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Record Labels May Have to Pay Double Royalties

douglips writes "News.com.com.com brings us this article explaining how record labels may be bitten by CD copy protection. At issue is the mechanism that places duplicate WMA tracks on the CD. The labels are thus selling two copies of each song, and may be required to pay twice as much to music publishers. So not only is the DRM ineffective, it also could be a huge legal liability for labels."

4 of 388 comments (clear)

  1. The little guy gets paid? by VinceWuzHere · · Score: 5, Insightful

    I wonder if this means the lyrics writers and all the other "little people" behind the scenes will get paid twice - finally the value of what they are worth...

  2. Of course you know what will happen next... by Cherveny · · Score: 5, Insightful

    If the payments are made, then of course the labels profits will fall. So, what will they say next quarter to make their shareholders happy? "It's all because of those damn internet pirates. We need more legislation against them, or our profits will continue to fall."

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    --- It's not my fault this post looks redundant. I just type too slow.
  3. I don't see the problem... by smack_attack · · Score: 5, Insightful

    They already charge twice as much as a CD is worth.

  4. Re:let me be the first to say... by Condor7 · · Score: 5, Insightful



    So the small record labels can ship CDs with no copy protection. Problem solved.