Last December we found out that there would be an increase on the tariffs levied on
recording media (specifically CDs) to support an industry that is incapable of
changing with the times. I was irritated enough by the wrong-headedness of this to
write to a couple of our honourable ministers. Wonder of wonders, I received a reply.
Of course, in typical government fashion it consists of a lot of words that really say
nothing. No surprises there.
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Marketplace Framework Policy Branch
5th Floor West Tower, Room 506-F
235 Queen Street
Ottawa, Ontario
K1A OH5
INTERNET
To: Ms. Sheri Morita
[EMAIL PROTECTED]
Dear Ms. Morita:
On behalf of the Honourable Allan Rock, Minister of Industry, I would like to thank
you for your electronic correspondence of December 11, 2002, on the tariff on blank
audio recording. I was asked to reply on the Minister's behalf and I regret any delay
in doing so.
As you may be aware, the levy on blank audio recording media was introduced in Bill
C-32 which received Royal Assent in 1997. A levy is imposed on recording media of a
type "ordinarily used by individual consumers" to record music. The levy is paid by
importers and manufacturers of blank recording media to the Canadian Private Copying
Collective (CPCC), which represents eligible rights holders, not the government.
Although criticized by some as being an imperfect instrument, the government's intent
was to compensate eligible authors, sound recording makers and performers for the
widespread unauthorized copying of their music.
The amounts of the levy and the media to which it applies are set by the Copyright
Board, taking into account proposals submitted by the CPCC. The Board is a
quasi-judicial tribunal which operates at arm's length from the government. In
setting the amount of the levy for a particular type of blank audio recording medium,
the Board takes into account the proportion of that medium which is used to record
music as opposed to other types of material such as data, but ultimately must set
levies that are "fair" and "equitable". Interested parties may file formal or
informal objections with the Board and the Board will take these into account in
making its decision. Typically, the amount set by the Board is different from the
figure proposed by the rights owners' collective.
It may interest you to know that pursuant to section 92 of the Copyright Act, a report
entitled Supporting Culture and Innovation: Report on the Provisions and Operation of
the Copyright Act was tabled in Parliament on October 3, 2002, on behalf of the
Minister of Industry. It proposes an agenda for copyright reform that sets out
groupings of issues to be addressed in the short, medium and long terms. In the
report, consideration is given to the provisions relating to the levy on blank audio
recording media. The report is available online at:
http://strategis.ic.gc.ca/SSG/rp00863e.html.
The report, which launches a parliamentary review of the Copyright Act, has been
referred to the House of Commons Standing Committee on Canadian Heritage. The
Committee will have a year to study it and make its own recommendations. During this
time, the government will continue its work on the priority issues.
Please be assured that we appreciate your comments and that we will take them into
account in our policy development work.
I trust this information is helpful to you.
Sincerely,
Marie-Jos�e Thivierge
Director General
___________________________________________________________
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