The introduction of compact disc technology into the retail music market signaled the beginning of a new era in audio fidelity. As a natural consequence of the enhanced clarity and durability of compact discs, the resale market for used discs has developed. The revenues and copyright royalties derived from the tint sale of a musical recording are not generated by subsequent sales. Therefore, as resale markets in compact discs and newer digital audio recording technologies continue to grow, so too will the pool of lost revenues and royalties. This Comment examines the legislative and marketplace powers the music industry might employ in an effort to recapture these lost profits. The author asserts that the music industry has sufficient marketplace power to effect a short-term solution to its resale concerns. However, legislative reform is postulated as the most equitable solution for the long term. The author envisions a copyright-based resale tax to compensate artists for a variety of lost royalties. The author cautions that any copyright-based reform must accrue to the benefit of the true copyright holders, not merely to the record companies as compensation for lost revenues.
