Those dipsticks can SAY all they want. The courts have ruled quite differently on this particular matter.
Their scare tactics are quite transparent. It's sad, but almost funny in a way, to witness the death of an entire industry.
The best thing they can do is realize that music dissemination is rapidly changing; the CUSTOMER wants things a certain way, so they'd do themselves a HUGE favor by tailoring their industry (ie, profit mechanism) to that.
But no, cling to the system designed 60 years ago with archaic technology (by modern standards). History has shown that to ALWAYS be a good business model.