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Have You Paid Your Bertelsmann Tax Today?

Mwongozi writes "Germany is planning to slap new taxes on computer, telecommunications and Internet products to ensure that authors are properly rewarded for the use of their work, a newspaper said Wednesday. The Berliner Zeitung said proposals had been drafted requiring manufacturers of goods from computers to printers, modems, compact disc "burners" and other devices to pay royalty fees that would then be forwarded to music and film companies." My guess is that Bertelsmann, the world's third largest media company, has a little something to do with this. In the U.S., any devices intended for digital audio are already taxed similarly to the above proposal but general-purpose computing devices are not. (Though the RIAA sought to include them too.) Has anyone considered what an extraordinary situation it is where government tax collectors are collecting taxes which are funneled straight to corporations?

313 comments

  1. Re:US Gov't Doesn't Collect the "Tax" by ortholattice · · Score: 1

    According to the RIAA, paragraph 1008 does not apply to sound recordings stored on a computer. "The difference between copying to cassette (for instance) as opposed to a computer hard drive is that audio cassette players (as well as Minidisc and DAT players) are devices covered by the AHRA and a computer is not. The specific reasons are technical but boil down to this: The AHRA covers devices that are designed or marketed for the primary purpose of making digital musical recordings. Multipurpose devices, such as a general computer or a CD-R drive, are not covered by the AHRA."

  2. The problem with a flat tax. by pschmied · · Score: 1

    I cannot imagine a tax structure (other than our own) more pandering to big business and the ultra-rich than a flat tax.

    I think that a progressive tax is needed.

    Take Bill Gates for example, he siphons the labor of thousands of students educated in state-run colleges and institutions. These students pay tuition, but a vast number of them get subsidies from the govt to attend school.

    Since the average American is not as rich as Bill Gates, a flat tax leaves a disproportionate responcibility on the bottom 99.9%. Yet, Bill Gates undeniably reaps a huge personal benefit from public education. In fact he reaps a much larger benefit that I do.

    I hope we can all agree that public Universities are a good thing (an educated population is an effective population). So Bill Gates recieves (other that the warm fuzzies I get about higher education) a larger chunk of that pie than I do, yet under a flat tax, we pay the same.

    Fees charged for services rendered. That should be pretty straitforward right?

    I know the tired arguements about tax loopholes, increased cost of operation of the IRS, and the "man, doesn't it suck to do these complex taxes" arguement. However, the numbers do not add up. It does not save enough money, to offset the need for progressivity, and the rich get richer and the poor get poorer. You did know that the United States have the largest divide between the rich and poor of any industrialized nation, right?

    I agree that these are all downsides to the current tax scheme (which I obviously disagree with vehemently).

    The tax system needs to be vastly simplified. I don't see that a sliding tax scale has to be much more complicated than a flat tax, and it doesn't have the truely nasty effects that a flat tax would have.

    Most people don't understand that a flat tax does not distribute the tax burden equally. With a flat tax, the less you make, the higher percentage that you pay. That doesn't seem to foster much equality or even intellegence.

    You talked unfavorably about socialism, but with class warfare tactics like the flat tax idea, we're lucky that our proletariat hasn't already seized the factors of production from their bourgeoisie oppressors.

    As for me, I'm taking the middle ground and voting for Nader. He really has some good ideas about making government more understandable and accessable. I suspect that most libertarians want the same basic things that Ralph Nader and the Greens support, but they've got vastly different ideas about getting it done.

    For the record, Nader and the Greens do not simply support big government. In many cases they support downsizing. Check it out http://www.votenader.org

    -Peter

    1. Re:The problem with a flat tax. by snol · · Score: 1

      Yes, a flat tax is generally taken to mean a system wherein everyone pays the same percentage of their income. This still winds up being IMHO a bad system because, say, 20% for a poor person is much more of a burden than 20% for a rich person. A constant rebate would improve things somewhat but really, the extremely poor would do well to get a bit more than $0-2000 back, and the extremely rich could certainly afford to pay more than 20%. And I hope you don't set the poverty level at $10,000! I'm no economist but it would seem feasible to me to implement a tax/refund/minimum-wage/welfare/whatever system wherein noone who works full time is below the poverty level, AND the poverty level really is enough to reasonably live on. The United States is surely a wealthy enough country to accomplish this if we decide to.

    2. Re:The problem with a flat tax. by mattrinon · · Score: 1

      I must be missing something, because that's downright absurd. A percentage is a percentage. You say that it's somehow unfair that the rich will have significantly more money after taxes than the poor, and yet this is the *definition* of rich and poor. Is it somehow unfair that the poor are in fact poor and that the reach hold rights to that which they have earned?

    3. Re:The problem with a flat tax. by adamsc · · Score: 2
      It's not absurd when you consider that the 50% tax I pay means I live comfortably but am annoyed at the government's spending policies. 50% tax for someone on minimum wage is the difference between living indoors or on the street.

      The answer is for a certain minimum level to be tax exempt to provide for basic accomodations and food. It would make sense to have something like a $20K base and x% of any income above that.

    4. Re:The problem with a flat tax. by Steve+B · · Score: 2
      The answer is for a certain minimum level to be tax exempt to provide for basic accomodations and food. It would make sense to have something like a $20K base and x% of any income above that.

      And, in fact, most proposals for a "flat" tax do precisely that. They include two levels of graduation (0% up to a certain income, x% above that income level).

      By insuring that the only way to raise taxes overall are to increase the percentage x or to lower the income threshold, this insures that tax increases affect the bulk of voters (the middle class). This keeps the characteristic disease of democracies (bread-and-circus politics) in remission.
      /.

      --
      /. If the government wants us to respect the law, it should set a better example.
  3. Re:Now I know what Nader meant: by Julian+Morrison · · Score: 1

    Yes, you know what he meant, beacuse he can't concieve of any third state between "you steal from me" and "I steal from you" - the idea of "we neither of us steal, we trade" just hasn't occurred to him.

    Besides, technically, Socialism for Corporations is called "mercantilism".

  4. Nothing new by marcop · · Score: 1

    There was an episode of the simpsons where Homer said that he only pays the "Homer Tax". You see, the MPAA was "preparing" our minds with messages in our favorite programs to prepare us for content taxes.

  5. Just use for CD-R by DarkMan · · Score: 2

    Right...

    So, for people in my situation, (doing scientific research) who _need_ CD-R's, we're expected to give most of our grant over to computer games companies?

    For background, I'm working on an electrical ceramic. I generate lots of data, as most of it can only be sensible captured in picture form (1Meg per picture), and processed down later. In two days on the microscope, I managed to fill a blank Zip disk (100 Meg) [0].

    I get two days a week for data collection, so this means that over the past six weeks, I've got 1 CD full of raw data. Were I to continue this work for a full PhD, I make that 24 CD's full. Or 820 pounds (just under 1/3 of the research grant) to him. Because I might be priateing games.

    To him, I say, get a life.

    [0] Ok, particulry productive day, normally it's about 60 Meg.

  6. Ha! They already do this in Canada by cdgod · · Score: 1



    There is a tax on blank tapes and blank audio CDRs so that the music industry can make up all the extra money they are losing to piracy. So who pays? The honest people do. They figure since you are buying a blank tape / CDR, you are going to use it for piracy.

    Fine. Lock me up then. I am obviously guilty until proven innocent. We should all be locked up for using the internet. If we are using the internet that means we are either crackers / hackers / pirates / copy-infringers / pediphiles / perverts / rapist / murdering thugs.

    I am sick of the mentality. Since 1% are doing it might as well punish the other 99%

    God, it makes me sick. We are losing more and more of our liberties everyday and 99% of the population is oblivious to that fact.

    --
    This .Sig is left intentionally humourless.
  7. Now I know what Nader meant: by drivers · · Score: 2

    ... when he said Corporatism is Socialism for Corporations.

  8. Re:Absurd... by Wah · · Score: 2
    read the definitions

    under

    USCode Title 17 Chapter 10 - digital audio recording devices and media Subchapter A - Defintions (too lazy to learn how to annotate correctly)

    (4)

    (a) A ''digital audio recording medium'' is any material
    object in a form commonly distributed for use by individuals,
    that is primarily marketed or most commonly used by consumers for
    the purpose of making digital audio copied recordings by use of a
    digital audio recording device.
    (b) Such term does not include any material object -
    (i) that embodies a sound recording at the time it is first
    distributed by the importer or manufacturer; or
    (ii) that is primarily marketed and most commonly used by
    consumers either for the purpose of making copies of motion
    pictures or other audiovisual works or for the purpose of
    making copies of nonmusical literary works, including computer
    programs
    or data bases.




    Which is cutting the fine print pretty thin. What makes this curious is that computers are now marketed as home audio devices for "downloading digital music", just watch your nearest Dell commercial. See how easy lobbying is, you only need to change a few words to get what you want.

    --
    --
    +&x
  9. Yes you are a troll. by twitter · · Score: 2
    I could live without pop music all together. This whole big Stuper Star music crap can follow Lars to hell for all I care. The airways might then be filled with more interesting programing and my radio would be useful for more than hearing the same old top forty again and again and again. Get the picture? It's a racket.

    In the mean time, I don't feel like paying to support the thing I hate because I might want to make a CD of my grandfather's pictures.

    Despite this, I can also share the indignation of those who are revolted at the prospect of paying for their fair use of the music they bothered to buy. So yes, all around you are a TROLL

    --

    Friends don't help friends install M$ junk.

  10. Re:Unjust, but hardly odd... by fmoody · · Score: 1

    Machiavelli didn't warn *us*, silly boy...

    He taught them. *grin* You forget your place.

  11. Re:Napster is STILL illegal - but it gets worse... by Kagato · · Score: 3

    You aren't paying anything on CD-R's. You are paying it if you were to buy a Music CD-R. If you go to Best Buy or or Circuit City you'll find they have "Music CD-Rs". These are usually 2-3 times as much as a normal data grade CD-R. They have some pre-pressed data in them that indicated that they are Music CD-Rs. Although your computer CDR burner doesn't care which one you use a stand alone CD-Recorder (such as the ones sold buy Phillips, or Pioneer) will only work with the "Music CDR's".

  12. Re:Absurd... by Chalst · · Score: 1

    Well, to my knowledge Germany doesn't fall under the US code, so what rights that offers is irrelevant to the `Bertelsmann Tax'.

  13. Re:Taxes.. by cyber-vandal · · Score: 1

    Before Chancellor Kohl very kindly went and screwed up the economy of West Germany by 'reunifying' it with East Germany, American corps needed all the help they could get. The only reason the US is doing so well at the moment is that the only 2 countries big enough and technologically advanced enough to compete effectively, West Germany and Japan, made a hash of their economies at the beginning of the 90s. See how well the US does when they come out of their present recessions.

  14. Re:Taxes.. by davidmb · · Score: 1

    What a load of rubbish. Probably true 30-40 years ago though, but nowadays almost everyone goes through some sort of further education. The universities are heaving with people too.
    Besides which, haven't most people developed their writing skills before they reach the age of 16?

  15. And I Thought I Was Making It Up... by ewhac · · Score: 3

    A couple of weeks ago, I wrote a bogus news story about taxing blank digital media. It was born out of my blinding frustration that, in what should be a conspicuous, informed public debate, all the wrong people are being listened to.

    I had no idea I was predicting the future.

    Schwab

    1. Re:And I Thought I Was Making It Up... by Hanno · · Score: 2

      They are doing this since decades over here and the story above is about how they want to extend this from copiers, tape recorders and fax machines to computers and mp3.

      ------------------

      --

      ------------------
      You may like my a cappella music
    2. Re:And I Thought I Was Making It Up... by Firedog · · Score: 1
      Brilliant. Very well done. I would have been laughing out loud if it weren't so scary. You had better hope the RIAA doesn't find that one. It would be music to their ears (no pun intended).

      I had thought about doing something like this myself for another issue. The issue in question is a root problem that I haven't seen addressed explicitly as such. The DeCSS controversy is an instance of it. Another instance is Orrin Hatch's proposed legislation (don't know what the current status of this bill is) that would make it a felony to distribute information about how to grow marijuana, among other things.

      Ultimately, it comes down to a First Amendment issue. Do First Amendment instructions apply to instructions for performing a potentially (but not necessarily) illegal act?

      The DeCSS source code is a set of instructions. That's all. They can be executed by a computer, or by a human being with (lots of) spare time. But ultimately, it's an algorithm for performing an action, just like making crystal meth or growing a pot plant.

      I was going to write a fake press release, saying that the Supreme Court had ruled that publishing a set of instructions that could lead to an illegal act was not protected speech under the First Amendment. Haven't found the time yet.

      - Firedog

  16. Re:Unjust, but hardly odd... by Xerxes · · Score: 1
    C'mon, why do you think Americans pay per gallon of gasoline what Europeans pay per liter? Farm subsidies? Research grants? There are already billions of tax dollars going directly or indirectly into U.S. corporations

    To correct the poster: We Americans pay dramatically less per unit of gasoline because the government taxes it at much lower rate than the various European governments do. Sure, maybe half the US price for retail gas is taxes -- but that figure is more like 80% in Europe.

    I don't dispute the poster's contention that, like in most countries, billions of tax dollars are funneled to U.S. corps, directly or indirectly. But the price of gas has nothing to do with this assertion. The differential in the price of gas has to do with government decisions abouttax policy, not redistribution policy.

  17. Re:Does this make it legal... by MartinG · · Score: 2

    No it wouldn't. If I didn't like that a hotel charged me because others had stolen towels in the past, I could choose not to stay in that hotel, or If I felt strongly enough, I could even start my own hotel where people had to bring their own towels. or, I could develop some way to make cheaper towels so it didn't matter. Hopefully you get my point: The consumer has choice, whatever I do or whatever the hotels independently decide to do.

    On the other hand, if a government charges me for copying music etc. that I haven't copied, I can hardly choose another government, can I? and I can't even set up an alternative company who doesn't mind their music being copied because the public would still have to pay the tax on the blank media.

    The point here: This kind of tax reduces choise for the consumer. It leaves little room to manoeuvre for new companies with new ideas. It is an ill-concieved quick fix solution to a more than complicated problem.

    --
    -- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz .@adgimnoprstu
  18. Positive feedback by Shotgun · · Score: 2

    As all geeks know, positive feedback systems are inherently(sp?) unstable. Increased output pushes up the input, which increases the output until the system overloads.

    The way collected funds are distributed could produce a positive feedback system here could it not? Taxes are collected from all forms of recordable media, but who are they distributed to? If the funds are proportioned according to market share, that means that the largest corps get extra input which will encourage more output which will increase market share....

    How much goes to small bands? Can I strum a guitar, call myself a musician, and then lay claim to my share of the taxes? How do you qualify to be a distributor? If I record my guitar strum, put it on a CDR while releasing it as an MP3, do I then qualify as a distributor with the right to lay claim to my fair share of the bounty?

    If you divide the booty up by market share, would that be a share of units sold or value of units sold? If I gave away crap in a cereal box, does that increase my market share?

    It never ceases to amaze me that legislatures happily pass totally unenforceable laws that create more problems than they solve. Some things just cannot be fixed by edicts from on high.

    --
    Aah, change is good. -- Rafiki
    Yeah, but it ain't easy. -- Simba
  19. Fucking /. Hypocrites by omission9 · · Score: 1

    Listen up , you cannot simultaneously support the actions of RMS and his FSF and critisize governmental intervention in support of IP. They are both cut from the same cloth. Both are, at the heart, socialist interventions. RMS and his uninformed teenage fanclub favor a model of government support, ie. dole, for open source software development. This article is simply about a model of government support, ie. dole, for the industry.

  20. Geeks should study more history... by pschmied · · Score: 4
    and spend less time being seduced by the libertarians.

    Look at the historical precident in this country for laissez-faire capitalism. We gave rise to the Captains of Industry, Aka the "Robber Barons". Do we really want to repeat those dark days when deregulation was big?

    Given a choice between being abused a large, inefficient government that I have the hope of participating in, versus being abused by the efficiency of corporation where votes are bought by dollars, I'll take government any day.

    Deregulating an industry does not limit govt payouts, nor does it reconcile the fact that the average American living at the poverty line pays a higher percentage in taxes than your average corporation (average corporations pay between 2%-6%. How much do you pay?).

    The corporate welfare structure in the United States is primarily the result of a mush-headed reverse-progressive (regressive?) tax scale that favors large corporation over the small businesses that are the real support for communities.


    -Peter

    1. Re:Geeks should study more history... by phutureboy · · Score: 1

      I agree with you on one thing - that small businesses are the real support for communities.

      Unfortunately its increasingly difficult to make a go of it with a small business, because the complex regulatory environment often present a difficult barrier to marketplace entry, and because, as you said, many government policies favor large corporations over small businesses. I know a bit about this firsthand, being a small business owner and all that.

      As far as the tax scale, why not eliminate favoritism and have a flat tax, like Hong Kong does?

      --

    2. Re:Geeks should study more history... by qazxsw · · Score: 1

      We did *not* have laissez-faire capitalism a hundred years ago! We've never had it in the US. Back then either Unions/strikes were illegal explicitly or implicitly. When strikes occured, the National Guard or Army was sent to stop them. Workers did *not* have an equal footing with employers.

  21. Why not tax kitchen knives? by Jens · · Score: 2
    I mean, honestly. Knives can be used for crime. So starting tomorrow, all knives sold in Germany must be taxed, and the taxes will go straight to the National Association of Kitchen-Knife Crime Victims. Er, no. Of course the money will go to the National Association of Kitchen-Knife Producers, because they have all the trouble and extra cost with people sueing them and so on. Er.

    Seriously: Europe has embraced Open Source, Germany has dumped Windows 2000 (here and here) in some government departments in favor of Linux & Staroffice (yes, on the Desktop!) and there have already been so many rumours about taxing the Internet, taxing Computers, taxing raw CDR media, and so on.

    NOTHING of this all will happen. That's because all the "big evil players" will and can not agree on one common path. The minute that most ISPs ban Napster, there will be ISPs advertising "No banning" and charging extra, and gaining customers. The minute somebody imposes a tax on CDR media, there will be cheap imports from South India (or wherever) and nobody will buy the taxed versions any more. (Is anyone in Germany actually buying GEMA-approved CD-Audio media right now?)

    Look at CNN (owned by Time Warner, btw.). Did they keep their big mouth shut when Napster was there? NO! They shouted it out for all the world to see: "There's a way to get illegal MP3z on the internet!" Great thing for the mass media: everybody was listening...

    Now how much less people would have known about Napster, if CNN had worked together with Time Warner and Sony and all the others to try to SILENTLY counter Napster?

    Their diversity is our strength ... and as long as they try to fight everything they don't (cannot) control, I'm not their customer, I'm their enemy. Period.

  22. Taxes.. by d.valued · · Score: 1

    are evil!

    Too bad the governments of the world love them so much.
    "And they said onto the Lord.. How the hell did you do THAT?!"

    --
    I used to be someone else. Now I'm someone better.
    Real life is underrated.
    1. Re:Taxes.. by -brazil- · · Score: 1

      Bull. Taxes are necessary to have a government at all, and to enable it to actually keep any amount of public services running. The devil's in the details, of course.

      --

      The illegal we do immediately. The unconstitutional takes a little longer.
      --Henry Kissinger

    2. Re:Taxes.. by TheFrood · · Score: 1
      New Hampshire has neither income nor sales taxes. Property taxes, however, are through the roof.

      TheFrood

      --
      If you say "I'll probably get modded down for this..." then I will mod you down.
    3. Re:Taxes.. by SquidBoy · · Score: 1

      I had a writing teacher once who was actually from England and she said that on average writing skills are better in America than in England because so many people leave school at something like 16 or so.

      What the hell does this mean? Who leaves school at 16? Do people in the other country stay longer or shorter? Get an ambiguity filter.

      On the other hand, writing skills in the UK are atrocious. But that's generally blamed on the fact that kids from 5-11 aren't taught grammar, reading, etc, they're just supposed to pick them up while they're doing fun projects with papier mache, or watching videos.

      --
      If you're a jock, inflict some pain / If you're a nerd then use your brain - DAPHNE AND CELESTE
    4. Re:Taxes.. by d.valued · · Score: 1

      Well, the game isn't new.

      According to the EU, the Echelon system has been used to give American corporations the edge on EU competitors.

      I mean, have you seen the kinds of money the corps give to political campaigns?

      And the grateful winner then thanks his 'constituents' by giving the megacorp a government sanction to screw over the public.

      Look at the DMCA!

      I'm writing everything with a pulse on the floor of the House and Senate to see how they voted and why they voted that way. (Let's see if at least Colifornia's crew is honest and says that they did it for the money.)


      "And they said onto the Lord.. How the hell did you do THAT?!"

      --
      I used to be someone else. Now I'm someone better.
      Real life is underrated.
    5. Re:Taxes.. by d.valued · · Score: 1

      You don't mind if I ask you a simple question from a cimple mind...

      1. I have an interest in packet radio, and that means an FCC license. How do I get that as a 'uSA' citizen?

      2. I like to travel extranationally, and I don't think my home state issues passports. What do I do about that?

      An answer would be appreciated.
      "And they said onto the Lord.. How the hell did you do THAT?!"

      --
      I used to be someone else. Now I'm someone better.
      Real life is underrated.
    6. Re:Taxes.. by sips · · Score: 1

      I'm writing everything with a pulse on the floor of the House and Senate to see how they voted and why they voted that way. (Let's see if at least Colifornia's crew is
      honest and says that they did it for the money.)



      Personally I think California politicians are the most crooked of the entire lot. That won't happen any time soon.
      --
      Respond to s
    7. Re:Taxes.. by UnknownSoldier · · Score: 1

      > Since the 16th Amendment allows federal income taxes, you gotta pay

      ONLY if you are a U.S. citizen

      Read this:

      Bill of Rights
      14th Amendment
      Sect. 1. All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.

      And here is the simple solution:

      1. Expatriate (revoke your U.S citizen, and become an uSA sovereign aka resident of the state (yes, SMALL 'u'.) If you don't know what an uSA sovereign is, read the Declaration of Independence. As an American you can still enter/leave the uSA.)

      2. Revoke your slave identification number. (There is NO law that REQUIRES a person to have a SSN!!) I can plan my retirement planning, FAR better then ANY government can, Thank-you-very- much.

      It's that simple and you're legally external to the internal revunue system.

      See this book for more info:
      It's None of Your Business, A Complete Guide to Protecting Your Privacy, Identity, and Assets by Larry Sontag


      My sovereign teacher has been left alone for over 20 years. He has built himself quite the nest egg with 100% take home pay. Another one of his students hasn't paid any income tax for the past 10 years. It IS possible to regain our freedom and live truely free.

      Remember:

      "The issue today is the same as it has been throughout all history, whether man shall be allowed to govern himself or be ruled by a small elite." Thomas Jefferson

    8. Re:Taxes.. by pallex · · Score: 1

      Wasnt it the case that American tax law wasnt agreed by all the states (or some such technicality) and so its not legal, and you can just choose not to pay? Or is this an Urban Myth. It was mentioned in a David Icke book, of all places...

    9. Re:Taxes.. by -brazil- · · Score: 1
      Wrong on both your statement and the underlying assumptions.

      AC, meet mirror. Mirror, AC.

      Taxes aren't absolutely necessary for government (there are alternative ways for a mimimal government to raise revenue)

      I'm not aware of other methods that are fair (more or less) and proven to work dependably. And a tax by any other name is still taking money from the people to do things the government thinks they need.

      And governments aren't necessary for a society to function.

      Define "function". If it does not mean "dog-eat-dog, whoever has more guns does whatever they want", then yes, a society of more than a few dozen people can not work without some sort of government.

      --

      The illegal we do immediately. The unconstitutional takes a little longer.
      --Henry Kissinger

    10. Re:Taxes.. by davidmb · · Score: 1

      The government already runs the narcotics industry - those black helicopters are delivering pizza...

    11. Re:Taxes.. by SpacePunk · · Score: 1

      Ya, try telling the Feds that. The Income Tax was ony ratified by two states, yet it's still the law of the land.

    12. Re:Taxes.. by alkali · · Score: 1
    13. Re:Taxes.. by d.valued · · Score: 2

      Urban myth.

      The federal government was supposed to provide a set of common 'ground rules' for the states to build on. (It's since twisted into the behemoth we know and loathe.)

      The most basic ground rule is the Constitution, which a state has to accept before it's entered into the Union.

      And since you're located in the US, you are also bound by the basic rules and regs (aka laws) of the city, county, state, and federal governments.

      Since the 16th Amendment allows federal income taxes, you gotta pay.

      (Some states, though, don't have a state income tax. I know Florida and Nevada don't have state taxes, p'haps a /.r could fill in the blanks...?)

      "And they said onto the Lord.. How the hell did you do THAT?!"

      --
      I used to be someone else. Now I'm someone better.
      Real life is underrated.
    14. Re:Taxes.. by Penguin_99 · · Score: 1

      Taxes aren't absolutely necessary for government (there are alternative ways for a mimimal government to raise revenue)...

      That's not the point. If the government takes taxes out of my paycheck to repair roads, build schools and protect the country, that's fine. But when the government starts taxing either me or the manufacturer of the goods I am buying and handing that money to a corporation, that bothers me. It's not like the RIAA needs the extra money or that MP3's are crippling them, like they would have us believe, and they need some type of retribution. Maybe the makers of CD players should ask for royalities from the RIAA because their CD players will eventually be used to play songs by RIAA artists. It makes about as much sense.

    15. Re:Taxes.. by davidmb · · Score: 1

      How would they raise revenue?

      You must be prepared to back up your claims, or not make them at all.

  23. Only becuase they are worth more by sips · · Score: 1

    I could make more money on selling a diamond than most sites on the net.

    --
    Respond to s
    1. Re:Only becuase they are worth more by Fesh · · Score: 1
      Um... No, they're not worth more, they cost more. Monopoly by DeBeers, remember?


      --Fesh
      "Citizens have rights. Consumers only have wallets." - gilroy

      --
      --Fesh
      Kill -9 'em all, let root@localhost sort 'em out.
  24. They're called market failures... by TopShelf · · Score: 2
    Sometimes, free market economics can actually prevent the uptake of a new technology, because it threatens large corporations that have the resources to stifle it before it harms them (see the ongoing battle by the MPAA to restrict internet availability of entertainment content). That is just one example of many "market failures" that government can help work around. Another example would be Medicaid. Under a totally private health care system, the poorest in society would be left without basic medical insurance.

    Most fundamental economic changes have been introduced gradually, in order to minimize the social costs of change (which are many - the dinosaurs you speak of will need unemployment insurance). Look at the growth of world trade, for instance - it has taken decades to get where we are now, and there are still many walls that need to come down.

    --
    Stop by my site where I write about ERP systems & more
    1. Re:They're called market failures... by Kaa · · Score: 1

      Sometimes, free market economics can actually prevent the uptake of a new technology, because it threatens large corporations that have the resources to stifle it before it harms them

      (1) Care to name some examples where this actually worked?

      (2) This has nothing to do with market economics, but only with wielding of power for one's own benefit. Same things would happen in a non-market economy.

      That is just one example of many "market failures" that government can help work around.

      What is an example of a market failure? MPAA's legal antics? Why is this a failure of the market?

      And why do you think that government intervention is going to be helpful? The XX century has proved quite conclusively that governments are very inept, clumsy, slow, and consistently make bad choices, especially with regard to technology.

      Another example would be Medicaid.

      Another example of what? Nobody claims that the market is the appropriate mechanism for everything under the sun. Roads, for example, are a classic case of something that should be publicly owned.

      We were talking about the wisdom of giving government money to corporations to order to induce them to change with the times. I think it's a waste of money and sends the wrong signal, as well (the signal is that the history of earning money in a certain way confers a right to continue to earn money in exactly the same way).


      Kaa

      --

      Kaa
      Kaa's Law: In any sufficiently large group of people most are idiots.
  25. Boston TV Party by Frogking · · Score: 1

    I'd start tossing things out if I was forced to pay taxes to corporations. Didn't something like this happen in the 1700's?

  26. Re:What's wrong with this? by lpontiac · · Score: 3
    I know you all want your free lunch: free songs on Napster without paying for them; free software even though someone busted their ass producing them (KeyGen anyone?); free everything.

    And now Bertelsmann wants free money.

  27. Re:The British Broadcasting Corporation by SquidBoy · · Score: 1

    You're confused about the meaning of the word corporation. In the US, this term means a privately owned business. In the UK, it means a state-owned enterprise (it was formerly applied to city councils, amongst other institutions). Only /.'s pet libertarians would object per se to the use of tax to fund a state-owned organisation.

    --
    If you're a jock, inflict some pain / If you're a nerd then use your brain - DAPHNE AND CELESTE
  28. Lobbiests and the use of government funds by sips · · Score: 1

    This is just a function of the government and it being By the people, for the people, and for the people, some of those people work for companies and want their share of their government's money.

    --
    Respond to s
  29. Re:Not necessarily. by treat · · Score: 1
    Also drug dealers usually offer great deals for first-time buyers, then once they have a steady customer who's come to depend on them they start the gouging.

    Sorry, but this is not true. This is part of the drug war propoganda. It's based on the premise that after trying drugs, one will become instantly addicted. It also tries to tell people that drug dealers are completely evil.

    The reality of it is that drug dealers either charge a consistant price, the local market price, or some markup based on what they paid. There's no "new customer discount". It simply doesn't happen. There's no "first one's free". A regular customer doesn't see a price increase. If any change, a regular customer sees a price decrease, either to ensure loyalty, or as a gesture of honesty (e.g. "I got this cheaper, so I'm giving it to you for cheaper."), or out of simple kindness for someone that has either made them lots of money or perhaps that they've become friends with.

    "First one's free" is a load of crap.

  30. Re:That was against the British by fmoody · · Score: 1
    And the War of 1812 is hardly not a defense of American Freedoms. At the time, the British had no problem with boarding the vessels of other soverign nations and pulling off whoever they felt like on the grounds that they *might* be deserters. The main shipping states were against the war for several reasons, not the least of which was the interruption of trade and the fact of the internal rivalry with the agrarian states.

    Both sides got their nose bloodied (fortunately for the US, the Brits were stupid enough to get involved on the Continent *again*).

    And the Battle of New Orleans was no fault of anybody's but a really good show on the part of the Americans. A ragtag band of Americans dominated the day. At their best when composed of their worst? Wouldn't suprise me at all... *laugh*

  31. Absurd... by Fnkmaster · · Score: 5

    Well, if I'm going to be paying for the right to copy music, then morally there is nothing wrong with hitting Napster and leeching away, since I've already paid for the right to do it. This completely removes any moral imperative to respect copyright laws or to ever go buy the CD of an artist that you actually like.

    1. Re:Absurd... by MindStalker · · Score: 2

      Umm... Dude the US already has such a tax, so obviously the Supremes didn't have a problem with it. Its a small tax yes, but a few cents of every cd-r and a few dollars of every cd burner goes to RCAA, seriously. And non RCAA labels get none of it.

    2. Re:Absurd... by MindStalker · · Score: 1

      OPPS.. meant RIAA.

    3. Re:Absurd... by tswinzig · · Score: 1

      In conclusion: how did "I paid for a burner so I can warez" get to +4?!

      For the same reason that innocent people want to commit crimes after they are wrongly convicted of them... shit, you're paying for it, you might as well DO what they think you did.

      Or something.

      -thomas

      "Extraordinary claims require extraordinary evidence."

      --

      "And like that ... he's gone."
    4. Re:Absurd... by tzanger · · Score: 1

      The difference is that you have only your opinion that hypothetical blacks are more likely to rob houses than hypothetical whites.

      I am sure I could dig up some hypothetical police arrest records which would show my hypothetical case, just the same as the insurance records.

      You know as well as I do that you can make numbers show anything... What I'm upset about (I'm over 25 and married, so this insurance thing doesn't directly impact me anymore, but it did) is that it's still sexual discrimination, which has been taboo-ed in North America, perhaps even moreso than race discrimination.

    5. Re:Absurd... by Nezumi-chan · · Score: 4
      Maybe I'm reading this wrong...

      Yes, indeed you are.

      BUT: somehow, you say that the expense of producing copies of an artist's work without permission is OK as long as you pay for it?

      The trouble is, the person you replied to (and the people who replied to you) didn't word this very clearly. the concept is simple:

      The powers that be assume you'll steal, so they charge you via a tax for this potentially stolen material.

      Since you haven't actually done anything yet, you've just paid for a product that you haven't received.

      Therefore, you are the one who has been stolen from. So in order to make this transaction complete and valid, you now need to get something in exchange for your money from them. Which is to say, downloading some piece of music.

      All of the above, of course, means that since you've already bought the song via a tax, there is no real basis for them to claim they're losing money off Napster (or whatever) downloads and CD-Rs.

      Hopefully, that's a little more clear.

    6. Re:Absurd... by Inoshiro · · Score: 3

      Maybe I'm reading this wrong...

      BUT: somehow, you say that the expense of producing copies of an artist's work without permission is OK as long as you pay for it?

      I think this logic train derailed somewhere near the love canal....

      Things that are OK: protesting unfair price gouging, protesting unfair fair-use removal (like this guilty until proven innocent tax).

      Things that are not OK: randoming warezing and copying anything you bloody well feel like just because you can. If everyone did things because they could, the GPL and the like wouldn't be enforcable. That's Bad.

      In conclusion: how did "I paid for a burner so I can warez" get to +4?!

      --

      --
      --
      Internet Explorer (n): Another bug -- that is, a feature that can't be turned off -- in Windows.
    7. Re:Absurd... by hobbit · · Score: 1

      I think (hope) that the original post was an attempt at reductio ad absurdem. Personally I'd rather see copyrights bite the dust and the GPL become unenforcable, than the large media conglomerates getting money for every time I buy a computer to run GPL software on...

      Hamish

      --
      "Wise men talk because they have something to say; fools, because they have to say something" - Plato
    8. Re:Absurd... by remande · · Score: 2

      This is kind of like a low-key version of Double Jeopardy, is it not?

      --

      --The basis of all love is respect

    9. Re:Absurd... by Yardley · · Score: 1

      It sounds like Napster is 100% legal then.

      --

      --

      --
      He lives in a world where those who do not run the client software of the omnipresent meme are unacceptable.
    10. Re:Absurd... by mansemat · · Score: 1

      Already happens with Insurance companies charging more for different demographics.

      They do this because statistically those demagraphics cost them more to insure. 16 year olds are more likely to get in accidents than 35 year olds. This is more a facter of inexperience than breaking the law.

      Are you saying that this tax is the same as insurance companie's pricing policies? Will 16 year old computer purchasers have to pay more than 35 year old computer purchasers because they are *more* likely to use Napster?

      Last time I checked you didn't need a license to buy computer equipment, so why should everybody who buys a CD-Burner be levied a tax? Statistically, are owners of CD-Burners more likely to commit copyright infringements?

      --
      --
    11. Re:Absurd... by tzanger · · Score: 2

      They do this because statistically those demagraphics cost them more to insure. 16 year olds are more likely to get in accidents than 35 year olds. This is more a facter of inexperience than breaking the law.

      This is something else that blows my mind... The insurance companies get away with sex / age discrimination, while I would get arrested for it.

      What's so different about saying "Well blacks tend to rob more houses than whites" and "male 16 year olds tend to get in more accidents than married 35 year old women" ??

    12. Re:Absurd... by jburroug · · Score: 3
      Taxes are law, insurance is a private transaction, and they must be held to different standards.

      Sorta, don't forget that a certian level of liability insurance is required by law to legally drive in the US. Because the state mandates buying private insurance to drive, yet doesn't regulate the price of the mandated coverage there is very little price competition for liability only insurance. This makes it very easy for insurance companies to ream younger drivers.
      I've been buying insurance for years and never used it once, despite a clean accident history, a state approved safe driving course etc... I still count as an inexerpianced dangerous drivers for three more years (when I turn 25) and get shafted on the insurance. It's not precisely like a tax but it's pretty damn close.

      --
      "Listen: We are here on Earth to fart around. Don't let anybody tell you any different!" - Kurt Vonnegut
    13. Re:Absurd... by TheGratefulNet · · Score: 5
      yes, this is logical. if the authorities are saying "we know you're copying copywrited works - you have a computer so you MUST be guilty of this. so lets dispense with trials and such and just slap a fine on you. you know you're guilty - just pay the fine" then I guess since we've already been judged and are paying the fine, we at least owe it to ourselves to enjoy the fruits of our 'crimes'.

      don't they see that this promotes breaking the laws?

      its like a cop that stops you before you enter a very fast highway and says "we're collecting in advance for any speeding you're likely to do". who in their right mind would NOT speed after being charged for it? especially if your car is up to it.

      ...and the fight escalates further.

      --

      --

      --
      "It is now safe to switch off your computer."
    14. Re:Absurd... by jovlinger · · Score: 1

      Difference here being that in this case it is the insurance company deciding how to price their product. If you can find an insurer who doesn't calculate this way you can buy insurance from them instead.

      The case with taxes is that you can't go and say "hey, I promise not to pirate, so please don't tax me".

      Taxes are law, insurance is a private transaction, and they must be held to different standards.

    15. Re:Absurd... by jetson123 · · Score: 2

      Not necessarily. The argument is that Napster is a commercial enterprise and derives commercial gain from supporting the distribution of copyrighted work.

    16. Re:Absurd... by adamsc · · Score: 2
      Unfortunately, the stats could be easily used to back that up simply because there is a higher percentage of poor black males than poor white males and poverty is one of the major causes of crime.

      I think this also highlights a common way people lie with statistics. Skin color isn't the real determining factor here (e.g. the crime rate for middle-class black males and white males would be pretty similar) but it could be made to look that way by someone carefully selecting the numbers.

      Insurance companies spend a great deal of time maximizing their profits in this fashion. They've got one set of statistics used to justify higher rates for young male drivers when their own accounting figures show that young female drivers are more expensive to insure. Those statistics will be used to justify raising rates for females. Since the insurance companies' rented politicians have made many of their services mandatory, it's not like you have a choice to stop playing what is basically a rigged game.

    17. Re:Absurd... by UnknownSoldier · · Score: 2

      > don't forget that a certian level of liability insurance is required by law to legally drive in the US.

      Not true.

      We ALREADY have the RIGHT to travel. Why do people keep going to the government (who is supposed to SERVE US) and ask permission for rights they already have?!

      Please read before replying:
      Driver Licensing vs. the Right to Travel

      Cheers

    18. Re:Absurd... by jms · · Score: 1

      That would make them guilty of contributory infringement -- aiding and abetting crimes being committed by its users.

      However, the activities of Napster's users are protected by the AHRA, which specifically disallows any actions based on non-commercial copying of music by consumers.

      No infringement, no contributory infringement.

    19. Re:Absurd... by TrumpetPower! · · Score: 1

      Not to mention, of course, that the copyright portion of the U.S. Code explicitely permits unrestricted digital copying for personal use. That was what Congress insisted upon in exchange for the DAT tax.

      I haven't had any great personal desire--or time--to become a Napster, etc., patron, but I wouldn't have any moral qualms about it, either. It's not just a case of, ``If a cop don't see you, it ain't illegal,'' but rather, ``It don't matter if a cop sees you, 'cause it *is* legal.'' Even if the cop would rather you didn't do it.

      b&

      --
      All but God can prove this sentence true.
    20. Re:Absurd... by dabadab · · Score: 1

      yeah, that's the point.
      I think the idea itself is somewhat neat. Don't let art be consumed by market - let it thrive in itself, and think of it as something that does not pays directly, but has a great positive impact on the society (similar to freeways - they are built from your tax and they are not expected to bring any revenue)
      The tricky part is: who gets the money?
      I think most of all is to be taken by the bureaucrats - Joe Garage singing his song to his folks will be lucky if he sees a pfenning.

      --
      Real life is overrated.
    21. Re:Absurd... by PlazMatiC · · Score: 1

      >Already happens with Insurance companies charging more for different demographics.

      In Wellington, New Zealand, we have now have a cable service, Saturn, competing with New Zealand Telecom for telephone customers. Since the Saturn's prices were so much cheaper, Telecom lowered their prices in response, but only in the saturn-connected areas.

      A street near where I live has saturn cable on one side, but not the other, Telecom charges the people on the non-connected side of the street substatially more for their telephone service than the people on the other side.

    22. Re:Absurd... by sapone · · Score: 1

      Actually, in Germany it is legal to make copies of copyrighted works (not including software) for private use. Your friend may lend you a compact disc, you copy it and put it in your car => perfectly legal. You may even make copies for other people, as long as you're not doing it for money (i.e. you charge only the cost of the medium), and only make some limited (3-7) number of copies of any recording. The taxes that are paid on devices that are used for copying are there because of the legality of private copies.

    23. Re:Absurd... by sallen · · Score: 1

      --yes, this is logical. if the authorities are saying "we know you're copying copywrited works - you have a computer so you MUST be guilty of this. so lets dispense with trials and such and just slap a fine on you. you know you're guilty - just pay the fine" then I guess since we've already been judged and are paying the fine, we at least owe it to ourselves to enjoy the fruits of our 'crimes'.-- I think the Supremes would have a little problems saying it's a fine and you're guilty before being proven as such (so it'll be a use tax or somthing?) On the other hand, should something like that pass, I have a feeling they'd find it hard to convict anyone of copyright violations since you have essentially 'paid' for the use of music, movies, etc, by virtue of paying the 'fee'. We'll have one HUGE NEA (it'll surpass medicare and social security) and it's government job will be to pay all the artists in the land. ... just lovely. IANAL, but this could get interesting for those who are. (Will they tax each newborn since a brain can memorize a song and therefore, will be in violation of copyright agreements?) I'd say this one should get the lawyers that new boat, house in the country, kids through college, and a nice retirement. (And Jack Valenti will still be around, saying everyone's a crook, and then not understand anything he's said, like the DVD deposition, IMHO. He'd have made a great Sgt in Hogan's Heroes (c) i'm sure that title is copyrighted, so all rights reserved by it's owner.)

    24. Re:Absurd... by simong · · Score: 2

      You've hit the nail on the head. Levys on recording media have had a mixed success in various countries, but to my knowledge the question of how such a levy changes the rights of the purchaser has never been addressed. In the UK the BPI almost succeeded in getting a levy on blank tapes in 1981-2 but the amendment was thrown out when the BPI couldn't justify it beyond saying that any blank tape could potentially be used to illegally record music. Fortunately this didn't convince the Exchequer, which was about to reform the Copyright Act anyway. As this seems to extend to hardware, which is, after all a lot more expensive than a blank tape or CD, I suspect that it will only take someone like Compaq or Dell to refuse to pay the levy to make it unworkable.

    25. Re:Absurd... by sips · · Score: 1

      don't they see that this promotes breaking the laws?

      I can't see how unless you like living dangerously.

      ts like a cop that stops you before you enter a very fast highway and says "we're collecting in advance for any speeding you're likely to do". who in their right mind
      would NOT speed after being charged for it? especially if your car is up to it.


      Already happens with Insurance companies charging more for different demographics.

      --
      Respond to s
    26. Re:Absurd... by C+A+S+S+I+E+L · · Score: 1
      This completely removes any moral imperative to respect copyright laws or to ever go buy the CD of an artist that you actually like.

      You assume, of course, that musicians are going to see any of the fruits of this tax. I certainly won't be compensated by Bertelsmann (or whoever) if people make copies of my CD.

    27. Re:Absurd... by Pope+Slackman · · Score: 1

      >In conclusion: how did "I paid for a burner so I can warez" get to +4?!

      Because this is Slashdot?

      --K

      ---

    28. Re:Absurd... by jms · · Score: 4

      Levys on recording media have had a mixed success in various countries, but to my knowledge the question of how such a levy changes the rights of the purchaser has never been addressed.

      The question has been addressed by the U.S. Congress. When they passed the Audio Home Recording Act, in which the government collects mandatory royalties on all digital audio recorders and all blank digital audio media, Congress gave all consumers the complete, absolute, unlimited right to copy any and all digital audio recordings, so long as the copying is for non-commercial purposes. Read it yourself.

  32. You're GUILTY, and even if you're not, you'll PAY by Nicolas+MONNET · · Score: 2

    These laws are quite funny. The idea behind them is that you're going to be guilty anyway, that you are going to enfringe the law, so you have to pay. And then if you actually infringe the law and get caught, you'll have to pay damages and possibly face prison?

    Ok, let's pay those criminals (recording industry) their tax, but I want to be able to do whatever I want with their "content".

  33. Re:Excellent News by eddy+the+lip · · Score: 1

    Ok, so you're getting ripped off and your publisher is getting ripped off. With taxes like this, your publisher will see some kind of compensation. Any bets on how much will trickle down to you?

    I have much more sympathy for the creator than for the companies that do the distribution, yet they're the ones that get the cash. What kind of guarantees are there that they'll handle this fairly?

    --

    This is the voice of World Control. I bring you Peace.

  34. Does this make it legal... by Royster · · Score: 2

    to duplicate copyrighted works? If we've paid a royalty by buying media in Canada or computer equiptment in Germany?

    --
    I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
    1. Re:Does this make it legal... by Royster · · Score: 2

      This would be similar to saying that it's OK to steal towles from a hotel room, since part of the rates you pay are to cover stolen towles.

      If my bill includes an itemized charge labelled "Towel Replacement", I will be taking what I have purchased; I will not be stealing.

      --
      I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
    2. Re:Does this make it legal... by 88merlin88 · · Score: 1

      I don't know about you guys, but every hotel I've stayed at will charge you if there are towels missing. In addition, hotels often leave fruit, bathrobes, and alcohol - all yours for the taking (for a fee of course). In this case, we're being taxed for services we haven't received. It is about time we started collecting on what we paid for.

    3. Re:Does this make it legal... by mattrinon · · Score: 1

      It seems clear that the government is the largest monopoly of them all. If you do not wish to do business with the government, then they'll point a gun at you and force you into prison. When was the last time MS did that?

    4. Re:Does this make it legal... by xtal · · Score: 1

      Yes, but it's the store that raises the price and not the government. You have no choice but to obey government laws - even while fighting against them - or you go to jail. You can always buy online.

      Stores also are allowed to claim all or most lost product against their taxes, I belive, did you know that? I'm also pretty sure that software companies can do the same (invented piracy figures).

      --
      ..don't panic
    5. Re:Does this make it legal... by xtal · · Score: 2

      to duplicate copyrighted works? If we've paid a royalty by buying media in Canada or computer equiptment in Germany?

      I'm Canadian and I get to deal with that stupid CDR tax all the time. If you're a Canadian citizen, please write your MP and explain to them that there is something fundamentally wrong about paying a tax who's justification is that you are committing an extremely serious crime (in the eyes of the law). Does purchacing CDRs effectively mean you're signing the bottom of the ticket? IANAL. It seems messed up to me though.

      How would you feel if the _government_ decided that there should be a shoplifting tax to compensate all the store owners that _might_ have lost money when something was stolen? Using the fscking RIAA mentality, this should happen to reimburse them from people swiping CDs out of stores. I'm sorry, but that all sounds a little commie red pinko for me. And I'm Canadian!

      I won't even get started on the fact that most artists are unsigned and will not ever see a bloddy penny of the collected tax, "for their benebit". Just like the fuel taxes I think about when I go over the Toll Highways, which are part of the formerly free TCH. Oh well.

      Let your MP know how you'll be voting.

      --
      ..don't panic
    6. Re:Does this make it legal... by mindstrm · · Score: 2

      Actually, if you are in Canada, just order your media from the US. No levy will be charged.

      The levy must be paid by the importer, but ONLY IF IT'S being imported for resale. If you are importing for your own use, there is no charge.

    7. Re:Does this make it legal... by tchuladdiass · · Score: 4

      This would be similar to saying that it's OK to steal towles from a hotel room, since part of the rates you pay are to cover stolen towles.

    8. Re:Does this make it legal... by Juln · · Score: 1

      We all pay a shop,lifting tax already in the form of higher prices...

      I was going to go on about how vile this is, but you know, everyone here echoes my thoughts so well I might as well just say "FUCK EM!!!!!"

      --
      Juln
    9. Re:Does this make it legal... by Snocone · · Score: 2

      I won't even get started on the fact that most artists are unsigned and will not ever see a bloddy penny of the collected tax,

      Actually, it's even stupider than that ... it's only CANADIAN artists on CANADIAN labels that get this divvied among them.

      Now, while it is true that probably 2/3 of the CDs I burn are audio CDs, I have *never* *once* burned a single song by a Canadian artist on a Canadian label.

      So this tax is the veritable apotheosis of a government policy; it steals from the innocent to give to the undeserving while being completely orthogonal to the problem it purports to address.

      I also agree very strongly that in any world that makes pretensions to logic you don't punish people for a crime they might POSSIBLY commit. *shakes head* Whatever.

    10. Re:Does this make it legal... by cruelworld · · Score: 1

      It gets worse.

      The royalties not only go to Canadian artists on Canadian labels, but they base the amount of money that goes to each artist based on radio airplay. i.e. SOCAN

      which means you're paying money to Celine Dion and Brian Adams. The "big" Canadian artists who need the money the least.

    11. Re:Does this make it legal... by TheGratefulNet · · Score: 2
      OK to steal towles from a hotel room...

      so lets all grab some towels from hotel rooms and send them to the MPAA, RIAA, etc.

      think they'll "get" the joke?

      --

      --

      --
      "It is now safe to switch off your computer."
    12. Re:Does this make it legal... by omnifrog · · Score: 1

      But it is not the government charging the rates for stolen towels. This is the difference. Company B might charge less to cover its stolen towels and therefore you might go to company B instead.

  35. Re:US Gov't Doesn't Collect the "Tax" by Blitter · · Score: 1
    Incidently, if you're curious as to why downloading from Napster is not illegal, or immoral, read paragraph 1008.

    I am not sure this is really true, because I am not sure Title 17 considers a computer to be a digital audio recording device. The definition requires such a device to be designed or marketed for the primary purpose of making digital audio copies. It is arguable that a PC qualifies. Furthermore, Section 1002 requires all such devices to have copy protection/notification schemes built into them, it being illegal to import/manufacture/distribute devices that don't. Certainly PCs don't qualify here. Are you trying to say it is illegal to sell PCs as we currently know them? Are you arguing that PCs should have such a copy protection device integral to them? Or would you rather want to claim a PC isn't an audio recording device?

    --
    I am Jack's writable stack pointer.
  36. Re:Sadly, Not Uncommon by jms · · Score: 1

    That was the RIAA's goal, not Congress' goal. As it turned out, Congress added paragraph 1008 and made the AHRA very consumer friendly, by legalizing all non-commercial copying of music.

  37. Re:Napster is STILL illegal - but it gets worse... by DreamingReal · · Score: 1
    Wow! Very informative post!

    However, Napster and Napster users are still infringing according to this document. Read Section 11. Here's the text -

    Sec. 1101. Unauthorized fixation and trafficking in sound recordings and music videos
    (a) Unauthorized Acts. - Anyone who, without the consent of the performer or performers involved -

    • (1) fixes the sounds or sounds and images of a live musical performance in a copy or phonorecord, or reproduces copies or phonorecords of such a performance from an unauthorized fixation,
      (2) transmits or otherwise communicates to the public the sounds or sounds and images of a live musical performance, or
      (3) distributes or offers to distribute, sells or offers to sell, rents or offers to rent, or traffics in any copy or phonorecord fixed as described in paragraph (1), regardless of whether the fixations occurred in the United States, shall be subject to the remedies provided in sections 502 through 505, to the same extent as an infringer of copyright.

    (b) Definition. - As used in this section, the term ''traffic in'' means transport, transfer, or otherwise dispose of, to another, as consideration for anything of value, or make or obtain control of with intent to transport, transfer, or dispose of.
    (c) Applicability. - This section shall apply to any act or acts that occur on or after the date of the enactment of the Uruguay Round Agreements Act.
    (d) State Law Not Preempted. - Nothing in this section may be construed to annul or limit any rights or remedies under the common law or statutes of any State.

    It was wishful thinking but the AHRA still screws consumers.


    -------

    --
    We want some answers and all that we get
    Some kind of shit about a terrorist threat

    - Ministry
  38. Re:Corporate Republic is a Natural Evolution by Wah · · Score: 2

    I wonder if anyone else realzes (not saying you don't) how taxes like this totally remove the incentive to create more works. Wouldn't it become more profitable to just sit back and collect taxes and not go through the trouble of creating new content? Isn't that opposite of the point of copyright?

    --

    --
    +&x
  39. Re:Napster is STILL illegal - but it gets worse... by CoreyG · · Score: 1
    I think perhaps you may have missed the word in bold below. It appears in the original paragraph. Think before you post, maybe?
    This doesn't say anything about distribution of digital music recordings. Napster is a service that facilitates the distribution of digital music recordings, not the creation of them. As far as I can tell, this section would in no way protect Napster or Napster users.
    Original quotation...
    No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.
  40. It ain't perfect, but... by TopShelf · · Score: 2
    1) The funds usually get delivered to industry groups that represent the industry's interests, so while the small-time artist won't directly get compensated, the think-tank and lobbyists that represent them will.

    2) Why should the fee go away? Roads and toll bridges require constant, expensive maintenance (to use your example), and people still use VCR's and audio tapes to copy content illegally even after decades - so the "harm" that justifies the fee never really goes away.

    Your last paragraph, while rambling, sounds straight out of PoliSci 101 - narrowly focused, well-backed interest groups can make a killing in Washington at the expense of the broader public interest. That's simply an inherent flaw of the political system, and while it ain't perfect, I don't see anything better in use currently.

    --
    Stop by my site where I write about ERP systems & more
    1. Re:It ain't perfect, but... by adamsc · · Score: 2
      2) Why should the fee go away? Roads and toll bridges require constant, expensive maintenance (to use your example), and people still use VCR's and audio tapes to copy content illegally even after decades - so the "harm" that justifies the fee never really goes away.
      The ongoing maintenance costs of something like a road or bridge are much lower than the cost of constructing it. Almost every time this sort of thing gets attention, it turns out that the real reason the toll hasn't been lowered or eliminated is that it's been used to keep various politicians' pork-barrel projects afloat.

      It's much easier to reallocate money from something else than justify a new tax to pay for it. (Witness the way most of the cigarette money, allegedly to be spent on treatment and prevention, is paying for completely unrelated things)

  41. Germany tax by SlashKiller · · Score: 1

    We never learn. First the Treaty of Versaille and now this. Once the Germans get tired of it someone will come to power and then they will invade Poland. The government's job is to serve the people not be the accounting department of the RIAA.

  42. This is the norm in Canada by davecb · · Score: 1

    Up here, we feed money into an odd version of a copyright clearance center, which distributes it to (music) copyright holders.

    This makes things like individuals sharing music with each other financially harmless to the vendors, and allows us to treat copyright as what it is: a "legal fiction", created for a public-policy reason.

    Helps keep the rabidly doctrinaire at bay, too (:-))

    --dave
    --
    davecb@spamcop.net
  43. analogy by mattdm · · Score: 2
    This relates directly to the CueCat story from the other day. It'd be as if the CueCat people were worried that their revenue model wasn't working, and so asked the government for a percentage of all computers sold.

    --

  44. You're largely not compensated anyway... by Svartalf · · Score: 2

    Realize that you see maybe $0.50US of the purchase price of that CD. Realize that they're selling it for anywhere from $10-20US and it cost them no more than $1.50US to make the damn thing, in a jewel box with inserts. If you're relying on the "royalties" from CD sales to make you money, you're a fool because only the mega hits make a performer any money at all. Performances are about the only way a musician makes money these days- and depending on the contract with the recording company, you might not make much there either.

    This is not to say I condone the copying- it's just that I don't believe for one moment that any artist is really getting much in the way of compensation for that CD I'd buy. (So, I've pretty much quit buying CDs and have stuck to what's already in my library of music and listening to the radio.)

    --
    I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
    1. Re:You're largely not compensated anyway... by SquidBoy · · Score: 1

      And you can bet it'll only be German artists/artists on German labels who see any of the money.

      --
      If you're a jock, inflict some pain / If you're a nerd then use your brain - DAPHNE AND CELESTE
    2. Re:You're largely not compensated anyway... by Ace905 · · Score: 1

      "Realize that you see maybe $0.50US of the purchase price of that CD. Realize that they're selling it for anywhere from $10-20US and it cost them no more than $1.50US to make the damn thing, in a jewel box with inserts."

      The point is you are being charged for doing something illegal before you even do it. If they added 1 cent on to the price of a writeable cd, then you are being charged 1 cent extra to use that CD.

      The point is that our rights as consumers have been taken away under the premise that we will stop consuming the right products.

      Say you buy a writable cd, and actually use it for something other than copying music (Hard for them to imagine eh?) then you go out and buy some horrible Dr. Dre CD. You have been charged $10-$20 + $0.50 to own that CD. Or you could look at it like this: you have been charged for that CD and ripped off $0.50 for no reason.

      That's assuming there's one person in the world who only buys 1 writeable CD with a CD burner.

      I'd like to see the next person in court over copywright infringment say, "I've already paid 50 cents for the right to own this copied CD, it's not my fault that that's what they're charging, or that I'm inclined to use the CD for the purpose I've already paid for".

      In my opinion, that's a valid argument; and I think everyone would agree were the added "tax" to double the price of a writeable CD.

      "acceptable" reaction from consumers is what keeps this blatent violation of the constitution going (Innocent until proven guilty); and whatever we're covered under up here in canada. (eh)

      --

      Ace
  45. So what .. we live in the EU. Just shop outside .. by mbyte · · Score: 1

    So .. I can predict that this will move our PC-hardware shops outside germany.

    Why not order your CD-R's in Luxenbourg ? They don't have this kind of nonsense, and they even have lower Vat ... And thanks to EU-Trading laws its legal to import those from EU-States ...

    So .. the (german) goverment is killing a whole industry for the sake of some rich bastards wo bought your local politican a new house ;)


    Samba Information HQ

  46. dunno about hard drugs... by rkanodia · · Score: 1

    ...but all the pot hookups at my high school did "first one's free." Of course, that's quite a bit different from street dealers, who don't have personal relationships with new customers. I guess it was more of a friendly courtesy kind of thing than a shrewd, calculating business move; I seem to remember that they did tend to offer better deals to regular customers rather than gouging the poor souls 'addicted' to weed.

    88
    Further information on this topic may be found here.

    1. Re:dunno about hard drugs... by mistah_monkey · · Score: 1
      That's more like a "free sample", to show you that they've got the kind, or the kinda as the case may be.

      I don't know anyone who sells the hard stuff going out and giving it away. Usually, you get into that stuff with a friend or someone who already has it, you try it, you like it, you'll be in touch. The whole thing about the drug dealers going down to the schoolyard to push Heroin on 12 year olds playing basketball by giving it away for free is a "keep drugs criminal" ploy. Only a fool would swallow that.

      --
      -------------------------------------------------- -------
      I bent my wookie
  47. Re:Ah yes, it all makes sense by Smallest · · Score: 1

    A: the corporation. but i'd like to think if i put in 10-14 hours/day on my music, and 0-1 on programming, i might make more playing music than my corp. would.

    :)

    -c

    --
    I have discovered a truly remarkable proof which this margin is too small to contain.
  48. Re:Unjust, but hardly odd... by mattdm · · Score: 2
    Of course, the European gasoline taxes go to fund highway costs. In the US, that's subsidized by the income tax, so the burden is spread to people who don't drive as much as well.

    --

  49. Re:Unjust, but hardly odd... by SpacePunk · · Score: 1

    Machiavelli just simply gave too much detailed information. Such can be used as a warning, a how-to, and a how-to spot.

  50. Re:US Gov't Doesn't Collect the "Tax" by jms · · Score: 5

    The US gov't does not, and never has, collected any "taxes" that are distributed to artists as royalties. Period, end of story.

    Makers of Music Minidisc, DAT Music Tapes, and Music CD-R discs for sale in the US do throw money into the music industry, but it's the same corporate channels that already existed for music royalties.


    Sorry, but your information is eight years out of date. Read Title 17 Chapter 10 if you don't believe me.

    Since 1992, the U.S. Government has collected a royalty on all blank digital audio recorders and blank digital audio media manufactured in or imported into the United States, and handed the money directly over to the RIAA companies.

    The money collected is, as mandated by federal law, divided as follows:

    (1.75%) of the royalties are paid to the American Federation of Musicians, to be paid to "non-featured" musicians (studio musicians)
    (0.92%) of the royalties are paid to the American Federation of Television and Radio Artists, to be paid to "non-featured" vocalists (backup vocalists)
    (25.60%) of the royalties are paid to "featured recording artists", including such bands as Metallica.
    (38.40%) of the royalties are paid to "copyright owners" (the RIAA companies)
    (16.67%) of the royalties are paid to "music publishers"
    (16.67%) of the royalties are paid to music writers, including such bands as Metallica who write their own songs.

    This is completely above and beyond the other systems of royalty payments, such as ASCAP, BMI, where the copyright owners go after businesses to get them to sign licensing agreements. In this case, the royalty fee collection system is part of Federal Law.

    Incidently, if you're curious as to why downloading from Napster is not illegal, or immoral, read paragraph 1008. This is what you, the consumer got in exchange for a federal law mandating direct payments from your wallet to the RIAA whenever you buy a blank audio CDR.

  51. Re:What's wrong with this? by Kaa · · Score: 2

    What's this obsession with free (as in lunch)?

    Oftentimes it's not. I'll give you two reasons why I use Napster (and lookalikes) and none of them has to do with money:

    (1) It's immediate and effortless. Say a friend tells me "Have you heard Foo Qux? It's an awesome band!" It'll take me five minutes (I have broadband) to check them out and decide if I like them or not. Compare that to buying a CD, especially if Foo Qux isn't all that well known...

    (2) There is no good reason (except greed) not to allow me to pick songs (as opposed to albums) I like. From Napster I can pick and choose and most of the time I like 1-2 songs on an album. Should I buy a whole CD just for these 1-2 songs?

    What's the best solution for solving the Napster case? Put an 'MP3 tax' in place! That way, some semblance of justice will be served.

    Thank you very much, I don't want to have "some semblance of justice". Besides, it's highly doubtful that this will be the "best solution", never mind technically feasibility. Frankly, I think that's one of the worst solutions. And why do you think your music will become free? In countries like Canada that imposed a CD-R tax infringing a copyright didn't become any less of a crime.

    Kaa

    --

    Kaa
    Kaa's Law: In any sufficiently large group of people most are idiots.
  52. It Doesnt Matter by DzugZug · · Score: 1

    Anyone who has studied micro-economics knows that the incedence of tax is not affected by who actualy pays it. Incedence of tax is determined by the price elasticity of demand. A tax on music that is given to the producers of the music (I use producers to mean all those involved in production) does not affect the consumer at all. You are willing to pay a certain price for music or a device to play it, etc. That money goes to the corperation that produced whatever you are buying. The price you are willing to pay includes the tax. When the govenment adds a tax two things happen. Cost to the consumer goes up and profits for the producer go down. The more you are willing to pay for the product, the more the tax effects the consumer.

    This tax ensures distrobution of the profts in a certain manner. It gaurantees that background singers, artists, songwriters, etc. each get a certain percent of the royalties from the device that is being taxed. The people who should really be screaming are people like Sony or RCA. They are losing profits to artists and record companies. And if this tax were as otherpeople have sugested, (i.e., a good is taxed and the tax is given to the producers of the good), nothing at all in the market would change. The price to the consumer would stay the same and the profits for the producer would stay the same.

  53. right to profit? by twitter · · Score: 1
    Oh that must be the 29th ammendment to the constitution. I'd never heard of it.

    It's not about money. It's about you telling me what I can and can not do with my equipment and other things I own. Why should I pay RIAA racket tax so that I can make a photo CD?

    --

    Friends don't help friends install M$ junk.

  54. Re:Eliott Carver is not dead by Happy+Monkey · · Score: 1

    Actually, it was Sam Lowry, after his second nervous breakdown.
    ___

    --
    __
    Do ya feel happy-go-lucky, punk?
  55. Re:Sadly, Not Uncommon by Luminous · · Score: 1
    . . . with the specific goal of destroying the market for home digital audio recorders.

    Hmmmm, while I don't doubt that AHRA was not a consumer friendly law, I do doubt that my congressional representative voted for something that had a 'specific goal' of 'destroying the market'. I can't imagine how those debates would go.

    --
    This is not the way to build a lasting empire.
  56. Re:That was against the British by RickHunter · · Score: 1

    No, there have been historical precidents for this. However, in more recent times, I think that things have changed substantially.


    -RickHunter
  57. About Bertlesmann by Pinball+Wizard · · Score: 5
    Since Michael saw fit to speculate that Bertelsmann was behind the proposal to tax electronic devices for the benefit of media companies, I thought I should point out just how much Bertlesmann affects us all.

    IMO, Bertelsmann is a monopolist trying to grab as much of the media market as they can, especially in the book arena. They own the largest publishing company and the largest chain bookstore, Random House and Barnes & Noble. They attempted to purchase Ingram Book Company(big distributor-something like 60% of Amazon's books come from Ingram), luckily that was stopped by the antitrust folks in our govt. If they had pulled that off they would have had a complete vertical hold on the book industry - from publishing to distributing to bookselling. They would have profitted from the majority of internet book sales.

    They are definitely a company /.ers should know about and be wary of.

    --

    No, Thursday's out. How about never - is never good for you?

    1. Re:About Bertlesmann by Hanno · · Score: 3

      However, it is far too easy to point at Bertelsmann and as you already noted, it was Michael's speculation that he simply presented as fact.

      "Stupid German media legislation? Let's see. Bertelsmann is German, right? They must be responsible!"

      Yes, Bertelsmann is *one* of the many companies behind this idea, but basically, all the German media content companies are supporting it and here in Germany, Bertelsmann is not singled out as the one company responsible for all stupid media legislation.

      Also, this kind of "tax" has been very common in Germany since decades for music records. The system is called "GEMA" and they collect money from every sale of a record, from every public concert performance of a song and from every public broadcast of a song on radio or TV. This money is then given to the authors and composers of that song. While this approach is *very* bureaucratic and scary, it works surprisingly well (I am affected by this as a pseudo-professinal musician).

      There is a similar fee on copiers, fax machines and scanners. If I am not mistaken, this is what they are now trying to extend on other "copying devices".

      Yes, Bertelsmann is big, it is scary, I certainly don't like them either and I don't like this idea of "taxing" computers as digital copying devices. But still, this is not "the Bertelsmann tax".

      ------------------

      --

      ------------------
      You may like my a cappella music
  58. Re:Germans are spoiled children by davidmb · · Score: 1

    I think you'll find that in this day and age, discriminating against a people because of their country of origin and their culture is considered racism.
    Hitler also hated people based on their nationality alone you know.

  59. Re:It sounds like the money will go to the authors by msnomer · · Score: 1

    Excuse me? Writers like Tom Clancy, Stephen King and the like get paid the big bucks because they sell a lot. Readers are voting with their pocketbooks. If you don't like their books, don't buy them; if you do, buy their books or borrow them from the library, but don't steal the books.

    --
    --meredith
    Sometimes a scream is better than a thesis
  60. It is clear that you missed the point. by pschmied · · Score: 1
    Persons may pay the same percentage of their income, but if you look at the demographics of this country, the majority of the persons are not rich.

    Thus the greater number of people in a class, the greater percentage that their socioeconomic class pays.

    So if you want to be nitpicky, I believe that the largest group of americans is technically the lower, middle class, but suffice it to say that things aren't too rosy at the bottom of the bottom either.

    You see, the tax burden is still primarily footed by those least able to pay

    So, sorry if this was unclear. I thought that I sufficiently prefaced that idea, but I guess you missed it.


    -Peter

  61. Not how Napster works... by DreamingReal · · Score: 1
    As I understand it, the way Napster works is to point you to a share folder on another computer - the copying is done peer-to-peer. I don't know the technical details of Napster (I always used Scour myself) but as I understand it Napster merely opens a port on your computer for the data to enter and then ensures that the whole file copied. The copying is done by one of the computers not Napster. All Napster does is provide a list of the available MP3 files and the IP addresses they are available at. No more. Napster is not a digital audio device or medium.

    And even if it were, Section 11 prohibits the distribution of digital audio copied recordings. So Napster users who provide access to MP3s are still breaking the law.

    If you are going to respond, at least get your facts straight before you do. I'm beginning to think you are just trolling.


    -------

    --
    We want some answers and all that we get
    Some kind of shit about a terrorist threat

    - Ministry
  62. Re:Rescind these taxes by Happy+Monkey · · Score: 1
    Is this why the Philips CD-R stereo component costs about $200 more than a similar computer CD-R drive?

    That may have more to do with a hardware based UI, and higher quality cable connections.
    ___

    --
    __
    Do ya feel happy-go-lucky, punk?
  63. Re:Why bang on Bertelsmann??? by jellicle · · Score: 1

    And hiding behind Anonymous Coward status is what?

    --
    Michael Sims-michael at slashdot.org

  64. Re:Sadly, Not Uncommon by jms · · Score: 3

    No matter what you say about these kind of tax policies, they are fairly common. What is even more sad is they arise out of a genuine concern and a desire to do what is right.

    Haha.

    The U.S. version of this law, the Audio Home Recording Act, was drafted by the recording industry with the specific goal of destroying the market for home digital audio recorders.

    Do what is right, my ass.

  65. Re:$500 hammer by dbullock · · Score: 1

    I used to work with an ex-defense procurement guy. Since we were both ex military (he army, me navy) one day we got talking about procument issues, and $500 hammers, and $200 toilet seats.

    He was able to shed some light onto the pricing issues that made sense to me.

    The seats were for a very limited run of production. This drives up cost by itself because the cost of tooling up and doing the run are amortized over the length of the run. Small runs cost much more than larger runs. Economies of scale.

    The seats were for P3 aircraft. (P3's are prop driven aircraft used for ocean surveillance, search & rescue, and sub-hunting - the big boom on the tail is the MAD - Magnetic Anomaly Detector used to locate submerged metal objects. P3's are long duration aircraft meant to go out on patrol - I did a fair amount of loose control of P3's) There were all kinds of issues with weight, flammability, durability, etc for aicraft safety. Additionally there were MIL-SPEC requirements to adhere to since it was a _military_ aircraft.

    Add all this up and you start to get some unreasonable costs for a lot of reasons that by themselves and in abstract probably made sense.

    Dave

    --
    http://www.bullnet.com
  66. And in the Euro Commission by anticypher · · Score: 1

    This has been talked about recently in the EC. Seems that everyone is using every piece of computer equipment to pirate everything under the sun, or so claim BMI and a few other IP holders. But I think some computer groups are starting to fear a large upfront tax causing the consumer market to shrink, so there may be some powerful groups on the side of freedom and /. But BMI has a large influence on german policy, and public debate never comes into it. So expect these new taxes to start slowly in the countries easiest to corrupt (naziland and britland), and then spread to other european countries over the next few years, then the EC will pass the law automatically.

    the AC

    --
    Hemos is like...sci-fi fans;he thinks technology is cool, but he hasn't bothered to understand the science it's based on
  67. So piracy is OK? by Mike1024 · · Score: 1
    Hey,

    This tax basically makes the assumption that people who are buying CD-R drives are criminals, who are going to make illigal copies of songs. By taxing CD-R drives, we assume that all buyers are guilty of this and hence must be punished. Does this mean that:

    a) People MUST give TAX to big companies to buy certain products, and in return for this they get NOTHING. I think we agree this would be a bad precedent. As a person who once sold drinks for charity, I would like 100% tax for every gallon of water brought by consumers in America, so I can recoup my losses.

    or

    b) The tax paid to music companies is there to let them recoup expenses from piracy, therefore piracy is OK, as long as you paid tax on your CD-R drive.

    Neither situation exactly sounds like a win-win scenario for buisness and consumer, does it?

    Michael

    ...another comment from Michael Tandy.

    --
    "Goodness me, how unlike the FBI to abuse the trust of the American public." -- The Onion
  68. Re:Hmmm... by BJH · · Score: 1

    For media, yes, but not for the devices needed to use them...

  69. Could This Cloud have a Silver Lining? by jheinen · · Score: 2

    Maybe I'm nuts, but this strikes me as pointing the way toward a method of ensuring artists get compensated, while at the same time allowing people to freely distribute whatever they want. I would be willing to pay extra $$ on purchases of media and recording equipment if that meant music could be free, and the artists would get compensated. The tax could go into a big fund and artists could get payed based on surveys of how much their music is being downloaded. Same thing for authors. You'd be free to do whatever you wanted with stuff. Of course, this plan still doesn't leave much room for the labels, but who cares?

    -Vercingetorix

    --
    -Vercingetorix
    "Necessitas non habet legem." -St. Augustine
  70. Re:US Gov't Doesn't Collect the "Tax" by jms · · Score: 2

    Wow! What a little bundle of misinformation and lies you found!

    Well, the RIAA certainly doesn't want you to know your rights. However, even if you don't know your rights, you still have to pay the CDR and DAT royalties, so you might as well know.

    Rather than explain it myself, here is a quote from the 9th Circuit Court of Appeals, in the document in which they reversed the injunction against Napster. They do a good job of explaining the distinction:

    The court reached its conclusion that Napster users were engaged in direct infringement in part because

    o it ruled (contrary to the section's express terms) that the immunity from suit provided by 17 USC 1008 only applied to actions under the AHRA.
    o it ruled that 17 USC 1008's protections only applied to copying by specifically identified devices rather than, as this Court said in RIAA v. Diamond Multimedia Syst., Inc., 180 F.3d 1072 (9 th Cir. 1999), to all noncommercial copying by consumers. (1)

    (1) The court relied on the fact that this Court in Diamond Multimedia had held (in the context of the AHRA's serial copying and royalty provisions) that digital audio recording device did not include computer hard-drives. The court below ignored, however, that 17 U.S.C. 1008
    permits non-commercial copying by consumers using either analog or digital audio recording devices or "such a device"; that the legislative history makes clear that Congress intended by that language to immunize all non-commercial copying of music by consumers; that the same Diamond Multimedia Court expressly said that 17 U.S.C. 1008 "protects all noncommercial copying by consumers of digital and analog musical recordings" (180 F.3d at 1079); and that throughout the Diamond Multimedia opinion the Court discusses copying of music using computer hard-drives as AHRA protected activity.


  71. I write code. Where do I get the payback from tax? by Anonymous Coward · · Score: 1
    Ohhhhhh. Only the 'big software corps' see any revenue from the tax and not the small software developper.

    Just screwing the little guy as usual.

    On the other hand, once EVERYONE is tried, convicted, and assessed a criminal fine for piracy... EVERYONE may as well pirate. The tax legitimized the crime, IMO.

  72. Paying similarily for xerox copies by KjetilK · · Score: 1
    At my University, and all other universities and colleges in Norway, there are xerox (as in making paper copies) machines all over the place, and you buy cards to be able to use them. Now, a part of the cost of buying such a card goes to Kopinor (it's the Norwegian branch of IFRRO). The reason is of course that a significant portion of what is copied is copied from stuff their members have produced, also fair use stuff. However, if I make a copy of stuff I have written myself, or lecture notes taken by friends, I still have to pay Kopinor, and that doesn't feel right.

    Dad told me not to worry, because Kopinor is good at getting the money back to their individual members. He is the author of several books, and has had a number of good scholarships from these money, and he said that if I keep up my pace of writing I'll be eligible for a scholarship soon (they count words, pretty much). In spite of that, it doesn't feel right, they are raising money from other people's work, it doesn't matter if I get the money back as a scholarship, it still feels wrong.

    --
    Employee of Inrupt, Project Release Manager and Community Manager for Solid
    1. Re:Paying similarily for xerox copies by Yer+Mom · · Score: 1

      But do they get paid each time you use a scanner? Or a printer?


      --
      Hell hath no fury like a pissed-off Glaswegian.
      --
      Never mind Spamassassin. When's Spammerassassin coming out?
  73. Re:Hmmm... by sconeu · · Score: 1

    I thought it did pass. Check out talk.politics.crypto.

    --
    General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
  74. Corporations == individuals by Masker · · Score: 1

    Sorry to say, but corporations are individuals in the eyes of the US Gov't, and have the full rights as individuals (free speech, etc.). See this insightful article for details, but basically, since about 1886, corporations have been granted the rights of individuals. Therefore, the country, in protecting it's corporations, _is_ protecting it's citizens.

    Just another way that the ultra-rich (and their families) are kept that way. I don't see that this is such a shock; perhaps you just didn't realize this before...

    --

    ---------The early bird gets the worm, but the second mouse gets the cheese.

  75. I'm sorry... by tswinzig · · Score: 2

    Are you saying it's not legal to take towels from hotel rooms?

    -thomas


    "Extraordinary claims require extraordinary evidence."

    --

    "And like that ... he's gone."
  76. Unjust, but hardly odd... by Angst+Badger · · Score: 3
    C'mon, why do you think Americans pay per gallon of gasoline what Europeans pay per liter? Farm subsidies? Research grants? There are already billions of tax dollars going directly or indirectly into U.S. corporations. Some of it (funding for scientific research) is not such a bad idea, but much of it is a simple quid-pro-quo in return for campaign contributions. And even the taxpayer-funded scientific research tends to go into proprietary, patented products.

    There's not much Americans can say about this sort of thing. We keep voting for the same two parties, and when it gets down to it, we keep voting for the candidate who spends the most on ads. (Okay, in all fairness, two-thirds of the electorate votes unthinkingly for their party, and the remaining third votes unthinkingly for whoever spends the most on ads. It's not like Machiavelli didn't warn us about this.)

    --

    --
    Proud member of the Weirdo-American community.
  77. Proportionality? by jmorse · · Score: 1

    One problem with this type of taxation scheme is that the tax (and subsequent royalties) are not proportional to actual usage of IP. If someone were to buy a CDR solely for the purpose of distributing his/her own software/music/etc, why should that royalty be paid? On the other hand, if someone buys a CDR expressly for the purpose of pirating copyrighted music, he/she may be paying too little. This creates an undesirable situation (from an Economics perspective anyway) where the "good guys" are subsidizing the activities of the "bad guys". Unfortunately, I doubt Germans will see it as anything more than yet another tax levied on them.

    There's also the question of how much of that "royalty" actually gets to the artist, and how that is apportioned. Do artists with more sales get more subsidy, or should it be inversely proportional to sales? And how much of that money will be skimmed by the royalty firms? It just smells of a cash cow for corporate interests, with no overhead to boot!

    Truth be told, if this weren't such a blatant opportunity for corporate welfare, these companies might just wake up and realize that the web can be a source of new income, and not a drain on it.

    --

    "You done taken a wrong turn."
    -Bill McKinney, in Deliverance
  78. Re:Resistance is futile! by omission9 · · Score: 1

    Listen up , you cannot simultaneously support the actions of RMS and his FSF and critisize governmental intervention in support of IP. They are both cut from the same cloth. Both are, at the heart, socialist interventions. RMS and his uninformed teenage fanclub favor a model of government support, ie. dole, for open source software development. This article is simply about a model of government support, ie. dole, for the industry.

  79. Re:US Gov't Doesn't Collect the "Tax" by jms · · Score: 1

    The royalties are only 2% of the import price for recorders, and 3% of the import price for media, much less than wherever you got your figures from.

  80. Re:Napster is STILL illegal - but it gets worse... by jms · · Score: 2

    er, the section you found outlaws the making of "bootleg" recordings without the permission of the artist -- bringing a microphone and tape recorder to a concert.

    Anyway, Chapter 11 of Title 17 is still part of Title 17, and Section 1008 immunizes consumers against any actions "under this title", so I'm not following your logic.

  81. Re:US Gov't Doesn't Collect the "Tax" by jms · · Score: 2

    You are making the RIAA argument -- that Section 1008 only creates immunity if the copying is done using SCMS-equipped recorders, and royalty-paid media.

    According to the appeals court, the distinction of whether a device (like a computer) is a "digital audio recording device" is only meaningful for the purposes of determining whether it the device/media are subject to the SCMS and royalty requirements.", not for determining Section 1008 immunity.

    Why?

    Section 1008 does not only grant immunity to consumers who use equipment defined in section 1001. It can't. Think about it. The law mandates SCMS circuitry and royalty payments for certain digital recording equipment only. It says nothing about any copy protection or royalty payments on analog equipment and media. Yet, the law creates immunity for use of analog as well as digital equipment and media. How can this possibly square with the RIAA interpretation? What are analog equipment and media doing in Section 1008, if section 1008 is only supposed to apply to SCMS-equipped/royalty paid equipment and media? Obviously, Section 1008 does not only create immunity when used with restricted and royalty-paid equipment, because it creates immunity for analog equipment as well! The appeals court actually thought about the law, reviewed the Diamond Multimedia case and determined that Section 1008 protects all non-commercial copying by users, not just using certain equipment.

    This makes sense, because the purpose of the law is to stimulate a legal market for digital recordings, while avoiding the "grey areas" that would immediately arise under the RIAA interpretation.

    As an example, you take an old record of yours, blow off the dust, and play it back on your turntable. You connect a Digital Audio Tape recorder to your receiver, and make a DAT tape of your record, on a SCMS-compliant machine, on a royalty-paid tape, for your own enjoyment.

    Do we both agree that you're protected under Section 1008?

    Ok. Now, you notice that the recording has pops and clicks. You want to eliminate them, so you take the DAT recorder over to your computer, connect it to your SPD/IF equipped soundcard, and read the recording onto your hard drive. You use Sound Forge, or a similar tool to remove the clicks, and add track marks, then you burn the final recording onto an audio (royalty-paid) CDR, and re-use the DAT tape.

    Is your final CDR legal or illegal? Did it become illegal when you copied it onto your hard drive? Did it become legal again when you moved it onto a CDR? What is the correct public policy to best deal with this issue?

    The only interpretation of section 1008 that avoids this problem of "tainted" intermediate recordings is the one provided by the appeals court -- that Section 1008 immunizes all non-commercial copying of musical works by consumers.

  82. Re:What's wrong with this? by truelight · · Score: 1

    I would LOVE to pay even a dollar extra per CD-R or a couple of bucks on my ISP connection, assuming that the money went to the ARTISTs THEMSELVES, instead of to record company bastards which use the money to promote the Britney Spears plague. Napster and similiar is hopefully here to put an end to capitalism of art. Capitalism was fine once, but now the corrumption of it has gone too far. Music to ALL! Give the money to the ARTISTS!

  83. Re:US Gov't Doesn't Collect the "Tax" by technos · · Score: 2

    5-pack of 'Audio only' Maxell CD-R, at BestBuy: $9.99. 5-pack of 'Data' CD-R, same specifications, same manufacturer, same store: $5.99.

    (I was there at lunch, bought a mislabelled 50-disc spindle of Sony for $19.99 ;)

    This is typical of the CD-R pricing scheme. I assumed the inflated price was because of the tax. Silly me!

    --
    .sig: Now legally binding!
  84. Re:Eliott Carver is not dead by Hanno · · Score: 2

    For what it's worth, Carver in the movie was an international media mogul who owned media outlets in many countries, including Germany. But I think that the movie never mentions Carver's nationality or his company's corporate headquarter location.

    (Hamburg, one of Germany's major media city, was used as a filming location to please the many Bond fans here. I am told that Germany is the major non-US market for Hollywood.)

    ------------------

    --

    ------------------
    You may like my a cappella music
  85. $500 hammer by bluGill · · Score: 2

    Check that $500 hammer story, that is a reasonable price for that hammer. (Accually I think it was $600)

    What the media story never mentions is the hammer is needed in an enviroment where explosives are used. The hammer was made of a special non-sparking metal so that it could be safely used.

    Likewise the $200 toilet seat was not sent to an office building, but to a area where more was required of the toilet seat. (I can't remember if it was the space shuttle, or something else)

  86. Re:Roads are a perfect example... by Kaa · · Score: 1

    Roads are a perfect example of a market failure

    You didn't read my post carefully. I explicitly said that nobody claims that market can solve all problems. You are attacking a strawman. Roads are not a market failure because in no sane economic system market rules all. There is a difference between failing at something and being not applicable to something.

    It looks like Napster is pretty much getting snuffed

    Napster the corporation may get snuffed. Peer-to-peer file sharing is here to stay. We were talking about suppression of technology, not of companies, right? Well, suppressing file sharing is going to be much harder than suing Napster.

    Kaa

    --

    Kaa
    Kaa's Law: In any sufficiently large group of people most are idiots.
  87. Stealing from the artists who they seek to protect by ttyRazor · · Score: 1

    The media cartels costantly bitch and complain about how we're stealing from the "artists" when we pirate. Their solution? Tax the products that are used to pirate. But at the same time, they're taking money away from the legitimate artists who make original content too. The media cartels are effectively saying that they are the only legitimate source of media, and all money related to it must go through them and anything else is criminal. So even if you are an "independant" artist, you're still putting money into the pockets of the cartels who either don't think you're significant enough to sign, or you explicitly don't want anything to do with precisely because they don't want to involve themselves with such corrupt orginizations. This is why deals such as the AOL-Time-Warner are so dangerous: If the tools to create and distribute content are held by the same people who create their own content, any semblance of competition is nonexistant since the cartels profit from the success of artists who they don't have a thing to do with. If every artists signed by the cartels began to suck simultaneously, and independant artists became the mainstream, the cartels would still get their money since the cartels get paid for every cd printed regardless if they had a hand in making it or not

  88. Re:Bad idea by SquidBoy · · Score: 1
    If they bought it outside the country, then tried to bring it in, the tax would be assessed at the border.

    No it wouldn't. Under European law, people in Germany can buy goods in any European Union country, and import them without paying duty. The only problem would presumably arise if they then tried to sell them in Germany.

    --
    If you're a jock, inflict some pain / If you're a nerd then use your brain - DAPHNE AND CELESTE
  89. Re:What's wrong with this? by Sloppy · · Score: 5

    It may be a 'big evil corporation' that's charging you money, but you still owe it to them.

    No you don't. You might owe it to them. More likely, you owe it to someone else, or no one at all. If an unsigned garage band burns from CDR demos to send out to reviewers and fans, please explain how and why they owe money to some arbitrary record label who will use the money to promote some pop star. If I copy a CD published by media company A so that I can listen to it in my car, why does media company B get a cut of the CDR sales revenue?

    If you're so against things being free, then why do you defend the media companies getting this unearned money for free?


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  90. Re:Heh heh heh. by SquidBoy · · Score: 1

    You forgot to close your tags

    --
    If you're a jock, inflict some pain / If you're a nerd then use your brain - DAPHNE AND CELESTE
  91. Re:Eliott Carver is not dead by Fesh · · Score: 1
    I had always assumed he was a thinly-veiled caricature of Rupert Murdoch, myself...


    --Fesh
    "Citizens have rights. Consumers only have wallets." - gilroy

    --
    --Fesh
    Kill -9 'em all, let root@localhost sort 'em out.
  92. Re:Eliott Carver is not dead by McFarlane · · Score: 1

    dude, I was in Germany for awhile in the mid-90s and IT'S ALL TRUE

    Hasselhoff - they love 'im

    Some people joke about it and are embarrassed and try to downplay The Awful Truth!

    My gf and her friends would rush home at lunch to watch reruns of Dynasty from the early 80s. Wtf is that?

    Also, FC St. Pauli rocks!
    Niels Tune-Hansen rules O.K.!
    Millerntor roar baby! aw yeah..

    um, I have to go now...

    --
    [We don't come from a planet. We come from a grid sector.]
  93. Great news by sww · · Score: 1

    This really is great news. One step closer to a working system for rewarding producers of information. Now, all we need is a voting system so the money can be democratically distributed. Then we can forget all about this silly idea that copyright holders has, or even want to have, the ability to limit the use of their work.

  94. Re:$500 hammer Way OT by jacks0n · · Score: 1

    The *most expensive* hammer I could find at McMaster Carr is an 18lb nonsparking sledge made of ampco metal at $334.25 a pop. page 2500.
    ...Just in case anyone has a yen to spend a fortune on a hammer without doing the paperwork.

  95. Re:I write code. Where do I get the payback from t by JCCyC · · Score: 1
    It doesn't matter how good the layer is. It still is illegal to have warez and such things. No layer can change this. A layer may help you to get a smaller punishment, but you would get a punishment.

    But remember, you were punished before the fact when you bought the blank media (because of the tax which goes directly to copyright holders). That's the point a lawyer might pass across to the jury. Can you say "double jeopardy"?

  96. Re:Heh heh heh. by linzeal · · Score: 1

    ayn rand was a corporate whore and her legs were always open as sure as her mind was always closed.

  97. Re:Germans are spoiled children by Foul+Smelling+Pig · · Score: 1

    Shouldn't this be "The Germans are a people by the standard definition" et cetera?
    --

  98. Re:That was against the British by fmoody · · Score: 1
    It was no more a pretense than the British protestations of innocence with regards to impressment and their continued claims of stopping. The *north*eastern states were against the war for reasons I mentioned before, not the least of which was that it would hit them in the pocketbook. Prior to the declaration of war, the British were even attempting to board American warships, a always definite no no. The plain as day economic warfare that the British and French engaged in was damaging to the US. The French repealed theirs, the British were unrepentant (They did later say they would repeal them, however, this was right about the same time as the US finally declared war... And news didn't travel quickly in those days.).

    The continent I was referring to was not North America, but Europe.

    The British didn't even really stop boarding vessels until the War of 1812, even though they had said that they would and wouldn't at various points throught out the period. The War of 1812 had little to do with Napoleon except that the little tyrant made it difficult for the British to fight on both sides of the Atlantic and gave the Americans a chance.

    Calling this war anything other than a fairly simple war with complex issues on both sides is ridiculous. And I wouldn't call it a victory for the British, as a world power got its nose bloodied by a third rate backwater ex-colony.

  99. hurrah! by mattdm · · Score: 2
    Finally, it's something that can be hated by both libertarians and anti-corporatists.

    --

  100. Re:nope, still not agreeable by Ender+Ryan · · Score: 1

    One little thing, it still would not be agreeable because that money goes to corporations, which is definately not for the public good.

    Companies should NEVER receive income from a tax, that is absofuckinglutely(new word of the day) ridiculous.

    --
    Sticking feathers up your butt does not make you a chicken - Tyler Durden
  101. Re:Ha! They already do this in Canada by davecb · · Score: 1
    Don't think of it as a punishment for doing ill, think of it as a cost of doing business. "Intellectual Property", specifically copyright, is a legal fiction and has a limited lifetime for one specific purpose, the encouragement of authors and musicians.

    It's not property, and it's not the right of the author to pretend something (s)he's made public doesn't belong to the public.

    What it is is a conscious decision to support such authors by providing them with a legal means of collecting money from people. It's not a tax, except in the frivolous sense that any money a government take in is a tax.

    The levy on recording media, including VCR tapes, goes to the authors/musicians in approximate proportion to the use of the tapes for recording copyrighted songs. It's not a punishment for copying: that is your right, and your right to copy is only restricted by an artificial rule. It's a payment for the proportion of tapes that are used to copy music (and TV) that can't be identified as belonging to one particular author, and so is distributed in rough proportions to all authors.

    In the U.S. Copyright is a clause in the constitution, as they would not be able to do it without one: other parts of the constitution effectively forbid limiting our right to copy.

    What is ironic is that to the ignorant and rights-obsessed, this looks like taking away a right that they never actually had.

    By the way, I make good money off a book that's available on the internet, free for anyone to download. I (well, Tim O'Reilly!) published it, and made it free for anyone to copy and only retain the "right" to be the sole printer of the printed book.

    In this way we sin the least against the public's right to what we have made public, while still getting paid for the work we did, and do in keeping it up to date and on the shelves.

    --dave c-b
    --
    davecb@spamcop.net
  102. No, no, you've fallen behind... by Elvis+Maximus · · Score: 2

    We were talking about the corporation-state yesterday. Try to keep up, OK?

    -

    --

    -
    Give me liberty or give me something of equal or lesser value from your glossy 32-page catalog.

  103. Re:Napster is STILL illegal - but it gets worse... by jms · · Score: 2

    Ah, but Napster doesn't distribute files. Napster's users share files with each other. Big difference.

    Back to the paragraph in question, Paragraph 1008:

    No action may be brought under this title [Title 17, Copyright Law] alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.

    The issue before the court was whether Napster is liable for contributory infringement -- i.e. are they operating a service that other people -- their users -- are using to break the law?

    The answer is, no. The activities of Napster's users are fully protected by the AHRA.

    Hence, if there is no infringement taking place, there can be no contributory infringement.

  104. Re:US Gov't Doesn't Collect the "Tax" by Stradivarius · · Score: 2

    except that this is simply the RIAA's interpretation of the law; if you read the actual text of the law it says:

    3) A ''digital audio recording device'' is any machine or
    device of a type commonly distributed to individuals for use by
    individuals, whether or not included with or as part of some
    other machine or device, the digital recording function of which
    is designed or marketed for the primary purpose of, and that is
    capable of, making a digital audio copied recording for private
    use, except for -
    (A) professional model products, and
    (B) dictation machines, answering machines, and other audio
    recording equipment that is designed and marketed primarily for
    the creation of sound recordings resulting from the fixation of
    nonmusical sounds. "

    A sound card (particularly those marketed/designed for mp3s, such as the Creative SB Live Mp3) or CD drive (if appropriately marketed) could easily be considered to be the "device of a type commonly distributed to individuals for use by individuals, whether or not included with or as part of some other machine or device". Thus general computers could fall under the AHRA by virtue of including the sound card or CDROM, which is the actual recording device.

    It gets a little more into a gray area once you start talking about the recording medium. The law states:

    4)
    (A) A ''digital audio recording medium'' is any material
    object in a form commonly distributed for use by individuals,
    that is primarily marketed or most commonly used by consumers for
    the purpose of making digital audio copied recordings by use of a
    digital audio recording device.
    (B) Such term does not include any material object -
    (i) that embodies a sound recording at the time it is first
    distributed by the importer or manufacturer; or
    (ii) that is primarily marketed and most commonly used by
    consumers either for the purpose of making copies of motion
    pictures or other audiovisual works or for the purpose of
    making copies of nonmusical literary works, including computer
    programs or data bases.

    If you're recording to hard disk (as opposed to, say a CD-R) then it's a little more gray - few hard disks I know of are primarily marketed or most commonly used by consumers as audio recording devices (granted, a lot of people use them in this way, but right now I don't think it's the *primary* use for most people).

    Also keep in mind that the courts' job is to interpret the laws...and if one reads the AHRA, it seems clear that the intent of Congress (in Title 17, Chapter 10, Section 1008) is to allow consumers to make digital and analog copies for their personal (non-commercial) use. While IANAL, I would expect the courts would find in favor of any consumer who had an action brought against them for personal digital recording on their PC.

    (text of Section 1008):

    "No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings."

  105. I doubt it by -brazil- · · Score: 1

    The German government loves the IT economy with a passion. I doubt they'll risk falling behind on the road towards internet wonderland just to please some media companies.

    --

    The illegal we do immediately. The unconstitutional takes a little longer.
    --Henry Kissinger

  106. Re:US Gov't Doesn't Collect the "Tax" by technos · · Score: 3

    Lemme get this straight.. I pay $7.50 for $4 of CD-R at the local CompUSA, three-fifty goes to the 'tax'. If I use them to pirate some big name band, the band makes more money than if I had bought the CD?

    Pirate away boys! It seems it's the only way to support the artist!

    --
    .sig: Now legally binding!
  107. Tax everything related, hmm? by the+Man+in+Black · · Score: 1

    wtf? So, (and correct me if I'm wrong...) BMG is lobbying to get a tax slapped on all computer hardware why? Because it might possibly be used in piracy, and they want to make sure that the artists^H^H^H^H^H^H^Halready-wealthy executives get their share?

    Next they'll be dipping their beaks into programming classes which might possibly teach people how to circumvent encryption. Hope they don't find out about O'Reilly's MP3:The Definitive Guide.

  108. Re:I write code. Where do I get the payback from t by JCCyC · · Score: 1
    On the other hand, once EVERYONE is tried, convicted, and assessed a criminal fine for piracy... EVERYONE may as well pirate. The tax legitimized the crime, IMO.

    Dream on. They'll fine you anyway. Actually, that's an interesting point. Let's say such tax is in effect and I'm busted with tons of mp3z, DivX'ed moviez and warez. Could I claim "but your Honor, I already paid for this when I bought the media"?

  109. Stupid quesitons by Mark+F.+Komarinski · · Score: 2

    If one is a content author, how do they go about getting their money? Are they exempt from the tax? Does 'fair use' exist in Germany?

    --
    -- Ever notice that fast-burning fuse looks exactly the same as slow-burning fuse? I didn't... (Edgar Montrose)
  110. How to distribute? by boing+boing · · Score: 1

    Okay, on a philosophical basis I disagree with this concept. I think the government should provide a minimum of services to its citizens and this isn't one of them.

    But how do they expect to fairly distribute this tax? I cannot envision any possible fair scheme to accomplish this. Clearly they must have one in place already for the copying machines. Does anyone know what it is?

  111. The tax is not for the artists by sensate_mass · · Score: 1
    How in the world would the gov't. find out who was downloading and distributing how many copies of which works? IOW, how do they determine how much each artist should get paid? If this question were ever raised as a policy question, it would generate endless lawsuits, debate and recrimination. Obviously, there is no intent whatever to give any significant piece of it to the artists.

    IANAGL (German), but, if the artists retain any right to their work which entitles them to royalties, a very strong case could be made that the tax is discriminatory and should be shelved. I don't think the corporations will be able to just blithely pocket the money and slither away.

    --
    --- Submission is feudal.
  112. How is the money distributed? by Amrik · · Score: 1

    How the f*** do they decide how money is split. If I once released copyrighted material will I get a cut of the proceeds? I suspect (as usual) it'll be the big corp's that get the money.

    1. Re:How is the money distributed? by -brazil- · · Score: 1

      If it works like the existing "tax" on blank media like vide cassettes and (some) CDRs, then the split will be done according to some complex comparison of popularity that will actually get some money even to small publishers, but of course most to the big ones (which do have all the really popular stuff, after all).

      --

      The illegal we do immediately. The unconstitutional takes a little longer.
      --Henry Kissinger

    2. Re:How is the money distributed? by fremsley · · Score: 1

      The money is distributed by the copyright holders'
      organisations (Verwertungsgesellschaften). Most
      artists in Germany are members of these. The shares
      are calculated from the sales, number of
      exhibitions/performances, and the like.

    3. Re:How is the money distributed? by Tet · · Score: 2
      the split will be done according to some complex comparison of popularity that will actually get some money even to small publishers

      Yes, but which ones? If you assume there's a total fund available to go to publishers, then you either:

      • Calculate the total value of copyrighted works, and split it proportionately, with each publisher getting their share.
      • Split the fund proportionately among those publishers that you know about.

      The first method will leave a large surplus, as you'll never be able to find all the small publishers to give them their fair share, so who gets the extra? The second method relies on some agency collecting a list of publishers, which is never going to be accurate, and again will miss out the smaller publishers. Sure, you could do it on a "publishers must apply for their share" basis, but for small pbulishers, the administrative overhead will probably dilute the value of their share to nothing. The whole concept sucks. Let publishers go after copyright violators themselves. There's no need for governments to get involved at all.

      --
      "The invisible and the non-existent look very much alike." -- Delos B. McKown
    4. Re:How is the money distributed? by -brazil- · · Score: 1

      Same difference. For small publishers, the effort needed to hunt down copyright violators is even more prohibitive than applying for their share.

      --

      The illegal we do immediately. The unconstitutional takes a little longer.
      --Henry Kissinger

  113. Re:Excellent News by stuntpope · · Score: 2
    They have sales taxes on booze and cigs and gasoline, and even regular every day food...This is extremely typical of a government who wishes to keep an industry afloat.

    This isn't analogous to this particular tax in this story. The taxes you mention have nothing to do, AFAIK, with "keeping an industry afloat". Do you think cigarette taxes go back to Philip Morris et al? Or your tax on every gallon of gas goes to petroleum companies, or to the auto makers? I don't see anything in this tax that indicates the revenue will be paying for govt services. If I buy a computer, I may never use it for any media purposes whatsoever..it might sit in my basement crunching numbers and never play a CD, movie, etc....but the lawmakers want me to pay extra for my computer so that money can go to movie and music execs.

    So, why don't Kodak, Agfa, Fuji etc get into this and get some tax monies from computers, after all, people are using computers to store and send copies of photographs and this cuts into photo film and processing revenues!

  114. Re:Excellent News by mattdm · · Score: 2
    Sure, fine for the publisher to try and make deals with the hardware manufacturers. But doesn't it strike you as a bit scary when they go to the government?

    --

  115. An interesting contrast by swb · · Score: 1

    Interesting. When the US government does something like this, there's OUTRAGE on this forum at the the US government, US businesses, US citizens, and general anti-American hysteria, regardless of the merits.

    Now that the Germans are thinking about something like this, where's the anti-German hysteria? Why should the Germans (or anyone else) get a pass on this behavior but the US is the enemy?

  116. Quid Pro Quo... we can make copies by cabalamat2 · · Score: 1

    This wouldn't be so be if, in return for this, people who've paid this tax on their machines were authorised to make copies of copyright material - after all, they've paid for doing so.

  117. Nothing extraordinary in that! by bbcat · · Score: 1

    Governments have been doing this in a large scale
    for years in different ways. In the USA we call
    this corporate welfare, in Canada the recipients
    are often called BS de luxe meaning rich welfare
    recipients.
    The taxpayers welcome this robbery of the tax
    money with open arms and actually support most
    of the moronic giveaway of moneys to big and
    small companies who are too cheap to spend their
    own money.
    Usually a company takes the grant and create a
    few jobs. Those jobs are termined shortly after
    the government imposed deadline expires. Often
    shortly before the grant there are massive layoffs.

    In times of recession the poor welfare recipients
    are cut off of their checks to be able to keep
    the checks flowing to the corporate welfare
    recipients. It is obvious that there are a lot
    of cheats and lazy assholes on the welfare rolls
    but it pales in comparision to the companies
    that uses taxpayers funds to get richer.
    Rarely are companies confronted with their
    cheating of the system but the government feels
    that it is better to punish an innocent welfare
    recipients and catch a cheat welfare recipients
    than going after where the real money is
    big time welfare cheats and corporate welfare
    abusers.

    1. Re:Nothing extraordinary in that! by Chris+Johnson · · Score: 2
      I wonder, if government went to a full-on libertarian practically-anarchist sort of approach- would the harms of obliterating social services be offset by the benefits of obliterating corporate welfare that penalises small business and forces small business people to pay taxes to their corporate competition?

      Or would they just shoot all the poor and sell the bodies to Procter+Gamble? :P

  118. Napster is STILL illegal - but it gets worse... by DreamingReal · · Score: 1
    Sec. 1008. Prohibition on certain infringement actions

    No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.

    This doesn't say anything about distribution of digital music recordings. Napster is a service that facilitates the distribution of digital music recordings, not the creation of them. As far as I can tell, this section would in no way protect Napster or Napster users.

    But this does open up a whole new can of worms. If I have the Fair Use rights for music, movies, etc that I legally purchase, why the hell am I paying a tax on a medium that I use for non-commercial, personal duplication???? And more importantly, why the hell is money going to the RIAA for the CDRs I purchased to back up my programs, pictures and email????

    This law is already out of date. There are so many more uses for CDR and CD-RW beyond music recording.

    And here's another thought - if DVD-Audio takes off in the next few years (guaranteed to have some form of CSS on it) will we still be lining the pockets of the RIAA for a medium that we cannot technically or legally copy music on to?


    -------

    --
    We want some answers and all that we get
    Some kind of shit about a terrorist threat

    - Ministry
    1. Re:Napster is STILL illegal - but it gets worse... by DreamingReal · · Score: 2
      No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.

      The highlighted sentence refers to the distribution of a device or medium - it says nothing about the recording. Read the definition section -

      (3) A ''digital audio recording device'' is any machine or device of a type commonly distributed to individuals for use by individuals, whether or not included with or as part of some other machine or device, the digital recording function of which is designed or marketed for the primary purpose of, and that is capable of, making a digital audio copied recording for private use, except for - (A) professional model products, and (B) dictation machines, answering machines, and other audio recording equipment that is designed and marketed primarily for the creation of sound recordings resulting from the fixation of nonmusical sounds.

      (4) (A) A ''digital audio recording medium'' is any material object in a form commonly distributed for use by individuals, that is primarily marketed or most commonly used by consumers for the purpose of making digital audio copied recordings by use of a digital audio recording device. (B) Such term does not include any material object - (i) that embodies a sound recording at the time it is first distributed by the importer or manufacturer; or (ii) that is primarily marketed and most commonly used by consumers either for the purpose of making copies of motion pictures or other audiovisual works or for the purpose of making copies of nonmusical literary works, including computer programs or data bases.

      These definitions refer to CD-Recorders, Hand-held MP3 players, and MP3 encoders as devices and CDRs, CD-RWs, DAT tape for mediums. I would say the MP3 codec would qualify as a medium. However...

      (1) A ''digital audio copied recording'' is a reproduction in a digital recording format of a digital musical recording, whether that reproduction is made directly from another digital musical recording or indirectly from a transmission.

      Once you record music onto the digital music medium it becomes a digital music recording. This is what the actual MP3 song files would fall under. The MP3 codec is the digital music medium that is "most commonly used by consumers for the purpose of making digital audio copied recordings by use of a digital audio recording device." Now re-read the section 1008 - You can distribute the CD Burners, MP3 encoders, and even the codec all you like. Do you see any mention of digital audio copied recording? I sure don't. Guess Napster is still illegal as far as this piece of legislation is concerned.

      Think before you post, maybe?

      I do. Maybe you should research the source material before you flame someone.


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      We want some answers and all that we get
      Some kind of shit about a terrorist threat

      - Ministry
    2. Re:Napster is STILL illegal - but it gets worse... by jms · · Score: 2

      As far as I can tell, this section would in no way protect Napster or Napster users.

      Ah, but Napster's users are making non-commercial recordings of music files, and making non-commercial recordings is protected by the AHRA.

      Since Napster's users are engaging in non-infringing activity, Napster cannot be contributing to copyright infringement, because there is no infringement!

      But this does open up a whole new can of worms. If I have the Fair Use rights for music, movies, etc that I legally purchase, why the hell am I paying a tax on a medium that I use for non-commercial, personal duplication?

      First off, this law only applies to copyrighted audio works, not movies.

      Secondly, the AHRA does not provide a fair-use defense. The AHRA provides something much, much stronger. It provides a statutory excemption from copyright infringement. This is very, very different. With Fair Use, the court is required to consider exactly how you are using the music, and decide whether it is fair or not. With Paragraph 1008, the only issue before the court is whether or not the consumer's use of Napster is non-commercial in nature. Not Napster itself, but the consumer's use of Napster.

      You ask a good question though. Why does this tax exist? Where the hell did it come from.

      The answer is that in 1992, the RIAA came to Congress in a state of panic. Digital Audio Tape was about to hit the market, and according to the RIAA, the entire recording industry was about to be destroyed! (sound familiar?) The RIAA wanted to destroy DAT, and they decided that they best way to do it would be to require SCMS (Serial Copy Management System) copy protection hardware on all DAT recorders. SCMS is basically a two-stage copy protect flag. It lets you make a copy of a DAT, but not a copy of that copy.

      While they were at it, the RIAA got Congress to toss in those mandatory royalty payments on blank media. Those few of us who were using DAT tapes for our own purposes -- taping our own bands, or taping Grateful Dead concerts -- were outraged. From now on, aspiring musicians who wanted to make professional quality recordings of their own songs would be required to pay an "RIAA tax" for the privilege of doing so. Hell, none of us ever noticed paragraph 1008. It never occurred to us what it meant and what the ramifications of it were. Turns out the American public received an incredible bargain, while the RIAA was busy writing what it considered as nothing more then a new law designed to kill DAT technology.

      Congress had noticed a problem ... if consumers were to henceforth pay royalties on blank digital audio media directly to the recording industry, to compensate for personal, non-commercial copying of music CDs, then Congress would have to fully legalize and protect the activity that it was now collecting royalties on.

      There are certain laws, such as excessive taxes on marijuana, that are designed to function as a punitive measure, but this tax is obviously not one of them. Congress was tired of the RIAA running to them in a panic whenever a new recording technology came out, and wanted to establish a law once and for all -- a law that would cover all existing and future technologies.

      Both Congress and the RIAA presented this law to the public as the "enabling legislation" that would break the legal logjam, and bring digital audio recording to the masses. Of course, once the law was passed, DAT faded into the background, and this law was mostly forgotten, except of course by the RIAA companies, who have quietly collected the royalties for eight years now.

      The only thing that has changed since the law was written and passed eight years ago, is that the internet has finally made it possible for consumers to realize the benefits of the AHRA, instead of just the RIAA benefiting from the AHRA, and boy is the RIAA mad about that.

      And more importantly, why the hell is money going to the RIAA for the CDRs I purchased to back up my programs, pictures and email?

      The royalties are only collected on media that are branded for audio use. Most CDRs are branded for data storage, so they are not subject to the royalty requirements. Ironically, DAT tapes and DDS cartridges are identical; except that DDS cartridges are of slightly higher quality and cost a little less, so even DAT users can easily avoid paying the "RIAA tax" on their media if they so choose, or if, as is more commonly the case, they are simply unable to find DAT blanks because the RIAA has so successfully buried the medium in the semi-professional market.

      This law is already out of date. There are so many more uses for CDR and CD-RW beyond music recording.

      But the law only applies to recorders and media that are branded as audio recording devices and media. If you want to store video files on CDRs, simply purchase data CDRs, and you won't pay the RIAA royalty. If you are feeling guilty about downloading from Napster, then store your MP3s on audio branded media, and the RIAA companies will receive a royalty payment.

      Your ethics, your choice.

    3. Re:Napster is STILL illegal - but it gets worse... by jms · · Score: 2

      Do you see any mention of digital audio copied recording? I sure don't.

      It's there.

      No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.

      The Court of Appeals that reversed the Napster injunction decided that "such a device or medium" includes any device that can hold music recordings, not just the small subset of devices and media branded and intended specifically for recording music that are subject to the AHRA's SCMS and royalty requirements, and specifically, that hard drives are just as protected as audio CDRs.

    4. Re:Napster is STILL illegal - but it gets worse... by CoreyG · · Score: 1
      3) A "digital audio recording device" is any machine or device of a type commonly distributed to individuals for use by individuals, whether or not included with or as part of some other machine or device, the digital recording function of which is designed or marketed for the primary purpose of, and that is capable of, making a digital audio copied recording for private use...
      Napster is a device commonly distributed to individuals for use by individuals, which is designed for the primary purpose of making digital audio copied recordings for private use.
      (1) A "digital audio copied recording" is a reproduction in a digital recording format of a digital musical recording, whether that reproduction is made directly from another digital musical recording or indirectly from a transmission.
      Sounds like a dead-on match to watch Napster does. Napster makes the reproduction of another digital musical recording, either directly or indirectly, regardless of your interpretation of direct and indirect.
      Once you record music onto the digital music medium it becomes a digital music recording. This is what the actual MP3 song files would fall under.
      The Mp3 is the digital music recording, Napster is the device that makes the digital music copied recording for private use. Seems like Napster is hardly illegal now, doesn't it?
    5. Re:Napster is STILL illegal - but it gets worse... by jjeffries · · Score: 1

      Obvious question, but... has anyone come up with a way to "bless" a data CD-R with a 'puter so that it works in an audio CD-R burner? Or have I already missed that particular lawsuit?

  119. Bad idea by Anonymous Coward · · Score: 1

    This can only mean bad news for Germany if this goes through. Corporations there will simply pack up and leave because of this. The citizens will no doubt buy their media and peripherals from outside the country where the tax is not in effect. Doesn't the government see this??

    1. Re:Bad idea by SpacePunk · · Score: 1

      If they bought it outside the country, then tried to bring it in, the tax would be assessed at the border. I presume that Canada does this with CDr's.

  120. Perform this mental experiment by gelfling · · Score: 2

    Imagine for a sec that the price of CD's is US$15,000 and the tax on all electronic equipement is 3000% - 'to compensate the artists, you understand'.

    Is that world one in which artists are all incredibly wealthy captains of art? Are the record companies merely low margin distributors scraping along on whatever they can skim?

    I don't think so.

    You see record and media companies specifically push the risk of content development to the artist in the form of "recoup". That is where they advance or loan an amount to the artist to produce his/her own CD, Video, whatever. Think of it like a book advance except the price of typing paper is $40/sheet. All of that "recoup" is advanced against all of the money that eventually comes back to the artist. How much is that you say?

    In the recording industry at least, 5% is considered generous, 3% is more average. That's 3% of what the record company gets back from sales less their overhead which includes marketing, distribution, coop advertising, etc. taxes, etc.

    Assume for the purposes of this mental experiment that this figure is 25%.

    Now retailers buy units recover their costs out of sales. Let's be generous to the retailer and guess that the markup is 50%. So the record company gets 8 bucks a pop.
    8.00x0.75x0.03 or.....

    18 cents a unit from which the "recoup" is recouped. So lets figure its a monster hit CD and sells 1 million copies. That translates into $180,000 from which the artist now has to give back the production costs of the CD itself as well as the video and a portion of the production costs for a related promo tour.

    Let's use round numbers and say that the CD costs 50,000 to develop and the video another 50,000.

    That leaves $80,000. Deduct say a quarter of the cost of a promo mini tour; make this about $25,000. That leaves our artist with $55,000.

    Do the math. The net profit margin before taxes to the artist is 55,000/16,000,000 is

    0.0034375 or roughly 0.34% that is zeropointthreefourpercent.

    Are we starting to see the light????????

    Record companies are designed to pay nothing to anyone. What is the point here? I'll tell you. Napster is not the problem. The distribution mechanism is not the problem. Changing the distribution mechanism which is really all that Napster is, is not the problem. Cutting the retail cost to effectively ZERO would not materially change the economics to the artist. The problem is how record companies treat artists which is the closest thing to indentured servitude we have.

    Do the math people. Do the math.

  121. That was against the British by Hairy_Potter · · Score: 3

    I'd start tossing things out if I was forced to pay taxes to corporations. Didn't something like this happen in the 1700's?

    Yeah, yeah, there was the American Revolution in the 1770's which freed America, but that was against the British, they only had to learn the lesson once, one war, and they were gone.

    The Germans have to be reminded every few decades, or they get upppity again.

    1. Re:That was against the British by Actinophrys · · Score: 1

      At the time, the British had no problem with boarding the vessels of other soverign nations and pulling off whoever they felt like on the grounds that they *might* be deserters.

      But that was far more a pretense than a cause. As I said, it was hardly the mideastern states (the ones who actually were involved in shipping) that were pro-war, and the British had actually announced they would drop the boarding policy before the war started. The main reason for the war was manifest destiny.

      And as for the British being "stupid enough" to get involved on the continent again...who do you think owned Canada? The British were coming to defend one of their colonies, and were completely succesful. It was the later counter-attack that failed.

      And, finally, the Americans didn't accomplish anything with the war of 1812. The ending of the boarding policy had already been offered, and the whole matter had more to do with the rise and fall of Napoleon then it did with the sideshow war in North America.

      Calling this war an American defense is ridiculous. I wouldn't even call the war an American victory - Britain, after all, succesfully repelled the American attack, and only failed to reduce the enemy territory.

    2. Re:That was against the British by Psi-kick+Guy · · Score: 1

      The British were coming to defend one of their colonies, and were completely succesful. It was the later counter-attack that failed.

      Well, if you can call burning down the Presidential Palace (White House) "failure" :o)

    3. Re:That was against the British by sips · · Score: 1

      The Germans have to be reminded every few decades, or they get upppity again.

      That's pretty unsubstantive. I think that anyone from Germany would disagree with you.

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      Respond to s
    4. Re:That was against the British by MatchesMalone · · Score: 1

      Actually it wasn't one war. There was the War of 1812 in which the United States defended its newly earned freedoms.

    5. Re:That was against the British by Actinophrys · · Score: 2

      The war of 1812 is hardly a defense of American freedoms, since they were the aggressors. The pretense was the continental policy, but since the main shipping states were actually against the war, it's clear enough they were looking for territory.

      America attacked, and got repelled. Then Britain attacked, but retreated after its navy was defeated. A peace treaty was signed, and then the battle of New Orleans happened.

      Great defense!

  122. Because they control various aspects of telecomm by sips · · Score: 1

    Principally I don't care too terribly about music and the like. I think that the best aspects of life are found in books and make more of an impact.

    To put it into perspective I really don't care for example that DeBeers has a monopoly on worldwide diamond distribution because I don't like or need jewerly.

    However the internet is very important and so is television to a number of degrees. Therefore some monopolies are more harmful than others.

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    Respond to s
  123. Hmmmm... by sulli · · Score: 2
    (ii) that is primarily marketed and most commonly used by consumers either for the purpose of making copies of motion pictures or other audiovisual works or for the purpose of making copies of nonmusical literary works, including computer programs or data bases.

    Sounds like this excludes something that makes copies of computer programs, like a high-speed cd duplicator, but not a PC as that is not its primary purpose.

    sulli

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    sulli
    RTFJ.
    1. Re:Hmmmm... by Wah · · Score: 1

      true, i wasn't reading it like that.

      hmm, that's an interesting question though, What is the primary purpose of a PC (after pr0n)?
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  124. Re:Eliott Carver is not dead by Mignon · · Score: 2
    I am told that Germany is the major non-US market for Hollywood.

    And as Norm MacDonald once pointed out on Saturday Night Live's "news" segment, Germans love David Hasselhoff - and what could be more Hollywood than his Bay Watch?

  125. Oops! by DreamingReal · · Score: 1
    Yup - I completely missed the word "live" before musical recording. Okay, strike that argument. But here's another question -

    Does noncommercial use entail distribution on a scale possible by Napster? Also, Napster is a business - how does that commercial "service" figure into noncommercial use by the consumer. I have the right to download music off of someone else's computer (apparently) but what is the legality of Napster providing a commercial service to facilitate this? Perhaps, under this title, file-swapping using Freenet or Gnutella is legal but Napster is not?

    I suppose that's the key wording anyways - "under this title". Assuming the RIAA doesn't allege infringement under title 17, this won't hold any bearing.


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    We want some answers and all that we get
    Some kind of shit about a terrorist threat

    - Ministry
    1. Re:Oops! by jms · · Score: 2

      Does noncommercial use entail distribution on a scale possible by Napster? Also, Napster is a business - how does that commercial "service" figure into noncommercial use by the consumer.

      There's plenty of businesses that exist for the sole purpose of helping you to exercise your rights.

      Xerox manufactures photocopy machines. Millions of people use them daily to copy pages out of copyrighted works for legitimate fair-use purposes, and probably lots of people use them to make infringing copies of things. Sony manufactures VCRs. Millions of people use them daily to make millions of copies of the Oprah show, so they can watch it later (legitimate time-shifting fair use), and probably lots of people use them to, for instance, rent a movie and make a copy for themselves (infringing). Napster runs an indexing service. Millions of people use Napster daily to make copies of songs.

      The main difference between Napster and copy machines and VCRs is that only with Napster is it actually possible to see the sum total of what is going on. If, somehow, there were a billboard in Times square that did nothing but show a running list of all the magazine articles that were being photocopied by all the copy machines in the world, or a running list of all the video programs being videotaped by all VCR users in the world, it would be jaw-dropping. The display would be moving so fast it would be a blur. It would make Napster look like nothing.

      what is the legality of Napster providing a commercial service to facilitate this?

      What is the legality of a service that facilitates legal activity? Honestly, I can't think of an example where an activity is legal, but facilitating that activity is illegal ... possibly distributing marijuana to cancer patients in California, but that situation is in a complete state of flux, under current litigation, so that's not really a good example.

      I suppose that's the key wording anyways - "under this title". Assuming the RIAA doesn't allege infringement under title 17, this won't hold any bearing.

      But all copyright law is under Title 17. If the RIAA isn't suing under copyright law, what law can they possibly sue under?

    2. Re:Oops! by DreamingReal · · Score: 1
      But all copyright law is under Title 17. If the RIAA isn't suing under copyright law, what law can they possibly sue under?

      As I was reading through all of the Title I began to wonder if this really was the sum of copyright law. I've tried to play Devil's advocate as best as I could b/c it just didn't seem right that Napster, MP3.com, etc. are being sued under that law when it really doesn't forbid what Napster does and in general is silent on the issue.


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      We want some answers and all that we get
      Some kind of shit about a terrorist threat

      - Ministry
  126. Isn't this already something common? by bay · · Score: 2
    At least the whole cd-burner type concept, in the sense that I seem to recall somewhere that for every blank cd manufactured (i dont recall if magnetic tapes are included) a fee must be paid to the RIAA/MPAA (or one of those acronyms people cringe at) seeing that the product essentially could be used for "copying" something that they own? I think I'm recalling this from a conversation about the difference between blank cd's for "audio only" and regular blank "computer" cds. Granted, I can't recall the outcome of the conversation anymore, but maybe some of you know the answer..

    --
    Go not to the elves for counsel, for they will say both yes and no. -- J.R.R. Tolkien
    1. Re:Isn't this already something common? by crazyc · · Score: 1

      In the US, the special audio CD blanks are taxed, thats why they are more expensive then regular blanks. In Canada, they both are taxed.

  127. So basically.... by JordoCrouse · · Score: 2

    What we're trying to say here is that the government is acting as a central clearinghouse for collecting royalties that would be otherwise be paid directly to the corporation?

    If I was a manufaturer, I think it would be easier to cut one check to the government than having to pay a multitude of different corporations individually. I mean, lets face it, the government is more efficent at collecting money than any corporation you can name.

    But thats only if the royalties in question would be collected anyway. If the government is inventing new "royalties" (or taxes if you prefer), and then giving them to the corporations, thats bullshit.

    But part of playing the game with M$ or Sony or whatever is royalties. If I was in a position that I would have to pay, I would rather use a efficent and centeralized entity to pay them.

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    Do you have Linux and a DotPal? Click here now!
    1. Re:So basically.... by Mr_Ceebs · · Score: 1

      lets face it, the government is more efficent at collecting money than any corporation you can name.

      First time I've seen Government efficiency held up as an example in these forums

    2. Re:So basically.... by Helge+Hafting · · Score: 1
      lets face it, the government is more efficent at collecting money than any corporation you can name.

      They seem efficient because they collect a lot without spending much. Thats not efficiency, it is the fact that they can collect like that. A corporation must manufacture some popular product in order to collect, a government don't have to.

  128. 'taxes' by SpacePunk · · Score: 1

    I dunno about German, but I have the understanding that the government cannot collect a so-called 'tax' with the intent of giving it to a corporation as a royalty payment or some such.

  129. Heh heh heh. by Black+Parrot · · Score: 1

    > Has anyone considered what an extraordinary situation it is where government tax collectors are collecting taxes which are funneled straight to corporations?

    <AynRand>Cut out the middle man!<AynRand>
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    Sheesh, evil *and* a jerk. -- Jade
    1. Re:Heh heh heh. by Black+Parrot · · Score: 1

      > You forgot to close your <AynRand> tags

      Eeek! Looks like everything I've said since has been <AynRand>. Better close out now:</AynRand></AynRand></AynRand>
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      Sheesh, evil *and* a jerk. -- Jade
  130. Germany's Taxes by kruczkowski · · Score: 1

    For all of you that never lived in Germany, Germans pay a 50% tax, and you have extra taxes like TV, 16% VAT tax. But on the other side, Germans don't pay for medical, dental. Even people that work at McDonalds get full benefits. And did you know that Germans pay $5 per gallon of gas???

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    hmm... for fun I enjoy launching DDoS attacks against 127.87.42.5
  131. misrepresentation of libertarianism by paulydavis · · Score: 1

    Regulations are how they gain control. You know before you make such a statement as know your history. Well...You should know your history. Governments tax corporations for other corporations thus helping corporations to gain market share...Man look at Europe. By the way, you are not paying a tax the corporation is and its being passed to you like all regulation that causes expenses is passed to you. I am not an Ayn Randian but she makes a good point in her book "Capitalism the unknown ideal" , that the problem is we have never tried it.(capitalism that is) Your Socialist solutions are the problem.

  132. Flat tax vs. simplified tax by spitzak · · Score: 2
    For some reason "flat tax" seems to mean two things that imho are totally unrelated.

    First it means "simplified tax" where your "income" (or whatever is taxed) is a "simple" calculation, for instance it is how much money you were paid this year and there are no deductions.

    Second it means "flat" in that the formula for figuring out how to convert this "income" to "tax" is to multiply it by a constant.

    What I can't figure out is why everybody seems convinced that it is impossible to seperate these two ideas. Why can't the calculation of "income" be simplified, but you still use a tax table (and thus progressive) tax? (conversely, why can't you flat-rate a very complex income calculation like we have currently, a scheme big business would love...)

    Without simplification, flat taxes are not going to do anything. Coorporations are actually taxed at a very high percentage, the reason they don't pay much is that they are able to deduct almost everything before this percentage is calculated.

  133. Yeah, I noticed that - by DreamingReal · · Score: 1
    Yeah - I noticed that after I made my post and someone pointed it out to me as well. Section 11 deals with recordings of live performances, digitally or otherwise. It wasn't really relevant to the discussion at hand...

    <blush>... and after I got done blasting that guy about checking your facts before you post.</blush> Ugh.


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    We want some answers and all that we get
    Some kind of shit about a terrorist threat

    - Ministry
  134. What does a corporation have a right to? by lalas · · Score: 1
    Shouldn't corporation's be forced to play in a free market? Why do artificial barriers have to be put in place to protect a given business model. If a device comes along that pushes a business model into obsolecence, why can't we just let it be?

    I don't believe that governments put a tax on refridgerators in order to subsidize ice-sellers. There comes a point when every industry will no longer be as important and/or as powerful as it once was. Governments may not be in place to force companies to act in the consumers' best interest, but it shouldn't be actively making it easier to deliver less product for more money.

    1. Re:What does a corporation have a right to? by dbloodnok · · Score: 1
      Shouldn't corporation's be forced to play in a free market? Why do artificial barriers have to be put in place to protect a given business model. If a device comes along that pushes a business model into obsolecence, why can't we just let it be?

      The "free market" does not apply to the US. It is a term used by the US in order to lower trade barriers for US companies overseas. The truth is that while the USA is the strongest advocate of the free market, their industry remains one of the most protected in the world.

      Bad, bad reader, no sig for you

  135. Re:I write code. Where do I get the payback from t by Psi-kick+Guy · · Score: 1

    Could I claim "but your Honor, I already paid for this when I bought the media"?

    Depends on the trial method..

    I'm guessing a judge alone would convict you.

    A jury trial (this is criminal law, right?) might go a little differently... if your lawyer was good enough, I'm sure he could convince a jury to aquit you..

    I'm personally waiting for this to happen here in Canada, where a "tax" on blank audio CD & tape media already exists.

  136. Another score for big corps. by evilphish · · Score: 1

    How much longer until the government is not longer controled by the people in general, but by big corporations. Even though this is in germany how long before the RIAA talks the US government into taxing all of our computer equipment to pay for royalties. Granted I have downloaded music off of napster, dubbed vhs tapes and the like. but why should everybody be taxed because of the actions of a few? it makes no sense to me.
    _____________________________________________ ___________

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    who sez death can't be funny....www.endlesssorrow.com
    1. Re:Another score for big corps. by Stalcair · · Score: 1
      Well, it isn't just the EVIL corporations... pretty much any time you have a group of lazy but greedy idiots together, something like this happens. This already has happened on many levels here, but most of the morons inside the beltway usually follow suit soon after some other country pulls this crap.

      This is yet another example why welfare... whether personal(social), corporate, or foreign, is bad.

      And as someone pointed out above, does anyone, including the German policy makers, actually believe any royalties are going to make it to the majority of artists.... maybe some of the artists that are the corporate bitches, but not any musicians that like their independence and dignity.

      Imagine asking a question about this to ol' George W.... most likely you would not get an answer. However, we could always depend on our ol' buddy ALGORE! He would give you every POSSIBLE answer. The more contradictory the better, even saying he will "fight" for things in ways that are mutually exclusive.

      of course, the sad part is the sheer number of stupid gullible fools that will believe him. By the way, to any algore supportersj, I just happen to have some spare titles to the Golden Gate bridge, good forest land on Mars, and the Lincoln Bedroom... all for real cheap :)

      I bet if algore promised a group of trekkies that he not only would build a fleet of starships, but he had already put the finished touches on a FTL propulsion system, the nation would believe it.

      "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." - Albert Einstein

      Be guided buy your heart, but THINK with your BRAIN!

      Vote Harry Browne for President

      --

      I seek not only to follow in the footsteps of the men of old, I seek the things they sought.

  137. Re:Eliott Carver is not dead by Hanno · · Score: 2

    We don't like Hasselhoff. But we *love* Yanni.

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  138. Tax 'em all, let God sort 'em out by Booker · · Score: 2
    What is it with copyright holders thinking that they have a right to tax/suppress anything and everything that might possibly infringe on their copyrights, or potentially cause them to lose profits? Banks don't tax car companies, even though everyone knows about the "getaway car." Emergency rooms don't tax knife and gun makers.

    And yes, it's absurd to call it a "tax" when it goes straight to a corporation. They get enough government money already. (See sig!)

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  139. Re:Why bang on Bertelsmann??? by Hanno · · Score: 1

    Is he hiding? I don't think so. He doesn't flame or troll.

    If you don't like Anonymous Cowards, you certainly have the power to disable this feature, right?

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  140. Eliott Carver is not dead by mirko · · Score: 2

    Do you remember Tomorrow never dies ?
    A big multimedia company settled in Germany and which could easily force governments to do what they wanted ?
    Here they are: playing once again the game of picking up money in the name of the artists and just about to keep these billions.
    I think this would have more weight and credibility if the artists could just ask themselves whatever they want to he public.
    --

    --
    Trolling using another account since 2005.
  141. collecting taxes by romco · · Score: 1

    "Has anyone considered what an extraordinary situation it is where government tax collectors are collecting taxes which are funneled
    straight to corporations?"

    Happens all the time
    $500 hammer anyone?

    --
    AdFuel
    1. Re:collecting taxes by Juln · · Score: 1

      This is just a little more overt.

      --
      Juln
  142. NO! by AccUser · · Score: 1

    This is so wrong, it is stupid. And I ask: how much of this 'tax' will actually make it to the authors/artists/song writers/etc?

    --

    Any fool can talk, but it takes a wise man to listen.

  143. Re:Corporate Republic is a Natural Evolution by Greyfox · · Score: 2

    Well the companies in question are into squeezing every penny out of the consumers. While they no doubt enjoy collecting royalty fees on blank media (Which is, I have to admit, the most beautiful scam I've come across in a long, long time) no doubt they will continue to create new things, if only to release them in an encrypted format that it's illegal to break so that they can force their happy pay-per-view vision of the world on the consumer. And you know that even when all their new releases are encrypted from disk to speakers that they'll still collect royalties on blank media.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  144. Re:Germans are spoiled children by Foul+Smelling+Pig · · Score: 1

    Why not drop a crate or two when the plane's flying over Holland? I'm sure we'd make good use of those babies. Maybe we should just put a biiiiig fence around Germany to prevent them from running away...

  145. Re:Sadly, Not Uncommon by 10Brett-T · · Score: 1

    Unfortunately, these types of people are the last to want to get into the sewers of politics.

    I dunno... I've seen a lot of celebrities embracing political causes, and I seem to remember a particular actor ending up in the White House... but I guess most of them never actually get around to running for office.

    --
    10Brett-T

    --
    10Brett-T
    Oh, bother.
  146. you are confused about the law by jetson123 · · Score: 2
    The deal underlying this kind of legislation is that consumers are legally permitted to make copies for non-commercial use. That's the deal in Germany, and that's the deal in the US (where similar taxes exist on digital media like CD-R's).

    So, unless you copy for commercial purposes, it isn't "warez" and it isn't "without permission". You have permission. Go and copy to your heart's content. As I understand the law, you can even give copies to all your friends, as long as you don't charge for it.

  147. Rescind these taxes by Yardley · · Score: 2

    I am disgusted by arbitrary taxes on any consumer electronics devices, and now, it seems, computer devices.

    From where does the United States government derive the right to tax on behalf of Sony?

    Is this why the Philips CD-R stereo component costs about $200 more than a similar computer CD-R drive?

    --

    --

    --
    He lives in a world where those who do not run the client software of the omnipresent meme are unacceptable.
  148. Corporate Republic is a Natural Evolution by Greyfox · · Score: 2
    They're going to have to change Civ:CTP to reflect that...

    If you're paying royalities on every device and all media you buy, I'd think that'd pretty much make it open season on content. You already paid the company for it, so why not copy to your heart's content?

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  149. International effects by (trb001) · · Score: 1
    How does this affect International trade? I mean, I know you have to pay import/export taxes and such, but wouldn't this make things even more bizarre?

    Imagine this: a company sells a product in only one country becase they get a higher kickback, and people buy it and have to pay import taxes to bring it back to their home. Or perhaps I'm missing the point here...

  150. OFFTOPIC? MODERATE! by mholve · · Score: 1

    WTF? This is about BERTELSMANN... You know, the TOPIC of this entire discussion!

  151. Re:Similar calls here in UK by adamsc · · Score: 2
    Assuming you only buy CD-R media with the tax. In practice, this would simply be a huge gift for mail order / ecommerce types and I imagine the French businessmen would love this. In the US, the high taxes on cigarettes are becoming a joke because the various indian tribes are making a fortune because they can sell them tax free.

    Of course, since most pirating is done in Asia (some operations have large factories and crank out bootlegs in 10,000-100,000 unit quantities daily) I think the only real effect would be a kick in the nads to legal businesses when the recordable media market slows.

  152. How does an Artist get compensated? by stopbits · · Score: 1
    Ok, Let's say for the sake of arguement that I am Courtney Love. How do I get any money from this based on people using my work? How can they tell who out there is copying my work? This sounds like it has nothing to do with the artist and is just about lining the pockets of the content industries.

    Really, now that any 12 year old with a computer can copy and distribute content all over the world, these corporations are justs trying to make money off of nothing.

  153. Hmmm... by BJH · · Score: 1

    My current list of boycotted organizations:

    Amazon.com (Stupid patents)
    RIAA (Stupid executives)
    MPAA (Stupid movies)
    Microsoft (Stupid software)

    This just added:

    Germany (Stupid laws)

    If we keep on going on like this, soon I'll have to lock myself in my house and keep my eyes shut...


  154. It's not that uncommon... by TopShelf · · Score: 3
    Has anyone considered what an extraordinary situation it is where government tax collectors are collecting taxes which are funneled straight to corporations?

    The government often does something like this, in order to compensate the "losers" during a time of drastic change in the economy. The hard part is making sure that the level of compensation is appropriate, and that small-scale victims (independent book publishers, for example) are treated fairly alongside the mega-corporations who are able to pay a lobbyist to keep within arm's length of legislators at all times.

    If done correctly, this could actually help the publishing firms move their business in a new direction, by encouraging (financially) their participation in the New Economy.

    --
    Stop by my site where I write about ERP systems & more
    1. Re:It's not that uncommon... by Kaa · · Score: 3

      f done correctly, this could actually help the publishing firms move their business in a new direction, by encouraging (financially) their participation in the New Economy.

      You mean the desire to survive is not enough? They have to be financially encouraged to do something for their own benefit??

      [shakes his head in disgust...]

      I say dinosaurs should go the way of dinosaurs. No need to set up a government system which will catch small furry mammals and feed them to the dinosaurs so that they be "encouraged" to adapt to life.

      Kaa

      --

      Kaa
      Kaa's Law: In any sufficiently large group of people most are idiots.
  155. It just never stops by MadAhab · · Score: 1
    The government often does something like this, in order to compensate the "losers" during a time of drastic change in the economy. The hard part is making sure that the level of compensation is appropriate, and that small-scale victims (independent book publishers, for example) are treated fairly alongside the mega-corporations who are able to pay a lobbyist to keep within arm's length of legislators at all times.
    There are two major problems with this:
    1. Small-time artists don't get compensated. Proving who should get what would be nearly impossible, so instead, this becomes a royal entitlement paid to corporations instead of dukes.
    2. The fee never goes away once it has been established. Nearly every American can think of a toll bridge or highway, where the toll revenues were meant to pay for the cost of construction; and we all know that this tax never, never, ever goes away when its alleged justification disappears.
    So say what you like, but any so-called tax that goes to the pockets of a corporation is no different than the random entitlements given to powerful friends of the monarchy; only now, the nobility is called a "Corporation." When you look behind the smokescreen of fake market cheerleading, you will see that some of it is actual capitalism, but much is no more than a sign that we still haven't crawled out of the dark ages. So it's the RIAA instead of the Duke of Stickypants; go on bleat "Capitalism" like a dying goat: you're still just a peasant as long as these kind of so-called taxes exist.

    Boss of nothin. Big deal.
    Son, go get daddy's hard plastic eyes.
    --
    Expanding a vast wasteland since 1996.
    1. Re:It just never stops by grahamm · · Score: 1

      Or like UK income tax. The legislation to enable this was originally only passed by parliament on the strict understanding that it was a temporary measure to pay for the Napoleonic war.

  156. Re:Germans are spoiled children by -brazil- · · Score: 1

    You do realize that this kind of stupid racism makes you more similar to Adolf Hitler than the average German today?

    --

    The illegal we do immediately. The unconstitutional takes a little longer.
    --Henry Kissinger

  157. Re:Ah yes, it all makes sense by VAXman · · Score: 1

    You are incorrect. Herbert von Karajan was worth 1/2 billion Deustchmarks when he died. Paul McCartney is worth at least as much. Master P is one of the richest people in the world under age 40. And those are the very richest, very biggest stars. Many, many, many other musicians have more modest wealth (millions or tens of millions instead of hundreds of millions). If record companies are stealing away artists money, how did these musicians become extremely wealthy? Do they rob banks when they're not recording?

  158. Roads are a perfect example... by TopShelf · · Score: 2
    You answered your own question with that post. Roads are a perfect example of a market failure (underdevelopment of public goods) that can be corrected via government action. Under a purely market-driven system, no single entity would find it worthwhile to build the road system that we have in place today - you need a government, representing the public interest to make that happen.

    Quick answers to your questions would be 1) It looks like Napster is pretty much getting snuffed (similar apps that survive will do so for now as an underground activity), and 2) it's the force of the market that compels these companies to put the clamps on something like Napster (if they don't squash it, they won't be able to charge $20 CD's anymore). In a controlled economy, innovation from the outside is by definition not present.

    --
    Stop by my site where I write about ERP systems & more
  159. Canada has something similar by billcopc · · Score: 1

    Any canadian who's been hiding in their basement for the past 2 years will remember the panic when we first heard of the "blank cd-rom levy" and how it was going to triple the retail prices on all cdr media, but once it had gone through all the legislative bullshit procedures it ended up being so minuscule we hardly noticed a change. That's right, they charge 3.2 cents per cd. Wo-fricking-hoo. At first people were yelling nonsense like 4.00$ per blank cd (which cost about 1.75$ back then). Seen it, heard it, still don't give a fnarg about it.

    --
    -Billco, Fnarg.com
  160. Join the club..... by RallyDriver · · Score: 1

    Well, I have 12 years driving history and a motorsport ASN licence as well as road licence from the UK, but here in Texas I pay the same high rate as you due to lack of having held a US licence for long. The double joke is that not only am I an experienced driver, the standards for the previous driving licences I hold are much, much higher than the joke of a test put forth by the Texas DPS.

    Also, drinking and driving is still considered to be "cool" here, while in Europe drunk drivers are as ostracised as smokers are in the USA.

    The biggest causes of accidents in Texas? Drunk driving and incompetence.

  161. Headline should have been.... by GlitchZ · · Score: 1

    Extortion now legal in Germany!

    In fact I guess the gov't is sponsoring the program check it out!

  162. Re:The problem with a "progressive" tax. by Steve+B · · Score: 2
    Take Bill Gates for example, he siphons the labor of thousands of students educated in state-run colleges and institutions. These students pay tuition, but a vast number of them get subsidies from the govt to attend school.

    Since the average American is not as rich as Bill Gates, a flat tax leaves a disproportionate responcibility on the bottom 99.9%. Yet, Bill Gates undeniably reaps a huge personal benefit from public education. In fact he reaps a much larger benefit that I do.

    I hope we can all agree that public Universities are a good thing (an educated population is an effective population). So Bill Gates recieves (other that the warm fuzzies I get about higher education) a larger chunk of that pie than I do, yet under a flat tax, we pay the same.

    This argument implies that somebody who gets lucky in Vegas and blows the money on wine, women, and song should not be taxed at a particularly high rate, since he is not tapping any particular governmental infrastructure.

    The fallacy, obviously, is that Bill Gates has already paid for the benefit of those highly-educated employees, unless he has somehow managed to find people smart enough to write Windows 2000 [pause until laughter dies down] and dumb enough to accept the same pay as uneducated burger-flippers.

    Fees charged for services rendered. That should be pretty straitforward right?

    That turns out to be one of the two main arguments in favor of a flat tax, when spurious arguments about what constitutes "services" (see above) are stripped away. The other is as follows:

    The fundamental flaw of a graduated "progressive" tax is that it lends itself to one of the oldest political scams -- he who robs Peter to pay Paul will have the support of Paul. A graduated tax system combined with equal votes makes it too easy for the politicians to set up a bread-and-circuses system under which a minority of Peters support a majority of Pauls.
    /.

    --
    /. If the government wants us to respect the law, it should set a better example.
  163. Pretty bad... by Wellspring · · Score: 2

    Well, that's what you get when you start trying to compensate people based on who seems more 'deserving'.

    I hope someday to be popular and charismatic enough to merit having money forcibly rerouted to me by the government. ;)

  164. Copying is indeed legal over here by Markus+Peter · · Score: 2

    Many people here suggested that if they pay the tax, then they legalized their copies, and consider that as some sort of joke.

    Well, actually, it's that way already. Copying music and movies for private use is legal in Germany (as far as I remember it's also that way in the US), and those taxes are intended to repay the missing income to the authors (wether the _authors_ will ever receive them is another question...). The illegal thing is to publicly make other IP available (e.g. on a website) while it'd be legal if you e.g. emailed MP3s just to your friends over here.

    That does not mean, though, that I'm supportive of this system, especially as in its incarnation over here it has some nice side effects: If you e.g. publish a proper CD of your own music and later on want to offer the same as MP3s on your homepage you actually have to pay GEMA (that's the organization collecting most of these "taxes") fees for publicly offering your own music for copying ;-)

    1. Re:Copying is indeed legal over here by fremsley · · Score: 1

      You don't have to pay the GEMA for publishing your
      own material (except for the fee on the media).

  165. It sounds like the money will go to the authors, y by msnomer · · Score: 1

    > Has anyone considered what an extraordinary situation it > is where government tax collectors are collecting taxes > which are funneled straight to corporations? Actually, the article says "The levies are paid by manufacturers to firms that specialize in collecting royalties on so-called ``intellectual property.'' They then pass these fees on to clients such as authors, music, film or software companies." Assuming this is accurate, I don't think it's fair to characterize it as money going straight to corporations. I'm not advocating this plan as the way to ameliorate Intellectual Property theft, mind you, or whatever less loaded phrase could be used to describe writers' and artists' work. Having to pay a theft tax even though one hasn't stolen others work doesn't seem to be right. Perhaps in this digital age, there isn't a solution, but writers, artists, and other authors do have a right to be paid for their work and to not have it stolen.

    --
    --meredith
    Sometimes a scream is better than a thesis
  166. Authors? Yeah right by Juln · · Score: 1

    Ity would be a tremendous fallacy to think that the RIAA is really concerned in the SLIGHTEST about 'the artist'. We know from how record companies treat bands that they really don't give the slightest fuck about anything but MONEY MONEY MONEY for THEM, THEM, THEM! I doubt if this tax will be very distributed among the 'artists'.

    (that aside... yeah, you should get paid, of course. this just isn't the way)

    --
    Juln
  167. Suggestion for an new royalty rule... by RallyDriver · · Score: 1

    Nearly all blank media is used for pirating music, so we have the blank media tax (and pragmatically, how many CompUSA customers have the 65Gb of non-copyrighted data that merits a 100 spindle for $29.99+tax?

    Nearly all home PC's have a pirated copy of Microsoft Office. So, why not add a $499 royalty tax to new PC's and pay it straight to Microsoft?

  168. Doesnt suprise me.... by Anonymous Coward · · Score: 1

    Um, if hasn't noticed the world is run by big business not governments. I am not surprised at all I expect to see this trend for the rest of life. Good bye Democracy, hello "New World Order".

  169. Yeah I can see it now by sips · · Score: 1

    Policeman: Ummm sir I'm writing you a ticket for not wearing puffy pants. That's $4,000 payable in cash.

    All they have to do is just start doing thing like the above and suddently you have no more tax problem. It's just another name for the same thing.

    --
    Respond to s
  170. Re:Excellent News by Reggyt · · Score: 1

    You have a perspective that not many of us have. But do you still feel a little pride that whatever it is that you have published has been *blagged* and published elsewhere.

    I know it doesn't make you a richer person in monetary terms, but surely in your own mind you can build great mounds of inner peace and tranquility because people have taken the time to read and be impressed by your work. Impressed enough to make illegal copies.

    I wish I had the ability/motivation/imagination to create something worthy of publishing. I feel that I will never know the feeling of having unauthorised copies of my work.

    --
    "Common sense is nothing more than a deposit of prejudices laid down in the mind before you reach 18" Einstein
  171. Well, that's in Germany by Zerothis · · Score: 1

    It's the most logical solution I've seen yet. But I wouldn't want it here in the US. I'll be watching to see how long it takes for this idea to fail.

  172. Ah yes, it all makes sense by iamnotaclown · · Score: 1
    The Berliner Zeitung said proposals had been drafted requiring manufacturers of goods from computers to printers, modems, compact disc "burners" and other devices to pay royalty fees that would then be forwarded to music and film companies.

    So in the case of music, we have the following chain of events:

    An artist records a demo and shops it around to various record labels.

    A label decides they like it and advance the artist money to record in the studio, and provides the artist with an experienced producer.

    The CD does reasonably well, and the artist starts to collect around 10c per CD sale.

    Eventually the artist manages to pay off their debt to the label, most likely by touring and riding the wave of their new-found success.

    Meanwhile, their label is raking in millions from CD sales AND getting paid royalty fees from taxes?

    Unsurprisingly, the artist is unlikely to see a cut of those royalties.

    And please don't reply with "But for every success story there are hundreds of losers!"

    Musicians are rarely wealthy. Corporations almost always. I don't think the recording industry needs corporate welfare, and that's basically what that tax is.

    1. Re:Ah yes, it all makes sense by Smallest · · Score: 1
      This has little to do with the actual topic and a lot to do with the usage of the word "corporation" on /. ...

      Musicians are rarely wealthy. Corporations almost always.

      Musician and corporation are not mutually exclusive. I am both.

      As a musician I play guitar (poorly).

      Also, I am the sole shareholder and sole employee of my own software company. As a corporation, I have to run my busniness in a certain way, obey certain tax laws and file forms on time. In exchange for that, I get a small tax break on a small portion of the corporate income and some legal insulation in case something goes wrong, provided I have strictly followed all of the rules.

      There's nothing in the corporate laws that says "As a corporation you shall be able to get laws passed that screw the citizens of this and other countries for your own benefit."

      A corporation on its own is not an evil entity. And, I would feel confident in saying that the majority of any corporation's employees are not evil. It is the combined greed of politicians and a few powerful corporate employees that create the evil. And, I would blame the politicians more - for if they were doing their job correctly, the system would be immune to any monetary pressures from any source, corporate, private company, church, union, etc..

      If you want someone to blame, blame any government that allows such laws, treaties, etc. to be put in place. It's not the abstract idea of the "corporation" that causes this kind of trouble.

      -c

      --
      I have discovered a truly remarkable proof which this margin is too small to contain.
  173. This Corp Ownz Your Government by vbrtrmn · · Score: 1

    I am not amazed to see the government funnelling funds directly to companies.

    Isn't the United States run by company pay-offs from CBS, Playboy, CocaCola, ABC, Camel, Microsoft, Philip Morris, Apple, Nike, Christler, Warner Brothers, GE, MTV, MacDonalds, IBM, Bell, Compaq, United Airlines, NBC, etc, etc, etc!?!

    These companies are probably tired of paying off the US, they want some cash back.

    Shit, I gotta go, I hear some hired goons knocking on my door.

    --
    you are not what you own

    --
    it's a sig, wtf?
  174. Similar calls here in UK by slim · · Score: 3

    Only on Saturday, I was reading an opinion piece in MCV, the UK trade magazine for the gaming/interactive entertainment trade, in which someone high up in a games development company was calling for a £30 levy on every CDR, at the factory, simply because it could potentially be used to pirate software.

    I guess this is outrageous to all of us - sure it would probably stop the piracy of PC and PSX games in its tracks -- but it would also prevent me from (say) backing up the digital photos I took on holiday, or burning audio CDRs of campfire songs I recorded onto minidisc a couple of months ago.

    We need to be aware that those in charge of "content" are blinkered to this kind of legitimate use for storage media. We need to remind them that piracy isn't all it can be used for, else they will eventually persuade governments to go through with this kind of taxation.

    NB: the same guy went on to say "without CDs, these people will use their hard disks. Tax those too."
    --

    1. Re:Similar calls here in UK by Maryck · · Score: 1

      Actually, I would tend to think that adding a tax to the cost of a burner would do very little to dissuade any serious pirates since the extra tax would presumably not be significant compared to the money they make selling pirated software. The only pirates who it would dissuade are those who copy software and give it away.
      In the meantime, everyone who has a legitimate use for burners gets screwed.

  175. Re:What's wrong with this? by nmos · · Score: 1

    " would LOVE to pay even a dollar extra per CD-R or a couple of bucks on my ISP connection, assuming that the money went to the ARTISTs THEMSELVES"

    So send them a friggin check.

  176. Yeah that's impressive by sips · · Score: 1

    The capitol got burned down. Hey great job guys.

    --
    Respond to s
  177. Also in NL by wurtel · · Score: 1
    About 2 years ago the Dutch music copyright organizations wanted to impose a tax of about US$0.50 on each CD recordable sold. There was an outcry of course; they then added that businesses that use CDRs for data etc. could be exempt from this tax if they could prove that their use of CDRs was for data use.

    However, this sort of died a quiet death, although I'm afraid they might be waiting for some precedent in other EU countries; this Bertelsmann deal might be the trigger...

    They proclaim to support the artists involved. However, I've heard many (beginning) artists complain that they hardly get any money. And those beginning artists are the ones that use CDRs to try to sell their music, and they would have been subject to the tax on CDRs as well!

    Also take a look at the rules for importing music from outside the Netherlands (you will have to turn off Javascript, else you're bounced to an error screen; they don't want you going directly to a page; else follow the links "for music users" and then "The importation of cd's and other soundcarriers"). If you import legally produced and distributed CDs from outside NL, you may still have to pay additional royalties...

  178. Well cool! (sarcasm alert) by cdipierr · · Score: 1

    As a small business owner, I should be able to collect some of this right? I publish software, therefore I'll expect a check from the government any day!

    What do you mean it's only for big corporations??? Hey!

  179. National Income Tax is an ammendment by sips · · Score: 1

    And I quote:

    Amendment XVI

    The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or
    enumeration.


    source here

    --
    Respond to s
  180. The British Broadcasting Corporation by Moog · · Score: 1
    Has anyone considered what an extraordinary situation it is where government tax collectors are collecting taxes which are funneled straight to corporations?
    The BBC has been funded in this way for many a decade - but we're slightly mad here in Britain so we go along with it. Besides, without it, television wouldn't be quite the same.
  181. Re:I write code. Where do I get the payback from t by DFrank · · Score: 1

    A jury trial (this is criminal law, right?) might go a little differently... if your lawyer was good enough, I'm sure he could convince a jury to aquit you..

    It doesn't matter how good the layer is. It still is illegal to have warez and such things. No layer can change this. A layer may help you to get a smaller punishment, but you would get a punishment.

  182. Is it too late to return my Cray? by grunby · · Score: 1
    That Yahoo! webpage mentioned in the article says
    "Similar levies already exist in Germany on devices whose main function is that of copying, such as scanners, photocopiers and fax machines. Depending on the power of the machine involved, the taxes range from $30-$275."

    Does this mean that people who buy a 1Ghz machine will have to pay even more (in this "Payback tax ") than people who buy 600Mhz machines. And what about my new Cray Y-MP C90 machine?

    damn...gotta sell my car...

    - [grunby]

  183. Just interpolating the same curve by Julian+Morrison · · Score: 1

    The whole idea of (1)coercive taxes (2)intellectual property is to say that "some of what's yours is mine". Once you allow that, the door's open to a tug-o-war between pressure groups, as to how much of whose property isn't their own. The squeaky wheel gets YOUR grease.

  184. Might sound crazy but... it could be good by Alternity · · Score: 2

    Actually if this is done right it could be a good thing. We could finally be seeing some efforts to create new business models where part of the profit from the tools you buy to listen/copy/share the material you want are distributed among the material creators. Now the only problem is that it is not presented as an alternative or a new way to do things but rather as an additional taxe.

    I'd rather pay a little more for a device but be able to share the music/movies I buy for less with others than to pay what I pay now and being threatened to be sued each time I try to share stuff. If only they could do this right it could become the first step towards the new way to do it...

    --


    "If liberty means anything at all, it means the right to tell people what they do not want to hear"
  185. This was tried in the US by codefool · · Score: 1
    When VHS VCR's started to hit the market big in the late 70's/early 80's, Big Media tried to get a tax levied on every blank VHS cassette sold to account for lost royalties due to the pirating of televised works. I.e., if you recorded a program off the television, they somehow felt they were being robbed of royalties.

    The trouble is, how do you KNOW that the blank media is being used to record copyrighted works, and not used to generate new work? Again, it was just a ploy for Big Media to get unearned revenue out of an already over-priced industry.

    Congress didn't go for it, although I can't remember all the details. Anyone else have more info?

    --
    "Stop whining!" - Arnold, as Mr. Kimble
  186. Taxing Manufacturers by LazySlacker · · Score: 1

    My (UK) gov certainly taxes cigarette makers a lot on the basis that it causes (contributes to) a lot of people being ill. Also petrol taxes are apparently so high in an effort to convince people to stop polluting the environment. In both cases (I think) the gov claims that the money generated from the extreme tax (as opposed to std. tax level) goes to hospitals/green things.

  187. Why bang on Bertelsmann??? by Anonymous Coward · · Score: 2
    "My guess is that Bertelsmann, the world's third largest media company, has a little something to do with this."

    Huh??? You "guess" Bertelsmann has something to do with this, so it becomes a "Bertelsmann Tax" in the story's title? This is a new low, even by /.'s lousy standards.

    And no, if it turns out that Bertelsmann did have something to do with this (and they're not mentioned in the linked article), it doesn't justify the headline. Either substantiate the claim or drop it. Hiding behind a "guess" is just plain amateurish.

  188. Actually there is almost always a government by sips · · Score: 1

    The people who have the most guns and men automatically become the government. That's why anarchy is impossible because eventually people get tired of the constant bandit raiding parties and help Cletus to form an empire.

    --
    Respond to s
  189. Just tell me how... by codefool · · Score: 1

    you know I'm using said equipment to copy YOUR IP and I'll pay the royalty. What if I'm only using it to copy MY OWN IP?

    --
    "Stop whining!" - Arnold, as Mr. Kimble
  190. US Gov't Doesn't Collect the "Tax" by Kagato · · Score: 2

    The US gov't does not, and never has, collected any "taxes" that are distributed to artists as royalties. Period, end of story.

    Makers of Music Minidisc, DAT Music Tapes, and Music CD-R discs for sale in the US do throw money into the music indrusty, but it's the same corporate channels that already existed for music royalties.

  191. As another author, I disagree by delevant · · Score: 1
    I've got three books to my name, and I don't personally care that they're being pirated in the Czech Republic (they are -- one nice Czech lad even wrote to tell me!).

    Why don't I care? Because:

    • My royalty payments are laughable anyway
    • My books are effectively "loss-leaders" that get me into the teaching/speaking market, where I make most of my money.
    • You should think about following the same model. It works for me, and it works for my publisher too. Sure, I could have a few hundred extra bucks if my stuff wasn't being pirated throughout Eastern Europe, but I don't really care, because IT'S ONLY A FEW HUNDRED BUCKS. It's not enough to worry about scraping cash off the entire population of Germany, just because I lost a few pfennigs of potential profit.
    • Of course, I say that because I can make a living from in-person appearances and online courses. If that's not possible for you, then perhaps you ought to reconsider your career choices . . .

    --
    I have no .sig, and I must scream.
  192. Re:Excellent News by Nidhogg · · Score: 1
    I agree. It's scary as Hell.

    The first thought I had on reading the story was that this was an industry using a national government to try and 'protect it's right to make money'.

    And we all know how important it is to protect civil rights for an industry.

    This is insane. I swear I'm moving to Tahiti or Fiji and I'm going to live in a tribe.

  193. Re:Taxing Manufacturers by Booker · · Score: 1
    Well, that's true... happens in the US, too (same types of taxes). Taxes are often used to encourage certain types of behavior (tax liquor more than you tax food, etc). The idea being that it somehow contributes to the public good.

    However, I think that most of these types of taxes funnel their money to other government agencies (gas taxes to the Environmental Protection Agency, cig taxes to Medicare or something - not sure). I'm not sure that siphoning $1 off each CD-R and giving it to Sony necessarily contributes to the public good in the same way that gasoline taxes going to the Environmental Protection Agency might.

    ---

  194. Re:Excellent News by sips · · Score: 1

    I agree. It's scary as Hell.

    Ohhh a lobbiest group decides to lobby the government for protection of an industry can you say "tariff". Ever seen agriculture supports that actually pay farmers *not* to grow more crops. Been there done that. Not new at all.

    The first thought I had on reading the story was that this was an industry using a national government to try and 'protect it's right to make money'.

    They have sales taxes on booze and cigs and gasoline, and even regular every day food. I pay sales tax of roughly in the neighboorhood of $0.06-$0.08 on every dollar I spend at the store. This is extremely typical of a government who wishes to keep an industry afloat.

    In the abstract keeping a steady income is important for almost everyone but when you get to the level of a billionaire you really can indeed stand to loose some.

    And we all know how important it is to protect civil rights for an industry.

    When did civil rights enter into this? This isn't about civil rights it's about ecconomics.

    This is insane. I swear I'm moving to Tahiti or Fiji and I'm going to live in a tribe.

    Meanwhile I sit in my nice comfy chair and get all the benefits that living in a country with plentful food, clothing, freedom, and personal posessions. Very go to the tribe but be sure to take along a camera at least you can make some scratch with you new career as an Anthropologist studying the natives in you new movie: "Nidhogg tarries in the land of the savages!".

    --
    Respond to s
  195. Then ask the government or they will give some by sips · · Score: 1

    Presumably if you are getting the money anyway then theoretically there's no problem. Kind of like rebates on various items at electronics stores.

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    Respond to s
  196. Resistance is futile! by mav[LAG] · · Score: 2
    ...if you're a government or big corporation trying to resist the flow of information on the Internet.

    jonkatz didn't mention it in his book review of The Sovereign Individual but one of the most telling quotes in there goes something like this: "Any government or corporation trying to fight the Internet will just accelerate their own demise." When I first read the book about three years ago, I had no idea what they meant. But now it's easy to see how this works: corporate/state pisses off consumers/taxpayers who just take their money elsewhere. Taxpayers can do this thanks to the Net, encryption and offshore funds, consumers will do the same. Any visible action against the Internet just focuses people - much like the MPAA has prompted the rise of software like LiViD.

    Germany imposes taxes on copying equipment, manufacturers go elsewhere, consumers buy imported models and then tell Bertelsmann where to shove their tax.

    --
    --- Hot Shot City is particularly good.
  197. Limited government power is a solution to this by phutureboy · · Score: 2

    Gee, here's a novel idea: why not have a LIMITED GOVERNMENT, which would be unable to dole out corporate welfare like this under the guise of 'fairness'?

    This is what happens when the government starts controlling and directing all manner of economic activity. You end up with some companies and industries getting special treatment at the expense of others. Which companies get the favors is determined by who has the best lobbying presence, or who can pay the biggest bribe to elected officials.

    Greens, Socialists and others want to solve this problem by adding MORE government regulation of the economy. Instead of 'reforming' things, it just causes more corruption, more bribes, and more legislative 'favors' to go to those with an effective lobbying presence. Before long you have an monstrous, corrupt bureaucracy and a multi-tiered labyrinth of asinine rules, restrictions and regulations.

    Libertarians and laissez-faire types want to tie the hands of the politicians who would hand out corporate welfare and special favors, by limiting their power. I guess you could call this a 'supply-side' approach, because it cuts off the supply of corporate welfare money.

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  198. Once again, Sci-fi predicts the future. by lifebouy · · Score: 1

    Does this remind anyone of Red/Green/Blue Mars?
    Corporate Govornment seems to be inevitable. They rule us in practice now, but soon they will rule us in fact. Just my $.02

    --
    Drop me a line at:
    Key ID: 0x54D1D809
  199. Tax == copying? by Ice+Tiger · · Score: 1

    So does that fact you get taxed for royalties mean that you can copy away?

    It seems strange that one can get taxed for royalties for making copies and it would be illegal to make copies of media after paying such a tax.

    Sounds like some government got bought out.
    As I am an author of this comment and it can be viewed in germany, how can I get some royalties?

    --
    "Because we are not employing at entry level, offshoring will kill our industry stone dead."
  200. Sadly, Not Uncommon by Luminous · · Score: 2
    No matter what you say about these kind of tax policies, they are fairly common. What is even more sad is they arise out of a genuine concern and a desire to do what is right. If such a tax strategy were truly written with the interests of artists/writers at heart, wouldn't the money collected go more towards enriching these individuals? It should, but the intervening agents (read: featured villains MPAA/RIAA members) end up collecting these funds. The media companies realize they really don't need the artists because the public rely so much on them, they can elevate any schmuck to a superstar (aka the Johnny Bravo Syndrome).

    So while legislators are trying to protect the creators/originators of the work, the intervening corporations reap the rewards. IMHO, the only way to get the ball rolling in the correct direction is to have more artist types (writers, musicians, painters, etc.) run for political office. Look at the steps taken by Sonny Bono when he was in office?

    Unfortunately, these types of people are the last to want to get into the sewers of politics. Geekdom is similar in its dislike of the day to day issues of politics. So it looks like we need a few martyrs to take the bullet for the rest of us so we can avoid these kinds of taxing strategies.

    The government should never subsidize something that isn't vital to national survival. Media corporations are not vital to national survival, family farms, dairy farms, high tech research, and ocean exploration are (IMO). Time to get our priorities set.

    --
    This is not the way to build a lasting empire.
  201. The DAT Tax by Galois · · Score: 1
    the US has been taxing DATs since 1992. Read all about it here. CD-Rs that are sold for home music recording are also taxed.

    The whole thing is pretty stupid, because you can buy computer grade DATs and use them as audio DATs . The computer DATs are actually better quality tape, and cost much less (tax not included).

    The money collected goes into some giant fund, but has yet to be paid out to any artists, and when it is paid out only the artists that have sold the most units will be paid.


    - daniel

    --
    - daniel
    Turn off your computer and go outside
  202. And these books are? by sips · · Score: 1

    You have piqued my interest.

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    Respond to s
  203. Boy I'd Hate to live in THAT country... by pschmied · · Score: 1
    There have been corporations in the last 20 years who make hundreds of millions of dollars, pay no taxes, or 1% tax, or 3% tax. Or if they owe taxes on export profits, they have been deferred to have their taxes forgiven by special-interest legislation.

    In the 1950s, the corporate income tax was 25% of the federal outlay; it's now about 6% or 7%. This is in a period of record corporate profits, record stock market prices, record executive compensation. The corporations are not contributing their fair share to the tax pool. As a matter of fact, I suspect that if you took all the corporate welfare and then took all the corporate income taxes paid, the aggregate would be zero taxes paid. So that leaves the burden on, largely, middle-income and lower-income Americans.
    --Ralph Nader http://www.votenader.org


    Yep... Those Germans sure are backward. I'm glad that I live in the good ol' United States where that sort of corporate welfare is not tolerated.


    -Peter

  204. Easy enough in the US by Greyfox · · Score: 2
    Just get a poverty level job and go on welfare.

    In some countries all you have to do is get sick and go to a hospital.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  205. Re:It sounds like the money will go to the authors by SquidBoy · · Score: 1

    but writers, artists, and other authors do have a right to be paid for their work

    But do they? Even really bad writers? Even writers no one reads? The fact is that now writers are rewarded for their work based on the amount of money they can make for other people, and not on any intrinsic quality they possess. Does Tom Clancy or Jeffrey Archer deserve to earn $10m+?

    It's perhaps wrong to steal even from the rich, but don't claim an accident of our economic system is a moral principle. Maybe a big committee should sit and decide on who is 'deserving' of money. Maybe they should draw lots. Then the graffiti artist could get as much as the guy with friends in the galleries, and someone who writes a website could get as much as someone who writes blockbuster thrillers.

    If this leads to new economic models, it might not be a bad thing. If it only leads to rich Germans getting richer, it probably is.

    --
    If you're a jock, inflict some pain / If you're a nerd then use your brain - DAPHNE AND CELESTE
  206. Re:You should have thought about this earlier by AndyS · · Score: 1

    The problem is that every company out there likes the idea of the new economy, not so that they can provide better quality music or anything else, but because they can extract more money out of people.

    They consistently talk about new "business plans", such as rental of music and so forth. I have no problem with pure music rental - it sounds like a good idea - but how long before it becomes the case that *everything* you get in terms of music is rented.

    So instead of owning my next Radiohead CD (for example), I would "rent" the songs on it. If I'm a big Radiohead fan, and listen to them all the time, then hey, maybe I should pay a bit more (after all, Amazon do it). Instead of me paying the same as a Beatles fan for a CD, I will pay less because I'm not such a huge Beatles fan. I can see some unintentional advantages of this (encouraging people to expand their musical horizons) but I don't like it one bit. (Think deaths in the family etc also affecting that price)

    I would be happy to pay a fair price for access to useful multimedia. Nobody is doing this, they're too busy talking about the next big thing, the next best ideal and they're not offering what the public want. When they do, they might find that there is less rampant piracy.

    (For example, try buying Simpsons episodes online)

  207. Re:Taxing Manufacturers by LordNimon · · Score: 2
    My (UK) gov certainly taxes cigarette makers a lot on the basis that it causes (contributes to) a lot of people being ill.

    That's a bad example. Bertelsmann wants to levy a tax because some of the CDR users will pirate music. However, everyone who smokes is contibuting to illness and pollution. If it were true that every CDR were only used to pirate music, then Bertelsmann's request would be agreeable.
    --

    --
    And the men who hold high places must be the ones who start
    To mold a new reality... closer to the heart
  208. Welcome to the Corporatocracy. by AugstWest · · Score: 2

    It's happening almost everywhere now, new laws and regulations are being bought left and right.

    It's sad, really, when a country isn't out to protect its citizens, but it's corporations. It totally devalues the individual to a point of nonexistence.

    Our media is already owned, so we've lost our voice, but when our governments are owned we'll have lost our rights as well.

    It's almost funny, 10 years ago we were all worried about what kind of a nuclear world our children would inherit, now we have to wonder if they'll any control over their own lives whatsoever.

  209. Reasonable but - by Veteran · · Score: 2
    The proposed taxes could be a reasonable solution to the problem of how do you compensate people for enriching society when the traditional distribution methods are breaking down? In the past artists got their compensation by selling records and CD's through a company - which paid them royalties on the sales.

    With the advent of the Internet that system is breaking down. The problem is that the royalties ought to go directly to the artists, not to companies. In the Internet distribution system 'record companies' are less and less of a part of the system.

    In exchange for the taxation you would gain the legal right to copy whatever you want. This does not cause a breakdown in the law; the law has changed to account for differing technology - in effect you now become a part of the manufacturing system.

    Of course what the companies want is a hybrid system: where they get to sell records, it is still illegal to copy a song over the internet, the companies get compensation for that illegal copying, and the people who create the actual music get as little as possible. Everything for the companies, nothing for the artists is their goal. And THAT, my friends, is what sucks.

  210. You're missing the point by Indomitus · · Score: 1

    The point isn't "I paid for a burner so I can warez," it's "I paid for a burner and they're charging me for illegal things I might do so what's to stop me from doing those illegal things, I've already paid them for it."

    The whole point behind something like is supposedly to reimburse artists for loss of revenue, whether I would have bought their music or not. If I've already paid them for a product, why wouldn't I then want that product? They assume I'm going to steal it so they charge me for it, now I've been charged so I want something in return.

  211. RMS is right! by bgat · · Score: 1

    Clearly, the world that Stallman envisioned fifteen years ago, when he founded the FSF, is fully upon us (although I have believed that for some time).

    b.g.

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    b.g.