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Music industry risks alienating consumers with copy protection

OUT-LAW News, 29/10/2002 

Mandatory warning labels should be placed on copy-protected CDs, or the music industry risks "seriously alienating" consumers and losing revenues, according to a new survey released by GartnerG2. The research also found that 77% of respondents think they should be able to copy CDs for personal back-up purposes.

The survey, conducted on-line in July 2002, examined the opinion and consumption patterns on digital content of 1,005 US adults and 1,009 teenagers. According to the findings, 74% of the respondents "strongly agreed" that if the music industry sells copy-protected CDs, it should be required to label them as such.

The survey further found that 82% of the sample believed it is legal to make copies of CDs for personal use, whilst 60% said they should be able to give another member of the household a copy.

Making a copy of your own CD for personal use is legal in the US, but not if the CD has been copy-protected. Record labels have announced their intent to copy-protect all future CDs. In the UK, however, there is no right for consumers to make unauthorised copies of CDs for personal use, either on cassette or CD, irrespective of copy protection.

This is not the case in other European countries, where copying for personal use is permitted but a levy is put on sales of blank media to compensate copyright owners.

P.J. McNealy, research director for GartnerG2 said: "Consumers will balk if they bring home a CD and find it won't play on every CD player they own." He added: "Since it's clear consumers perceive they have the right to make some copies, the lack of labelling will only contribute to declining revenue for the music industry."

 

 

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