Interesting article.

I like this quote from the article

In reply to:


Phil Galloway, co-owner of Off the Record, said the proposal is another example of the record industry "shaking down" consumers for all it can get during a time of decline.

"On the first-time purchase, the label and the musician made their profit," noted Galloway, who with his business partner opened the first used-CD stores in San Diego County at the advent of the CD format in the mid-1980s. "You don't see royalties collected on used cars."



I think this quote sums up the situation very well.

Seems to me that the Music labels are trying to have their cake and eat it to.
First up they are selling nearly 1 Billion 'CDs' a year in the US alone.
But this overproduction is causing the second hand sales market to boom, due to the disposable nature of the music they produce for us to buy and as a result their new sales growth declines [or remains stagnant].

So now they are saying, we only think its fair that we should be able to tax CDs that are resold as our stupid marketing of music has created this mess but all music purchasers - whether new or second hand should pay to bail us out.

If true, then this is truly a dramatic turn to the dark side.

The music industry is keen to put its hands into everyone elses pockets but their own on this one.

How long before the music companies are telling that when we buy a CD we actually onlybuy our music for X plays (or X minutes) [for the same or more than we pay now], then when that time has expired our right to own/play/sell the music expires.
I know the music industry would like that to happen right now.

DivX didn't die, it just moved into the Headquarters of the music companies along with the music executives - RIAA lawsuit here we come ....

I fail to see just how this 'turnover tax' will actually help the music industry in either the short, medium or long terms.

The other thing I'd be concerned about is that such a tax would have to have legal support in Congress to become a reality - does anyone really want politicians controlling these sort of things?

I can't think of any product where second hand sales of goods have a non-Government mandated levy on them.