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First problem is that you'd have to put up quite a bit of capital as loss reserves. Then you have to worry about people who buy your insurance taking on extra r

First problem is that you'd have to put up quite a bit of capital as loss reserves. Then you have to worry about people who buy your insurance taking on extra risks now that they're insured against the costs. Finally, the RIAA/MPAA would do whatever it took to get your client list, then sue all of them, bankrupting you.

mseebach 17y ago
The problems aren't problems per se, the insurance business has those pretty well figured out (you hedge the risk on a reinsurance market like Lloyds of London). Only question is if you can get some rates/terms that clients would accept. If *AA got such a list and started suing using is as a base, well, at least you'd have a well-funded entity fighting on you side.