In my opinion, the woman is just playing dumb.
Besides, I've been reading up on the RIAA a little...Wikipedia says that music sales went UP when Napster was active and music sales went DOWN when the RIAA started litigating.
I also read that the RIAA is suing some Russian website for something like 1.5 TRILLION dollars! They're claiming something in the are of $150,000 of damages per song! Too bad Russia is not accountable to the RIAA...a little out of their jurisdiction, I think.
People are settling out of court because they would rather pay $3,000 than risk a full judgment, even though most cases have been dismissed. The RIAA relies on scare tactics.
Would I be scared if someone was suing me for $70,000? You bet!