Apple Seeks Royalties for "Made for iPod" Logo

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Apple Computer is asking third party iPod accessory vendors for as much as 10% of their wholesale costs in exchange for the right to use a new "Made for iPod" logo that would certify an accessory as approved for the digital media device. The program was announced in January, 2005 at Macworld Expo, but a report from CNet News on Wednesday offered new details on the program.

According to the news outlet, Apple at one time was asking accessory manufacturers for 10% of retail pricing for the right to display the logo, but recently changed that to 10% of wholesale pricing. Apple has not confirmed or such pricing information, but did tell CNet News in a statement that:

"With more than 400 iPod accessories on the market and growing, the Made for iPod logo program is designed to help consumers choose iPod accessories that work properly with their iPods, and also provide participating iPod accessory makers with guidelines and technical specifications to develop their products."

Piper Jaffray Gene Munster supports the idea of a licensing fee for the logo would help the company advertise the iPod, and that Apple could see as much as US$25 million a year from such licensing.

"The risk is the outside chance that they upset one of the people that are helping build this economy," Mr. Munster told CNet News. "The reality is this whole ecosystem is dependent on Apple anyway. Apple has a bigger opportunity to tax that."

The two page article has much more information on the story, and can be found at CNet News.

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