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."

Comments

As a Canadian

[mark*workfire]

I don't really like our new music & movie association overlords. Thank goodness for sites such as www.allofmp3.com. Since I already pay a tax on my blank media, I feel no shame in downloading from KaZaA or Usenet or Morpheus or IRC. And the music & movie industries blatant cash grabs such as this are simply going to make it harder for legitimate business to prosper, since users won't be as eager to move to them. Quite frankly, since I pay the copyright tax, I really haven't bought that many CD's. However, the movie industry still makes a killing off my kids

Potential problem for all access monopolies

[wheelbarrow]

This is a manifestation of one fear I have about publicly owned internet access monopolies (municipal WiFi). Some activist city council somewhere could decide that these sorts of taxes are just the thing needs to fund libraries, kiddie daycare, free everything, etc. Or, perhaps, activist city councils could decide to ban access to politically incorrect activities on the internet (e.g. cigarette purchasing).

There are dangers to collectivist centralization. Give me the hell of high stakes competition and unclear standards.

Re:For the clueless

[kalinh]

Explain to me how this makes the US a "nice guy"? Where I come from, we call that "ripping everyone off".

I'll take a stab at this. Domestic demand in Europe and Japan is stagnating, Japan has been in and our of deflation for over a decade, Germany is toying with it. Germany is facing 12.6% unemployment right now the highest numbers since the thirties. Europe can't escape the massive future liabilities the government has amassed due to its low birth rates, and therefore has to import as much labour as it can simply to keep going. The threat of low-cost labour from the rest of the EU, and the curtailing of benefits that have come to be seen as a right threaten to harm the social structures of Europe in irreperable ways.

You've been paying attention only to people who say what you want if you really believe that there has ever been any chance of the Euro becoming a reserve currency in the world economy. Ireland even began issuing some of it's sovereign debt in USD a few weeks ago! Extrapolating this assertion and saying this was the reason for the Iraq war borders on voluntary lunacy. The US trade deficit has been nearly the only thing that has kept Europe and Asia from operating in a severe recession over the last few years.

Basically America's consumer, partially aided by the Fed's policy of low interest rates, has been supporting the world's economy. Economists have been wringing thier hands for years over how the world economy is running on only one engine. Part of the hope was that during this period Europe (really talking about Germany here, the largest economy in Europe by far) and Japan would reform thier labour laws, and banking system respectively, creating domestic growth and genuine domestic demand, and start to buy stuff not only from themselves, supporting thier own economies, but also from America.

Aside from the fact that the social structures of Japan and Germany, as well as the government leaders have pretty much failed to address the structural problems that have brought their domestic economies to thier knees while they had a chance. The consequences of this so far have been a falling US dollar, but could easily be protectionism, which is really unfortunate.

But that's just what I've grokked over the last few years. I could be wrong. But I doubt I'm more wrong than you in this case.

Kalin