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Canadian Music Industry Wants Royalties on Net Usage

Posted by michael on Fri Nov 28, 2003 03:59 AM
from the greed-kills dept.
Dr. Zoidburg writes "Apparently Internet music and movie sharing in Canada has gained enough popularity to turn the heads of the music and movie industry. CTV has a report about a Canadian organization named SOCAN (Society of Composers, Authors, and Music Publishers of Canada) that will "ask the Supreme Court of Canada next week to force Internet service providers to pay them royalties for the millions of digital music files downloaded each year by Canadians". Says the president of the Canadian Association of Internet Providers, "Consumers could very well see an increase in their Internet costs and they could see a slowdown in the transmission speed of their Internet communications"."
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  • Whoooah (Score:5, Funny)

    by Space cowboy (13680) on Friday November 28 2003, @04:00AM (#7580876) Journal
    All of a sudden I *don't* want to be classed as an ISP any more (re: that story [slashdot.org]

    Simon.
      • Re:Whoooah (Score:5, Insightful)

        by mirko (198274) on Friday November 28 2003, @04:41AM (#7581038) Homepage Journal
        No.
        It's not, this is just preemptive, this is in case of : if you accept the tax, then you reckon you are a thief and you obviously have to accept further investigation in order to complement your "subscription fee"...
        In France, they had a similar problem : every blank CDR's price include royalties for the musical industries as they consider these media may only be used in order to copy copyrighted music.
        The money only goes to a handful of famous "singers".
        Now, if you only need CDR to backup stuff, then you're fucked.
        What's next, the MPAA will also ask for royalties ?
        Then I will (I just have to find a reason which will prove that people may use anything I invented without my consent).
        • In canada, there's already a levy on blank CDRs which goes to the music industry...
          • Re:Actually... (Score:4, Insightful)

            by Anonymous Coward on Friday November 28 2003, @06:54AM (#7581308)
            About time they stoped that practace, CD's are used for copying priated digital software, windows, office, games, and what not, not music, far easier to use mp3's and the net for that.

            But paying for music I'm not copying, damn, it'd make me start copying.
              • Re:Actually... (Score:5, Informative)

                by Kombat (93720) <kombat@kombat.org> on Friday November 28 2003, @09:00AM (#7581739) Homepage
                it is legal to download songs in Canada.

                No it's not. TechCentralStation is wrong. In 1998, the Copyright Act was amended to legalize private copying of music. It specifically says that only the original media can be copied, but that the copier isn't required to own it. Basically, I can borrow your CDs and copy them, legally. Note that you cannot copy them yourself and give me the copies (though you are, of course, allowed to copy your own CDs for your own use) - I must copy them myself.

                TechCentralStation mistakenly believes that this applies to music sharing. This position has already been rebutted in other articles, because the files that you are sharing (the MP3's) are NOT the originals. They are copies taken from the owner's CD. Therefore the owner has made the copy, not you. Also, you're making a copy of a copy, which is not permitted under Section VIII of the Copyright Act.

                However, with the advent of online music stores (itunes.com, buymusic.com, etc.), now those MP3's in your shared folder could be argued to be the originals, and the people coming in and downloading them are making copies.

                You were correct, however, in stating that none of this has been tested in court yet.
                  • Re:Actually... (Score:4, Informative)

                    by Kombat (93720) <kombat@kombat.org> on Friday November 28 2003, @11:03AM (#7582311) Homepage
                    it damned well does make it legal to copy CDs.

                    That's 100% correct.

                    The fact that the CD (or songs) was transmitted from one person to another via the internet has no effect on the enforcement of the law. We pay taxes on it, therefore it's legal.

                    That's 100% WRONG.

                    It matters. It matters very much. Read the law yourself. [justice.gc.ca] Specifically, see section 80.
        • Re:Whoooah (Score:5, Interesting)

          by weicco (645927) on Friday November 28 2003, @05:24AM (#7581136)
          In Finland we have been paying "Teosto-payment" (Teosto, Finnish Composers' Copyright Society) from C/VHS-cassettess and CD-Rs (and I think from DVD-Rs alos) for ages. If you can prove that you won't use these medias to store copyrighted material you can get your money back from Teosto by filling an application. I'm not really sure how this works though.

          But this leads to interesting dilemma. Am I automatically criminal when I'm supposed to pay such payments when buying CDRs? I thought person was _not_ guilty until otherwise prooved.
          • by Anonymous Coward on Friday November 28 2003, @05:34AM (#7581154)
            Yes, of course these people think everyone's a criminal.

            The taxi companies must pay Teosto license fee if their drivers wish to keep the radio on when they've got a customer in the car. It doesn't matter if the broadcaster already paid for the songs...

            They also tried to extort money from kindergartens, schools and churches for the copyrighted children songs/hymns that were being sung by the kids and churchgoers. That didn't go through - yet. I bet they'll try again soon.

  • Finally (Score:4, Funny)

    by strike2867 (658030) on Friday November 28 2003, @04:01AM (#7580878)
    Finally Canadians get a taste of RIAA's medicine. Theyve had these freedoms for way too long.
  • by John Courtland (585609) on Friday November 28 2003, @04:01AM (#7580880)
    when your stuff gets downloaded. If you're gonna tax everyone, then you can't complain when they take what they paid for.
    • by MochaMan (30021) on Friday November 28 2003, @04:10AM (#7580923) Homepage
      Indeed. That's the idea. When the copyright levy was introduced for blank CDs, we got the right to legally make copies [neil.eton.ca] of a friend's CD for our private use in exchange. I suspect that is an attempt to pull something similar for music downloads off the internet.
    • by ewn (538392) <ernst-udo.wallenborn@freenet.de> on Friday November 28 2003, @07:46AM (#7581485) Homepage

      you are assuming that laws are logical. Let me challenge that assumption: here in Germany we pay sort of a tax on blank media and recorders. Music industry is even trying to broaden the scope of these royalties: they are currently pushing for a copy tax on printers (older link here. [harvard.edu]).

      In addition to that, there is an entity called GEMA which makes sure that radio stations pay for each song they play. Public radio and TV cost consumers a monthly fee, too.

      Recently they made a new copyright law. Copying for private use used to be legal, and strictly by the letter of the law still is, but circumventing copy protection mechanisms in order to do something the law explicitly allows you to do is now illegal. In other words: They didn't outlaw crossing the road. They made touching the ground with your feet while crossing the road a crime.

      So consumers over here are forced to pay for the same product multiple times. All attempts to set that straight have failed so far. I have a hunch that this kind of legal creativity may become an exportschlager.

    • by jc42 (318812) on Friday November 28 2003, @11:45AM (#7582557) Homepage Journal
      Then never complain ... when your stuff gets downloaded.

      But I have a very good complaint: My web site has my music on it. If this goes through, any Canadian downloading my music from my web site will be paying a tax to the recording industry. So, while I won't get any income from those downloads, someone else with no rights to my music will.

      It's bad enough that the recording industry can force "standard" contracts on musicians that give all rights and profits to the recording company, and claim that this is "voluntary". Yeah; it's voluntary; you always have had the choice of nobody hearing your music because you can't get it distributed without signing one of these contracts.

      But this sort of tax gives them profit from my music when I haven't signed any contract at all.

      Somehow, I'm not too happy with this idea.

      • by instanto (513362) <tabarth.online@no> on Friday November 28 2003, @04:30AM (#7580993) Homepage Journal
        However, do you want to pay money to your ISP so that Celine Dion can get money? (Well, she wont, but say for arguments sake that she did)

        I dont want to pay extra money to my ISP just because some wad somewhere downloads a metallica album, why should I pay money to my ISP for crappy music?

        Compulsory License sounds ok - but it still means you're paying money for a lot of shit you dont want.

        I can pay money directly to the composer when I buy their CD - no need for compulsory license or other crap - and best of all - RIAA/The Enemy/trashy musicians wont get a single $ from me .

        If you're not listening to their music - why should they get money from you?

        -

        Also: This sounds like a legalization of downloading music from the net. After all - you've paid for it.
        • Newsflash: Artists have to buy the cds they sell "directly" from the label, with bairly a discount. The artist usually makes very little on the deal, no more than if you bought it at Best Buy or Amazon or whatever.
        • by Hobbex (41473) on Friday November 28 2003, @04:46AM (#7581053)
          However, do you want to pay money to your ISP so that Celine Dion can get money? (Well, she wont, but say for arguments sake that she did)

          I wasn't arguing for or against compulsary licensing, but asked a question since I know a lot of other people have. I thought this was the whole point of compulsary licenses: everybody pays whether they use it or not, and the money is distrubuted according to some metric of who is downloaded the most.

          I can pay money directly to the composer when I buy their CD - no need for compulsory license or other crap - and best of all - RIAA/The Enemy/trashy musicians wont get a single $ from me .

          The RIAA is not the root of the problem. The laws necessary to support this model _require_ a perpetual war on free communication: if the RIAA were out of the picture then somebody else would be waging it.
  • Sounds reasonable (Score:3, Interesting)

    by Rat's_ass_donor (455429) on Friday November 28 2003, @04:01AM (#7580882)
    Relatively speaking, of course. If "Screw the big labels, who overcharge for music and cannot assemble a coherent internet strategy - I'll just get it for free" is a reasonable response to the status quo, then a blanket tax on traffic to "reclaim lost media revenue" is also reasonable.
    • Which, of course, ignores the small point that the blanket tax applies to everyone, not just those who download music. A bit like paying a per-CD fee to music companies for every Linux install CD you burn. Reasonable indeed.
          • Re:Sounds reasonable (Score:4, Interesting)

            by timeOday (582209) on Friday November 28 2003, @09:32AM (#7581890)
            hy was DeCSS developed for Linux? Because there was nothing else available to do the job. In case anybody has been living in a cave for the past ..... well, however long it was ..... here's the background.
            I have my own little DeCSS story from just last night. My brother (living in another state) called because he couldn't play a DVD on his computer. He had the software on Windows to play it, but it would bomb out and refuse to play because the TV-Out on the card was enabled. Huh? Where is it written you can't use a computer to play DVDs to a television? But he just wanted to watch on the computer, so he hunted around and we couldn't find any option to disable the TV out. (He has an integrated video card; I doubt if it even has a TV out connector anyways).

            Fortunately as an apprentice computer nerd he already had an installation of Linux. I suggested he avoid all the BS by installing mplayer, which he did, and it worked. My relatives visiting at his place were mighty impressed.

            I also use DeCSS-derived products to copy movies to my laptop hard drive, so I can put an extra battery in the drive bay, and save on the power and noise of the DVD-Rom when flying.

            I think DeCSS is great.

  • In Canada. (Score:3, Insightful)

    by m0rph3us0 (549631) on Friday November 28 2003, @04:02AM (#7580883)
    We already pay royalties on blank CDs. That is supposed to cover the cost. On the other hand if it means i can't get a 2 billion dollar find for sharing. why not?
      • Re:In Canada. (Score:5, Interesting)

        by TC (WC) (459050) on Friday November 28 2003, @04:21AM (#7580957) Homepage Journal
        Look at the laws. What you're allowed to copy isn't linked in any functional way to what you pay the levy on, in the law. The law also doesn't have anything to say about the source that one copies from.

        The Copyright Board has actually found that the source needn't be a legitimately purchased or owned medium for a perfectly legal personal copy to be made. There's no reason downloading music shouldn't be covered by the existing legislation. You run into trouble if you start uploading music, though, as it violates the legal restrictions on usage of a personal copy. It violates, off the top of my head, the prohibitions on transmitting copies across a telecommunications system as well as the prohibition on distributing your personal copies.

        The gist of it is, uploading is sure as hell illegal under the current legislation, but downloading is fine unless some magic way to argue against it is found.
  • Stupid . . . (Score:5, Insightful)

    by Gabrill (556503) on Friday November 28 2003, @04:02AM (#7580887)
    That's great. Raise internet prices for everyone for no apparent reason to the consumer. Reminds me of some of those obfuscated extra charges on my phone bill.
  • by Anonymous Coward on Friday November 28 2003, @04:03AM (#7580889)
    Hey lets tax internet access.
    I dont feel like we are making enough money.
    So lets try to get the govt to tax other businesses
    to make up for what we feel like we are not
    getting. right...

    I think this whole movie and music thing is way
    overblown.

  • proxies (Score:3, Interesting)

    by mOoZik (698544) on Friday November 28 2003, @04:03AM (#7580892) Homepage
    Sounds good. I'll download gigabits of stuff via a Canadian proxy and see some poor bloke get screwed. ;)
  • by Anonymous Coward on Friday November 28 2003, @04:04AM (#7580898)
    As much as the DMCA is unpopular among Slashdotters, and rightfully so, at least it gets one thing right. It establishes that the ISP isn't responsible in any way. As the article states, if the music and movie industries get their way in Canada, they could soon be responsible for the traffic through their network. I know the DMCA gets a lot of things wrong, but protecting the ISPs is one thing it actually gets right. Think about it.
  • by graveyardjohn (672128) on Friday November 28 2003, @04:05AM (#7580903) Journal
    Surely payment upfront on the assumption that people will be using their connection for legally questionable activities will help to justify the 'crime'* to people before they even sign up? "If I'm paying for it, I may as well be doing it"

    * I say crime, I mean 'copyright infringement' (or whatever - Lets not start this one again!)
  • by jkrise (535370) on Friday November 28 2003, @04:06AM (#7580907) Journal
    Judging by this article, it looks like they do!
  • Argh (Score:3, Funny)

    by Anonymous Coward on Friday November 28 2003, @04:07AM (#7580911)
    Friggin America, always trying to take away my rights! I'm moving to Canada!

    Oh wait...
  • by Anonymous Coward on Friday November 28 2003, @04:08AM (#7580912)
    After all, the food companies keep illegal downloaders alive, so ultimately they are responsible!
  • by BeneathTheVeil (305107) on Friday November 28 2003, @04:09AM (#7580914) Homepage Journal
    ...who would never sign with a 'major' label (or even a really large indie one)... when is my cheque coming? ...and how much do I get?

    I make a good portion of my music freely downloabable from my site... and if they're going to tax people for downloading my music, then I should see that money, shouldn't I?
    • by SmallFurryCreature (593017) on Friday November 28 2003, @08:49AM (#7581690) Journal
      You see if you make it available for download then I presume you have an account with an ISP somewhere right? So the RIAA will tax you for that account and they will then send that money to proper artists not independent commies like you. Got it?

      The above was an attempt at humor

  • by Micah (278) on Friday November 28 2003, @04:11AM (#7580926) Homepage Journal
    If our Internet bill helped to fund the music industry, I would suddenly have an attitude that I can copy and download music freely without restriction.

    Currently I believe that it is important to respect the owner's copyright and that music should be payed for, if the artists ask for payment.
  • by Barbarian (9467) on Friday November 28 2003, @04:13AM (#7580935)
    We already pay $0.25 per cd-r, "they" want to increase it to around $0.59. As an example, that would increase the take by the music industry of a 30 pack of cd-r's to $17.70, from $7.50, an increase of $10.20. I for one find it offensive that the recording industry is charging me for the right to back up my own, non-musical data, and I doubt that any of the levies collected are rightfully distributed to pornstars that most /. readers have stored in the way of movies on cd-r's. Large per GB levies have also been proposed for portable players, and if I recall correctly, if implemented, the levy on an iPod would be around $200.

    There has been a lot of opposition to the proposed $0.59 levy lately, spearheaded by large retailers, so the music industry has turned elsewhere, and that is to ISP's.
  • Riiiiight (Score:3, Insightful)

    by JazFresh (146585) on Friday November 28 2003, @04:15AM (#7580947)
    Although those groups are prompted to seek new sources of revenue because of what they say are illegal downloads of copyrighted content,
    SOCAN is asking ISPs to pay a blanket annual royalty regardless of whether the ISP is transmitting legal or illegally downloaded music.
    This might have a chance if it was possible for ISPs to detect illegal traffic. But it's not. With the latest P2P protocols you can't use the port number to detect that type of traffic, and if the transmission in encrypted, you can't sniff the data to see why type of traffic it is.

    It seems the SOCAN technical advisor only seems to know about downloading illegal content from web pages. Let's hope the courts have access to someone slightly more savvy.

    I'm totally against piracy of any sort, so it makes me mad when they'd tax me (because you know the ISPs would just pass the costs onto the users) for something I didn't do! This is just the same as those damned proposed taxes on CDRs and HDDs, because they "might" be used for piracy.

    Verdict: not a chance in hell, if common sense prevails. If ISPs inform their users that costs will go up because SOCAN considers them all criminals, there'll be enough of an outcry to squash it.

  • by Tripster (23407) on Friday November 28 2003, @04:23AM (#7580965) Homepage
    ... I feel like freakin' moving!

    This is the first I'd heard SOCAN had gotten this far and quite frankly I'm pissed. I don't even have a P2P app installed in my computer, my MP3 collection consists solely of my own CD collection and is in that format for ease of access.

    What's next? Royalties on showerheads, shower curtains and bathtubs in case we happen to mumble out a tune while showering?

    The problem with our Supreme Court is they'll likely side with SOCAN and we'll end up paying. This is the same court who sided with our domestic DTH satellite providers and outright made it illegal to subscribe to US services in our country, yup for years we did our darndest to broadcast signals behind the iron curtain but when it comes to protecting a few broadcasting monopolies it's ok to ban foreign signals.

    Shit we don't get to vote for a new government until next spring but the media have all pretty much named the new PM who is just the guy taking over from the retiring PM, lucky for us in the rest of the country it only takes Ontario and Quebec to vote in the same idiots time after time, the new guy is very pro big business, heck in his private career he made an effort to get around Canadian tax laws by using ships registerd at foreign ports, just the guy to put in charge!
  • by Cooper_007 (688308) on Friday November 28 2003, @04:24AM (#7580968)
    No power - No host - No illegal sharing.

    It's common knowledge that electricity is only used by illegal filesharers, so increasing its cost to recoup diminishing profits^W^Wdamages makes a lot of sense.
    Naturally, this also includes batteries. Solar panels are allowed (for now) but there's going to be a tax on sunlight soon which should be able to close that gap.

    Remember folks: You are consumers. SO START CONSUMING ALREADY! Your unwillingness to consume our drivel^Wproduct is costing us MONEY. If this trend keeps up, we'll be forced to sue you.

    Cooper
    --
    I don't need a pass to pass this pass!
    - Groo The Wanderer -

  • Could be good news (Score:5, Interesting)

    by ajs318 (655362) <sd_resp2&earthshod,co,uk> on Friday November 28 2003, @04:35AM (#7581016)
    There is a way that the Canadian people could actually end up having a sorted system if this does become law. Unfortunately it requires a high degree of faecal unity on the part of many people.

    While this is going on, you could lobby your MPs {assuming that is what they are called in Canada} to ensure that if any royalty fees are charged on downloaded music, they should be payable directly to the performer {assuming the performer is the copyright holder} and not exceed the amount that would have been paid had the songs downloaded been obtained on the least expensive pre-recorded medium available {whether this be cassette, CD, LP, MiniDisc or To Be Invented}. If Avril Lavigne {faute de mieux} gets x cents when I buy one of her albums, I don't see why it makes any difference to Avril Lavigne if I just make a copy of the album and pay her the same x cents directly. I mean ..... obviously it makes a difference to the record company - just like it makes a difference to McDonalds when you eat at Burger King.

    And, of course, in the case of unauthorised downloading, you would only ever be held liable for those x cents per track - not the thousands of dollars the RIAA conjures up out of thin air. Call me quaint and old-fashioned, but if you steal a dollar you should pay back a dollar; or at the worst no more than what would buy when you come to pay it back,whatever a dollar would have bought when you stole it.

    It would be interesting to see exactly what objections anyone could raise to this proposal. I've even come up with a name for it: non-discriminatory licencing. Basically, if an artist allows a record company to package up and distribute their work for a fee, they have to allow anyone to do the equivalent job for the same fee; anybody's money is as good as anybody else's.
    • ABSOLUTELY.

      I would have NO PROBLEM AT ALL if royalties for music went DIRECTLY to the artist involved, and not through the record label, managers, agents, etc.

      Whatcha wanna bet that SOCAN would drop the idea in a split-second if they were unable to fill their own pockets with cash.

      Quite a wonderful scam they have going here:

      -Private Organization, doesn't have to release their books, profit information, membership list, etc.
      -Never has given out ANY of the MILLIONS of dollars they've collected in the "nam
  • by bo0ork (698470) on Friday November 28 2003, @04:39AM (#7581030)
    Well now, if the ISP's can be made to pay for theft that occurs on their infrastructure, why, then the government is obviously required to do the same for every thief that uses a car to drive on a street during the getaway. I mean - hadn't the street been there, he wouldn't have gotten away. So therefore the street owner is partly responsible for the success of the theft.
  • by 3seas (184403) on Friday November 28 2003, @06:40AM (#7581276) Homepage Journal
    Business needs to change, to adapt to the benefits of our technology.

    Look at it this way:

    Technology advancements are supposed to be good for us. They are supposed to make our world better, our quality of life better.

    At what point does the old economic systems need to change in order to work in accord to such benefits of technology?

    The whole point of money is that of a value exchange system, but what happens when our production of value reaches the ultimate point of being able to supply everyone with the basic needs for near nothing?

    Lets say I'm an artist, I produce some work that is popular, I want value I can use to exchange for other things, including investments, etc.. and all of this is a matter of my quality of life and influence on the direction of things (personal power)...

    At what point of world quality of life and wealth does money hinder more than help?

    We need incentive to keep going, we need to be doing something productive that adds or helps to maintain the wealth we have..instead of becomming fat and lazy..

    But its clear that music production is alot less costly then it used to be and distribution can ultimately be practically free. Making it possible to have a higher percentage of return against the investment... which might be less than the old expensive way.

    But if cost reduction is spread across all products and services...at some point it can be reduced to near nothing.... leaving only the need for incentive to keep going...

  • by bobthemuse (574400) on Friday November 28 2003, @09:45AM (#7581948)
    I'm waiting for the tax on all people with ears. Those people with ears are untrustworthy! They could be walking along one day and hear music created by starving artists just trying to get by. They should pay royalties to be able to listen to other people's music!
  • Programmers Unite! (Score:4, Interesting)

    by zpok (604055) on Friday November 28 2003, @09:59AM (#7582001) Homepage
    Here's the thing:

    I don't mind those taxes on blank CD's and wouldn't mind taxes on bandwidth. As long as they are for the end user minimal in impact. No tax should stiffle growth.

    But the stupid thing is: why should the music industry have sole benefit?

    Come on, guys/grrls! Programmers Unite!

    A shitheap of illegal and legal downloads and copies are made of your work.

    In the end, if the money is well spent I say: "More power to you", but for every ten CD's I burn, maybe one is music - LEGALLY aquired, thankyouverymuch - and the rest is backups, pictures, my own work and programs. I actually don't think I'm very different in this than most people.

    Cheers
  • by GreenCrackBaby (203293) on Friday November 28 2003, @10:03AM (#7582015) Homepage
    I see a lot of "this isn't so bad" comments, but you really need to take things one step further.

    So $5 per month gets added to our ISP bill (it won't be a tiny amount), and now the music industry is happy. Now it's the movie industry's turn -- let's add another $5. Oops, software association is losing their money too -- $5. Almost forgot ebook publishers -- $2.

    And if past performance on our CD-levy is anything to go by, that rate will just keep rising. Every year the "levy" we pay on blank CDs keep climbing. What's to stop them from hiking the "levy" on ISPs each year?

    This could turn into a mess quickly.
  • Remember... (Score:4, Funny)

    by AyeRoxor! (471669) on Friday November 28 2003, @10:40AM (#7582209) Homepage Journal
    "Consumers could very well see an increase in their Internet costs and they could see a slowdown in the transmission speed of their Internet communications."

    But remember, the law would be for your protection and to serve the interestes of the people, as all laws must do.
  • by psyconaut (228947) on Friday November 28 2003, @11:57AM (#7582610)
    DATs and CD-Rs are already taxed here for the benefit of Canadian artists.

    But if ISPs are taxed, I curious how you can then enforce laws claiming that the 'sharing' is illegal? Might become an interesting test case.

    -psy
    • Re:SOCAN? (Score:5, Funny)

      by Takara (711260) on Friday November 28 2003, @04:04AM (#7580897)
      It's just an acronym. SOCAN is better than SCAMPC (Society of Composers, Authors, and Music Publishers of Canada)

      Or how about STFU (SOCAN Takes money From end Users)

      • by Scrameustache (459504) on Friday November 28 2003, @08:42AM (#7581665) Homepage Journal
        Speaking as a non-Canadian, they should pay me for having to endure that Celine fucking Dion at all hours of the day and night.

        Hey, we had to endure her singing for YEARS before we finally convinced her to move away. She's your problem now...
        ;-)