03 Jul 2007
SoundExchange offers royalty compromise

Ain't that mighty nice of'em! $2500 per stream and 10% - when satellites pay zip per station and 7.5%, and terrestrial stations pay zip - as in zero, nada.

In classic economic terms, this is known as "erecting a barrier to entry" - a common tactic by industries whose business models have been overrun by technology. And if they kill the upstarts in the process, so much the better! Reminds me of this great quote from Robert A. Heinlein's book, The Man who Sold the Moon:

There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is not supported by statute or common law. Neither individuals nor corporations have any right to come into court and ask that the clock of history be stopped, or turned back.

Music industry taxman SoundExchange is offering a new deal to Internet radio broadcasters who say upcoming royalty hikes will kill online broadcasting.

(link) [The Register]

06:10 /Copywrongs | 0 comments | permanent link