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Looming Royalty Decision Threatens iTunes Store, Apple Hints
eldavojohn writes "You may recall us discussing some legislation about online music. More decisions are being made that may affect how much money Apple must impart to labels and musicians. Right now, it's 9 cents a track — which adds up, when you sell 2.4 billion tracks each year. The Copyright Royalty Board is asking for 15 cents a track (66% increase) and Apple isn't going to agree."
Reader scorp1us points out a similar article at CNN; both stories mention that Apple has intimated such a change might cause a complete shutdown of the iTunes Music Store.
Update: 10/02 21:03 GMT by T : According to CNet, the rate has been officially frozen at 9.1 cents per track.
Essentially, I'm guessing the RIAA will pressure Apple into releasing or updating their client software to not decrypt the DRM'd songs (non iTunes Plus tracks) until the user coughs up the additional six cents.
Um, what? Are you trying to spin it such that people who bought the songs at 0.99 would have to pay another 0.06 in order to continue playing songs that they already licensed? That's not going to happen. Aside from violating the existing license, it would trigger a massive lawsuit against apple. The license for the existing songs has been paid, the terms can't be changed.
Fly me to the moon Let me sing among those stars Let me see what spring is like On jupiter and mars
Sorry for previous post, in my mind I totally hit preview instead of submit.
As someone who has actually RTFA, Apple didn't hint that this change would shut down the iTMS - they said flat out that IF they ABSORBED the higher cost, THEN THAT would be so detrimental they'd have to shut down - and that there was NO WAY THAT THEY WOULD DO THAT.
Expert fear mongering, indeed. Allow me to accurately paraphrase for you.
1. Apple said that they wouldn't absorb additional costs - it was ridiculous to the point of causing an iTMS shutdown.
2. Apple said that shutting down iTMS is ridiculous.
3. The iTMS Terms of Sale is on the web. I'll post the link for those can read: http://www.apple.com/legal/itunes/us/sales.html
4. Ditto for their Terms of Service: http://www.apple.com/legal/itunes/us/service.html
5. NO WHERE DOES IT STATE THAT YOUR MUSIC PURCHASES ARE GOOD FOR "some undetermined amount of time."
6. iTMS TOS is governed by the laws of the State of California, USA
7. It strains reasonable imagination to the breaking point that any California court would uphold the insane scenario you present.
8. Your DRM fear mongering seems to completely overlook Apple's historical stance on DRM. From the fossil record:
From http://www.apple.com/hotnews/thoughtsonmusic/
Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard. The largest, Universal, is 100% owned by Vivendi, a French company. EMI is a British company, and Sony BMG is 50% owned by Bertelsmann, a German company. Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly.
9. iTMS content continues to play when one has no connection to the internet.
10. Point 9, above is an excellent simulation of the iTMS going out of business - there would be no internet connection to iTMS, your music would continue to play.
You, sir, are a total fucking idiot.
Pathological kinda promises Path + Logical - but instead, you get stuck with pathetic.
Aside from emusic which rules for indie picks - with amazonmp3 out there, I can't understand why anyone would buy any drm music period any more.
Let me clear this up for you:
"Please note that Amazon MP3 is currently only available to US customers."