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Good first step, says RIAA CEO Cary Sherman, but “real test will come as these practices are implemented, and whether they have a demonstrable impact”

WASHINGTON – The White House today announced that several advertising networks had “committed to a set of best practices to address online infringements by reducing the flow of ad revenue to operators of sites engaged in significant piracy and counterfeiting.”  Below is the reaction of Cary Sherman, RIAA Chairman and CEO:

“We appreciate the ongoing efforts of the Internet ad network community to reduce the likelihood that online ads continue to enrich enterprises trying to profit from piracy.  The music community has worked hard to develop a robust legitimate online and mobile marketplace for fans, but this extraordinary range of licensed services is undermined by illicit sites – many of which are funded via advertising placed by ad networks and exchanges.

“These best practices are another step in our ongoing collaborative efforts to serve consumers and prevent illegal activity.  They show a growing recognition that all intermediaries – from advertisers and payment processors to ISPs, search engines, mobile ad networks, registrars and others – have a meaningful role to play in building a better ecosystem for legitimate digital commerce.  The real test will come as these practices are implemented, and whether they have a demonstrable impact.  We will be monitoring closely.   The good news is that today there are independent businesses – such as WhiteBullet and Veri-Site – that provide intellectual property risk assessments of websites, and can help responsible companies independently assess whether they want to do business with rogue sites.  We are committed to working with the ad networks to achieve effective results.”