RADIO LICENCES

Evening Post, Volume CXVII, Issue 109, 10 May 1934, Page 19

RADIO LICENCES

THE NEW AGREEMENT

AFFECTS NEW SETS ONLY

FLAT RATE SUPERSEDED

"Within. tho_ past few days a very radical alteration, has been mado in the conditions under-which radio receivers may be sold.in New Zealand, ■whether manufactured hero or imported. The listener's licence fee in New Zealand "is 30s per annum." Out of this tho Post and Telegraph "Department, which collects the fees, has paid 25s per licence to tho broadcasting authority (formerly company, now board), re- | taining ss. tinder an agreement with Amalgamated Wireless (Australasia), Ltd., 3s per licence per annum has since 1927 been paid to that company in full satisfaction of all claims in respect to patent rights held by the company,, involved in the; whole- of the broadcasting service. A similar arrangement existed in Australia, and it has "kept the- peace" in,the matter of wireless patent royalties since it was instituted. The old- agreement, by abolishing all-; questions of individual licences to manufacture, greatly facilitated th*o development of native radio industry, and in Australia, .where the protective policy was powerfully effective (the duty being 12s 6d per valve .or 40 per cent;, 'whichever.was the higher) imported receivers are an unimportant factor. It had, however, the disadvantage /that there., were. ... other claimants to royalties, having no share in,the 3s deducted from the listener's licence fee.

The new agreement in New Zealand has not been published in detail. It has boon stated, however, that it imposes a chargo of 3s 6d per "anode stream." Most valves have only one "anode stream," which means, 'of course,; the flow of electrons ;from filament to plate; but some have ' more. For instance, tho recently introduced-

"dotiblc-diode-triodc," which is. found in new receivers having /' automatic volume control, has three. ' Therefore, an up-to-the-minute receiver will carry a royalty charge greater than 3s 6d per valve, whereas sets not using the more complicated valves will •bo rated at 3s 6d per valve. The rectifier valve, which usually has two anode streams, ■is' excluded and does not affect the royalty charge. It should be definitely understood that the royalty charge is not imposed upon tho valves themselves, so that their cost is not changed or affected in any /way. It is a method of recouping the fowhe.rs of.patent rights in receiving circuits, and is attached to the set as; sold and .not to any replacements or renewals of parts. The- patent royalties in respect .of the valves (and other parts) aro covered by the prices charged for them.

Tho arrangement will not affect;sets already in use, or those available for sale within a brief period, but from June 1 all sets unsold will be subject to tho new charge.

"While present owners of receivers will not bo affected, future purchasers will be called upon to pay higher prices for their receivers.

.Whereas tho new system will apply to all new sets sold, the patent right owners will immediately lose the wholo of tho revenue derived from licences for sets issued under the old arrangement, and will thus lose" heavily until i the-sales of new receivers-build up &j largo new revenue. ■' On the other hand, the Post and ' Telegraph Department will promptly begin receiving 3s per: licence, a matter of well over £15,000 per annum. It , has long been contended that, the other 2s, which ,is all that the Department i has ' retained, is inadequate to cover, itjie- cost of collecting licence fees, keep^ ing an eye upon "pirates" who listen in without paying, and conducting, the radio inspection, service. But nobody has suggested that; the ;Post Office p/o----vides a service to listeners worth 5s per annum per licence. It will bo interesting to sco whether tho PostmasterGerieraVwill hand over part of his new revenue to the' board (which, of course, will be glad to get it) or increases tho Department's service, or ——. A good deal remains to be -done in assisting in getting rid of artificial interference. And it: is not unreasonable to suggest

that some part of the new revenue might be earmarked for use in developing services in areas that the board has hitherto felt unable to cater for.'

It is understood that the companies which will share in tho royalties under the new agreement aro A.W.A., Standard Telephones and Cables, Ltd., the Philips Company, and the Neutrodyne Proprietary, Ltd. (controllers of the Hazeltine patents).