From the March 30 1997 RIAA website :
( http://web.archive.org/web/199703302...ir/antipir.htm )

Quote Originally Posted by RIAA
ABSOLUTE READINESS FOR VIRTUAL PIRACY

From the perspective of the future, however, the RIAA's most significant success in 1995 may be the settlement obtained in the civil case against Send-A-Song -- a service that sold customers audio greeting cards that consisted of recorded music played to individuals on request, without authorization from the record companies. The settlement is important in that it represents the RIAA's first success involving an alternate means of performing and distributing music.

It will undoubtedly not be the last. As the populations of online communities explode, and the sophistication, speed and capabilities of electronic networks grow exponentially, the instances of unauthorized use, performance and distribution of recorded music through digital electronic networks will certainly increase. What's more, a new generation of personal multi-purpose CD-ROM recorders, capable of bit-for-bit copying of sound recordings, could soon be connected to those computer networks. And the RIAA will be prepared -- as usual, with a whole arsenal of tactics and approaches. But the RIAA has opened a dialogue with the operators of commercial online services to inform them of the ramifications of copyright law. And staffers in the anti-piracy unit are already mastering advanced techniques for monitoring and policing these electronic neighborhoods. In this evolving environment, the success of the RIAA's anti-piracy efforts will find a different measure than the traditional "number of units seized." But members can rest assured that success will come. The RIAA simply won't accept any other result.
So, from what I read here, they knew they would have to sue their customers back in 1997.

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