Seven Bucks for a Used Kenny Loggins Record?
From the movie Half Baked:Brian: Lady, seven bucks for a used Kenny Loggins record? I'll give you five.
Record Store Customer: Ugh-huh, he autographed it himself.
Brian: All right, I'll give you four.
If you are trying to unload those used Kenny Loggins records you many soon have more to worry about than a record store clerk poking fun at your musical tastes. Some new laws -- specifically in Florida and Utah and coming soon to Wisconsin and Rhode Island -- are placing strict limits on retailers who buy used CDs.
The Florida legislation requires second-hand CD dealers to post a $10,000 bond with the Department of Agriculture and Consumer Services and apply for a permit before they can resell CDs. They must also obtain a photocopy of state-approved ID and get a thumb-print from those selling the CDs. Additionally, stores could only offer sellers in-store credit and are required to hold any purchased second-hand merchandise for 90 days before reselling it.
These second-hand goods laws, also known as "pawn shop laws", would obviously make the buying and selling of used CDs unprofitable for stores and extremely inconvenient for consumers trying offload music they no longer want.
In Florida, used videos and video games are partially exempt from the law -- they don't need a permit and must wait only 15 days before reselling.
Most states already have pawn shop laws but until recently have not been enforced against outlets that sell CDs, videos and recordings. These second-hand goods laws seem to be spreading.
One aim of the laws is to combat counterfeiting. But, as Christopher Null of Yahoo Tech notes, who would go to all the trouble of making a fake CD:
With the relative ease of Internet piracy, I guess I'm just not understanding why it would make any sense at all to counterfeit CDs in America. Would someone actually go to the trouble of copying a disc, creating a label and liner notes for it, then driving to a record store in the hopes of selling it there for a dollar? I guess I just don't see the economics of how that would work. Fake DVDs seem like a more lucrative niche for crooks, but they aren't mentioned in the legislation... yet.
Theft prevention is another reason the measures. Ron of Gaming Today disagrees:
I'm sure someone in Florida feels this a good piece of legislation, but my question is why? Have thefts of CD's gone sky-high? Are victimized people filed suit to receive their lost CD's? Just what, if any, rationale exists behind this. Selling used CD's and games has always been a side endeavor for many specialty shops. With this new law, I bet many of them cease to offer this service, as $10,000 is a lot of money to lay down so you can continue to pick up used copies of Double Dribble for $3.
Some believe this new legislation even goes against previous laws. Frank Pasquale of Madisonian.net:
Anirvan of Bookfinder notes the new legislation “make[s] a mockery of the American right of first sale, which allows consumers to freely resell copies of copyrighted materials [they bought rather than licensed].” But don’t expect the Copyright Office to stand up for the first sale doctrine. . . .it hasn’t exactly been a friend in the past.
I leave you with these final thoughts from the blog Infinite Onion:
Treated like criminals for wanting to exchange your old, well-loved and listened music for a newer, eclectic collection? Or maybe you came into a bunch of music you just don’t care for, and want to turn some junk into some treasure. There seems to be something wrong with that to me. I guess the problem they’re trying to address is the problem of illegal copying.
You see, you can easily buy a CD (used or new), take it home and burn it, and return it to the store as used- Sometimes even getting cash for it. It is currently against federal law to refund a person’s money if they return a newly purchased CD- they can only be exchanged for an copy of the exact same CD. This is to prevent the theft of music from vendors and distributors.
And that I understand, for those CDs come directly from an inventory. But when a person brings in used CDs, they are adding to a store’s inventory, creating something that wasn’t there before. Something that’s already been sold, accounted for, and made profit. If a store decides to take in a used CD (as they DO have discretion, remember), they do so because they think they can make a turn-around on it. Sell it for cheaper, yes, but also for a second time.
It simply looks to me like the government wants a piece of this action. It already has it’s hands buried deep in the profits made the first time around the CD is sold, so why not the second? I wouldn’t be surprised if the RIAA was behind this somehow.
These laws aren’t about illegal music distribution at all, they’re about taxing what was not before taxed. For good reason. It’s pawn.
I’m not sure I fully understand it all, but I do know it’s a bit ridiculous.
-Dippold
Political Online Reputation
Labels: law



