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Canadian Music Industry Seeks Copy Tax On Memory Cards

An anonymous reader writes "The Canadian music industry's copyright collective is demanding the creation of a new copying tax on all memory cards sold in Canada. The Canadian Private Copying Collective has filed for a tax of up to $3 per memory card to compensate for music copying on SD cards. If approved, the tax could cost consumers millions of dollars." Makes no less sense than the current levy exacted on blank CDs and audiotapes in Canada — and no more sense, either.

48 of 265 comments (clear)

  1. great idea by Anonymous Coward · · Score: 5, Insightful

    so once you have paid the copy tax you are free to copy as much music as you like?

    1. Re:great idea by Barbara,+not+Barbie · · Score: 2, Insightful

      so once you have paid the copy tax you are free to copy as much music as you like?

      No - there position is that this is to compensate for undetected copying - if they catch you, I'm sure they'll be willing to deduct the $3 from the $BAZZILLON_BUX_FOR_COCAINE_AND_HOOKERS that they'll try to get from you - and you can be sure that the artist will still end up getting the sharp end of the stick when it comes to apportioning that money.

      --
      Let's call it what it is, Anti-Social Media.
    2. Re:great idea by Anonymous Coward · · Score: 4, Informative

      This is untrue. The Copyright Board of Canada has advised that the levy DOES protect copying and P2P downloading.

    3. Re:great idea by Vlad_the_Inhaler · · Score: 3, Informative

      I live in Germany.
      They have this "tax" on various devices / media such as: writeable CDs, CD/DVD burners, printers (!), I can't remember what else.
      That does not stop them going for people they think are file-sharing, copying content or whatever.

      Absolute parasites. The government are just as bad for forgetting who they are supposed to be representing and going along with this theft.

      --
      Mielipiteet omiani - Opinions personal, facts suspect.
    4. Re:great idea by green1 · · Score: 5, Informative

      The current official government position on the existing levy is YES. There are some oddball rules, but yes.

      The law as it stands right now is that you are allowed to copy for personal use providing you have the original legal copy in your possession at the time you make the recording. They don't however deal with how you came to have the original in your position. Seems reasonable enough on the surface, however it gets odd in the implementation, I'll give some examples:
      - I buy a CD, I lend it to you, you copy the CD and give back the original. Perfectly legal.
      - I buy a CD, I copy it and give you the copy. although the end result is identical to the first case, this way is illegal.
      - I buy a CD, I copy it, I keep the copy and give you the original. Perfectly legal.
      - I buy a CD, I lend it to you, you copy the CD and give back the copy. although the end result is identical to the last example, this is illegal.

      Additionally, the Canadian courts have ruled that downloading music IS legal per this situation (uploading however is not)

      Now I still don't like the levy, because it is paid on all blank media, regardless of what you do with said media. which means when I make server backups, the recording industry gets a cut. What may however be an even bigger miscarriage of justice though is that small independent artists, with no affiliation to the large media conglomerates, have to pay this levy on all of their blank media as well, with no hope of recovering any of it. (Large record labels don't pay the levy as they press CDs instead of buying recordable CDs and burning them)

      Of course while all this is going on, the record industry is ALSO working very hard to ban copying for personal use, however I have a feeling they have no intention of having the media levy repealed when they succeed (and I say when, not if, because it has been before parliament at least twice so far, only failing due to a fall of the minority government, since the recent election the Conservatives now have a majority, and this is one of the bills they have promised to pass quickly, so unfortunately I'm pretty sure we will lose all fair use rights very soon)... and I really have a problem paying a levy on the assumption that I will do something that is illegal.

    5. Re:great idea by Barbara,+not+Barbie · · Score: 3, Informative

      This is untrue. The Copyright Board of Canada has advised that the levy DOES protect copying and P2P downloading.

      I believe you are incorrect. The section of the revised Copyright Act only grants a limited right to making a private copy.

      While subsection 1 of section 80 does indeed grant a limited right to make a private copy, it has restrictions, as noted in subsection 2:

      (2) Subsection (1) does not apply if the act described in that subsection is done for the purpose of doing any of the following in relation to any of the things referred to in paragraphs (1)(a) to (c):

      (a) selling or renting out, or by way of trade exposing or offering for sale or rental;
      (b) distributing, whether or not for the purpose of trade;
      (c) communicating to the public by telecommunication; or
      (d) performing, or causing to be performed, in public.

      You can certainly make a copy of your own CD. You can't use a P2P program to share (and because even leachers need to at least take part in sharing the data as to what parts they need of the .torrent, it can be argued that they are also taking part in (c) above, and not exempt).

      The big print giveth, the fine print taketh away.

      --
      Let's call it what it is, Anti-Social Media.
    6. Re:great idea by Moryath · · Score: 4, Insightful

      Well, that's how the MafiAA works.

      They want a "tax" levied by the government, paid to them.

      On top of it, they want it to be illegal to exercise the right that the tax is supposedly being paid for.

      Not so different from the USA, where the DMCA and constant copyright "extensions" paid for by Disney bribing Congress have pretty much destroyed the idea of the public domain.

  2. Great!!! by dskoll · · Score: 4, Funny

    This will stimulate international trade! US citizens will buy their drugs from Canada and we'll buy our storage media from the US.

    1. Re:Great!!! by RobertM1968 · · Score: 2

      Why don't they just tax RAM, the music is loaded into there all the time. Let's see each time the music is played.

      What the hell is wrong with you?!?!?!? They're perfectly capable of coming up with idiotic, oddball ideas on their own! Don't go giving them any new ones!!!

  3. Only if we get an equal tax on the music industry by Barbara,+not+Barbie · · Score: 2

    ... to compensate for all the brain cells that were destroyed trying to make sense out of their stand ...

    There can be some justification to tax the specific device (ipod), but not a multi-purpose medium.

    --
    Let's call it what it is, Anti-Social Media.
  4. Greedy ****'s by DigitalSorceress · · Score: 4, Insightful

    Just gotta get this out of my system... what a greedy bunch of ****suckers!

    Ok, maybe some folks use SD cards to copy music, but the assumption that everyone's going to use them for that purpose is beyond stupid.

    I own several SD cards and several CF cards and I've never ever put a single song or other piece of copyrighted work on any of them... well, ok, actually I have... I use them in my cameras to take pictures, so I put MY OWN copyrighted work on them.

    I know obvious post is obvious, but these Canadian MPAA-Wannabees already get a tax on every blank CD and DVD sold in that country... I can't believe they were allowed to do that, and now they want more... Why don't they just tax brain cells since I might REMEMBER what one of their songs sounded like.

    GARRHRRHHHH!!!!

    --

    The Digital Sorceress
    1. Re:Greedy ****'s by atchijov · · Score: 2

      Agree. And the fact that these days more and more people do not store ANY music at all, but instead stream it over internet makes it even more idiotic.

    2. Re:Greedy ****'s by The+Grim+Reefer2 · · Score: 2

      I own several SD cards and several CF cards and I've never ever put a single song or other piece of copyrighted work on any of them... well, ok, actually I have... I use them in my cameras to take pictures, so I put MY OWN copyrighted work on them.

      Perhaps you should lobby for your own tax on memory cards to, or to collect a piece of this "copyright tax". Obviously you have proof the someone has used these cards for storing your material on. ;-)

  5. Well, well... by alexandre · · Score: 4, Interesting

    I'd rather pay 3$ per memory card than have a DMCA++ / ACTA laws enacted that just screws everything up!
    You can't sue people who have paid a copying tax can you?

    1. Re:Well, well... by atchijov · · Score: 2

      Do not full yourself. They will charge you $3 AND then sue you (or rather sue 10K of Jon Doe's - and you may just end up one of those)

    2. Re:Well, well... by munky99999 · · Score: 2

      Dont worry. Soon Canada will have both.

    3. Re:Well, well... by RobertM1968 · · Score: 2

      I'd rather pay 3$ per memory card than have a DMCA++ / ACTA laws enacted that just screws everything up! You can't sue people who have paid a copying tax can you?

      Yes, yes they can. Read the proposed law. They still plan on. This is solely to make up losses for their pathetic, outdated, ineffective business model.

    4. Re:Well, well... by crossmr · · Score: 2

      You'll get both. don't be so naive. Harper has his majority now, Canada is completely fucked.

  6. Unlike Europe - where this is outright ILLEGAL by FriendlyLurker · · Score: 4, Interesting
    Where: 'EU court rules Spain's "digital copyright tax" illegal'

    The Court of Justice of the European Union (CJEU) today declared illegal any digital canon which is being imposed indiscriminately on all equipment and materials used for reproduction and not only that which presumably can only be used for private copying , as applied in Spain. Spain imposes a "canón digital", a small tax on all digital media (CD's, tapes, DVD's and associated equipment) which is given to the General Society of Authors for copyright payment in case the media is used to copy work.

    1. Re:Unlike Europe - where this is outright ILLEGAL by Anonymous Coward · · Score: 2, Interesting

      No it is NOT illegal in the EU. Germany is one of the worst in this regard. We pay levies on blank CDs/DVDs/etc., other storage mediums (not just memory cards, e.g. HDDs, USB sticks), printers, PCs, mobile phones, recording equipment (e.g. CD burners), portable audio players, photocopiers and so on and so forth.

      At least all these levies eliminated ANY moral qualms I would have had pirating music, movies and books. They took my money by force of law. It's only fair I take their products in return. Sure it may be illegal, but seriously, fuck them. I have no respect for unjust laws.

      I still pay for all software I use since they are not part of this corrupt system.

  7. In consumers and political minds, SD = Cameras by Anonymous Coward · · Score: 2, Insightful

    The difference between approving a tax on CDs and a tax on memory cards will be the perception in the minds of those voting on it and in the minds of those who vote for the politicians.

    CDs are perceived as music storage mediums, but SDs are perceived more as picture storage mediums.

    Already it was a bad idea for a tax on CDs, but if the tax is applied to SD cards then it's an easy road to hard drives, cell phones with flash memory, thumbdrives and probably even Web hosting in general.

    Google and Amazon won't have to get licenses for music storage, they'll be paying the tax anyways.

  8. Makes *less* sense by sunderland56 · · Score: 2

    How many people copy music on SD cards? 99.9% of them are used in things like digital cameras. Other than a few VW owners (some models have a SD card slot in the dash connected to the music system) I don't know anyone who would.

    Go ahead and tax iPods, which actually *are* used for copying music - but don't try and kill off the photography industry by adding useless taxes.

    1. Re:Makes *less* sense by SuricouRaven · · Score: 2

      The law lags. I would guess - based on nothing more than anecdotal observation - that most pirated music (And probably most non-pirated purchased music too) ends up being played either by a computer, or on a mobile phone. Dedicated portable music players are actually getting less common now, as even the cheaper mobile phones include the same functionality.

    2. Re:Makes *less* sense by donaldm · · Score: 2

      How many people copy music on SD cards? 99.9% of them are used in things like digital cameras. Other than a few VW owners (some models have a SD card slot in the dash connected to the music system) I don't know anyone who would.

      I am surprised they did not mention USB sticks or Memory Stick or XD cards. You are right most people would use some sort of music player to copy music to rather than use a card. If I want to play recorded (ie ripped) music in my car all I do is copy the appropriate files to my Android phone and play via my AUX connection to my car radio. The same is true for the iPhone.

      Go ahead and tax iPods, which actually *are* used for copying music - but don't try and kill off the photography industry by adding useless taxes.

      Actually any smart phone (and some not so smart) as long as it has some storage can act as a music player. To me this tax is crazy since most people use cards in cameras rather than copying music to them.

      --
      There ain't no such thing as proprietary standards only proprietary formats. Standards are by definition open.
  9. Makes even less sense by Junta · · Score: 4, Insightful

    The CD tax is senseless, but if grading on a curve, the memory cards makes even less sense.

    At *least* burning music to CD represents a larger share of what is done with blank media, so that people can pop portions of their collection into their car cd player (and nowadays to a less extent in other cd players). Of course they penalize everyone 'just in case' and even in the case of burning music to CD there are plenty of fair-use sorts of applications ('mix tapes', burning legally purchased music, etc), which makes it absurd.

    In the memory card situation, mostly I see them purchased for cameras, game consoles, and general sneakernet of data. There isn't a huge ecosystem of music players that take memory cards as the primary medium. Must music lives on an iPod or cellphone and arrives on other stereo systems by way of bluetooth, aux jacks, or iPod dock connection. Sure, there are things that take usb hard drives as sources and primarily play music, but I think that's such a vanishingly small use of even those specific units as to render any sense of entitlement beyond absurd.

    --
    XML is like violence. If it doesn't solve the problem, use more.
    1. Re:Makes even less sense by rolfwind · · Score: 2

      Don't worry, they'll go after HDDs/SSDs and Internet connections themselves next. This is how it works, the more successful they are in asking for money, the more lawyers/lobbyists they'll be able to afford, and the more things they'll have their hand out for.

      The only correct response is not to get defensive, but go on the offensive and get the initial tax (CDs/DVDs) repealed.

  10. only fair IF by TheGratefulNet · · Score: 2

    everytime I make a .zip or .tar file, the music 'industry' pays me BACK.

    the gall of the 'industry' to take what is essentially 99.9% data-only (NOT music) format and try to gouge 'usage fee' for it where its absurd beyond belief.

    stop following their rules (like we even have to state this anymore). when the laws become bought and paid for by the rich, its time to start ignoring the laws.

    you want us to respect the laws? make them respectable. we'll wait. until then, we'll do pretty much any damned thing we want (torrents, usenet, whatever).

    grow up, and we'll treat you like adults. (isn't that a switch!)

    --

    --
    "It is now safe to switch off your computer."
    1. Re:only fair IF by Pi1grim · · Score: 2

      It's not time to start ignoring the laws, it's time to start changing the laws.

  11. Digital Cameras by r_jensen11 · · Score: 4, Informative

    Aren't memory cards more commonly used in digital cameras than for music? I know that many phones now use memory cards for storage, but I'd have to imagine that more people have digital cameras, and multiple cards for said cameras, than people who have phones with memory cards installed....

  12. if you can no longer compete by nurb432 · · Score: 5, Insightful

    Get legislation enacted to guarantee your revenue stream.

    --
    ---- Booth was a patriot ----
  13. Re:The price we pay for sanity by Tridus · · Score: 5, Insightful

    No, in Canada this is the price we pay for "culture" industries being protected and coddled from reality.

    There is no connection between this and music copying, at all. It's a cash grab. SD cards have as much to do with pirating music as video cards do.

    --
    -- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
  14. RIAA is stealing from independent artists... by xanadu113 · · Score: 5, Insightful

    The RIAA is STEALING from independent artists, with this fair use tax. If a non-signed band uses CD-R's to record their music onto, they are paying a fair use tax.

    The same people who claim we are stealing from bands by downloading music, are getting paid by bands who didn't sign any agreement with the RIAA or any record labels. Now WHO is stealing from bands...?

    What's next, bailouts for record labels...?

    --
    -Myke
  15. Two advantages of this: by benwiggy · · Score: 4, Insightful
    First:
    So, presumably, by paying the tax, I can pirate as much music as I like! Excellent.

    Second:
    I've written and recorded a song. Where do I sign to get my share of the cash?

  16. Hah by Windwraith · · Score: 3, Interesting

    We got that in Spain. The thing ended up propagating to every multimedia device like photo cameras, HDDs and anything that can use removable memory. (and it's a large price difference!)
    If you Canadians can stop it, this would be a good moment, before it spreads.

  17. There is no cash for artists. by raehl · · Score: 2

    The fund gets paid out to record labels, not artists. The best you can do is sell your copyright to a record label so they can get your share of the cash.

  18. Fine ... by gstoddart · · Score: 2

    Just so the Canadian music industry understands ...

    I use my memory cards for my camera and my cell phones, and I use my USB sticks for work, and I use blank DVDs to make backups ... add another copyright tax (don't call it a levy) on my ability to have electronic data, and I will hand around copies of MP3s like they're candy.

    I will get my money's worth out of this *&$#( levy -- if you continue the default position that I am pirating your music (which I'm not doing now), then my default position will be that since I've already paid for your music, I am bloody well entitled to it. I won't even draw the line at Canadian music -- I'll just assume you're tithing to the RIAA.

    If your business strategy is to charge all of us for the music that we're neither listening to nor pirating ... well, I will pirate it just because I've already paid you for it.

    In short, if you keep ripping me off, I'll start ripping you off -- and I won't feel even a little bad about it. Is that what they really want?

    --
    Lost at C:>. Found at C.
    1. Re:Fine ... by gstoddart · · Score: 2

      Musicians who earn above a certain threshold in annual income shouldn't get any of this money. It's not them who "need" it, even if it's their music being pirated in greater quantities. The idea is to use the money to foster "culture" growth, not just keep some marketing machine for the latest autotuned tween band well lubed.

      Horseshit ... this isn't some "feed the starving artists" fund. This is a tax to make up for the (claimed) lost revenues of the recording industry -- by making absolutely everyone pay for it. I'm sure as hell not in favor of paying into a fund just to fund the artists who "need it" on the principal that someone else might not be buying their music either.

      The assumption that I'm pirating their music, and that I should be compensating them for their 'lost' revenue basically means they're taxing all of us. And we're all now kicking into a fund to keep corporate profits up and make sure that executive bonuses are at an all time high -- this is a cash grab, pure and simple. Artists likely won't even see a dime of this.

      The only thing fund is intended to foster growth in, is their bottom line. And more or less entrench into law the fact that we all owe them their revenue -- even if we don't use their product or want it.

      Hell, my parents are in their 70's, and they buy memory cards ... they sure as hell don't use them to pirate music. They use them for their digital camera, and their digital picture frames ... perfectly legitimate, non-infringing uses of the technology. Yet, this tax just assumes that anything capable of storing electronic bits equated to them losing money.

      --
      Lost at C:>. Found at C.
  19. License to download as much as I like by Xaximus · · Score: 2

    If I'm presumed guilty, I'll gladly take this as a license to download as much as I like. It's kind of a great deal!

  20. Re:The price we pay for sanity by ColdWetDog · · Score: 2

    I have no idea what anyone would use a 32Gbyte or 64Gbyte SD-card for, it is an insane amount of storage for most digital cameras, but pretty neat for storing entire seasons of TV-series, or all the music you have ever had the chance to leech.

    Video. The new thing in DSLRs is videos and even dedicated video cameras are using SD. 64 GB is a nice big number for video.

    --
    Faster! Faster! Faster would be better!
  21. Re:The price we pay for sanity by green1 · · Score: 4, Informative

    It is at the moment, but the Conservative government has promised to outlaw fair use as soon as possible. The copyright reform legislation died with the previous minority government, but now that they have a majority they have vowed to pass it as quickly as possible.

    Somehow I doubt they'll repeal the levy once they repeal our fair use either...

  22. Re:The price we pay for sanity by MachDelta · · Score: 3, Interesting

    Because up here the last time they tried, they lost and lost BAD.
    BMG Canada vs John Doe resulted in the judge declaring file sharing was entirely legal! It was a sledgehammer to the balls for the music industry. It took a year for the Federal Court of Appeals to nix the previous judges ruling (while not making any judgement themselves), leaving the question of file sharing legality an open and unanswered question. That was six years ago. The Canadian music industry is waiting for copyright reform (probably coming in the next year) before they risk slamming their collective dicks in a door again. In the meantime they'll just soak up some media levy - it's cheaper than constantly hiring lawyers anyway.

  23. Free music in Canada!! by motasinc · · Score: 2

    Everytime I see something like this I think, why would I bother paying $15-$20 for a retail CD when I have already paid hundreds of dollars in "sin taxes" for all the data CDs I have used over the years. I mean clearly all the memory cards for my digital camera are used only for pirating music. Seems obvious enough to me. I love my country, but we could do without some of its inhabitants ;)

  24. Re:Faulty logic by green1 · · Score: 4, Informative

    You obviously don't understand Canadian Copyright law.
    Those 4 examples are all taken from the Canadian Heritage Ministry's official government website regarding the CD Levy. (I'd love to link to it, but I can't seem to find it any more)

    In Canada copying for personal use is always legal providing you are copying for yourself, and from the original.

  25. Re:Faulty logic by green1 · · Score: 2

    To clarify, they specifically state that you do NOT need to keep the original CD in your posession for your copy to be valid. This is why we pay the levy, to legitimize such use.

  26. These levies aren't to cover piracy... by holophrastic · · Score: 3, Interesting

    They are to cover ANTI-piracy. Forget about what it is, and forget about what it means. It's not a good idea, it's a better idea.

    Look at the US. Not at their piracy, but at their letigious anti-piracy. Think about all of the times that someone, especially the RIAA but not only them, takes legal action, of any kind, at all related to pirating music, in any way.

    Now think of the costs spent, by the tax-payers, to pay the courts, the judges, the legal defense, cleaning the court rooms, publishing the court date, scheduling the legal battle amongst actual important things.

    Think of the tax-payer money lost because people free to sue each other actually do.

    $3 per memory card is WAY LESS than the cost of supporting people suing one another.

    That's why we do it. It's cheaper to pay a tax than to deal with such an issue. So we'll wait for the US to solve piracy altogether -- you know, with dmca and such -- and until then, we'll take the lesser of two evils.

  27. Re:Faulty logic by green1 · · Score: 2

    Sorry to reply to myself again, I still can't find the official government page I was looking for earlier (I suspect that's partially because one of their servers pch.gc.ca is down right now) however I did find this excellent FAQ including analysis of rulings by the Copyright Board of Canada on the subject:
    http://neil.eton.ca/copylevy.shtml#copy_for_friends

    I note the date is a few years ago, however the law has not (yet) changed on the subject

  28. IT IS ILLEGAL IN Europe: imposed indiscriminately by FriendlyLurker · · Score: 2

    TO ALL in this thread replying that it is not illegal: You missing the crucial word of the ruling: indiscriminately

    "declared illegal any digital canon which is being imposed indiscriminately on all equipment and materials used for reproduction"

    Bottom line: extending and applying the canon to all memory cards indiscriminately - is illegal in Europe

  29. Re:Faulty logic by index0 · · Score: 2

    As per the Canadian Copyright Act, it is legal as long as you are the one doing the copying and it is for your ears only. It can be copied from an original or a 2nd generation copy (but your friend that gave you that 2nd gen copy has no committed a crime). Both are legal as long as you are the one personally doing the copying. If you personally make a copy and that copy is for your self only, it is all legal. If you give that 2nd gen copy to anyone, you have now committed a crime.