digital music/video
10/10/2005, 11:15am, EDT
Monday, October 10th
Japanese labels lobby for "iPod tax"
Japanese record companies are lobbying for an iPod tax. The New York Times reports that "the industry has asked the Japanese government to charge a royalty, to be added to the retail price of portable digital music players like Apple's iPod, which has been explosively popular here. Money earned from the fee, likely to be 2 percent to 5 percent of the retail price, would go to recording companies, songwriters and artists as compensation for lost revenue from home copying." A similar MP3 player "tax" was overturned in Canada earlier this year. Some labels in Japan have been unable to come to terms with Apple, forcing some local artists to sign licensing deals directly with Apple to sell their songs on iTunes. In the US, labels are lobbying for a more flexible pricing structure in iTunes, which could be similar to the current two-tiered pricing structure in Japan.
Filed under: industry
Other story tags: digital music/video
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Next we'll have a special tax on ALL hard drives because before you can load music on an iPod you need to get it on your computer's drive (I would wager that there is FAR more illegal music on people's computers than there is on iPods). Follow that with a tax on all computer operating systems in order to reimburse software developers for profits lost to software pirates. Then we'll have a tax on cars in order to compensate the victims of bad drivers.
If you can't beat them and don't want to join them...tax them!!
People don't buy music because of a label. They want the artist's music.
Again, the assumption is that the iPod is used to store stolen music, which isn't always the case. Many have 100% legit music on them.
(The same argument holds against those who propose a flat fee for music that then gets divided up amongst bands - it benefits those selling millions more than those selling thousands).
If such a scheme was proposed here in the UK, I'd be able to make a perfect test case as my 20G iPod was quickly filled with 1/3 of my existing CD collection.