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Canadian Copyright Group Wants iPod Tax

soulxtc writes "Unable to define memory as a 'recording medium,' Canada's Private Copyright Collective goes directly after portable music player devices, memory cards, and anything else that can be used to make private copies. The PCC submitted a proposal to the country's Copyright Board that suggests levies of $5 (Canadian) on devices with up to 1GB of memory, $25 for 1-10 GB, $50 for 10-30 GB, and $75 for over 30 GB. If approved, this propoal would increase the price of a 30-GB iPod by 26%. These collections are intended to compensate artists and labels for the losses they suffer when people 'illegally' copy or transfer music. The PCC is also seeking a new $2 to $10 tax on memory cards. The backbone of digital photography has become tangled up in the fight for making sure music companies get every nickel and dime they feel that they deserve."

33 of 408 comments (clear)

  1. The very least they could do by Anonymous Coward · · Score: 4, Informative

    Is have a true sliding scale. Under that pricing scheme, the 1gb ipod has a $5 tax, while the 2gb model has a $25 tax rather than $10. Sheesh.

    1. Re:The very least they could do by sumdumass · · Score: 4, Insightful

      Well, getting more people who might say "ok" to it to realize it is disproportionate and object on that ground would be nice too. As for the tax thouhg, doesn't canada have fair use rights? If so then why aren't these considered above possible illegal copying? And how long will it take before Apple sells the memory as an addon to the "Ipod canadian edition" to keep them affordable and end up having these people try to tax hardrives? I mean $75 for 30 gig? when the storage in the ipod is basicly the same thing? And herddrives can hold music too!

      Anything to get people to reject this so some common sence can be used.

    2. Re:The very least they could do by hjf · · Score: 5, Insightful

      you sound just like the record industry when they cry wolf: "mp3 means the end of music as we know it". if I had mod points I would have modded you -1 Overrated.

      get real, man. portable players were here long before you heard about the iPod, much longer than the 1998 Diamond Rio. At the time there was no market, yet the players did exist.

      also, economics 101: if you want to recover your money from a bad investment, you DO NOT raise the price. you lower it. you sell it to the first jerk that show up, then "Take The Money and Run".

    3. Re:The very least they could do by AndersOSU · · Score: 4, Insightful

      also, economics 101: if you want to recover your money from a bad investment, you DO NOT raise the price. you lower it. you sell it to the first jerk that show up, then "Take The Money and Run".


      That theory applies to most of us, but in advanced Econ 748 - Economics for Cartels - we learn that it the previous economic principles are only valid when you fail to properly legislate yourself a revenue stream and business model.
  2. Should I move to Canda? by mstromb · · Score: 5, Insightful

    So, this means that I get to download anything I want while in Canada free of guilt and cost... right?

    1. Re:Should I move to Canda? by Babillon · · Score: 5, Insightful

      That's the way I go about things. They're pretty much just yelling at us "Hey, go for it. We think you're stealing anyway."

      Wouldn't it be grand if the people who distribute software started pulling this crap too? I'd feel obliged to take them up on their fees and start downloading away.

    2. Re:Should I move to Canda? by acidrain · · Score: 5, Interesting

      So, this means that I get to download anything I want while in Canada free of guilt and cost... right?

      Actually yeah. In Canada we pay a small tax on blank tapes and a special kind of recordable cd that nobody buys. The upside is that it is perfectly legal for Canadians to share their music with each other and to download music off the internet. Making files available on the web is brodcasting and therefore illegal, and charging money for copying is also illegal. However, if you want to set up an mp3 server at work, there is no law preventing that.

      What it comes down to is you cannot tax illegal behaviour. Our courts would never accept it. So this isn't that scary, in that there an upside because they also enshrine the right to share music with those players. As for digital photography? That would result in too many pissed off taxpayers. Probably the worst would be some brand of memory card being released with an absurd tax just like for cds. And it will quietly be ignored by consumers, if they ever see it.

      Finally, just because they are asking for $25 doesn't mean the politicians won't just give them $2.50 and tell them to keep quiet. We have a minority government right now so the politicians are far too busy kissing voter but.

      --
      -- http://thegirlorthecar.com funny dating game for guys
    3. Re:Should I move to Canda? by spagetti_code · · Score: 4, Insightful
      I think we first need to ask who will actually get the money.

      Sure, they say its for the artists - but once the PCC's "costs" are taken out - how much will be left.

      How will they distribute the money? Proportional to the CD sales? To online sales? Will they just cut a check to every artists in canada? How will recompence non-canadian artists? Or is this just a scam fee going to the RIAA? (Just like the millions that the RIAA is making from their lawsuit business - that sure as hell ain't going to Justin Timberlake or Joni Mitchell)

    4. Re:Should I move to Canda? by BobNET · · Score: 4, Funny

      Wouldn't it be grand if the people who distribute software started pulling this crap too? I'd feel obliged to take them up on their fees and start downloading away.

      That'd be great since I wouldn't feel bad when I download OpenBSD instead of buying the CDs. The government would obviously give them their fair share of the levy...

    5. Re:Should I move to Canda? by Foerstner · · Score: 4, Informative

      What it comes down to is you cannot tax illegal behaviour. Our courts would never accept it.

      Count yourself lucky, I guess. In the US, it is, for example, illegal not to declare your income from criminal activity to the IRS for taxation. (Which is why so many mobsters were eventually nailed for "tax evasion" as opposed to racketeering, extortion, theft, or murder.)

      Further, I'm willing to bet that paying the tax would not protect you from a civil suit from the RIAA.

      --
      The US free market: two halves of a government-granted duopoly are free to set the market price.
    6. Re:Should I move to Canda? by shark72 · · Score: 5, Interesting

      "So it's just like the US (hint: Audio Home Recording Act)."

      Nope. These two statements are true:

      1. Canadians pay a levy on recordable media.
      2. In some circumstances, it's legal for Canadians to share copyrighted music.

      However, the following is not true:

      Canadians pay a levy on recordable media. Because of this, in some circumstances it's legal for Canadians to share copyrighted music.

      To be sure, lots of Canadians use the levy as moral justification to pirate as much music as they can, often citing the fact that artists are compensated by the levy (the reality is that it largely goes to Canadian artists). In other words, Canadians have their choice of 94 moral justifications for piracy, vs. the 93 that we in the United States have.

      You're correct that the AHRA defines tariffs on some recordable media (including DAT machines, and those music CD-Rs that nobody buys). I'm sure there are lots of people who use the existence of this tariff as a moral justification for piracy, but the tariff certainly doesn't make it legal.

      --
      Sitting in my day care, the art is decopainted.
    7. Re:Should I move to Canda? by shark72 · · Score: 4, Informative

      "How will they distribute the money? Proportional to the CD sales? To online sales? Will they just cut a check to every artists in canada? How will recompence non-canadian artists? Or is this just a scam fee going to the RIAA? (Just like the millions that the RIAA is making from their lawsuit business - that sure as hell ain't going to Justin Timberlake or Joni Mitchell)?"

      The CPCC has a web site here. Hit the link on the left labelled "Royalty distribution." It's a bit dry, but you should be able to get an answer to all of your questions.

      Keep in mind that the CPCC != the CRIA (Canada's equivalent of the RIAA). The CPCC represents primarily artists.

      --
      Sitting in my day care, the art is decopainted.
  3. Why do I need to pay this? I buy my music @ iTMS by aristotle-dude · · Score: 4, Insightful

    Do they want me to stop buying music? If I am going to be charged for buying a new iPod, I should be able to download at least as much music as it costs for the fee right? If they are going to accuse people of being thieves, then I suppose they have no choice but to stop buying music completely and just pirate it. Way to go CRIAA. Have fun with bankruptcy.

    --
    Jesus was a compassionate social conservative who called individuals to sin no more.
  4. Translation, please... by Kythe · · Score: 4, Insightful

    These collections are intended to compensate artists and labels for the losses they suffer when people 'illegally' copy or transfer music

    No, they're not. They're intended to set up yet another cash cow for large recording companies, irrespective of whether individuals put legal or illegal copies of music on their recording devices.

    And no, they're not intended to supplement the compensation of artists, regardless.

    Geez, that was easy to translate. The recording companies don't even try to hide their intentions behind competent PR any more.

    --

    Kythe
    1. Re:Translation, please... by Bob3141592 · · Score: 4, Insightful

      Hey, I make music (actually, I don't, but let's play along here). How can I register as an artist that gets a slice of this pie?

      What's that? The artists don't get paid directly, only the big companies do? Indie musicians aren't appreciated or compensated? Doesn't seem right, does it?

      --
      In theory, there's no difference between theory and practice. In practice, there is.
  5. Re:So... by dave420 · · Score: 4, Insightful

    habeas corpus?

  6. Re:You've gotta be shitting me by Derek+Loev · · Score: 5, Interesting

    According to this article" music sharing does not kill CD sales due to the fact that those that download music would not likely buy it in the first place. MP3 Players and P2P software have become the scapegoat of the music industry. They are trying to compensate for something they caused (by releasing music overpriced and more) by taking away from the consumer. It's completely ridiculous.

  7. What's more... by Kythe · · Score: 4, Interesting

    ...considering that you could fit maybe 250 128 bps mp3's on a 1 GB iPod (that comes to about $.02 per song), I guess we know now how much people should be penalized for illegal music sharing.

    --

    Kythe
  8. Re:Consumers by ChoralScholar · · Score: 5, Insightful

    First of all, this is more "you have an iPod, you must be a criminal" nonsense. Well, here's what I have to say about RIAA and it's Canadian counterpart: If you treat everyone like they're a thief, it's probably because you're a thief too. (Credit to my father who said this referring to Wal-Mart) Furthermore, from their standpoint, why give people MORE ammo with which to justify pirating music and video. This will have the OPPOSITE effect than they want. (i.e. I paid $75 extra for this 30Gig iPod, and I'm gonna get my money's worth.. etc...)

  9. Re:misleading headline and writeup by tomhudson · · Score: 4, Interesting

    They've also been sounding out the idea of a levy on hard drives.

  10. Where's my brother's money, dammit? by swordgeek · · Score: 5, Interesting

    My brother is a full-time professional musician in Alberta, and has been now for about 20 years. It's not an easy job, but it's his love and his passion.

    He's now been an artist on about six albums over the years, one of which was nominated for a Juno. Why, pray tell, has he not gotten a single bloody cent from this tariff?

    If I didn't know better, I'd almost believe that the point of it isn't actually to reward the musicians! But of course, that's just crazy talk.

    --

    "People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
  11. Revolution! by rossz · · Score: 4, Funny

    The members of the RIAA and the Canadian equivalent will be the first against the wall when the revolution comes.

    Ah, fuck it. Why wait for a revolution? Everybody get your guns and we'll meet down at the bar to plan our attack on these useless leeches.

    --
    -- Will program for bandwidth
  12. Private Copying Levy by vic-traill · · Score: 5, Informative

    The Private Copying Levy is what lets me download with impunity in Canada. The dollars may or may not actually get to the artists (google away on this one), but it certainly does facilitate my p2p activities.

    I don't know who the 'Private Copyright Collective' is, but this position is at odds with what we've been hearing about the Canadian Recording Industry Association's position - last heard as wanting to do away with the levy:

    http://michaelgeist.ca/component/option,com_conten t/task,view/id,1200/Itemid,85/nsub,/

    I think this is an interesting tactic: collect levy at the front end, squeeze the availability of material via p2p networks through increased DRM on released materials.

    Quite honestly, I don't really notice the levy at my pocketbook, and it does make for an entirely different legal landscape for p2p downloading. Michael Geist is the Guy in the Know about this landscape in Canada - check out his blog at the address above, there's reams of material there.

    --
    [17] Leary, T., White, C., Wood, P. R., Bhabha, W. D., and Wirth, N. Lambda calculus considered harmful. In Proceedings
  13. How do I send them my comments? by javacowboy · · Score: 4, Insightful

    How do I contact the organizations making these proposals? I want to give them a piece of my mind, namely to tell them they can't have it both ways:

    1) Make unauthorized copying illegal.
    2) Charge me for it.

    Do they want a compulsory licensing scheme, as has been proposed by The Register, or do they want people to pay for each copy of music they purchase.

    They should make up their damn minds, because they can't have their cake and eat it too.

    --
    This space left intentionally blank.
  14. Re:Hey Canadians... by edschurr · · Score: 5, Informative

    You can copy music from a friend if you put it on a medium which has the levy, because then you have paid royalties. It may be the case that you can download, given the same condition. See A Guide to Copyrights: Copyright Protection.

  15. Re:I have an idea by CastrTroy · · Score: 4, Funny

    I'm guessing you aren't talking about this kind of Canadian Tea Party

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  16. Re:Why do I need to pay this? I buy my music @ iTM by Undefined+Parameter · · Score: 4, Interesting

    I have a better question: If this becomes Canadian law, does that mean that Apple's iTMS and other MP3 stores start providing their content free to Canadian individuals, but start charging the labels/artists per song?

    --
    Eat the Path.
  17. why is it by v1 · · Score: 4, Funny

    that the recording industries believe that all they have to to do make money is to make more laws?

    Why don't they try something novel like oh.... selling a product to us?

    I say we pass a law that everyone that buys a crowbar has to pay me a nickel, to make up for the losses I incur every time someone breaks into my house. ya.

    Idiots. No, I take that back. By saying that I'm just insulting the idots and that's not fair for even them.

    --
    I work for the Department of Redundancy Department.
  18. $40 for a 30 gig ipod? by guardiangod · · Score: 4, Insightful

    For each 700mb cd-rw, the levy is 30 cents.

    A 30gb ipod has 30000mb-

    30000mb/700mb = 42.9 cdrs

    42.9 cdrs x 30 cents = 1286 cents = 12.86 dollars

    The association better have a very good reason why they want to charge for than 3x for the ipod compared to cd-rws.



    Also, why stop with ipod? I can record information on harddrives too! Let's see, a typically hard drive in a computer has 250 gb. Obviously, if a 30gb ipod costs $40, a 250gb computer should cost (250/40) x $40 = $240! We all know computers are the main source of illegally downloaded mp3!

  19. They did it in Europe by guruevi · · Score: 4, Informative

    A few years ago some countries in Europe adopted a similar taxing on media-carriers and media. The problem is that not a single musician or even a record label sees any of the money. The state forwards it to this 'non-profit' organization and recently a 'scandal' quickly buried by the media came out that actually in over 3 years, millions of euros have been collected and none have been paid out. It also came out that the employees of this 'non-profit' organization (similar to RIAA) had salary's exceeding 250k/year.

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
  20. The content providers contribute very little by dbIII · · Score: 4, Informative
    One point that everyone is missing is that many of the content providers pay very little tax - with Hollywood accounting blockbuster movies make a loss and with record company accounting even the performers have to pay for a lot of things which any other industry would pay for out of revenue - let alone money left over for to be taxed.

    I think the suppliers of blank media make a greater contribution to the economy and the tax base - and really shouldn't be victimised because some loud tax dodgers with good lobbyists want a special tax to feed themselves and drain from another portion of the economy.

    Goverments are not supposed to be fee collectors for private companies - they are supposed to work in the interest of their nations.

  21. It doesn't make sense by Sgt_Jake · · Score: 5, Insightful

    I've seen it before, but I've never quite understood how any government can be convinced to collect taxes for a non-government enterprise. Unless the government is now going to start producing, regulating or in some other way getting involved in the music industry, and intends to use the taxes to pursue that enterprise, why exactly would they collect taxes for it? -- I know it's slashdot but this is a serious question if anyone knows [seriously though - I know it's slashdot, but please refrain from the corruption/collusion arguments for at least 3 posts... ] [[no, seriously... ]]

  22. Distribution of Tarriffs by steveoc · · Score: 5, Funny

    Never quite understood how these levies/tariffs are distributed back to the artists.

    So say if I download a few songs from groups such as Blood-Axe, mix it up with a bit of psy-trance from Finland, and then round it out with some Pendulum ... and then burn it all on a CD for my car driving pleasure ... how does the RIAA know how to distribute the funds to the starving artists in this case ?

    What, they dont ?

    So you mean despite the efforts of the original muso's involved, plus my time to mix and burn the CD - they just end up writing out yet another cheque to Celine Dion for all of our collective efforts ?

    Fuck No !

    Ive never wanted to even to listen to Celine Dion. Not ever !

    But when I step into an elevator, or pass through a shoe shop - there she is, singing in the background and generally ruining my day.

    I dont want to listen to her, but yet she still gets royalties out of me when I make my own CD, or backup my harddisk ?

    That is so totally around the wrong fucking way. Man - I should be PAID by Celine Dion instead as compensation for HAVING to listen to any of her music, which is clearly against my wishes. She infringes upon my personal aural liberty, and yet ... money from my pocket ends up in hers anyway ?

    That is just WRONG on so many levels.

    Seriously - does ANYONE go the effort of actually downloading Celine Dion music and burning it on CD's Why ? So they can hold hands with their so-called 'friends' and dance around and be silly between glasses of cheap wine ?

    What they should do is just stick to selling normal CD's and iPods and things without the tarriffs, but give people the right, if they so choose, to pay $100 and get a licence key that will put their CD Burner or iPod into some sort of crappy 'Celine Dion Mode'. In the same way that you can take a perfectly good PC, and pay $400 or whatever it is to stick Vista on there - enabling 'Celine Dion' mode on the iPod will virtually trash the machine, in exchange for getting the 'Wow' of having it play Celine Dion songs .. for a fee of course.

    The iPod should just operate normally, unless you 'opt-in', and pay the fee, after which the iPod degrades itself to the point where it will play Celine Dion music. 'Look Herbert, my iPod it now plays Celine Dion !!'. 'Yayy !'. 'Hey Clarence, your iPod - its turning a pale shade of Green !!'. 'Its all about the Yayy !!'.

    Its just WRONG