Filed in archive Consumer rights , Government , Retail , RIAA, MPAA by Marc on June 6, 2007

Another part of the RIAA strategy to prop up the major label cartel is seeing success as state governments are increasingly regulating the sale of used CDs. The legislation is under the guise of stemming the trade in stolen goods, similar to that regulating pawn shops.

The second hand goods laws have already passed in Florida and Utah. Typically they require stores to get a permit, thumbprint sellers, and get a copy of the driver's license. Stores can only pay with store credit and not cash, and have to hold the CDs for 30 days for selling them. All for a $5 CD.

The laws treat sellers as criminals and stores as abetting traffickers. The severe restrictions make it difficult for stores to sell used CDs. Some stores in states with the laws have simply stopped selling used CDs.

The only winners are the major labels. Used CDs now make up 20% of total CD revenues. By restricting the availability of used CDs, the labels force people to buy new ones from them.

Related Entries:

Got a License for that CD? - 06 June 2007
Singapore Greenlights Ultrawideband - 25 September 2007

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Vote for Got a License for that CD?:

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Rating: 7.00 out of 1 vote(s) cast.

Response from: Neil Michael (06/08/07 8:25am)

Does anyone know anyone who uses fastrack, directconnect and/or gnutella through any one of the following ISPs – Digiweb, Smart Telecom, Irish Broadband, NTL, Eircom and Imagine – and who is likely to be affected by the recent decision in the Irish courts to force the ISPs to reveal the identity of those suspected of illegal music sharing.

A large number of people have been caught in what has been a six-month operation by the Irish Recorded Music Association (IRMA) – but 23 are facing prosecution. One of them had 37,500 songs on his PC.

If you can help, it would be much appreciated. If you do know someone, could you forward them my email address? Thanks in advance for your help.

This information is for an Irish newspaper and an article due to be published this Sunday.