And this is NOT racketeering and extortion? Wow, just wow. I simple amazes me that no one is screaming about this. We have a justice system specifically to prevent this kind of behavior, not to facilitate it.
What if your local state government decided to send a mass mailing to every citizen stating that they were caught speed. In this letter the state provides no information about the incident or even files charges, but clams to have ironclad evidence of the citizen’s guilt. Now, if the guilty party wants to save money and avoid any marks on their record, they simple send a check for half the original value of the fine and the government promises not to file charges.
This is no difference between this hypothetical situation and RIAA current tactics.