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Has the music industry gone mad?

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Desiree

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Music groups want royalties from iTunes samples, more

Music royalty groups ASCAP and BMI are pressing online music storeslike Apple's iTunes to pay performance fees not only for actual songdownloads but also videos and even the 30-second samples used topreview the music in advance. While these stores already pay thedistribution fees for the songs themselves, ASCAP, BMI and labels claimthat just downloading and playing the content also counts as a liveperformance and should bring an extra fee.

The reasons vary depending on the format. For music, it's claimed thatdownloads or streams, including samples, count as a public performancesas with the radio or in a venue, where performance royalties arealready paid. Movie and TV royalties would be different as soundtrackartist are normally paid for when the videos are aired, which iscommonplace for theaters and TV networks but doesn't occur for onlineformats.

However, critics such as the Digital Music Association, an online mediaindustry defender that counts Apple, RealNetworks and others asmembers, counter that a legal precedent has already been set thatconsiders downloads private and thus exempt from performance fees. Theyalso accuse ASCAP and related firms of trying to collect doubleroyalties, of violating copyright law in trying to collect fromsamples, and simply of trying to exploit successful online stores likeiTunes.

"These guys are afraid that the business model is shifting away frompublic performances to a model of private performances," DiMA executivedirector Jonathan Potter told CNET. "They aren't getting paid for thepublic performance in a download because there is no public performancein a download."

Internet radio stations, including both generic streams andrecommendation-based systems like Last.fm and Pandora, already payroyalties for each song streamed online. Those with the jukeboxsoftware playing the content are at least theoretically exempt as theyonly make the stations accessible.

Link: http://www.electroni...erformance.fees

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Just when the RIAA finally stops with the insane lawsuits against grandmothers and college kids, another arm of the music industry decides to pull this greedy crap. It's stupefying how the music industry can't see the connection between this kind of behavior and the outrageous prices they charge for CDs/downloads and pirating. They just can't seem to grasp that people are going to continue to pirate as long the industry continues to try to take advantage of music consumers.

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  • 2 weeks later...

It does go to show that the music industry has no clue what it's doing.

If it's easier for people to get stuff for free than to pay for it, that's what they'll do.

I think people would be willing to pay if they felt like what they were paying was reasonable. Although, I could be wrong. These scientists believe that our brains may actually process the concept of intellectual property differently than physical property, explaining why people who wouldn't steal someone's CD would illegally download a song.

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