Realizing that suing college kids and little old ladies wasn’t such a great business strategy after all, the Recording Industry Association of America (RIAA) has decided to stop pursuing legal action against people it believes is sharing music online.

In a candid interview with members of the press, RIAA president Cary Sherman offered a surprising mea culpa over the industry group’s five year campaign of legal threats and settlement demands.

“We at the RIAA would like to apologize to all those people we accused of piracy and generally bullied these past five years,” said a glum-faced Sherman (right). “You’ve gotta believe me, I have spent many nights anguishing over this, and I’ve finally come to terms with what we’ve done. It was a big mistake, it backfired, and we’re really sorry if we offended or inconvenienced anybody, particularly people who might have otherwise bought our members’ recordings. We’d like to make it up to you somehow, and we hope that you all can find it in your hearts to forgive us.”

When pressed by reporters as to how the group would “make it up,” Sherman offered an olive branch to victims of the legal campaign.

“Anyone who had to fork over a settlement to us will receive a credit voucher in that amount, personally signed by me, that they can apply toward CDs or music downloads - legit ones, of course, he he,” said the RIAA chief. “Just redeem it at any CD shop or on iTunes. So for example if you paid out a $2000 settlement, you’ll be eligible for a nice-sized stack of free CDs as compensation for all your trouble and expense! It’s the least we can do.”

Since 2003, the RIAA had sought monetary settlements from tens of thousands of online users suspected of sharing music files using peer-to-peer (P2P) networks. With so-called DMCA subpoenas, the music industry group would threaten legal action unless the suspected P2P user agreed to pay a settlement, typically a couple thousand dollars. However, the tactics created a massive consumer backlash against the recording industry group.

“We just want to make things right with our loyal customers and hope they come around soon,” added Sherman, holding back tears. “We want to be your friends again.”