[net.video] Audio Recording Rights Coalition

kaplow@crvax1.DEC (Reach for the Stars) (03/07/86)

	I received the following information in the mail today, from the
    Audio Recording Rights Coalition (ARRC), in response to calling their
    800 number. I have no connection with this group, other than a definite
    desore to NOT pay such taxes on recording equipment and tape. 

	Also, for those of you reading this in the VIDEO notes, please
    realize that the video industry wants to do the same thing, and that
    since a VCR is capable of recording audio (thats the main reason I
    bought a Beta HiFi deck), that video recorders and tapes would likely be
    taxed. Since the new 8mm format can record 24 hours of video on a single
    cassette, the TAX ALONE for one tape would be $14.40 under this law! 

	Please write to your congressmen, and let them know how you feel
    about this bill. Personal letters are better, but if you are lazy, ARRC
    will send you a prepaid postcard that you can just fill out, sign, and
    return to them. They will deliver it to your elected representatives.
    Please DO NOT send things back to me, unless you can find a way to
    transmit your signature across the net as well. I will be writing a
    letter in response to this, and posting it in a few days. 

	Next they will want to tax blank media, copyier paper, and carbon
    paper. Then its film. Finally they will even go after crayons. 

	Nuke the greedy %$@^#%^&!

    		Bob Kaplow 
    		Digital Equipment Corp. 
    		Arlington Heights, IL 

    UUCP:   {allegra,decvax,ihnp4,ucbvax}!decwrl!dec-rhea!dec-crvax1!kaplow
    ARPA:   KAPLOW%CRVAX1.DEC@decwrl.DEC.COM 

	*   Reach for the Stars   *
    
			  C O N S U M E R   A L E R T 

	FIGHT AGAINST SPECIAL TAXES ON AUDIO TAPE RECORDERS AND BLANK TAPE 

	In 1982 the recording industry, claiming it loses millions of
    dollars from home taping, began a campaign urging Congress to impose
    taxes, for its own benefit, on all audio recorders and blank tape. Bills
    imposing such "royalty taxes" were introduced, and staved off, in the
    98th Congress. But the recording industry is now pushing a bill, HR
    2911, that would slap taxes of $1 or more on blank tape, and 10-25% on
    recorders. 

	WHY THE RECORDING INDUSTRY SEEKS A ROYALTY TAX 

	In 1971, when Congress ammended the copyright law, it said that home
    audio taping was completely legal. At that time, the recording industry
    told the Congress that it did not object to the practice, after having
    had years of experience with private home use of audio recorders. 

	Eleven years later, however, the recording industry changed its mind
    - after the motion picture studios began pushing for a royalty tax on
    video recorders and blank tape. The studios were seeking to capitalize
    on a court decision that said home video taping was copyright
    infringement, and the recording industry climed abord, piggyback, on
    their campaign. 

	In January, 1984, the Supreme Court ruled that home taping is not a
    copyright infringement. Still, the recording industry hopes to have
    Congress enact royalty tax legislation in 1985 - overturning the Supreme
    Court decision - thrugh sheer political muscle. 

	WHY A ROYALTY TAX IS UNNECESSARY AND UNFAIR 

	The recording industry proposal is to tax all tapes and recorders.
    But, according to the best economic and survey evidence: 

    1. The majority of tapes made at home do not involve prerecorded music
    at all. They are used for letters, dictation, notes, music practice,
    home computers, etc. 

    2.  People who record the most music buy the most records and
    prerecorded tapes. Most often, people tape to preserve their own records
    and to arrange favorite selections. 

    3.  As home recorders ahve become personal and portable, they have made
    music more popular and accessable. They have helped records and tapes
    attract dollars back from video games. Yet, taxes on recorders would tax
    the very machines necessary to play the recording companies products. 

    4.  Recording industry sales and profits are now at all-time highs. 1984
    retail sales set a new record, approaching $4.5 billion. 

	WHAT A RECORDING INDUSTRY ROYALTY TAX WOULD COST CONSUMERS. 

	In 1982 "Rolling Stone" magazine estimated that the bills beng
    pushed by the record companies could "result in consumers spending
    three to four dollars more for a blank audio tape and five to ten
    percent more for a cassette deck." 

	It was not until 1985 that the record companies spelled out, in
    HR 2911, what they actually want: 

    *   a penny per minute on blank tape (at retail, more than one dollar on
    a 90 minute tape) 

    *   10% on most audio recorders; 25% on dual cassette models. 

	One thing, however, is sure; it costs less to send one letter now to
    your Member of Congress opposing this tax than it will cost you each
    time to pay it when you buy a recorder or a blank tape. 

	The Audio Recording Rights Coalition is a coalition of consumers,
    retailers, and manufacturers of audio products, and allied trade
    associations, formed in 1982 to preserve these important consumer
    rights: 

    *  the right to make private, non-commercial audio recordings free of
    government interference 

    *  the right to purchase audio products free of unfair and unnecessary
    royalty taxes 

	In 1985 the fight in congress is tougher than ever. With a windfall
    in sight, the recording industry is attempting to persuade Congress that
    consumers won't care or won't notice if royalty taxes are enacted. 

	WHAT YOU CAN DO 

	To find out what you or your organization can do to avoid these
    taxes, call us toll free at 1-800-282-TAPE. If you wish to collect
    signatures on petitions opposing such taxes, you may use the following
    text: 

	"We the undersigned oppose HR 2911 or any legislation that would
    cause royalty taxes, payable to record companies, to be added to or
    included in the prices we pay for recorders or tape." 

	For each person include the name (printed), street address, city,
    state, zip code, and signature. Send completed petitions to: 

		    Audio Recording Rights Coalition
		    P. O. Box 33705
		    Washington, D. C. 20033 
    
	    The Home Audio Recording Act: An ARRC Assessment 

	The Home Audio Recording Act, H.R. 2911, if enacted, would transfer
    hundreds of millions of dollars from the pockets of consumers to the
    coffers of the major recording companies by placing a royalty tax on
    audio recording equipment and blank tape. Similar legislation has been
    considered and soundly rejected by Congress in the past, and this bill
    deserves the same fate. 

	Like previous royalty legislation, this bill taxes the audio
    equipment and blank tape. under this bill, every manufacturer (including
    importers) must pay a stiff royalty tax on every product it sells. The
    bill specifies the amounts: 10% of the sale price on each audio
    recorder, 25% of the sale price of dual cassette audio recorders, and
    one cent per minute of playing time on all blank tape. (This tax may
    also apply to blank VIDEO tape.) Thus, the tax is built into the
    wholesale price, and consumers can expect to pay even higher amounts at
    retail. 

	The bill allows - but does not require - exemption for home taping
    not involving copyrights, but it doesn't say how the exemption will
    work. Presumably, a consumer would have to pay the tax, then apply for a
    rebate if he qualifies for an exemption. IF the Register of Copyrights
    decides to authorize an exemption, and IF applying for this rebate is as
    quick and easy as getting money back from the IRS, this should be great
    fun! 

	In like fashion, the bill authorizes - but does not require - an
    exemption for recording devices and blank tape which aren't suitable for
    recording music. What the bill's drafters have conveniently ignored is
    that almost any recorder and virtually all tape can be used to tape
    music. Maybe they think consumers will accept a phony exemption. 

	As expected, the money collected will go to the big recording
    companies who are pushing for this legislation. At a time when the
    recording industry is experiencing record breaking profits, only greed
    can explain this grab for more money from the record industry's own
    consumers.