On Slashdot, they again discussed about the mix tapes debacle by the RIAA, which is a rehash of what previously happened, on a different scale. Let me refresh your ideas about all that.
Previously, one could do anything with anything. For example, The Art of Noise was using the "Ahh" from Ah Freak Out intro stance (Le Freak by Chic) in its songs. Same for Susumu Yokota. A good sample, usable anywhere. Rapping artists were using loops from more or less known songs to rap onto. For example, Rapper's Delight by Sugarhill Gang that uses Good Times (Again by Chic) throughout the 15+ minutes song to rap onto. Another good example is Paul's Boutique by the Beastie Boys, using a plethora of samples (a partial list is available on Wikipedia). Today, due to previous lawsuits, this practice fell. Even if they used a previous art to create a new piece of art, totally different, you cannot do that anymore without contractually having the rights, which means potentially giving away royalties to the artists. A good case of that is The Verve with a small sample of the Rolling Stones in a song, that was legally bound to give away the totality of its royalties (that means 100%) for that particular song to the Stones. Since it is a near one-hit wonder, no wonder we don't hear from them anymore.
Now, it becomes totally ludicrous with the obligation to make sure every single little bit piece of song is totally unheard of, or the rights are secured. Some do it and have a hard time, like Lemon Jelly, with their '64-'95 album, that uses so many different samples it fills out a whole page in tiny prints. I can't believe they managed to track down all the rights to these songs and still are able to do some profits.
This is the background for the mixtape scandal happening right now in the United States. As anyone knows, DJs create mix tapes (or CDs, but historically it's a mix tape). These are made not only to showcase their prowess but also to make a little bit of dough. Usually, DJs buy CDs and vinyls by the boxful. A successful DJ will either have all its material sponsored or promoed by companies, or they will buy at least a few hundred worth of music every single week. That's a lot of money given to the music industry. Now, the latest lawsuits are made because DJs cannot give away what they are doing on CDs. They cannot sell CDs, even in the underground, with their music. Their DJ works cannot be burned on CD.
I see the next step as giving a lawsuit to DJs as they are performing. Usually they will use DJ vinyls that are written "no unauthorized broadcasting or live performance". Just imagine. The DJs go to DJ shops to buy remixes of songs to play them in a club, and these vinyls are written they cannot do live performance on them. Way to go, large music labels.
That said, people are uninformed. I suggest you read an old article on "mixtapes". The comments, even the "Insightful rated-5" ones, are totally inept, they show people do not understand how things work and people are usually disconnected from reality.
Will it go to that extreme? I do believe so. People will eventually react, DJs will simply stop using restricted and RIAA-bound record labels to purchase their CDs and vinyls in a totally unencombred fashion. Labels that are close to the DJs will give their go-ahead to mix tapes and live performance, and the DJ shops will simply stop to sell RIAA-friendly companies because they will not want to be part of this scandal.
That's my prevision for the next 10 years. Now, will it happen? I hope not… But RIAA has proven they are stupid enough to do so.