Phillips/Sony pay for copying technology. (Score 1)

Sony, etc. pay a fee to the major record labels for each piece of digital audio copying equipment and each blank dat, minidisc etc. that they make. That's why the RIAA isn't suing them. (This was worked out and put into law to, in theory, compensate the labels for the cost of piracy). The fees are distributed based on percentage of recording sales, i.e. the major labels get nearly all the money.