A company that ran a dedicated server for its employees to store and access thousands of MP3 music files over its network has agreed to pay the sum of $1 million to the Recording Industry Association of America (RIAA) instead of fighting a copyright infringement case in court.

Integrated Information Systems (IIS) is an Arizona-based technology and business consultancy employing around 350 professionals. Ironically, one of its products included software that provided secure distribution of copyrighted digital material.

"This sends a clear message that there are consequences if companies allow their resources to further copyright infringement," said Matt Oppenheim of the RIAA, the record industry’s trade association.

“The RIAA is grateful for the assistance it receives from individuals who help us fight piracy. With the help of a tip that came to us by email, we were able to put a stop to this instance of copyright infringement,” said Frank Creighton, RIAA’s Executive Vice President, Director of Anti-Piracy. “We hope this discourages other companies from similar activity and serves to remind the public of their important role in helping us to combat music piracy.”

In August 2001, the RIAA sent IIS a letter asking that they immediately cease and desist from this practice and notified them that they could face legal and monetary penalties. Shortly thereafter, IIS entered into negotiations with the RIAA and agreed to settle the case out of court for $1 million.

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