Music industry wants "iPod tax"

Extra charges to compensate for CD ripping

17 April 2008 9:08 GMT / By Amy-Mae Elliott

UK music industry groups are campaigning for a tax to be applied on sales of iPods to compensate for music lovers getting the right to rip music from their own CD collection legitimately.

The Music Business Group (MBG) is a group of trade bodies representing music managers, songwriters, publishers and performers that has rejected plans within a consultation document from the UK Intellectual Property Office (UK-IPO) to allow the transfer without any extra charge.

Although CD ripping is commonplace, it remains something that's technically not allowed under UK law, the recent Gowers Review into copyright suggested this law be changed to legitimise the practice.

"Enormous value is derived from the transferability of music", the Gowers report states. "Last year alone, over 20 million MP3-capable portable devices were sold in the UK, and over 90% of music on the average MP3 player is music that has been copied."

"UK creators and right holders are legally entitled to benefit from this value. At present, this value is enjoyed by both consumers and technology companies while creators and right holders are effectively excluded from any value. This constitutes market failure."