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Add record labels to the list of predatory institutions that are looking to pick the pockets of America’s college students. This week Wired.com reported a new initiative to allow file sharing by including a surcharge billed through a user’s Internet Service Provider (ISP), which is currently being pitched to universities across the country.

Leading the charge is a group known as Choruss, headed by Warner Music Group digital music strategist Jim Griffin, the group also has gained support from Sony Records and EMI.

The following summary from Wired.com details the model Choruss is currently shopping to Universities:

…the program’s goal is to allow university students to “access and use music any way they want to” while “generat[ing] fair returns to content owners.”

In return for a university paying fees to Choruss, its students would be able to continue downloading as they have been — bit torrent, Limewire and so on — without fear of legal reprisal. Unlike previous plans that require the use of onerous digital rights management, this one would allow students to download music in the unprotected formats they prefer, using the hardware, software and networks of their choice.

The proposed unlimited music service, as late in coming as it is, could make more sense to both labels and fans than the current system of download-and-sue, and it would allow for edge-of-network licenses for mashups, playlists and so on, with no DRM. As long as the system is priced fairly — and from what we’ve heard, the monthly per-student price would be south of $5 per month — it could provide a blueprint for larger ISP-level music sharing licensing.

The following slide presentation was developed for Warner Music Group to explain the plan:

After careful evaluation of the Choruss plan for legal file sharing, I’ve concluded that this amounts to nothing more than an insurance policy for college students, that is far too vague to be taken seriously. A quick look at Slide 5 identifies the major flaw in the proposal, identifying a possible complication to be “massive leakage from those that are covered to others that are not.”

I’d call that a little more than a possible complication. Essentially, this can’t work unless every ISP in the country gets on board. Otherwise, college students would essentially have the ability to take file sharing right back to the Napster-era, as there would be no way to regulate who receives a file after the college student is able to download it.

Those who are backing this plan are likely aware of this pitfall, but continue to push ahead, as most labels wouldn’t mind receiving a chunk of the tuition paid by students, while Choruss attempts to shop the service nationally. Whether or not the plan actually works is of little concern.

The idea of charging users for file sharing through ISP’s is an idea that has been tossed around for a little while now, but this is the first instance I’m aware of where someone has actually tried to implement it. Clearly, this is not the solution the industry needs to prevent illegal file sharing and is so under-developed it’s almost scary that this is being pitched.

American college students typically live far below the poverty line, while also building a substantial amount of debt while in school. Upon graduation, they’re facing an almost non-existent job market, lack health insurance and are buried in debt from loans and credit cards.

It should not be the responsibility of students to keep record labels afloat while they tinker with different ideas to make them profitable again.