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Retailers accused of selling pirated compact discs are feeling legal heat from the Recording Industry Association of America (RIAA). In May, the organization launched copyright infringement suits against 18 retail businesses in Texas, Florida, and New York—primarily convenience stores, gas stations, grocery stores, and small independent music stores.

The 18 defendants were among dozens of such businesses that were caught in RIAA "sting" operations conducted last year. Most chose to settle out of court. RIAA president Cary Sherman acknowledged that "these are tough economic times for many small businesses," but insisted that selling pirated music "cannot be the answer." Sherman said the RIAA had made "every effort" to resolve claims against the defendants, and their lack of unresponsiveness left "no choice but to file these lawsuits."

The RIAA has also begun a search to replace outgoing CEO Hilary Rosen, who announced her retirement from the organization earlier this year. In mid-June, executives from major labels met in the New York office of headhunting firm Korn/Ferry International to begin the process of culling the candidates.

One suggested replacement is congresswoman Mary Bono (R-CA), the wife of late pop singer and congressman Sonny Bono. Ms. Bono has denied that she is in the running for the position. Others said to be under consideration are New York representative Susan Molinari and departing Pentagon spokeswoman Victoria Clarke, who recently resigned as assistant secretary of defense for public affairs. Representative Billy Tauzin (R-LA), a fierce supporter of the entertainment industry, has also been suggested. Like Bono, Tauzin has dismissed rumors of his candidacy. Music industry scuttlebutt has it that whoever is chosen will be someone with close ties to the Republican Party.

After 17 years with the RIAA, Rosen announced her resignation in April, saying she "wanted to spend more time with [her] family." On June 19, she announced that she would join CNBC beginning Friday, August 1. Rosen will appear once a week on Squawk Box (M–F, 7–10am ET); Open Exchange with Tyler Mathisen (M–F, 2–3pm ET) and Capital Report with Alan Murray and Gloria Borger (T–F, 9–10pm ET) "to discuss political and regulatory issues as they portend to the media, entertainment, and the information industries," according to a press release posted on the RIAA site.

Another music industry veteran is calling it quits. In mid-July, Pamela Horovitz will leave her position as president of the National Association of Recording Merchandisers (NARM). Horovitz worked her way up through the ranks of the music retailing industry, beginning as a clerk in a record store in 1968. She joined the sales and marketing department of Warner/Elektra/Atlantic in 1973, and joined NARM as director of special projects in 1985. She has been the group's president for the last 14 years.

"It has been a privilege to do work that I loved with people who so often became friends," Horovitz said of her tenure at NARM. She will assume the presidency of the Professional Association of Innkeepers International (PAII), the trade group of the bed-and-breakfast industry.

Horovitz will likely find her new position much less stressful than recent years in the music business. She could not have picked a better time to depart, given the ongoing and likely permanent problems that the recorded music business is facing.

On June 16, electronics retail giant Best Buy unloaded its 1100-store Musicland unit to Sun Capital Partners of Boca Raton, Florida. Best Buy had been seeking a buyer for the money-losing chain of music stores since March. Terms of the deal have Sun Capital assuming Musicland's liabilities and assets without paying any cash to Best Buy, whose stock rose 4.4% to $43.60/share on the New York Stock Exchange when the deal was announced. Some analysts described the deal as a "giveaway" so that the otherwise profitable company could stop its financial hemorrhage. Best Buy is the largest electronics retailer in North America.