extra fee on blank tapes or cds?

[Diletante]

In a thread about computers and new MP3 laws, someone said this (to explain high cost of blank tapes):

That is because a fee was added to every blank cassette to allow for the fact that they were possibly going to be used to copy music. What is the modern equivilent? A fee on blank CD’s?

Is this true? Is it also true for CDs (as someone else asserted)? If so, how did such a law get passed, and on what level (state, federal)? I can’t see how this kind of law would be allowed, it seems like it would effectively allow a private organization to tax another private organization. Perhaps it is a voluntary agreement? And if it is true, where do the royalties go?

[DMC]

Yes, it’s true, and yes you do pay a fee for blank CDs, assuming they are the audio type.

This is from memory, so the letters may be wrong, but I believe it’s called the AHRA (American Home Recording Act) or something like that. If you check out RIAAs website, they’ll have links to the act.

[mblackwell]

Remember, NEVER use audio CDRs when you burn music CDs on your PC. The 50-cents-each varienty will work just fine.

Those audio CDRs are required by stand alone CD recorders. It is an evil plot to get RIAA more money. Even if you use it to burn a CD of yourself making fart sounds, they get money.

[Mr2001]

Audio Home Recording Act

Section 1003. Obligation to make royalty payments

(a) Prohibition on importation and manufacture
No person shall import into and distribute, or manufacture and distribute, any digital audio recording
device or digital audio recording medium unless such person records the notice specified by this section
and subsequently deposits the statements of account and applicable royalty payments for such device or
medium specified in section 1004.

…

The royalty payment due under section 1003 for each digital audio recording medium imported into and
distributed in the United States, or manufactured and distributed in the United States, shall be 3 percent
of the transfer price. Only the first person to manufacture and distribute or import and distribute such
medium shall be required to pay the royalty with respect to such medium.

…

Section 1008. Prohibition on certain infringement actions

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.