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Please explain to me how paying sales tax on a blank cd somehow makes stealing someone else's intellectual property ok.

He wasn't talking about sales tax, so before you go calling someone an idiot (or a drunk), you might want to make sure you're not sounding like a fool.

Under the Audio Home Recording Act [wikipedia.org], a levy (tax) is paid for every "digital audio recording device", and "digital audio recording media". This tax was lobbied for by the RIAA and the like, and the funds are paid into the Musical Works Fund and the Sound Recordings Fund, which are partially distributed by ASCAP, BMI, and SESAC, as well as the Aliance of Artists and Recording Companies.

This fund was intended to compensate musicians, and the (often) parasites who feed on them, for the extra losses that would be incurred due to the added piracy enabled by digital technology. In exchange, said digital technology was given legal protection, with the exemption:

No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.

Basically, his point was this - if he's paying royalties on every player, recorder, and blank music cd he buys to compensate for the piracy he is assumed to commit, then shouldn't he have the right to commit said piracy? In other words, if you are going to be punished for a crime whether you commit it or not, then why should you be punished again when you actually do?

Of course Napster being free helped. But prohibiting any legitimate online supply of music was like gasoline on a fire. Millions of semi-computer illiterate people suddenly wanted music on their computers, and most of them would have found it far easier and preferable to go to a well run digital store to buy MP3s. The legal vs illegal specter would have been far more effective. Most people never wanted to learn how to use computer-geek software to get music. There would have been a far smaller user base, pursuing infringement would have been more effective, file supply would have been smaller, development in software capabilities and software ease of use would have been vastly slower.

Had they introduced MP3 sales immediately after Napster, the P2P spark would have been lit but not grown nearly the way it has and not be nearly the issue it is now. We wouldn't have the gargantuan global point-and-click Bittorrent community and the twelve bazzillion Kazaa-like softwares. And P2P would be challenged by far more pervasive MP3 sales from vastly more advanced MP3 stored with a decade of development and refinement. Compared to what music stores would be like after a decade of mass market MP3 sales, the current iTunes store would look like a gimp taco stand. The music industry touts iTunes as a huge sucess, but only because it's the only one that hasn't died a horrific death. iTunes has only just recently started turning any profit at all, and those profits are thin. Apple's profits are on the iPod, iTunes was created and primarily exists to drive iPod sales. The sales volume at iTunes is absolutely abysmal compared to what the sales market for MP3s would/should have been.

Had they had the good business sense to offer online sales first and beaten Napster to the punch, well that really would have changed things. In that case it's hard to guess if or when P2P would even have popped up as a fizzle in the pan. I bet if/when it *did* eventually show up, it would have centered on porn, not music.

I still think piracy would have ended with a significant lead.

Note that even today, the website selling this album has a large lead. (The Slashdot headline and summary are flat-out false, in case you missed it.) The website sales are 1.2 million+, vs P2P at a half million+. Had MP3 sales started a decade ago, had MP3 sales been growing and improving in ease and experience and becoming the norm, and had P2P not been a gasoline fueled inferno of expansion and development, the sales would not merely have their current lead over piracy, the piracy figure would be absolutely insignificant compared to the sales figure.

Hell, this move to selling MP3s is so new and so poorly developed that it wasn't working at all for many people who resorted using the smooth-as-silk Bittorrent to get the file and going back to the website days later solely to pay.

Even today, even with a largely dysfunctional store, even up against cutting edge technology pleasure-to-use-point-and-click Bittorent, sales are winning once you actually PERMIT people to buy the product they always wanted in the first place.

Seriously, the RIAA created the P2P phenomena as we know it today. The RIAA is the reason Grandma has Bittorrent, the RIAA is the reason Grandma considers it the "normal" way to get stuff.

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