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Record Labels May Have to Pay Double Royalties

Posted by michael on from the couldn't-happen-to-a-nicer-bunch dept.

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."

3 of 388 comments (clear)

  1. take that asswipes! NM by yabos · · Score: 0, Troll

    NM

  2. Laugh now... by nemesisj · · Score: 0, Troll

    While we're all gloating over this admittedly funny situation the labels have put themselves in, rest assured that this cost will only get passed on to the artists eventually. Either artists will have to give up these types of royalties in the future, or they'll get used in some other way (maybe increasing hidden costs like legal fees or higher interested on artist advances, or perhaps just worse royalty agreements in the first place).

    The end result is that this is a minor hiccup, one the labels are more than willing to trade in their effort to screw Joe P2P User or Joe Casual CD Borrower or Joe Fair Use User.

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    1. Re:Laugh now... by nemesisj · · Score: 0, Troll

      What about Joe Mama?

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