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RIAA is likely to face the toughest challenge of its lifetime, as the major labels have decided to reduce costs and dependence on file-sharing lawsuits. The move would mean that RIAA would have less money to go against music pirates. According to CNET:

Friday’s startling news that the trade group representing the four largest music labels has declared an end to a long-running legal campaign against file sharing will mean a reduced role for the RIAA, which is coming up on its yearly budget review, according to a source close to the group.

But in a climate where digital music sales are growing, though not fast enough to make up for the losses from shrinking CD sales, the trade organization was already headed toward likely cutbacks. One source said that one of the top four labels has already begun making noise about lowering its contribution to the organization.

This is definitely a big win for companies like BitTorrent and other such file sharing services. Who would have imagined that bad economic times would be such a boon for piracy.