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Canada to Raise Tariffs on Recordable Media

Joel Ironstone writes: "A new Canadian levy will be introduced in 2003 on all recordable media (pdf). The magnitude of these tariffs is staggering: $1.23 for all CD-RW's, $2.27 on all DVD-R's, and get this: $21 for each gigabyte of storage on portable MP3 players. That's an extra 160 dollars for a Nomad." Like in the U.S., this tax is collected and given directly to the record industry, a governmental subsidy for no apparent societal benefit.

32 of 759 comments (clear)

  1. Does it mean we can pirate legally by anandsr · · Score: 5, Insightful

    Since the government is going to give money to RIAA
    and MPAA then it should be legal to pirate. They
    will be able to make all their money by subsidy.

    1. Re:Does it mean we can pirate legally by gregfortune · · Score: 5, Insightful

      I've got a great idea.

      1. Start a business model that bases making money around a product that can easily be duplicated and shared.
      2. Cry foul when consumers realize they can share the product easily. (Ignoring the possiblity of a utopian society where everyone is honest)
      3. Earn income from your government because you are being cheated.
      4. Move an arm of your business to Canada.
      5. Repeat Steps 1-3 while expanding to as many countries as necessary.

      Ya know, that's a dang nifty idea Wonder if there's any possibility... nah...

    2. Re:Does it mean we can pirate legally by glowfish · · Score: 2, Insightful

      You guys are absolutely insane if you think Celine or any other artist is going to see a cent of this money.

    3. Re:Does it mean we can pirate legally by cgenman · · Score: 5, Insightful

      Blank videocasette tapes in the US are sold with a portion of sales going to the MPAA for lost revenue due to piracy. This does not mean that pirating videos is legal. This means that stopping the casual piracy of videos is unenforceable, and as such consumers are free to illegaly copy videos, and the companies involved have been justly compensated.

      The sad thing about all of this is that most of the independent labels with bands worth pirating wouldn't see a dime from this outrageously high tax, and I severely doubt that, say, Qbert, DJ Seishi, or Courtney Love will get their fair share. Do artists ever get a cut from the RIAA?

      All that this means is that audio piracy is now a unstoppable institution, and "creators" are being paid by it. It may not be legal, but now it is moral.

      (IANAL)

    4. Re:Does it mean we can pirate legally by gilroy · · Score: 5, Insightful
      Blockquoth the poster:

      This means that stopping the casual piracy of videos is unenforceable, and as such consumers are free to illegaly copy videos, and the companies involved have been justly compensated.

      Since everyone has to pay the levy, and not everyone is pirating, the companies might have been compensated but they have not been justly compensated. This whole model is intrinsically unjust.



      Imagine a proposed law that said, since shoplifting is common and unstoppable, all customers at every store will be stopped, background-checked, and strip-searched.

    5. Re:Does it mean we can pirate legally by PhotoGuy · · Score: 3, Insightful
      Imagine a proposed law that said, since shoplifting is common and unstoppable, all customers at every store will be stopped, background-checked, and strip-searched.
      Yet another sensational, inappropriate analogy on /. Imagine... :-)

      A better anology is that "since shoplifting is common and unstoppable, stores will raise their prices to compensate." Which is exactly what they do today. So it's not unprecedented.

      Now, in the case of stores, it is within their power to control shoplifting, and they have to compete price-wise with other stores, so it's subject to free economy forces and such.

      In the case of this tax (which is ludicruous, in my opinion), it's would be applied across the board by law, and no doubt distributed in unfair and political ways. If they tax data CD's (whatever *that* distinction really means), then it's going to seriously hurt many consumers and businesses who rely upon low cost CD's for distribution, backup, and so forth.

      The level of the tax is also ridiculous, in relation to the cost of a blank CD. If it were 5% or whatever, it wouldn't be such a show stopper, just an annoyance. In Canada, almost every product is subject to a 15% HST tax. And income taxes are over 50% over $50K or so. Adding a 20% tax on top of that for CD's is insane.

      You have to earn something like $4.00 of salary, to be able to afford a $1.00 CD. (Of course, one doesn't have to sell your house if you have a serious prolonged illness with no insurance :-)

      -me
      --
      Love many, trust a few, do harm to none.
  2. The worst part... by Datafage · · Score: 2, Insightful

    ... is that this will make all the other recording companies that much bolder. Considering how close Canada and the US are physically, socially, and economically, it's not a huge leap to have the companies push for it to extend here for "consistency." This is a damn steep slope.

    --

    Nicotine free Amish .sig.

  3. Public's fault by Anonymous Coward · · Score: 4, Insightful

    Its insane. Worst part is that a tax on cigarrettes would be fought vigorously and there would be national debate. But when it comes to this, the general public is ignorant of the issues.

    Government is elected by the people, when laws like this pass and the people dont hold the government accountable, more laws like this will pass. Unfortunately only tech types understand the issues here, so basically everyone's screwed .. unless a major lobbying force and an education campaign happens.

    If Canada wants to compete technologically this is a extremely bad move and it will screw over the economy.

    1. Re:Public's fault by gilroy · · Score: 3, Insightful
      Blockquoth the poster:

      Worst part is that a tax on cigarrettes would be fought vigorously and there would be national debate


      No, the worst part is, cigarette taxes are use-based (you only pay them if you actually smoke), while these are broad-based (you pay even if you only back up, say, digital photos) -- yet the latter is less controversial than the former.
  4. This is absolutely disgraceful by drsquare · · Score: 5, Insightful

    What right does the government have to steal people's money in order to fund corporations? There is absolutely NO justifiable reason to tax people in order to benefit private corporations. This is an absolute disgrace. Whoever is responsible for this should be deported.

    The only solution to this is to import everything from the US for a much lower price, and to pirate much more music as revenge. Actually, it wouldn't be piracy, as the music has already been paid for through taxes.

    1. Re:This is absolutely disgraceful by seann · · Score: 3, Insightful

      Origional Comment here
      Re:Some context is necessary (Score:1)
      by g00z on 4:58 Tuesday 12 March 2002 (#3147848)
      (User #81380 Info | http://www.circleofthunder.com/)
      First -- MOD THIS PARENT UP

      Holy crap! Excuse me for being a doubting thomas, but can you point to some evidence about the $0.21 tax on CD-R (Data - not audio). If your right about that, I think I might seek out a lawyer and try to sue the RIAA. I'm not kidding at all.

      See, as an indipendent musician, I press my songs to CD-R's that I sell at shows I play, online, and through mail order. Now, I've known about the whole CD-R Audio scam for a while, and that's why I've never purchesed a CD writter that requires one of these taxed CD-R Audio discs. I mean, common! Why should the RIAA, who are by all means my main competitor, get any cut of the money I make off of selling my music? What kind of mafia extortion bullshit is this? But if it's true that regular CD-R's (data) are "taxed" as well, I think the RIAA owes me *ALOT* of money.

      Once again, I'm not kidding. Are you an indie musician too, who is using CD-R's as your sales medium? Sue the RIAA. Talk about an abusive monopoly -- this should be the definition in Websters.

      Come to think of it, this should piss off more than just musicians. How many companies back up server data (or whatever) onto CD-R? Should record labels get a cut of the money you spend on CD-R's, even though it's used for data?

      So, anybody got any links/etc to back up this claim? I think it's time to try to rape the RIAA for some money for a change. Turn the tables, so to speak.

      --
      "The Wright brothers were the first to fly with a heavier-than-air machine, but boy did they have a lousy plane"

      --
      I'm a big retard who forgot to log out of Slashdot on Mike's computer! LOOK AT ME.
    2. Re:This is absolutely disgraceful by Richthofen80 · · Score: 4, Insightful

      Holy god! someone finally used the 'real' definition of monopoly!
      Talk about an abusive monopoly -- this should be the definition in Websters.

      This is a monopoly because the government is sanctioning it... no monopoly can exist without the use of force, and the only legal user of force is the government. Normally, the government only uses force in retaliation to protect its citizens who have had force used against them, but here we see otherwise. Monopolies can only exist through the use of force, like here. Here, consumers are forced to fund a company (RIAA/MPAA), they can't chose otherwise. Here, no one can start their own company that makes CD-Rs that are not taxable. This is what a monopoly really is, a company backed by the physical compulsion of a government.

      --
      Reason, free market capitalism, and individualism
  5. This is ridiculous... by Kopretinka · · Score: 3, Insightful
    OK, I'm European. I've spent a year in the States, though. Oh, and I know this is in Canada, which I thought was saner than the USA, but this is obviously the result of MPAA's and RIAA's boldness.

    News like this always make me wonder when there's finally going to be a new revolution in "the land of the free" which would make it that once again.

    But I'm afraid that after 9/11 it'd be very hard to do something seemingly against your own country... Pity.

    I actually do hope the craziness ends someday.

    --
    Yesterday was the time to do it right. Are we having a REVOLUTION yet?
  6. The solution by Jim+the+Bad · · Score: 2, Insightful

    The obvious solution is to set up your own record company. Then just sit back and wait for your handouts.

    --
    -- And when Justice is gone, there is always... Force. --Laurie Anderson, "Oh Superman"
  7. charging by sewagemaster · · Score: 2, Insightful

    how about handhelds (mini handheld HP/compaq computers or whatever you call them) that has mp3 playback functionality? are they going to add tarifs to that too? :(

    or cell phones... but i guess that would be going too far...

  8. the piracy tax by wildcard023 · · Score: 4, Insightful

    This is rediculous. The only reason that these companies get away with this is that there's some kickback somewhere. I gaurentee that if someone were to dig deep enough, they'd find a lot of this "tax" in the pockets of some officials.

    In 'free' countries, taxes are supposed to be levied for the benefit of the people. The money collected should be put back into a social program of some kind. Canada is supposed to be a socialist government, but it seems that they're trying to more and more make the same mistakes as the US without taking any of the virtues. I don't know about the rest of the country, but BC is becoming about as democratic as the old USSR. If the Campbell administration doesn't like the way a arbitration turned out (doctors) or that a labor union is striking (the teachers) they just legislate the problem away. The doctors aren't even allowed to sue the government over the issue under the bill that was passed.

    The recordable media issue is just more of the same. We're losing our freedoms, not to the big scary governments, but to the corperations; to people we can't vote out of office and can't effect in any way. They obviously have 'representatives' at their beck and call (DMCA) to make whatever laws that they feel benefit their profit margins (SSSCA). Government is supposed to be representing the best interests of the people of the country, but it seems here to be representing the best interests of the corperations.

    The Canadian government, like it's Big Brother to the south, has traded consumer piracy for corporate larceny.

    --
    Mike Nugent

    --
    -- Mike wildcard@illuminatus.org
  9. Not a MP3 player by Peer · · Score: 3, Insightful

    I think Apple can sell their iPod as a firewire hard-disk, if they change the software.

    So the question is: will all devices that CAN be used as a MP3-player be taxed (Pocket-PC devices etc.)?

    How about a MP3-player that comes with no memory of it's own.

    1. Re:Not a MP3 player by IR_BOBO · · Score: 2, Insightful

      A computer is also a full fledged mp3 player as well... in fact winamp is used more than any other mp3 player... are they going to impose a tax on a PC's hard drive as well? The ipod can also store other things on its hard drive so in essence its a multi use device as well. This is TOTALLY unreasonable, and it only encourages more illegal activities than it's trying to prevent. (ie. Smuggling, more stolen music, and RIOTS!!!) I am Canadian, and this law is totally going to be against all that we stand for... innovation will plummet for fears of become the next tax, the next government cash pit. Why don't they tax the RIAA for being a nuisance to all the respectful people out there? After all their taking their hard earned money... and wasting precious time. CDR's are the best invention since the floppy disk! Our dollar sucks already, we're having problems keeping people in Canada, we're at lack of jobs, etc. Is it really necessary to even approach this issue when their is a lot of other more serious issues needing addressing? Politics Suck. And so does our government if their gonna act like little pansies, bending to the whim of giant corporate pushers. Hey microsoft why don't you move over here? It would be easy to push our government around. Although you would be the brunt of public outcry. Anyway some random babblings... But No ONE should accept the passing of this law.

  10. One interesting thing about who gets the money.... by phunhippy · · Score: 5, Insightful



    One intersting thing is that it specifically states that only Owners of copyrighted MUSIC can share a portion of the tarrifs... and specifically excludes "Computer Software Programs"....

    Now correct me if I'm wrong.. Doesn't the Software industry claim to lose even more billions of dollars a year in piracy revenue(potential or not) then the music industry does?

    Now why would the software industry not lobby for a levy like this?

    1. Perhaps they know there would be a large backlash against their industry?
    2. They know the whole concept is just free cash for the music producers?(granted its canadian play money but hey ya know...)
    3. OR IS IT THE MUSIC INDUSTRY specifially wanted them excluded from the deal so they don't have to share there free cut of the cash cow.

    things that make ya go hmmmmmmmm..............eh?

  11. It already is by Anonymous+DWord · · Score: 4, Insightful

    Although don't call it pirating (which is a dumb term anyway), since it's not illegal. In Canada, we're allowed to borrow CDs and make copies of them for personal use. That's what the tax^H^H^Hlevy is supposed to offset; unfortunately, if you buy CD-Rs to burn the latest FreeBSD, you're still supporting Celine Dion's retirement fund.

    --
    "If he thinks he can hide and run from the United States and our allies, he's sorely mistaken." Bush on bin Laden
    1. Re:It already is by CaptJay · · Score: 3, Insightful

      So, you own a CD. You are allowed to make a copy, BUT NOT TO DISTRIBUTE IT.

      Which is the whole point about copyright: it's about what you can and cannot do with a copy of the work. You cannot distribute copies, but you can enjoy them for your personal benefit.

      In the following process, where do I distribute a copy of the work?
      1- I buy Celine's new CD (yeah right)
      2- I make a backup copy to use in my car (personal use of a copy, perfectly legal)
      3- I lend my CD to a friend (no copying occured, I distributed the original)
      4- My friend makes a copy for his personal use (he didn't copy a copy, he copied the original. hence "for the private use of the person who makes the copy")
      5- I get my original CD back.

      What would be illegal, as dumb as it sounds, is for me to lend/give/sell my backup copy to a friend, since then I would be distributing a copy of the work, which would not be considered for personal use.

      Furthermore, I do not see any text stating you are allowed to lend your CD to others for the purpose of copying.

      I think you get the law backwards. For something to be illegal, the law has to explicitely forbid it, not the other way around. The point is moot anyway, since copyright law restricts what you can do with copies you make of a work, not what you can do with something you legally bought.

      --
      "I remember Y1K, every abacus had to get another bead"
    2. Re:It already is by evil_one · · Score: 3, Insightful

      Exactly right. According to what he's presented, if you do it in private, it's Ok.

      --
      Desperation is a stinky cologne
  12. Re:Another case of Too Much Government by orcrist · · Score: 4, Insightful

    Only by your standards, because you artificially make others' statements into a boolean of 'government interference' OR '! government interference' which would also make the following (hypothetical) person appear to be a hypocrite:

    "I am against the government passing a law forcing me to vote Democrat" ('government interference' = FALSE)

    "I am a proponent of the government locking away rapists" ('government interference' = TRUE)

    Hypocrite!!

    I know these examples are extreme; the point is, yes people are selective because they aren't using the same (Libertarian) ruler as you are. The fact is, most people you label as being 'selective' are measuring one view on 'government intervention' when a crime has been commited vs. 'government interference' in anticipation of a hypothetical/potential crime. Try to at least see what kind of ruler others are using.

    -chris

    --
    San Francisco values: compassion, tolerance, respect, intelligence
  13. Well, then it's ok to trade..? by Anonymous Coward · · Score: 1, Insightful

    Hmm, so when these taxes come true, it will be ok to trade commersial music in ways that today are thought of as illegal? Since you pay the music industry thru taxes on storage you should'nt need to pay for the records...

  14. How is this different from other tariffs? by Bamafan77 · · Score: 3, Insightful

    "Like in the U.S., this tax is collected and given directly to the record industry, a governmental subsidy for no apparent societal benefit."
    How is this different from say, they way the US is taxing steel imports and farm product imports or the way Japan taxes automotive and electronic imports? Often, these taxes are used to subsidize the aforementioned industries too (especially, the farm industry).

    I think this particular (potential) tax/subsidy strikes a nerve merely because it is something that falls within the collective radars of people who post here, NOT because it's something drastically different from things government has done in the past. The "societal benefit" is that it's protecting jobs of the people who work in that industry in that country.

  15. Re:Some context is necessary by g00z · · Score: 4, Insightful

    First -- MOD THIS PARENT UP

    Holy crap! Excuse me for being a doubting thomas, but can you point to some evidence about the $0.21 tax on CD-R (Data - not audio). If your right about that, I think I might seek out a lawyer and try to sue the RIAA. I'm not kidding at all.

    See, as an indipendent musician, I press my songs to CD-R's that I sell at shows I play, online, and through mail order. Now, I've known about the whole CD-R Audio scam for a while, and that's why I've never purchesed a CD writter that requires one of these taxed CD-R Audio discs. I mean, common! Why should the RIAA, who are by all means my main competitor, get any cut of the money I make off of selling my music? What kind of mafia extortion bullshit is this? But if it's true that regular CD-R's (data) are "taxed" as well, I think the RIAA owes me *ALOT* of money.

    Once again, I'm not kidding. Are you an indie musician too, who is using CD-R's as your sales medium? Sue the RIAA. Talk about an abusive monopoly -- this should be the definition in Websters.

    Come to think of it, this should piss off more than just musicians. How many companies back up server data (or whatever) onto CD-R? Should record labels get a cut of the money you spend on CD-R's, even though it's used for data?

    So, anybody got any links/etc to back up this claim? I think it's time to try to rape the RIAA for some money for a change. Turn the tables, so to speak.

    --
    "The Wright brothers were the first to fly with a heavier-than-air machine, but boy did they have a lousy plane"
  16. Hit Your Gov Where It Hurts... by weave · · Score: 3, Insightful
    I live in Delaware. Some little pissant state wedged between many others. We have a hard time raising taxes on stuff because it's well known that people will just go over the border and buy it, which hurts businesses in the state. They cry foul, never passed.

    The Canadian government should remember that most of the country lives within a shopping day-trip of the U.S. Not only will Canadian businesses lose money to those making casual purchases over the line, the Candian government will lose tax revenue via lost VAT (or whatever you call it). People will buy their mp3 players in the U.S., take it out of the box, chuck the box, strap it to them, drive back across the border. Maybe Canadians should discuss this concern with their elected officials.

    It kind of makes you wonder about Canadian sanity. To the south we have Bush passing an import tax on foreign steel to protect a dying U.S. industry. To the north, we have Canadians passing a tax that will only affect Candians and will benefit an industry making loads of money already.

  17. Re:It's only on blank AUDIO media by Chanc_Gorkon · · Score: 2, Insightful

    Contrary to popular belief among the people who shop at best buy, THERE IS NO DIFFERENCE in the so called MUSIC CD-R's and a regular CD-R. Can I take a regular CD-R and record a CD that will work in any CD player? Yep! All excpet the oldest ones. Can I take one of those so called MUSIC CD's and burn data on it? Probably. Data is data and all a audio CD has on it is a digitized audio stream and nothing more. For all intents and purposes, the audio stream IS data. I will probably be modded down for saying this, but the post I am replying to should be modded down.

    --

    Gorkman

  18. Lesser of 2 evils? by kawlyn · · Score: 2, Insightful

    SSCA or tax on blank media? I know what I'd choose if I had to. Don't get me wrong neither sit well with me but given the choice.....

    --

    When someone yells "Stop" or goes limp, or taps out, the fight is over.
  19. Boston Tea Party by chuckw · · Score: 3, Insightful

    Yo folks, haven't you heard of the Boston Tea Party? Colonists protested unjust taxation on Tea imports by breaking into a tea shipment and throwing it into the ocean. Perhaps it's time to repeat this bit of history...

    --
    *Condense fact from the vapor of nuance*
  20. Re:RESPOND to the REQUEST FOR COMMENTS!!! by Kushana · · Score: 2, Insightful

    If you actually plan to reply coherently, then a good place to start research is the document explaining the tariffs currently in place.

    The document explains how the previous hearings went. In particular, pay attention to the part that explicitly says that the previous groups arguing against the tariff came woefully unprepared, relying mostly on trying to discredit the opposition's research as opposed to presenting their own.

    The document also explains how the amount of 21 cents per CD-R and the other amounts were arrived at; they wasn't pulled out of the air. The CD-R tariff is a multiplication of (among other things) the ratio of the amount of time available on a CD-R to the average length of a prerecorded CD, a coaster (waste) percentage, a calculation of how much is given by the publishers to the copyright holders on a per-CD basis, the percentage of CDs bought by consumers, and the percentage of consumer CDs used to make private music copies.

    It seems likely that this current set of hearings will be argued principally over these factors. It remains to be seen whether the CPCC (Canadian Private Copying Collective) can justify a 2.8x increase in the CD-R tariff, since this would most likely come from an increase in the proportion of consumer-bought CD-Rs and the %age of CD-Rs used to private copy.

    From a consumer standpoint, increasing the cost of a CD-R by 50% and that of an MP3 player by 25% are likely to be seen as unpalatable (at best) and inspiring a consumer revolt complete with smuggling (at worst). Yet given the scope of the hearnings and the established formula, it is unclear as to whether such an objection can be mounted.

    --

    Careers should combine three things: what you can do, what you want to do, and what you can get paid for.
  21. Re:Calling All Canadians by Kushana · · Score: 2, Insightful

    A number of points:

    1) Don't tell people they have lost all reason. It is unlikely to advance your point.

    2) The levies are not arbitrary. See the findings of the last hearing for the mathematical formula used to calculate them.

    3) The Copyright Board is not suggesting the new levies. The Canadian Private Copying Colelctive (CPCC) is. They are the group to whom the levies are given, for later distribution to copyright holders.

    4) The Copyright Board does not have the power to revoke the levies. They will not rule on the justification for copyright, nor Ms. Dion's need for another million. The Copyright Board does what the legislation behind it tells it to do.

    5) I would suggest you make the unreasonable proportion of the cost of media your main thesis: $0.59 will probably represent over half of the cost of a CD-R at retail. $21/GB will add 25% to the cost of an MP3 player.

    --

    Careers should combine three things: what you can do, what you want to do, and what you can get paid for.