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Apple’s iTunes service is to legit music downloads what Napster was to file sharing. Napster went out of business more than seven years ago after loosing a fierce legal battle against the music industry. Now, Apple’s iTunes might go out of business despite occupying legally sound ground.
Apple has threatened to close its iTunes music store, if the Copyright Royalty Board approves a hike in the royalty rate on music sales. The board is to give its decision on Thursday. The National Music Publishers’ Association is pleading for a hike of 66% in royalty rates. On the other hand, digital store owners are demanding a cut in royalty rates.
"If the [iTunes store] was forced to absorb any increase in the ... royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss -- which is no alternative at all,” Apple’s VP Eddy Cue warned the board in a filing.
Do you believe Apple can take such a drastic step?
Image Credit: Iphonica
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[1] http://www.maximumpc.com/user/opulent_rigs_0
[2] http://www.thestandard.com/news/2008/09/30/apple-threatens-shut-down-itunes-store-over-royalty-rate-increase
[3] http://www.maximumpc.com/article/apple_store_itunes_drm_protests
[4] http://www.maximumpc.com/article/I-Demand-iTunes-for-Movies
[5] http://www.maximumpc.com/article/news/over_5_billion_songs_sold_itunes
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