Apple to share iPod profit with Universal Music Group?

By Justin Mann on
Could the same fee levied upon sales of the Zune by UMG be applied to the iPod as well? It seems that UMG and Apple are currently in discussions regarding a contract to give UMG a portion of every iPod sale. Why would a music group want such “fines” to be imposed on hardware? Well, naturally, they assume that everyone with an iPod is a pirate. Similar to Canada's tax on blank CDs, it's a way of “mutually assured compensation”, so that any money lost to pirates would be made up in this fee on the most popular mp3 player in the world. Maybe it isn't that bad, but it sure seems like it. Apple's decision hasn't been revealed yet:

Analysts are uncertain about Apple's decision but based on the outcome Universal had with industry giant Microsoft, it is likely that the situation between Universal and Apple will be coming out the same.
Would movie theaters be justified in demanding a tax on all DVD sales because more people are staying home instead of going to a theater? It seems a bit ridiculous to demand money out of a hardware manufacturer for something that someone “might” do with it, especially considering Apple already pays a considerable portion of the cost of songs sold at ITMS to record companies and artists.

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