Shortly after losing a very high profile appeal on a music file-sharing case that they had already won, and after filing more than 35,000 lawsuits against music lovers for file sharing online downloads, the Recording Industry through the RIAA has announced that they will be abandoning their anonymous lawsuits against single mothers and students in favor of putting pressure on ISPs to limit illegal downloads.

It’s obvious that after 5 years of bad press for shaking down college students for their tuition money and suing children and people who don’t even own computers, that the RIAA has finally realized that just maybe they have contributed to falling album sales with their assault on their consumer base. Instead, the RIAA will work hand in hand with ISPs indentify and investigate illegal downloads and then notify users that their service will either be downgraded or cancelled. The RIAA has even gone so far as to say they won’t require ISPs to reveal illegal downloader’s identities, only that action be verified as being taken against them. But they don’t close the door completely, leaving the possibility that they may go after individuals who are heavy uploaders or repeat offenders.

So, did the RIAA see the handwriting on the wall and realize they were biting the hand that feeds them? Or are they realizing that music downloads are their bread and butter now?

Hat Tip – Engadget