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Canadian Music Industry Wants Royalties on Net Usage 572

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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Canadian Music Industry Wants Royalties on Net Usage

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  • Sounds reasonable (Score:3, Interesting)

    by Rat's_ass_donor ( 455429 ) on Friday November 28, 2003 @05:01AM (#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.
  • proxies (Score:3, Interesting)

    by mOoZik ( 698544 ) on Friday November 28, 2003 @05:03AM (#7580892) Homepage
    Sounds good. I'll download gigabits of stuff via a Canadian proxy and see some poor bloke get screwed. ;)
  • Blame Canada (Score:1, Interesting)

    by Hodr ( 219920 ) on Friday November 28, 2003 @05:09AM (#7580916) Homepage
    Im not trying to make a bid for Ethnocentrist of the decade, but do the Canadian musicians and movie industry people really believe their properties make up that large of a percentage of what is being downloaded?

    I mean, correct me if I am out of line here, but doesn't the US version of MTV, which isn't shown on any "legal" cable or satellite provider in Canada get multiple times the number of viewers of the various Canadian music television programs (I.E. Much Music)

  • Re:In Canada. (Score:5, Interesting)

    by TC (WC) ( 459050 ) on Friday November 28, 2003 @05:21AM (#7580957) 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.
  • by Denyer ( 717613 ) on Friday November 28, 2003 @05:23AM (#7580963)
    First, why should all internet traffic be taxed for something a portion of customers do? Expect business costs in particular to soar. Yes, I know that similar can be said of CD-Rs... but you don't use CD-Rs for essential communications, to perform transactions, or to maintain a shop front.

    As far as taxing at the ISP level goes... why should a file marked "madonna" be assumed to be an MP3 of a particular singer. It could be any number of things.

  • by Anonymous Coward on Friday November 28, 2003 @05:23AM (#7580964)
    Point taken. You make a good point about the DMCA, however, it protects the ISPs in exchange for giving copyright holders an unfair amount of power over anyone they claim is illegally sharing copyrighed materials. Furthermore, the biggest users of the DMCA, the RIAA and MPAA, have a collusive arrangement so there's virtually no competition and prices are extremely high. What needs to happen is to make the collusion illegal, which will encourage competition and drive prices of CDs and DVDs down. At the same time, permit the actual artists to sue for reasonable damages from those who infringe on their copyrights. The effect of all these measures is that the most common targets of piracy become more affordable, piracy is still illegal but more reasonable methods have to be followed to sue for it, and in the end, the artists don't lose as much as you think because they don't have a share of their royalties going to RIAA lawyers. The DMCA is just gay and needs to be replaced with more reasonable laws.
  • by Tripster ( 23407 ) on Friday November 28, 2003 @05:23AM (#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!
  • Comment removed (Score:2, Interesting)

    by account_deleted ( 4530225 ) on Friday November 28, 2003 @05:26AM (#7580978)
    Comment removed based on user account deletion
  • Could be good news (Score:5, Interesting)

    by ajs318 ( 655362 ) <sd_resp2@earthsh ... .co.uk minus bsd> on Friday November 28, 2003 @05:35AM (#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.
  • by qewl ( 671495 ) on Friday November 28, 2003 @05:36AM (#7581024)
    What if everyone with internet access was required to pay the RIAA $3/month? We could download all the music we wanted, and the RIAA couldn't bitch because they'd be making money. The most downloaded musicians would get paid the most, because they would have sold more CD's. Downloading music isn't something that's going to stop; it'll continue to grow unless some drastic(and censoring) changes are implemented in the internet. It's just too convenient.
  • Re:Whoooah (Score:5, Interesting)

    by weicco ( 645927 ) on Friday November 28, 2003 @06:24AM (#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 @06:34AM (#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.

  • by pherris ( 314792 ) on Friday November 28, 2003 @07:23AM (#7581244) Homepage Journal
    Barbarian (9467) [slashdot.org] said:
    (g) $21 for each gigabyte of memory in each non-removable hard drive incorporated into each MP3 player or into each similar device with an internal hard drive that is intended for use primarily to record and play music.
    So that means if this proposed tax goes through an iPod would cost:

    10GB iPod: $439.00 + $210 tax = $ 649.00CAD
    20GB iPod: $579.00 + $420 tax = $ 999.00CAD
    40GB iPod: $729.00 + $840 tax = $1569.00CAD

    BTW, you can buy the 12" iBook for 1500.00CAD. I love Canada but this tax is nuts.

  • Send SOCAN the bill (Score:3, Interesting)

    by tekrat ( 242117 ) on Friday November 28, 2003 @07:33AM (#7581265) Homepage Journal
    Can't you just see it when the ISP that hosts SOCAN's website (or provides them with connectivity) sends them a $50,000 per month bill (Canadian, or about $25,000 US) due to the "higher costs" of being a part of the internet?

    Remember that if Canada taxes the whole internet, then businesses, which usually have more bandwidth than individuals, will likely pay a higher percentage of this so-called tax.

    That's going to make for an interesting backlash.
  • Compulsory Licensing (Score:3, Interesting)

    by Hamfist ( 311248 ) on Friday November 28, 2003 @09:07AM (#7581555)
    This isn't so bad. It actually means that they're giving up the fight over control. They still get paid, but I can download whatever I want. It's the same logic as the CDR levy. It's really not that heavy for the end user. I suspect that the pool will be expanded at some point to include movie publishers, software publishers, etc.

    Once that is law, just imagine how easy it would be to find a high quality copy of your latest favourite song instead of a buzzy Kazaa mp3.

    It doesn't imply that the end user is a criminal, it does imply that it's an activity that almost everyone partakes in. This seems like an equitable way to solve the problema and make it go away. Very Canadian.

  • Invoice (Score:3, Interesting)

    by Pyrosz ( 469177 ) <amurrayNO@SPAMstage11.ca> on Friday November 28, 2003 @09:58AM (#7581726) Homepage
    Since I don't download music or movies on my net connection that I already pay $50/month for, SOCAN will be getting a bill from me if this passes. I'm not paying for something I don't "use". I'll send a monthly bill to them for whatever the increase is and let a collection agency have it with them. They can come and look over my computer to see what I have/don't have on it.
  • by BeneathTheVeil ( 305107 ) on Friday November 28, 2003 @10:19AM (#7581830) Journal
    You mean, humour, right? ...this is an article about Canada, after all.

    Kidding aside, your post did make me realize I should clarify a little bit... obviously, if the music is freely available, and there is no commercial version of it (on CD, CD-R, as pay-for downloads, or any other media)... then it wouldn't make sense to expect money. I should only expect a percentage of what I charge for the songs.

    I do however, have a commercial disc coming out in December, and another in February/March... neither of these, will be available as free downloads (of course, I will have no problem with people ripping, and sharing the music... if they don't make money from it, then there is no harm done for me... quite the opposite, it means more potential fans, and potential CD sales)... so at that point, since we can assume the music will be traded eventually, one way or another, I can assume that I would be owed some of this 'tax'.

    Of course, we all know 'indie' artists will never see a cent... not without making a lot of noise about it, at any rate.
  • Re:Sounds reasonable (Score:4, Interesting)

    by timeOday ( 582209 ) on Friday November 28, 2003 @10:32AM (#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.

  • by Grech ( 106925 ) on Friday November 28, 2003 @10:34AM (#7581904) Homepage
    This isn't compulsory licensing.Compulsory licensing is the creation of a legal ceiling on the price of a license.

    For example, let's say I have a band, perhaps "Alien Ant Farm". Further, let us assume that I have taken leave of my senses, and wish to cover a Michael Jackson tune. Extant compulsory licensing laws are what permit me to cover "Smooth Criminal" for a set price per album sold, regardless of what the Gloved one or his lawyers may wish.

    There is one catch, though. The gotcha is that the compulsory license only covers the originally published arrangement.

    To take an example, let's say that I'm such a severe alcoholic that Metallica kicked me out in 1983, and that I have gone on to have some success with a competing enterprise of my own, called "Megadeth". Further, again suppose I have taken leave of my senses and wish to cover a song originally recorded by Nancy Sinatra in 1966. I can cover the song, but if I want to throw in additional lyrics, then Lee Hazelwood (who wrote the song), can and probably will successfully sue me for corruptiing "These Boots were Made for Walkin'."

  • Programmers Unite! (Score:4, Interesting)

    by zpok ( 604055 ) on Friday November 28, 2003 @10:59AM (#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 Spl0it ( 541008 ) <spl0it@msn.com> on Friday November 28, 2003 @11:16AM (#7582095) Homepage
    Okay let me just iron out this issue. I will be forced to pay more for my internet access because they are going to assume I'm downloading illegal/copyrighted material? Thats idiotic, everyone knows assumptions are the mother of all fuckups. I download on average maybe 1-5songs a year. Usually they're songs from the collection of old cds I have boxed up in my closet which I failed to unpack after moving here three years ago. If my internet fee's go up even $1 for this crap, you can expect me to go buy a few 200+gig drivers, and download, download, download. What garbage, I allready have to pay royalties when I buy cd's and burn knoppix, or debian or anything personal for that matter. I wonder if Rogers' (Canada's largest ISP) new limit of aprox. 30gigs a month has anything to do with pressure from groups like this? Considering if you call Rogers they will not give you an exact number just say 'I guess about 30gigs' pretty pathetic if you ask me.
  • Re:Actually... (Score:1, Interesting)

    by Anonymous Coward on Friday November 28, 2003 @11:53AM (#7582269)
    FWIW...

    My guess is that Canadian copyright law is somewhat similar to American copyright law in that it places the burden for determining what is and what isn't copyrighted on the provider of the content, not the recipient.

    Despite all that the [MP|RI]AA would have you believe, downloading a movie/song is not illegal in the US and probably not in Canada as well. Uploading, however, is a blatant copyright violation.
  • by webweave ( 94683 ) on Friday November 28, 2003 @11:56AM (#7582285)
    I see this same idea again and again and I HATE it.

    So, because something has worked for the last fifty to one hundred years that is how it must always be? Just keep a bad idea on life support for about a generation and that's it you can go to court and be declared a national necessity.

    It is not the artist but the industry that has popped up to support the commercialization of music that are in trouble here and since they all have skills other than being artist they should be able to find work in other industries. End of story. Thanks music biz, it was nice knowing you but as of about now you are all dinosaurs. You have to do what so many others before you have done, go somewhere else and get a job.

    Now back to the artist, my friend is in a band that has been around for over twenty years. They have had a few "record deals" but have always kept ownership of the music. They tell me they have always made more money touring and selling from the fan club than any contract. Now with the internet they are making more money than ever and the fan club (paid members) is the largest it has ever been.

    It is the opinion of this band that "music sharing" helps them because they would never get on the radio any way or not enough to help but when someone finds their music and likes it, it eventually leads them to the web site or a show and that, is what brings in the money.

    So this proposed tax (and that is what it is, Canadian's have a problem being honest with taxation) will increase costs to the consumer, devalue what ever funds are collected (the cost to process this tax), and what little gets back will likely go into the wrong hands.

    Now more bad effects, by propping up a dying system with tax dollars you not only put off the enviable but the wasted (now) tax dollars put a negative effect on the economy, exactly the opposite effect you were hoping for in the first place. Gee thanks.
  • by Skapare ( 16644 ) on Friday November 28, 2003 @12:16PM (#7582387) Homepage

    What would the rate be based on? Would it be based on actual download/trade/share traffic? Or would it be based on total traffic volume? If an ISP passes the charges on to their customers (how can they not do so?), how is it divided up among customers? Will it be by connection capacity? Actual bandwidth used? Or will they monitor and see how much is actually illegal music (assuming they can crack the next generation encrypted protocols which I doubt they can)?

    Merely having a copy of music is not the same as listening to it. Someone who has a collection of 20 songs they regularly listen to is actually getting as much benefit as someone who has a collection of a million songs but regularly listens to about 20 of them (though he might have a larger ISP bill). Maybe the rate should be based on the maximum capacity to listen to music, which tops out at 168 hours a week. So why not a fixed price per person regardless of how much they download, since they can't listen to more than a certain amount (unless they listen to 2 or more songs concurrently)?

  • by meatpopcicle ( 460770 ) on Friday November 28, 2003 @12:48PM (#7582570) Homepage
    Here in Canada if a restaurant plays the radio in their establishment they have to pay royalties to SOCAN. If that isnt retarded I dont know what is.

    Also if the owner of a restaurant buys a CD and plays in int thier establishment they also have to pay royalties. I can sort of understand this statement, as they are not suppoesed to use these CDs for public performances.

    The first statement is ludicrous though as the radio stations already pay for the broadcasts.

    Are we as consumers going to have to start paying to listen to radio stations?
  • Re:ARGH! Net Myth! (Score:3, Interesting)

    by MochaMan ( 30021 ) on Friday November 28, 2003 @06:10PM (#7584235) Homepage
    What do you mean by "consulted with a judge"?

    How much clearer can I be? I consulted with a judge. To expand on that, I mean I sat down with a judge and discussed the act with him at the dinner table, just to be sure that it said what it looked like it said. I have 3 lawyers and one judge in my immediate family, and all of them agreed that yes, you can make copies of a CD that you do not own, so long as it's for your own private use. We went over the act as published, point by point. I don't know how many other ways there are to put it.

    It may not seem logical to you, but who ever said that the law made sense? Honestly, if this bothers you so much, go out and pay a lawyer for an hour of his time to go over it with you and explain it to you.

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