The Conservatives have launched another campaign over the iPod Tax today [April 12, 2011] complete with website, video and Twitter account. I posted a lengthy account of the claims last December (short version - the Liberals on record now as opposing, the earlier record is open to debate), but the issue keeps returning.  Given the attention to the issue, it is worth noting that Bill C-32, the Conservatives own copyright bill, would likely have doubled the fees that Canadians pay on blank CDs. Alternatively, it would have led to a dramatic reduction in revenues for Canadian artists. The reason stems from the government's commitment to ratify the World Intellectual Property Organization’s Internet treaties and the legal requirements found in those treaties.

Canadian Heritage Minister James Moore has gone on record confirming that Bill C-32 would allow for ratification of the WIPO Internet treaties, telling the Bill C-32 Legislative Committee that “what is in this legislation - the ratification of WIPO, the fair-dealing policy, the digital protection measures - is a huge victory for all Canadians.”

Yet what Moore did not say is that ratification of the WIPO Internet treaties requires Canada to provide "national treatment" to all artists (in other words, treat Canadian and foreign performers equally). Since the current private copying levy system does not provide national treatment, this would likely lead to a substantial increase in payments from Canadian consumers to foreign performers and makers and minimal increase in payments from foreign consumers to Canadian makers and performers.

According to documents I recently obtained under the Access to Information Act, the Department of Justice has concluded that Canada’s current private copying levy system does not comply with the WIPO Internet treaties. In order to comply with the treaties, the private copying levy system would have to be expanded to include foreign record companies and performers.   A 2005 Industry Canada commissioned study estimated that this would result in either (1) a doubling of the current levy (at the time as much as $35 million per year) almost all of which would immediately leave the country, or (2) the current levy could remain unchanged, but Canadian record companies and performers would find their share cut roughly in half.  In other words, Canadian consumers either pay millions more or Canadian creators lose millions in revenue.

Raising questions about the parties' position on copyright and the private copying system is certainly fair game. But if the Liberals are asked to respond to iPod Tax claims, perhaps the Conservatives should explain why they left the prospect of millions more in consumer copyright fees or millions in lost revenue for creators under the existing system untouched in their copyright bill.

Originally posted on Michael Geist's blog

iPod Tax Fight Conceals Another Consumer Copyright Fee Hike

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April 13, 2011 10:00 AM

The Conservatives have launched another campaign over the iPod Tax today [April 12, 2011] complete with website, video and Twitter account.

I posted a lengthy account of the claims last December (short version - the Liberals on record now as opposing, the earlier record is open to debate), but the issue keeps returning.  Given the attention to the issue, it is worth noting that Bill C-32, the Conservatives own copyright bill, would likely have doubled the fees that Canadians pay on blank CDs. Alternatively, it would have led to a dramatic reduction in revenues for Canadian artists. The reason stems from the government's commitment to ratify the World Intellectual Property Organization’s Internet treaties and the legal requirements found in those treaties.

Canadian Heritage Minister James Moore has gone on record confirming that Bill C-32 would allow for ratification of the WIPO Internet treaties, telling the Bill C-32 Legislative Committee that “what is in this legislation - the ratification of WIPO, the fair-dealing policy, the digital protection measures - is a huge victory for all Canadians.”

Yet what Moore did not say is that ratification of the WIPO Internet treaties requires Canada to provide "national treatment" to all artists (in other words, treat Canadian and foreign performers equally). Since the current private copying levy system does not provide national treatment, this would likely lead to a substantial increase in payments from Canadian consumers to foreign performers and makers and minimal increase in payments from foreign consumers to Canadian makers and performers.

According to documents I recently obtained under the Access to Information Act, the Department of Justice has concluded that Canada’s current private copying levy system does not comply with the WIPO Internet treaties. In order to comply with the treaties, the private copying levy system would have to be expanded to include foreign record companies and performers.   A 2005 Industry Canada commissioned study estimated that this would result in either (1) a doubling of the current levy (at the time as much as $35 million per year) almost all of which would immediately leave the country, or (2) the current levy could remain unchanged, but Canadian record companies and performers would find their share cut roughly in half.  In other words, Canadian consumers either pay millions more or Canadian creators lose millions in revenue.

Raising questions about the parties' position on copyright and the private copying system is certainly fair game. But if the Liberals are asked to respond to iPod Tax claims, perhaps the Conservatives should explain why they left the prospect of millions more in consumer copyright fees or millions in lost revenue for creators under the existing system untouched in their copyright bill.

Originally posted on Michael Geist's blog

Blogger Profile: Michael Geist
Dr. Michael Geist is a law professor at the University of Ottawa where he holds the Canada Research Chair in Internet and E-commerce Law. Dr. Geist has written numerous academic articles and government reports on the Internet and law and was a member of Canada's National Task Force on Spam. He is an internationally syndicated columnist on technology law issues. He is an internationally syndicated columnist on technology law issues.

Posted by Sue Ansell at April 13, 2011 10:00 AM

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