Apple seeks royalties, for "Made for iPod" campaign

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Industry insiders say the world-wide MP3 accessory market is destined to become a half billion dollar business by the close of 2005. Apple, whose iPod digital music player dominates the MP3 player market, is looking to reap some of the benefits of this capitalization through their "Made for iPod" marketing campaign which may well help keep consumers safe from un-authorised accessories, but may also give Apple some nice royalty percentages on the products that they do authorise as add-ons.

Most of the larger iPod accessory makers AppleInsider spoke to supported the campaign, saying that any licensing fees that may be associated with the program would be worth the cost of the ensuing marketing benefit and industry stabilization. Still, a select few of the smaller manufacturers -- who don't sell at high volumes -- have vocally opposed the campaign, arguing that any imposed licensing fees would cut into their profit margins. At least one manufacture of iPod add-ons said it would cease development of iPod related products as a result of fees associated with the campaign, while several others continue to weigh their options.

Source: Apple