The recording industry trade association (RIAA), according to this blog run by two lawyers, is suing a woman for illegal music downloads. There is just one small problem; she does not own a computer and has never had one in her house, period.
It's hard to figure out what is going on with these execs and why then continue to do such dumb stuff. You can't even make up this kind of silliness. It's a classic case of paranoia induced by a fear of change--you start seeing enemies everywhere, but the real problem is your own unwillingness to adjust to changing market conditions.
Owning a successful business (like a phone company or a record company) does not create an obligation on the part of government to choke off new distribution systems or to pass laws forbidding other entities to compete with you. It's ironic that companies that have benefitted so much from the free market system now want to prevent anyone else from using the same market mechanisms to become successful.