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Canadians hit by copyright levy on MP3 players

Mr magoo   on 12 December 2003 - 18:28 · 34 comments & 3158 views

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"That 20-gigabyte MP3 player going under the Christmas tree this season could soon cost 20 per cent more if the Copyright Board approves a proposed levy tomorrow on the sale of digital music devices. It could also mean new levies on recordable DVDs, removable flash memory and micro hard drives, as well as increased tariff rates on blank cassettes and recordable CDs, assuming a music-industry group called the Canadian Private Copying Collective, or CPCC, gets its way. Claude Majeau, secretary-general of the Copyright Board, confirmed yesterday that a decision on the controversial levy is to come out Friday morning.

Both the CPCC and a group of electronics manufacturers and retailers aggressively fighting the levy have been arguing their respective views since the Copyright Board began formal hearings on the matter in January. "It's the kind of decision that's likely to leave everybody unhappy," said Michael Geist, a professor of Internet law at the University of Ottawa and technology counsel for Osler, Hoskin & Harcourt LLP. "The retailers won't like it because they don't like the levy, period. Consumers won't like it because they won't be paying a fair price for the product. And copyright holders will probably feel they're not getting enough."

The CPCC already collects a levy on blank cassettes, recordable CDs and Sony minidiscs, but in May, 2002, the organization, which collects and redistributes the levy on behalf of the Canadian music industry, proposed that existing tariffs be substantially hiked and expanded to cover M3P players and other digital-memory products that carry music files. The original purpose of the levy was to compensate artists for the widespread activity of making personal copies of music that an individual already owns.

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#1 Spyder on 12 Dec 2003 - 18:40
more info regarding this
QUOTE
OTTAWA - The cost of MP3 players is going up after the Copyright Board of Canada slapped a levy on the sale of digital audio recorders on Friday.
However, the board turned down a request from a music group called the Canadian Private Copying Collective (CPCC) to impose levies on blank DVDs, removable memory cards and micro hard drives. The board also said no to higher levies on blank audio tapes, recordable CDs and MiniDiscs.
"The evidence available at this time does not clearly demonstrate that these recording media are ordinarily used by individuals for the purpose of copying music," the board said in its decision.
The federal board said the new levy will be imposed on digital audio devices with non-removable memory, such as Apple's iPod.
The imposition of the fees comes as the music industry tries to fight the growth of copied music downloaded via the Internet.
The fees levied on digital music devices include:
Up to 1 gigabyte of memory: $2;
More than 1 gigabyte up to 10 gigabytes: $15;
More than 10 gigabytes: $25.
Manufacturers and importers must pay the levies, which will most likely be passed on to consumers.
The CPCC will collect the levy and distribute it to groups representing eligible authors, performers and makers.
The copyright board is a federal organization that establishes royalties to be paid for the use of copyrighted works.

taken from here: http://www.cbc.ca/stories/2003/12/12/musiclevy_031212
#2 Fonze on 12 Dec 2003 - 18:51
that is probably one of the dumbest things i have ever heard.
prevent piracy by charging more for hardware and media to burn/play the pirated music/movies?
hahahah
(6 replies) #3 Evolution on 12 Dec 2003 - 19:17
Fonze you're an idiot, they aren't preventing it. They're compensating for the losses and therefore making it legal to have copied music on mp3 players etc.
#3.1 aStRaLgOd on 12 Dec 2003 - 19:35
I think that might be good, considering I already have my Riovolt, my CD-RWs
#3.2 Fonze on 12 Dec 2003 - 19:52
are you saying they are giving the extra money to the record industry and allowing people to download the music for free?

otherwise the person that is buying music CD and then puting the music on an mp3 player or backing them up on CDs is getting screwed.
#3.3 RangerLG on 12 Dec 2003 - 20:04
The RIAA already gets royalties for the sales of CD-Rs marked as Audio or Music here in the United States.
#3.4 markjensen on 12 Dec 2003 - 20:26
QUOTE (#3.0)
They're compensating for the losses and therefore making it legal to have copied music on mp3 players etc.

Actually, a surcharge on an MP3 player does not make it "legal" to have copyright-infringing musinc on it. However, the "fair use" provision in U.S. copyright should allow an owner of legal music to play it on his/her own personal MP3 player (much like making a tape copy of a CD is legal under "fair use". Canadian law may be very similar to US law, but I cannot state that with certainty.

The MP3 format does not provide for the "content use limitations" (i.e. DRM) that the RIAA, et al, wish to enforce. That is why all the "legal downloads" are in other formats, such as .wmf. Microsoft has included these restrictions as part of their file format.

Also, the MP3 encoding/decoding is not royalty-free. It has to be licensed to be legal. Now, I am sure that the maker of the player has already done this, so it really is all about greedy people wanting to skim as much money as possible out of a popular item under the guise of law.
#3.5 Galley on 13 Dec 2003 - 12:04
And who actually buys those discs?
#3.6 nookadum on 14 Dec 2003 - 05:18
QUOTE (#3.5)
And who actually buys those discs?

Billions of other people. Duh.
#4 vetMr magoo on 12 Dec 2003 - 19:47
As the article says, its not really anything new. Its just the way the canadian copyright system is setup.
#5 grafXguru on 12 Dec 2003 - 20:21
Meh. We can download MP3s legally without worrying about lawsuits. Evens out in my eyes.
#6 chilliadus on 12 Dec 2003 - 20:26
Haha I like the way they punish everyone for someone. May I also point out that it's not enough to raise the tariffs on blank media. Everything related to paricy, no, everything related to crimes, should be taxed accordingly so that victims can be compensated.
#7 Chicane-UK on 12 Dec 2003 - 20:30
And what about the people that play by the books and purchase their music and make a legitimate copy onto their portable MP3 player?

They deserved to get done in this blanket tax?! It doesn't really apply to me obviously as I live in the UK, but it seems pretty unfair to me.
#8 insurektion on 12 Dec 2003 - 21:01
tHIS BETTER NOT COME INTO EFFECT B4 BOXING LIKE HELL IM PAYING 30 BUX MORE FOR MY IPOD
(2 replies) #9 Vandi423 on 12 Dec 2003 - 21:08
USA USA USA USA USA! Atleast we don't get the crap TAXED out of us like they do over in socialist countries like Canadia. We have the RIAA for that! HAHAHAHAHA

BTW i just bought an ZEN Xtra in the good ol' U S of A!
#9.1 Conundrummm on 12 Dec 2003 - 22:50
Yeah, we just get almost as much crap taxed out of us, with nothing in return, unlike socialist countries like Canada. No healthcare benefits, substandard education...
#9.2 Jstphish on 13 Dec 2003 - 01:54
Oh Please, don't turn this into a how great is the USA news thread. You only sound like a complete idiot. Canada isn't socialist and the US isn't the only great country.
(1 reply) #10 dr_sanchez on 12 Dec 2003 - 21:13
man this will suck balls if it goes into affect. What's next after this though? Pepsi putting levys on digital cameras because their logo might appear in the background? MP# players and removeable media are not 100% soley for the use of piracy, why should the music industry be compinsated?
#10.1 DigitalFreedom on 12 Dec 2003 - 21:19
Currently only "Audio" cd-r are levyed, there are also "normal" cd-r and cd-rw which also have levys but "Digital" CD-r's and CD-RW's don't have any levyits funny because they are all the same cds, and just are re-branded in canada as "digital: cd;s or "audio" cds, there are also normal cds, but they still have the levy... ONLY DIGITAL CD"S HAVE NO LEVY BUT DIGITAL CDS ARE NO DIFFRENT THAN AUDIO OR NORMAL CD's THEY CAN STILL BURN Audio cds with digital cds lol
#11 DigitalFreedom on 12 Dec 2003 - 21:15
yeah, but yet our retail stores don't rip us off at least, like future shop, i admit does rip people off on somethings, but most things they don't, don't support this and are fighting it along with a couple other canadian companys, anyways we arn't OVER TAXED, at least our taxes are put to good use like being alowed to download illegal music and it being legal, like someone else said, it all even's out and if you read, the MAX leve that can be placed on any product under this law is 25$, thats not too bad considering harddrives and mp3 players are like 200-700$ anyways
(1 reply) #12 DJ Specs on 12 Dec 2003 - 21:36
Another pathetic attempt to RAPE the people in Canada.. GO "F" Yourselves CPCC!
When the hell are the lazy people in Canada going to take a stand? Oh wait, they would have to get off their EZ Boy and put down their beer.
#12.1 rheostat on 15 Dec 2003 - 22:29
That's La-Z-Boy *cough*
#13 Ev1lg0at on 12 Dec 2003 - 22:22
GO CANADA!
#14 zivan56 on 12 Dec 2003 - 23:34
I guess I have another reason to download ****loads of mp3's!
#15 omega on 13 Dec 2003 - 00:30
If you read near the end of the Toronto Star article (i think it's at the 2nd last paragraph), it mentions that Internet Service might have a tariff of some sort. Just thought I mention this, since no one has mentioned anything about this in the comments.
#16 neocyber_16 on 13 Dec 2003 - 00:52
DOES THIS ALSO COUNT IN PDA WITH MP3 CAPABILITIES??
#17 mealbundy on 13 Dec 2003 - 00:57
I hope the canadian goverment taxes everthing to death! That way, all businesses will fall, monopolies will rule with an iron fist, and the nation will skip the recession and go right into a depression. Nobody will be able to pay taxes, and everyone will be imprisoned for not paying. Glad to see that GC has raised the minimum wage up 30 cents more so I can buy my penthouse condo! PISS THE PEOPLE OFF, AND THEY WILL TAKE YOU DOWN!!!!!!!!!!!!!!
(2 replies) #18 Ash on 13 Dec 2003 - 01:49
Actually the artical i read about this a while ago makes it legal for a person to make a copy of music for private use only. So if you wanna borrow your friends library of 500 CDs and copy em to listen in your home, your allowed... if your trying to sell the copies or making money off em any them any other way then thats a no-no.

But ya why not tax us on everything. Hell the govt in Quebec is prolly gonna be taxing us on water and thats the liberal party, same as the PM of Canada.

p.s. I don't mean the obvious money from your taxes that go to pay for procesing water either, its s seperate extra tax.

Last edited by 1018 on 13 Dec 2003 - 01:56
#18.1 Kestrel on 13 Dec 2003 - 05:06
Read the MSNBC Story - the taxes were added only to MP3 players with non-removable storage and the ruling says that DOWNLOADING (but NOT uploading) is 100% completely LEGAL.
#18.2 nitroburn on 13 Dec 2003 - 20:17
are you even canadian? If you are, I suggest going back to school and taking another class on Canadian politics.
(2 replies) #19 BeRtJeKnOrR on 13 Dec 2003 - 13:05
What if the manufacturers just call those mp3 players "external backup hdd's"?
#19.1 dr_sanchez on 13 Dec 2003 - 15:25
hmmm, if the iPod receives the builin ability to store say picture files, aswell as many audio files...I wonder if it would bypass the levy...
#19.2 nookadum on 14 Dec 2003 - 05:25
It already can.
#20 nitroburn on 13 Dec 2003 - 20:15
Canada's copyright agency has OK'd the downloading of copyrighted music from Peer to Peer networks - for now, at least - slapping a small tax onto MP3 music players. The Copyright Board of Canada declined to extend existing levies on blank audio and CD recordable media to DVD recordables, or to removable memory, such as Compact Flash or MMC cards.

While uploading and distributing copyrighted music remains illegal, Canada's simple solution provides copyright holders with some compensation through existing royalty distribution channels.

http://www.theregister.co.uk/content/6/34504.html

REMEMBER THE GOLDEN RULE OF CANADIAN MUSIC COPYRIGHTS:
If your friend makes a copy of a CD YOU bought, THAT IS OK!
If you make a copy of that same CD for that same Friend, THAT IS ILLEGAL!

How P2P Works into that is untested. One could claim that their P2P Downloading is the same as the friend making their own copy because you dont really have to do anything but provide access to your music. Instead of showing you my CD's, I'm showing you my files. But OFFICIALLY:

Downloading copyrighted music from peer-to-peer networks is legal in Canada, although uploading files is not, Canadian copyright regulators said in a ruling released Friday.

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