This is offtopic, but I'd like to see a popular p2p app or mp3 site that only offered free music and had user evaluations built in, like Amazon. It wouldn't have to host the mp3s, but could point to them on a p2p network.

No, you'd expect to lose more than 20% of your sales, though it might take more than a year to feel the full effect. Displays and reviews of the hardcover help advertise the paperback. You'd also lose readers who look at hardcover shelves but not wire racks.

Expecting a royalty on used CD sales is nutty. Second-hand book and vinyl stores don't pay royalties, and never have. Why should CDs be different? Furthermore, royalties have always been paid by the publisher to the author or musician. They've never been paid by the retailers. These guys are just wishing.

The proposal is also unenforceable. It's known (sort of) how many copies have been sold first time around because the publishers and distributors and retailers keep records: so many copies produced, so many shipped out to distributors and from them to retailers, so many hardcopy returns, so many returns for credit ... et cetera and so forth. But who knows what comes and goes at a used CD store? Maybe the proprietor knows, and if he likes you he might tell you too. Otherwise it's as hard to keep track of as the sale price of used car parts stripped off junkard wrecks, and as big an incentive to make sales off the books.

Oh, there are plenty of potential culprits for stagnating unit sales in the music industry. Start with the fact that the recording industry was convicted of price-fixing by the FTC and that CD prices have increased significantly ahead of inflation every year since they were introduced. Then include the fact that the industry all but eliminated two major product categories (cassettes and CD singles) from their line in the past year or two -- surely some of the decrease in unit sales can be attributed to the fact that the record industry doesn't sell these products any longer (IOW, if you're a book publisher that sells 10,000 books a year, and 2,000 are hardcovers, and you eliminate hardcovers from your line, you'd expect a 20% drop in unit sales, right?)

I think my favorite part of the article is this, "The focus on the used-CD market comes at a time when new-CD sales continue to stagnate in the United States. Total sales last year were about $13 billion, unchanged from 2000.

Sales have been hurt largely by a surge in piracy, which the National Federation of the Phonographic Industry estimates has cost the music business $4.2 billion in lost revenue last year."

I can't believe they are completely blaming lack of growth in the music industry on piracy and not sucky music or the fact that the US economy has been in a major recession. Ever since I got laid off I find it hard enough to pay my rent let alone fulfill my music industry obligation of buying 2.5 new CDs a month.

Hi Cory,
This may be a little mainstream for you, but I find new music by checking out streaming video from video-c. I found my current favourite Royksopp this way. Their album is a total winner in my book.

I think this cypherpunks guy is a RIAA plant! Party pooper.

And now you're credited, too!

Hey, you guys used my slogan at the bottom of this page. Neat.

Well observed, hotgrits -- correction noted.

As much as I dislike the RIAA, hold off on pinning this one on them.

As the article states:

The Recording Industry Association of America has not taken an official position on the issue.

This idea was cooked up by some recording industry executives, probably wondering why the slop they're currently peddling doesn't stand up to the classics being vigorously bought and sold on the used market.

But the RIAA isn't officially involved. At least, not yet.

Where does this stop anyway. Why isn't the IP in automotive or any other manufacturing design as or more valuable than A/V? Detroit doesn't see a dime from most used car sales. At the level of logic where you are taxing used audio sales, it doesn't make sense to be able to sell your laptop freely.

'The "used" CD was probably purchased new, copied to a recordable CD or ripped to a disk drive, and is then being resold.'

Sez who? What if the CD was purchased by someone who didn't like it and is passing it on? What if the one track that the customer wanted was ripped and the rest not? What if a DJ sampled one bass-line and is done with it? How is this different from home taping, which has existed since the 60s?

'It's not legal to buy some SW on a CD, install it and then resell the CD as "used".'

Wrong. There's a clickthrough agreement on some software that says this, but it's not legally binding. In fact MSFT recently issued guidelines for schools in which they counselled them *not* to accept donations of used PCs unless accompanied by the original software, used. It's not legal to retain copies of software that you sell used, but that's not the same thing at all.

Selling a "used" CD these days is a little different from selling a used set of golf clubs or even a used book. The "used" CD was probably purchased new, copied to a recordable CD or ripped to a disk drive, and is then being resold. The next guy can buy the used CD and repeat the process. The used CD market is quickly becoming a way for the music on a CD to get into multiple hands with only one payment to the original seller. The RIAA certainly has a legitimate gripe, although their solution may not be ideal.

Maybe the music companies need to copy what the software guys do. They've had this problem from the beginning. It's not legal to buy some SW on a CD, install it and then resell the CD as "used". You don't really buy the SW, you buy a license to use it in certain ways. Well, music could be handled the same way. Purchasing a CD would grant you a license to copy the music and play it for personal use, but not to distribute the music to others. Then you could not resell a used music CD any more than a used software CD.
Given that CDs are now being used in much the same way as software CD-ROMs, it would make sense for the law to treat them similarly.

Of course, no one wants to hear logic on this issue.

Evil...evil!!!

I'm very concerned about the fallout if the RIAA topples the doctrine of first use. Here in Austin, the Friends of the Austin Public Library raises significant funds for our libraries through used book sales. I work with a group that conducts free
Internet training classes for the community. Thanks to the FAPL funds, we've been able to buy some great equipment for our program. It would be tragic if this is lost or hampered because of some greed tax on resales.

No precedent on this one. If they can get away with this they can get away with taxing me on moving stuff I've bought across state lines. I recall signing a small cheque to David Bowie for a cover we did of Rebel Rebel (hot tramp I love you, so?). The keen saps that bought the item own it and I paid the royalties from the incoming coin. It's paid for shitheads.