Apple is threatening to yank iTunes if the US Copyright Royalty Board forces them to pay a higher royalty rate. The publishers association wants rates raised from 9 cents to 15 cents a track according to CNN.

Apple is known to play hardball when negotiating and managed to build a reputation that they could be the next Microsoft. The Vice President of iTunes said Apple might close its download store rather than raise its 99 cents a song price or absorb the higher royalty costs. “Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”

David Israelite, president of the National Music Publishers Association said he opposed any attempt by companies like Apple and its record label allies to do away with the fixed royalty rate. “Apple may want to sell songs cheaply to sell iPods,” he said. “We don’t make a penny on the sale of an iPod.”

We understand Apple is in business to make money but artists need to make money to. Apple is known for treating its competitors as enemies and is also known to squeeze out every penny from its allies. Apple is known to take up to 75 percent of the sales price from accessory makers and leaving them with zero profit. As Newsweek says, “Bullish behavior can invite backlash.”