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CD Resale - Buillshit Related

DORDOR Two Ron Toe 9,903 Posts
edited May 2007 in Strut Central
Man, this shit is fucked up. People are really trying hard to make people hate buying and selling music.http://www.billboard.biz/bbbiz/content_display/industry/e3i9ebf2d8ce6fd1e267bac18d43959ac24NARM Coverage: New Laws Threaten Used CD MarketMay 01, 2007 - RetailBy Ed Christman, ChicagoNew legislation aimed at curbing the sale of stolen goods could threaten the growing used CD marketplace in a number of states.The National Assn. of Recording Merchandisers outside counsel, John Mitchell, an attorney with Washington, D.C.-based Interaction Law, reports that Florida and Utah have passed second-hand goods legislation, sometimes referred to as pawn-shop laws, that could make the buying and selling of used CDs much more onerous to stores and less attractive to customers looking to sell music they are no longer interested in owning.In Florida, the new legislation requires all stores buying second-hand merchandise for resale to apply for a permit, would be required to thumb-print CD sellers and get a copy of their state-issued identity documents, such as a driver's license. Furthermore, stores could only issue store credit -- not pay cash -- in exchange for traded CDs, and then would be required to hold them for a 30-day period, before re-selling them.[/b]In addition to the two previously noted states, Rhode Island also has pending legislation, says Mitchell. "State lawmakers in different states tend to talk to one another...and there seems to be some sort of a new trend among states to support second-hand-goods legislation," says Mitchell.While most states have pawn shop laws, they are not typically enforced against all sellers of second hand merchandise. But as a precaution, most merchants, including record stores owners, already collect ID from individuals selling previously owned goods.In the states where pawn shop laws are getting more restrictive, it practically makes it prohibitive to sell used CDs, says one merchant. In fact, one music retailer -- who operates stores in Florida but is not headquartered there -- reports that one of the chain's stores has already had a visit from the local police enforcing the law. As a result, the chain stopped dealing in used goods in that store.Meanwhile, video and video game retailers are less hit. Stores selling previously owned video and video games do not need a permit, and only have to wait for 15 days before reselling the merchandise.Laws that result in the curtailment of used CD sales likely would be considered good news to record labels and music distributor executives who have long abhorred the growing strength of the used CD market. In fact, until the mid-1990's labels used to put pressure on merchants who bought directly from them not to carry such merchants. At the time, some majors attempted to kill the strategy by initiating new policies to withhold cooperative advertising from retailers buying directly from them but selling used CDs, a move endorsed by some artists including Garth Brooks.But that effort triggered a revolt from independent stores and consumers, highlighted by barbeques of Garth Brook CDs, in some places called a "garth-eque." It also served as a catalyst for a Federal Trade Commission investigation of the music industry practices, forcing those majors to back down from its anti-used CD stance.Since then, merchants who buy direct from majors who participate in the category say that used CD sales have grown from about 5% to sometimes 10%-20% of overall CD revenues. Also, those sales are more profitable.Traditionally, used CD sales are protected by first-sale doctrine in copyright laws allow owners to resell CDs, according to Mitchell. Also, a CD resale is also protected by the U.S. Constitution's First Amendment, argues Mitchell. Since selling a CD could be seen as an indication that the owner does not like or agree with the content, the collection of identification information could be seen as a violation of first amendment rights.

  Comments

  • Deep_SangDeep_Sang 1,081 Posts
    Besides the fact that this is just dumb, why did they wait until people stopped buying cds to push this legislation? It's the Ipod resale market that they need to focus on...
  • luckluck 4,077 Posts
    The ridiculous part about all of this (and, ultimately, why far-reaching used CD restrictions haven't historically worked) is that re-sold merchandise accounts for at least 60% of your local indie store's income. The high profit margin alone keeps stores like Reckless Records in Chicago afloat. At least a decade or so ago, the RIAA came out against used stores nationwide like gangbusters - in an serious attempt to make the practice illegal - but backed off once they realized that they'd effectively put every mom-and-pop in the country out of business. Legislation for a ban on used CDs has thereafter been couched in terms of "theft prevention," but that's obvious BS; the music industry doesn't spend millions of dollars altruistically lobbying for the right to protect its consumers from getting their CDs stolen and re-sold. The RIAA has slowly concentrated on working on the matter incrementally - by working to get state-wide bills like these passed now and getting stricter ones adopted later on - until the practice is (for all rights and purposes) too inefficient to be an option for ordinary joes to resort to. Imagine the money to be made for the industry if all music were only bought new and at full price. But consumers would rather pay less or nothing at all for their music; this legislation will ironically only drive more folks to free downloading.

    But you know: In 5 years, no one but geeky music collectors will buy physical objects.
  • white_teawhite_tea 3,262 Posts
    Selling used CDs = Harder than buying a gun!
  • luckluck 4,077 Posts
    Selling used CDs = Harder than buying a gun!

    Actually, this is 100% true. Funny how the NRA and RIAA are working in totally opposite directions here.

    O! The power of the almighty lobbyist.
  • LaserWolfLaserWolf Portland Oregon 11,517 Posts
    Why are music sales so low? RIAA. What idiots. Thank you.

    I use to to buy used cds to resell at Crossroads and out of my shop. But the used CD market is dead. Kaput. Once a year a program manager brings me 100s of cds. Last time I just bought a few things I wanted to listen to, new Etta James, new Mavis Staples. I just can't sell em any more.

    When I opened my shop in 1990 I bought every used cd that walked through the door. Bought em for $5 and sold them for $8 with in a week. People were jonesin for used cds.

    I want to give Music Millennium big props for attacking the RIAA. They are our #1 independent store in Portland. When the RIAA and Garth Brooks started attacking the resale of used cds Music Millennium hosted a Garth Brooks cook out. They pulled all of Garth's cds from the store and BBQ'd them. Quit stocking him.

    Stolen Cds tend to be the worse. Most are stolen from cars where they have been abused and misused. Cd buyers trade in their losers and past loves at a good enough clip that stolen cds do not make up much of the market around here.

    We of course have pawn shop laws that licensed pawn shops have to follow. A few years ago there was a proliferation of "used" goods stores that was a front for a shoplifting ring. Most of their sales were new razor blades, diapers and other expensive necessities. They also sold stolen car stereo equipment and stuff like that. They got busted by the FBI big time after a years long sting operation.
  • twoplytwoply Only Built 4 Manzanita Links 2,915 Posts
    A few years ago there was a proliferation of "used" goods stores that was a front for a shoplifting ring. Most of their sales were new razor blades, diapers and other expensive necessities. They also sold stolen car stereo equipment and stuff like that. They got busted by the FBI big time after a years long sting operation.


    I forget how this story went, but weren't there some cops involved in the ring too?

    But yeah, this sort of legislation could destroy many independent music retailers. What a crock of sh*t.
  • LaserWolfLaserWolf Portland Oregon 11,517 Posts
    A few years ago there was a proliferation of "used" goods stores that was a front for a shoplifting ring. Most of their sales were new razor blades, diapers and other expensive necessities. They also sold stolen car stereo equipment and stuff like that. They got busted by the FBI big time after a years long sting operation.


    I forget how this story went, but weren't there some cops involved in the ring too?

    But yeah, this sort of legislation could destroy many independent music retailers. What a crock of sh*t.

    I think the owners are claiming that the cops were stealing stuff and selling it to the stores to entrap the stores. They had no idea the stuff was stolen, they say. There were also lots of questions about why the investigation went on for so many years. If there was police corruption I don't remember the details.
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