation or litigation stopped technological development," said Yagan. "Let's say, though, that the labels shut down the major peer-to-peer networks. Would P2P go away? Not at all. The networks would continue to operate even if the companies themselves go out of business. It's like if you put Xerox out of business, its copy machines will still work.

"Then what will happen is networks will spring up in jurisdictions that don't recognize U.S. laws or judgments."

The industry's logic is based on it being a hit machine, then subsidizing other acts on this using these proceeds. But a critic might point out that if the fortune generated by hits is down so significantly - and sales are holding up - then what Bainwol claims to be his industry's basic business model is flawed. Either that, or else he doesn't know how the business he represents really works, which is unlikely. Or that he knows and isn't telling the truth.

Additional RIAA Letter Coverage:
The actual RIAA letter: Letter to Senators from Mitch Bainwol, Re: INDUCE Act
The Abridged RIAA Letter on the INDUCE Act (IICA)
The Excessively Annotated RIAA Letter on the INDUCE Act (IICA)

Want to know more about the INDUCE Act?
Please see LawMeme's well-organized index to everything I've written on the topic: The LawMeme Reader's Guide to Ernie Miller's Guide to the INDUCE Act.