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MP3 players hit with copyright levy
Last Updated Fri, 12 Dec 2003 16:13:40
OTTAWA - The cost of MP3 players is going up after the Copyright Board of Canada slapped a levy on the sale of digital audio recorders on Friday.

However, the board turned down a request from a music group called the Canadian Private Copying Collective (CPCC) to impose levies on blank DVDs, removable memory cards and micro hard drives. The board also said no to higher levies on blank audio tapes, recordable CDs and MiniDiscs.

"The evidence available at this time does not clearly demonstrate that these recording media are ordinarily used by individuals for the purpose of copying music," the board said in its decision.

The federal board said the new levy will be imposed on digital audio devices with non-removable memory, such as Apple's iPod.

The imposition of the fees comes as the music industry tries to fight the growth of copied music downloaded via the Internet.

The fees levied on digital music devices include:

Up to 1 gigabyte of memory: $2;
More than 1 gigabyte up to 10 gigabytes: $15;
More than 10 gigabytes: $25.
Manufacturers and importers must pay the levies, which will most likely be passed on to consumers.
The CPCC called the copyright board's decision "disappointing and perplexing."

"We are living through a time in which there is unprecedented access to content and therefore we must be more conscious of the rights holders and creators," Claudette Fortier, chair of the board of directors of the CPCC, said.

The copyright board's ruling also received a mixed review from Canadian Coalition for Fair Digital Access, a group of manufacturers, distributors and retailers.

The CCFDA said it was pleased to see levies were not extended to many products for which they were requested, but expressed disappointment at the fees imposed on equipment such as MP3 players.

"The board's decision today does not change the inherently flawed nature of the existing regime and reinforces the need for Parliament's repeal of the private copying law that created the levies," the CCFDA said.

The group argued that many consumers and business do not use digital recorders for music, but they are still forced to pay levies on the equipment.

The CPCC will collect the levy and distribute it to groups representing eligible authors, performers and makers.

The copyright board is a federal organization that establishes royalties to be paid for the use of copyrighted works.



Written by CBC News Online staff

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