ROYALTY ON RADIO FEES

Hawera Star, Volume LIII, 15 June 1933, Page 5

ROYALTY ON RADIO FEES

CONTRACT 'TO TERMINATE,

SYSTEM IN NEW ZEALAND

(By Telegraph—Press Association.)

WELLINGTON, June 14

Notice of intention to terminate the present agreement under- which Amalgamated Wireless (Australasia) Ltd. receives a royalty on all fees paid bv radio listeners has been served on the company/ by the Government. About three months ago similar action was taken by the Federal Government of Australia.

New Zealand listeners pay an annual license fee of 30s and of this sum 3s is paid to Amalgamated Wireless (Australasia) Ltd. a,s royalty for the use of certain patents held by the company. Official not.ee has been given to the company of the intended termination of this patent -right agreement. The agreement has been in force- for about five and a half years and the notice now given will terminate in twelve months. , Two shillings of the 30s fee paid bv listeners in the Dominion ns retained bv the Post and Telegraph Department as its commission to cover the cost of collecting the fees. This leaves 25s of every license fee for the use of the Broadcasting, Board to provide various radio broadcasting services. In Australia the license fee is 24s per annum. The Australian Government has also had an agreement with the company whereby it receives 5s of every license fee. About three months ago the company was given notice by the Australian Government of its intended termination of the contract.