Hawkwind MP3's

[M Holmes]

Andrew Garibaldi writes:

> The bands do not make income out of second hand sales- think about it.

I have and I contend that economic theory is correct in that if the
resale value of all CD's went to zero on initial purchase then their new
price would drop and bands on a percentage would receive less royalties.

> In
> the eyes of all thsoe who record such sales that lead to royalty
> payments,any second had sale is for an item whose "normal" sale asa new
> releases has been and gone - in the eyes of the industry, that item no
> longer exists, therefore the group cannot receive any money directly or
> indirectly from the sale of a second hand CD.

They can receive no *more* money but they have already received their
royalties on secondhand buys in the original purchase.

> The royalties are determined
> precisely by the record company based on units shipped of that new release -
> or back catalogue item - out of the company's offices - nothing else counts.

Precisely so, and the royalties on seconhand sales are, by definition,
included in those sales.

Of course if anyone wants to argue that the secondhand value of CD's is
zero then have at it, but I've *seen* people pay for secondhand stuff,
and even while sober.

FoFP