Canadian Blank CD Levy To Increase By Another 38%
from the you're-a-criminal dept
The Copyright Board of Canada has decided to increase the levy on blank CDs from 21 cents to 29 cents each. The levy is a sort of "you're a criminal tax" that assumes blank CDs are going to be used for unauthorized copying. Blank CDs in Canada are now often more expensive than blank DVDs (which have no levy and hold more data), and most of that cost goes directly to the record industry. In 2006, about 70% went to the labels, but it seems like even more now, with actual price of CD-Rs dropping. With a 21 cent levy, a pack of 50 CD-Rs sells for about $12 before tax. That's 24 cents per CD-R -- 87.5% of the price goes to the record industry. And that's before the 8 cent increase.The board notes that sales of blank CDs are declining, but justifies the increase by arguing that compression allows people to store more songs on a CD. Meanwhile, there's no levy on digital audio players (the Canadian record industry was worried it would legalize downloading and seemed to prefer to push for tougher copyright legislation instead). What's going to happen when the Copyright Board realizes that blank CD sales are likely declining, not because everyone is using compression, but because less people are using CDs? This "you're a criminal tax" has always been a short-term band-aid solution that's not going to fix the record industry's problem. Do Canadians really need to pay the record industry $30 million a year for the right to burn a few songs onto a CD every now and then? Luckily, the current government has expressed a desire to cancel the levy, though we'll have to wait and see if they can follow through.
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Filed Under: blank media, canada, cds, levy
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Really? Given that they are Conservatives, i.e. right-wing or Republican-lite if you will, I doubt it very much. They're not about to stop throwing our tax money at corporations.
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Re:
If they're gonna cancel the levy, then perhaps you're right about them being Conservatives, but they'll have to fight the liberal "tax everything" mentality of any liberal types still in power there.
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I believe they'd want to cancel it. The Conservatives are much more likely to give money to corporations through tax cuts, not some kind of welfare-ish levy.
I think the real question is whether or not this will be a priority at all, given the economic and political crises they're facing.
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not only music
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Re: not only music
So you're taxing people and accusing them of being criminals-in-waiting and they AREN'T EVEN THE PEOPLE DOING THE "STEALING"! Your strategy is made of FAIL! When even the RIAA looks at you and chuckles...
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Re: not only music
Ultimately, all this represents is another questionable and disappearing revenue stream for the music industry that they're using as a crutch so they don't have to innovate... and when they are finally forced into action, it will be too late.
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Re: not only music
It's called the Head Up Your A** syndrome, and the Canadian taxation authorities all seem to have it.
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Stupidity at it's finest
I mean, you could go on and on with this type of stuff.
It's just stupid that because one of the uses of something might possibly be illegal (arguable as making legal backup's is legal, after all) and used by 0.1% for that purpose, the rest are punished?
Stupidity at it's finest.
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And if anyone asks, an iPod is something you use to steady your camera.
LOL.
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And if anyone asks, an iPod is something you use to steady your camera.
LOL.
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With CD players having USB ports these days the 4 people in the world who still used CD's for music wont have to.
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These things do have taxes, and people have a legal requirement to take insurance to cover the victims of car accidents (at least in most countries).
Anyway, its a bit pointless. You'll just kill off the CD faster...DVD-RW'ers have been standard in new computers for a while. FM transmitters for .mp3 players have replaced CDs for everyone I know.
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I wish some of you would realize there are more important things in the world than having the newest music player...like eating, or paying the heating bills.
Not everyone has money to burn. Thanks but, until my current equipment dies, I'll still be using and burning cds, tax or no tax.
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Again, I ask...
Let them blog this stupidity. We have enough to worry about within our own borders.
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Re: Again, I ask...
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Re: Again, I ask...
1. There's a lot of people who read this blog who don't happen to reside in the US (myself included). So, although it's got a US focus, Techdirt is of international interest and a lot of readers care what happens around the world.
2. What borders? This is the internet.
3. If US-based politicians take the "success" of the Canadian model to mean that a similar model should be pushed through US legislature, surely having an idea of what was bad about the Canadian model would help you fight it?
4. Wilful ignorance is not an asset. Having an idea of what goes on in world around you affects you whether you like it or not, and there's a big world outside of your blinkered view.
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So why do we care? Read PaulT's post, point 3. Additionally, the concept of a national economy is secondary to international economy in the modern world. Decisions, whether economic, political, or otherwise, made around the world have the potential to affect everyone.
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Re: Re: Again, I ask...
I seriously doubt this really makes any reader care.
As for PaulT's #4, I truly agree, but if a tax on CDs is what "world relations" is about, I take pity on the readers who come here to read about world news.
BBC America News. 7pm EST. Every. Single. Night. Better than any damn US news-based station, that's for sure.
Oh, and thanks to all the replies for being damn literal with the "borders" comment. I'll be sure to apologize when Canada taxes our CDs.
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As for "world relations", yes this is a minor thing but it's important. Any success with these kinds of moves can be used as examples to convince other politicians to pass similar laws. It's a bad idea, and could be the tip of the iceberg leading to some kind of blanket copyright tax.
It's especially important at the moment. The US government is showing itself as quite willing to hand over incredible amounts of money to prop up failing and corrupt businesses, often without oversight or guarantees that the failed models will change.
Which other formerly lucrative industry is in danger of failing due to greed, mismanagement and dated business practices, and might need changes in the law to continue? Exactly.
"I'll be sure to apologize when Canada taxes our CDs."
Huh?
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And I answer
Thanks for clearing that up.
I suppose we never have to think about what happens in other countries having legal systems with common principles, since things the Border Patrol would stop them before they got too far.
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but that kind of leave M$ and the software companies out of the loop which is quite unfair.
/sarcasm
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What do you get for the tax?
Yeah, didn't think so.
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Re: What do you get for the tax?
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Re: What do you get for the tax?
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Blank CD'S
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Re: Blank CD'S
But who buys CD players for kids any more? The majority have iPods. A year ago I bought my little sister an FM transmitter to go with her Nano, something she can fit in her pocket rather then the bulging CD holder stuffed into the glove box.
Now she wants an iPod-ready car stereo for Christmas...
I've also just moved all my dust-coated CD's into storage. One proudly displayed on the shelve, now they sit in a cupboard next to a shoebox of floppy disks.
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No longer copying CD's
Just to let the labels know, between my wife and myself we have some 2-3000 CD's in our collection, all purchased (or gifted). That said, we have both stopped purchasing from major labels totally over the past several years and only buy direct from the musicians or small labels on the internet. Screw the RIAA! What a bunch of crooks!
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CDs in storage
Why would I bother with CDs when I can store my entire collection in 8GB of mp3 player? As far as I'm concerned, they're just source material.
On another note, years ago I watched Shiela Copps at a town hall meeting (this was a few years back) and someone brought up the very point about using CDs for data backup or burning Linux distros.... she just didn't "get it".
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Ban the CD Levy!
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