Biz Briefs: Fighting For the Little Guy

Our penchant for downloading singles has turned the music industry on its head. Steve Gottlieb, CEO of TVT Records, the most successful indie label, recently created the American Association of Independent Music to protect the interests of less commercial artists. He talked with TIME's Kristina Dell about piracy and standing up for the little guy.

TIME: Grokster reportedly is in talks to be acquired by Mashboxx to form a legal peer-to-peer network. Do you think actions like this will solve illegal downloading?

GOTTLIEB: It's progress to the extent that people realize there's no business in pirating and they're forced to develop legitimate business models. But file sharing is a red herring. It's file sharing along with CD burning that's in need of a solution.

TIME: Why are you teaming up with other independent labels?

GOTTLIEB: I was motivated to combat the unfairness of online music services towards indies. With the consolidation of the major labels, the independent sector is bigger than ever before, and we need to channel this power.

TIME: Were you surprised when Sony BMG settled for $10 million over paying off radio programmers?

GOTTLIEB: No. The major labels used to engage in lavish spending to buy chart success. Now they have to learn to conduct themselves quite a bit differently.

TIME: Do you prefer iPods or Windows Music players?

GOTTLIEB: I regard both as freeloaders, but as a consumer I love them.

TIME: Will iTunes kill album sales?

GOTTLIEB: Once [the desire] to have unlimited access to songs individually runs its course, the album will survive and artists will still have a big say.

TIME: How does a white guy from Harvard make it in hip-hop?

GOTTLIEB: Not by changing my dialect. And I don't wear baggy pants. Street cred is about loyalty and results. The key to success is reinventing yourself and [being] open to new possibilities.