Microsoft Zune liable for more royalty fees and taxes

Microsoft Zune liable for more royalty fees and taxes

32
0
SHARE

You may not know it, but every time you purchase a blank CD or a blank cassette tape (haha), a small portion of that heads towards the Alliance of Artists and Recording Companies (AARC) as per the Audio Home Recording Act of 1982. This fee is distributed among all the “performing artists” involved. It took a little while, but it was finally decided — in 1999 — that MP3 players were essentially exempt because the only way that they could record was when they were connected to a computer hard drive.

Well, it seems that one of Zune’s biggest selling points could cause a fairly hefty bill for Microsoft, because it’s very possible that because of its FM recording and WiFi-sharing capabilities, Microsoft will have to pay the AARC the same fees that blank media (CD-Rs, etc.) makers have to. This would be the same fee that XM has to pay for the Inno player, as that can record XM Radio broadcasts. Not to mention that Microsoft is already paying $1 per Zune sold to Universal Music.

Wow, maybe Apple was right all along to not include FM radio in their music players.

LEAVE A REPLY