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Canada Quashes Copyright Tax on MP3 Players

Posted by michael on Fri Dec 17, 2004 08:59 AM
from the rated-q-for-quash dept.
Rippy the Gator writes "The Globe and Mail says that consumers may soon be paying less for MP3 players because the Federal Court of Appeal ruled that special copyright levies applied to digital music players are not legal. You might want to keep those receipts if you're giving them as a Christmas Gift."
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  • by Anonymous Coward on Friday December 17 2004, @09:01AM (#11115120)
    Look...

    How will canadian artists and record companies stay in business if everybody is going to rip them off and the government isn't going to help them by encouraging consumers to pay taxes to help their brother canadians.

    You're all so selfish. I feel like moving south to the U.S.
  • Hooray! (Score:5, Interesting)

    by mistersooreams (811324) on Friday December 17 2004, @09:06AM (#11115146) Homepage
    Isn't it strange how Canada seems to have such a different attitude to copyright enforcement to America, when Europe seems to want to follow in the footsteps of American law? Canada is culturally more similar to America than Europe is, besides the obvious geographical proximity. Is this the Canadian government deliberately being contrary? I'd be interested to hear from some Canadians on the matter.
    • Re:Hooray! (Score:5, Insightful)

      by tomstdenis (446163) <.moc.liamg. .ta. .sinedtsmot.> on Friday December 17 2004, @09:09AM (#11115163) Homepage
      I can speak about the going ons inside the house [since I don't really care to watch] but from a "consumer" standpoint I saw visible protests by stores. It wasn't uncommon to see "you pay more because of canadian levies" in shops as huge as FutureShop [equiv to the american BestBuy].

      It was quite clear that the retail outlets weren't too happy about the levies. ... Neither are the citizens since well I use my recordable media for software backups not music.

      However, the canadian music industry feels they "deserve" more money. Instead of actually, oh I don't know, earning the fucking money they'd rather guilt trip the citizens and pressure the house to bend to their whims.

      Tom
    • I wouldn't get too excited. They just held that the law needs to be changed as it currently does not give authority for taxes on anything other than media. If people are not going to bother burning music to CDs any more, they may amend the law to also apply to storage devices designed to store and play music.
    • Re:Hooray! (Score:3, Insightful)

      I'm a Canadian and this is bad news. I would prefer to have a levy on my mp3 player or any other device/recordable media.

      Why? When the RIAC(dunno if that's what it's called or not just guessing) wants to start suing their customers, we point to the levy and kindly ask them to stuff it.

      The Canadian way is to pay levys/taxes on everything so we don't have to worry about anything. Healthcare, perscription drugs, and social programs are just a few things that are subsidized or free because of levys and taxes.
      • Re:Hooray! (Score:3, Interesting)

        I get the same impression ... by dropping the media levy on devices that support MP3's the Canadian RIAA can start going after Canadian MP3 file traders. On the otherhand the levy on my iPod was $25 ... which irks me enough that I make a point to copy / pirate / trade everything just to get my moneys worth.

        I did buy 10 hard to find tracks from the Canadian iTunes music store when it opened last week - good experience.

        Ramble on ...
      • I am a Canadian and I disagree with the 'canadian way'. I guess we all have our differences, I for example am for a 2-tier health system, fewer social programs and I am definitely against any taxes (give me 15% flat tax anytime) that I have to pay without getting anything tangible in return.

        Also I don't download copyrighted material without permission from the copyright holders.

      • So you think it best to just pay the exploitative tax so you can sleep better? I think it is insane to punish ALL consumers for the trespasses of a few.

        Whats next? Why stop at the recording industry.

        The government should not be confiscating money from the people to pay to corporations or similar bodies. The government should be protecting the consumer from them, not abetting them.

        I'd rather have the RIAA or similar breathing down the necks of people who break the law than having to pay so some schmuch can download stuff without paying for it.

        It is NOT the same as paying taxes for medical care or such. That is exactly the line of thinking the RICA/RIAA would love people to believe.

        • Re:Interesting (Score:5, Interesting)

          by Egonis (155154) on Friday December 17 2004, @09:44AM (#11115436)

          Hmm, so if we Americans started charging, say, a burglary tax to everyone we could not ever have to worry about going to jail for burglary. That sounds great, plea bargains before the act is even committed!

          Nice comparison.... seriously! You do have a great point here....

          On one hand, yes.. copying music is breaking the law, but on the other hand... the levy tax pays the record industry as a whole for their "losses" -- so there is a half-right and half-wrong to the concept of levies.

          Ah, I love this Canadian mentally that has them believing that everyone here dies on the street because they are uninsured. Sorry, but it's a huge myth. Moreover, Canada caps its doctor's salaries so most of the really good doctors who specialize in the rare and complicated diseases that save people's lives come to the US because our schools are better and you actually get paid properly for your skills. I'm not going to open the socialism debate, but it certainly has its own set of flaws.

          The Canadian Mentality is a feeling that everyone 'deserves' to be given health care... no matter what their circumstance. I agree with this concept, obviously...

          What you see from Canadians regarding the thoughts of people dying in the streets in the US, is because of fear -- I admit that the thought of a capitalist approach to health care is frightening to me, and it paints a confusing picture to many of us, as we could not imagine getting a second mortgage for a heart bypass (provided that said person doesn't have coverage, etc, etc)

          Doctors in Canada do get severely capped, and mistreated, but that's not speaking for all of them. There are many fantastic surgeons, specialists, etc here who enjoy their work, get compensated well for it.. etc.

          You must consider the opposite though, the family of a friend of mine moved up here from Ohio over 30 years ago because the parents wanted to work within our health system, because they felt that American Medicare was too oppressive.

          So their are many opinions from different sides, I am not knocking the american system, but I personally do feel more comfortable and loyal to the ways of my own country.

          • -1 Clueless (Score:5, Informative)

            by alexo (9335) on Friday December 17 2004, @09:55AM (#11115519) Journal

            Egonis (155154) wrote:
            > On one hand, yes.. copying music is breaking the law, but on the other hand...
            > the levy tax pays the record industry as a whole for their "losses" --
            > so there is a half-right and half-wrong to the concept of levies.


            Except that in Canada it is legal to copy music for personal use .
            Not breaking any laws here.

        • "Hmm, so if we Americans started charging, say, a burglary tax to everyone we could not ever have to worry about going to jail for burglary. That sounds great, plea bargains before the act is even committed!"

          Oh thanks for a great laugh! :P That's a rediculous comparison especially since music trading here isn't even illegal.

          "Ah, I love this Canadian mentally that has them believing that everyone here dies on the street because they are uninsured."

          I didn't say anything about dying in the street. I'm ta
            • Canadian Doctors make a good amount of money. Next time you see your mechanic please ask him to help you remove your head from your ass.
        • Re:Hooray! (Score:3, Interesting)

          "So, basically because you want to steal music I should pay the Recording Industry extra? This is moronic, selfish and childish."

          Nope, I buy all of the music I like and can find in the stores here. I may have a few tracks which are unlicensed but not many. I do however have a problem with big companies being able to demand client lists from ISPs,etc. Canada isn't a litigation state and I would like it to stay that way.

          "No, they just die waiting for treatment. Been to a hospital lately?"

          Yes I have been
            • Re:Hooray! (Score:3, Insightful)

              Sorry I forgot to reply on the hospital issue. I'm also sorry about the unfortunate experience you had with the healthcare system.

              I understand it's far from perfect and very effective at wasting money. I however hold out hope that because of the current situation our current government some real change will happen this time. A good example is how the current round of funding has strings attached regarding how it is spent. Provincal governments have proven through past deeds they are unable to manage their
          • Re:Hooray! (Score:3, Interesting)

            "I know this has been said before, but I find it hard to understand how the record companies claim millions or billions lost due to piracy. There's no real way to even come close to an actual dollar amount. I'm sure there's some effect, but I have a hard time believing it's as great as the record companies claim."

            You're correct. The record companies hire their own analysts and accountants, then there's third party independent research firms who conduct their own analysis, and then there's consumers who

        • When some actually manages to say "Atheism is a religion", I can pretty safely ignore anything else they have to offer, since it's likely to be incomprehensible nonsense. (Reads the rest of your post) Yup.

          The courts are quite atheistic, true. They are _supposed_ to be that way. They are not supposed to consider matters of religion. They are not supposed to care if you are christian, muslim, pagan, whatever. They are _supposed_ to be based on facts and evidence, not faith or belief; i.e., atheist. Th
    • But, in America there is currently no levy/tax on mp3 players that I know of.
    • Re:Hooray! (Score:3, Interesting)

      Is this the Canadian government deliberately being contrary?

      For later referece, Canada is a sovereign country seperate from the U.S., so what we do up here isn't always a reaction to what is happening down south. As a liberal[1] country, we often make decisions based on general fairness to all of our citizens.

      [1] - And no I don't mean Liberal, as in the U.S. swear word. I mean it in the classic sense [reference.com].

  • by HoserHead (599) on Friday December 17 2004, @09:07AM (#11115154) Homepage

    According to the article, the law doesn't include any text about MP3 players, so collecting levies on them isn't allowed. As in many decisions, it has been left to Parliament to make the final choice.

    The short of it is that if lobbyists get their way, the levy will be back on MP3 players; all that's needed is for an amendment to the Copyright Act to be drafted and passed.

    • Canada's Copyright Act gives the federal board the authority to apply levies on blank media such as compact discs and audio cassettes. But the wording of the act has not kept up with the new technology of MP3 players, represented by the wildly popular iPod, which use an embedded memory rather than discs or cassettes, to store digital copies of songs.

      Exactly! All they have to do is change the Act to include digital media players (and any possible future devices/media) so that this won't happen again.

      Buy
  • Those extra levies on casettes/minidiscs/CD-R and apparently also MP3 players, do they really reach the artists? How do they redistrubute, and on what criteria?

    I always thought that this money will never be seen by the artists, and was essentially just a scam.

    • by schon (31600) on Friday December 17 2004, @09:15AM (#11115210) Homepage
      Information about that can be found here. [neil.eton.ca]

      In short: yes, they redistribute the money.
    • All copyright levies are collected by an independent group called the Canadian Private Copying Collective [www.cpcc.ca]. Money started being distributed to copyright holders in 2003:

      CPCC began making payments early in 2003. In January, CPCC carried out the first of a series of payments being made from the over $28 million in private copying royalties available for distribution from 2000 and 2001. 2003 will also see payment from the additional $26 million available from 2002.


    • I always thought that this money will never be seen by the artists, and was essentially just a scam

      The money is supposed to go to the Canadian artists' collective (whatever it's called). Personally I prefer having the levies. They are what allow us to download music legally here. Now that it seems that the levies are starting to be discarded we'll probably end up with a bunch of lawsuits ala-RIAA up here.
    • by gUmbi (95629) on Friday December 17 2004, @09:24AM (#11115277)

      Those extra levies on casettes/minidiscs/CD-R and apparently also MP3 players, do they really reach the artists? How do they redistrubute, and on what criteria?


      It's interesting that I was just looking into this yesterday. They have a website [www.cpcc.ca] that they've collected $80 million over that past 5 years and distributed $30 million of it. The distributions are based on radio airplay and CD sales. The funds are paid out by groups like SOCAN (an artist organization that handles royalties, etc.).

      So, yes, the money is getting out slowly - unfortunately, it's being distributed to Celine Dion and Bryan Adams for the most part.
          • This is probably going to get flagged as flamebait or insensitive or something instead of just conversation like it's intended but I'll bite anyway...

            I used to think that I could listen to and tolerate almost any kind of music. Then I met my wife, and I've since learned that I must have a very narrow view of "good" music. Some of the stuff she listens to makes me want to either vomit or stand in the middle of traffic.
  • by Anonymous Coward
    With such advantegeous currency exchange rates, a lot less taxes, and the extra fee, I've bought my IPod on a trip to New York and ended up paying 100$ less than if I would of bought it in Canada.


    Or there's always Ebay...if the US shipper agrees to indicate "Gift" on the box, you won't pay any taxes whatsoever.

  • they are taxing consumers for an industry? holy carp

    just wait until America gets a hold of this idea, the RIAA would love this. just remember, they are not taxes, they are fees ;)
  • .. and we have tax on CDR and tapes and other stuff for the longest time. However, the tax itself is not really meant to make copying legal. But instead, the tax were simply there to minimzes any damange that you might be doing! What if you are using the CDR for personal data only? You are technically not required to pay it. However, the process of recovering those tax are lenghty and trouble some. So most let it go. What I don't understand is. How could someone pentlies you for something you haven't done y
  • Double-edged sword (Score:3, Interesting)

    by Mwongozi (176765) <slashthree@NOSPaM.davidglover.org> on Friday December 17 2004, @09:19AM (#11115243) Homepage
    Digital sharing of copyrighted music in countries which put a tax on CD-Rs, MP3 players, etc. is effectively legal, since you're paying for the priviledge of doing so whether you actually are or not.
  • by Anita Coney (648748) on Friday December 17 2004, @09:33AM (#11115343)
    I find it funny that the article stated, as a matter of fact, that the ruling would erode revenue to muscians. But even though there are probably tens of thousands of musicans in Canada, the journalist couldn't find even one to interview about the alleged hardship?

    Does anyone have any real evidence that musicans actually get this money? Everything I've read about the music industry says they get zero.

  • by badfish99 (826052) on Friday December 17 2004, @09:34AM (#11115348)
    Does this mean the Canadian music industry will have to make a living by suing its customers, like the US industry does?
  • just a moment here (Score:3, Interesting)

    by compro01 (777531) on Friday December 17 2004, @09:40AM (#11115394)
    this only removes the tax on MP3 players. the tax on blank cds and tapes remains. but hey, it's only $0.25. i can deal with that.

    and the canadian court system already informed the CRIA (canadian RIAA) that they can take their ideas to sue and stick them where the sun don't shine, so this isn't gonna change that in a hurry.
  • by jimand (517224) * on Friday December 17 2004, @09:51AM (#11115493)
    Whenever I investigate buying a new electronic device from the U.S., I cannot complete the transaction because the vendor will not ship to Canada. I've seen this on thinkgeek [thinkgeek.com] and amazon [amazon.com]. I wonder if this is (one) bottleneck and the removal of the levy will allow cross-border shopping?
  • by guidryp (702488) on Friday December 17 2004, @10:19AM (#11115718)
    Originally this scheme was started with the rationale to capture revenue lost when you copied an album from a friend. Knowing there was no way to stop this or prosecute this, the entertainment lobby came up with a way to get paid for this "violation". At the same time the law was amended to allow private copying. A coup really. The industry allows a concession that was unstoppable and in return taxes all media.

    Cue the internet music boom. Buisness as usual, time to go to war and kick in the doors of some file sharers, sue some grannies and single moms when there kids download music. But wait, that dang private copying amendment makes it a grey area.

    Unfortunately what will happen next is there will be an attack on the "private copying" portion of the law. It will be changed, eventually we too will have RCMP raiding file downloaders. But of course the levies will stay as well.

    The simple fact is we are in a corpocracy. The law is for the corporations. The certainly won't give up the revenue stream from levies but they will loby until they change the laws so they can sue.

    Eventually we will have the worst of all possible worlds.

  • Front page (Score:3, Interesting)

    by phorm (591458) on Friday December 17 2004, @10:59AM (#11116151) Homepage Journal
    Actually, I was surprised to see this on the front page of the news today (the Province, I think, for British Columbians).

    Most articles of this nature usually end up being buried amongst other "lesser" news as technical mumby-jumbo etc etc.

    It's really quite nice to see that not only has this stupid tax been repealed, but that the media are giving notice to it. I wish they'd do so more often when they try and slip these things in.


    One thing I wonder though, as it mentions "keeping Xmas receipts" - is whether or not consumers can request a rebate on the tax if they've paid it already, as it's been ruled illegitimate.

    But then we get back into the usual stupidity:

    He said the Copyright Act clearly defines media that legally can be used for private duplication of copyrighted material and MP3 players no longer meet that criteria.

    Sorry buddies, while this might mean you can't copy a disc from your friend, it certainly doesn't take away any rights I have to copy my CD to my own iPod. My music, my property, my right to do what I want with it (within my domain).
  • [I live in Canada]

    We are allowed to copy music for personal reasons. In exchange, a levy is placed on blank media.

    All for the good.

    And now, the appeal ruling is that MP3 players are not subject to the levy, because the Act doesn't mention them.

    All for the good -- except that the Act may/will be changed to allow the levy.

    Most MP3 devices do NOT facilitate the copying of music! If you can show me how to plug media into an iPod (for instance) to allow the iPod to function as a duplicator; or you are willing to GIVE your iPod to someone else, then the iPod should have the levy applied. If the iPod is capable of downloading music without another computer with media, it should be levied.

    And here's the problem -- an iPod CAN'T download from the internet, and you WON'T be lending it out, and it CAN'T have media plugged into it.

    About the best you can do is a player with a built-in FM radio, and the ability to record to a removed Flash device.

    And the levy should be placed on the Flash media.

    Not the players.

    So, the ruling is good, but the REASON is wrong, because it opens up the possibility of a lobby to change the Copyright Act.

    I just hope that when that happens, the politicians see their way clear to a correct ammendment (say, a levy on blank VCR tapes and DVD recordable media, and allowing personal copying of video).

    Now, the joker that suggested that is was not OK to use your iPod on Dec 15, is basically full of it. The personal copying provision allows us to copy to ANY media that is commonly used for the storage of music. That would (by design) include your iPod. So suck it up -- that cannot be removed without changing the Copyright Act.

    Ratboy.
    • What bugs me the most about these costs: levies, ASCAP, lawsuits, etc, is that NONE of it is tagged for the artists. ALL of this is only for the corporation.

      I mean sure, theoretically if the music industry has a banner year, they'll trickle down the money to the artists with big bonuses... Yea, I think not.

    • Actually, asshole, I'm Canadian and a musician, and 99% of the cds I burn are of MY OWN MUSIC (the remaining 1%, give or take a point, is data). So I'm paying the Canadian Music Industry for the right to burn my own music onto cd. And since the monies are distributed based on airplay and charts, I'm essentially paying money to my competitors every single time I make a new recording. Sound fair to you?