Friday, April 29, 2005

Dutch iPod Tax

According to The Register, there is a proposed tax on MP3 players that could kill the industry there:

A Netherlands proposed tax on MP3 players could devastate sales of hard disk players, and set up international waves over copyright legislation. The tax is being proposed by the Stichting Thuiskopie foundation, and is set to become law in the Netherlands in a few short months unless the European Commission finds a reason to intervene. It is unlikely that will happen, as it has failed to come up with a policy for levy taxation so far.

The idea of all levy based legislation is that some form of copyright collections agency collects tax by imposing a surcharge at the point of sale for any storage devices that could possibly be used to store pirated works. This certainly extends to the iPod which has up to 60 GB of storage, and which can store MP3 files. Because of the fact that the great bulk of iPods are used to store legitimate iTunes files which are Digital Rights Management (DRM) protected, this means that copyright is being purchased twice over for these devices if a levy is also paid.

...In almost every case the organization itself that carries out the collection is lavish and well funded, the proceeds are distributed only to large multinational music publishers, bolstering their revenues unfairly. It is little more than a club of companies that "have a right" to make money. If this legislation comes into play, the surcharge will be as much as €3.28 ($4.3) per gigabyte. This might put €180 ($235) to the price of a top end iPod.
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Man, the Netherlands, I thought you were cool. Guess I'll have to start hanging out with Vancouver now.

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