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Canadians May Face 25% Download Tariff
C-Yo writes "While Canadians have battled against an iPod tariff for more than a
year, now comes news that Canada's copyright collectives are seeking a
tariff on iTunes as well. Professor
Michael Geist (who last
week dismantled music industry claims about peer-to-peer) reports
that one collective is demanding an incredible 25% of the gross revenue
of music download services as well as 15% of webcasters' gross revenue
and 10% of gamers gross revenue (free
version of report or Toronto
Star reg. version). When combined with other tariff
proposals, it would appear that Canada's collectives want to the kill
the download industry, demanding at least 40% of everything iTunes,
Napster, and other new services earn."
I am not so sure that Canada's collectives want to "kill the download
industry" as much as they are still upset about the United States
failure to comply with the WTO ruling on the Byrd Amendment. In fact,
on March 31st of this year Canada put this out:
"The Government of Canada announced today that it will retaliate
against the United States in light of its failure to comply with the
World Trade Organization (WTO) ruling on the Byrd Amendment. Following
extensive consultations with domestic stakeholders, Canada will impose
a 15 percent surtax on U.S. live swine, cigarettes, oysters and
certain specialty fish, starting May 1, 2005"
Seems to me this download tariff is just another retaliation like the
above. It isn't just Canada either, several countries are upset that
the US has not complied.
For those that don't know, The Byrd amendment, passed by Congress four
years ago, provides that when foreign manufacturers are found to be
dumping goods in the U.S. market -- that is, selling at unfairly low
prices -- any anti-dumping duties that are imposed can be handed over
to the U.S. companies that brought the dumping case, rather than to
the Treasury. It has benefited U.S. firms in industries including
steel and pasta, with one of the largest beneficiaries being Timken
Co., an Ohio maker of bearings, which collected about $40 million last
year.
--greg Vulcan quiescent... Q: What machine shutdown with this message?
In France all blank writable media is subject to a special tax. The proceeds of this tax are distributed to the various copyright agencies. The idea is that since they are going to be used to rip music or videos anyway, the copyright holders should get some compensation. Uterly silly, but it has been effective since the first blank audio cassettes arrived on the market....
I mean, honestly. I don't know a single person who's ever BOUGHT a song online. Absolutely everyone I know has a ridiculously huge music collection that's come from napster, bittorrent, kazaa, morpheus, winmx, you name it. Anything but an officially sanctioned music site.
There's no incentive for us. We already pay a tax on our blank media, and downloading and uploading music are perfectly legal in Canada. Somehow I don't think that the online music companies are going to be shaking in their boots at all.
actually it's not a government tax, the government doesn't get any of the money. it's a copyright collective representing the copyright owners that gets the money, which is called a "levy" rather than a "tax". the money goes to the musicians. and their lawyers. well mostly to their lawyers i'd guess :-)
No, that is net profit.
Out of the $.99 they want $.40.
It is even more ridiculous in that at least in the US, $.70 on average already goes to the various copyright holders.
Just a Tuna in the Sea of Life
Title says it all. This is a proposal from SOCAN, which represents some Canadian musicians. It's just a proposal. As long as the government is still collecting the tariff on blank media, there's no way this would ever actually happen, because organisations like SOCAN are *already* receiving funds as anti-pirating compensation.
The government's already decided that the blank media tax more than pays for lost revenue from the artists, and I doubt very much that SOCAN et al. will ever be willing to give that up.
If you believe everything you read, you'd better not read. - Japanese proverb