Discussion:
Top court (In Canada) removes levy on iPod-like devices
(too old to reply)
Music Man
2005-07-29 13:30:51 UTC
Permalink
Note to reader: This issue does not pertain to people in the USA.
There is no such extra tax in the USA on digital media or media
devices like blank CD-R disks or MP3 players.

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I don't quite understand this.

Are they saying that because the tax on digital music players has been
removed (removed permenantly or indefinately), that people who copy
music to those players have lost the protection (or right) to copy
music to those players? (ie - that users of MP3 players were
protected from copyright prosecution *because* of the tax on the
players?)

Is the music industry (in Canada) acknowledging that the special tax
(on items like CD-R's) gives Canadian's protection from
copyright-based legal action by the music industry? If so, then how
can they continue to go after Canadian up/downloaders of music on the
internet?

Why wasn't this issue settled when we were using Sony Walkmans and
taping music off the air or from records onto casette tape?

See also:
Big Music fumbles in Canada
http://p2pnet.net/story/5741
(reproduced below)

--------------------------------

Top court removes levy on iPod-like devices
http://www.metronews.ca/tech_news.asp?id=9880

Consumers (In Canada) no longer have to pay a $2 to $25 levy on
digital music recorders, but with the levy gone, legal experts say
those who copy their personal CD collections onto the popular devices
are no longer exempt from copyright legislation.

In other words, they may be breaking the law.

The Supreme Court of Canada refused yesterday to hear an appeal that
was expected to clarify whether copying songs to digital music
players, such as Apple Computer's popular iPod, can under certain
circumstances expose consumers to copyright infringement lawsuits.

"If someone takes a lawfully store bought CD and makes a copy onto an
iPod, there doesn't appear to be anything in Canadian copyright law
that gives them the right to do that," said Michael Geist, a
technology law professor at the University of Ottawa.

"In theory, someone could be sued for making copies of CDs to listen
to on their iPod."

With the country's top court deciding to stay clear of the issue,
Geist said the pressure is on lawmakers to directly tackle any legal
uncertainties that remain.

David Basskin, a director with the royalty-collecting Canadian Private
Copying Collective (CPCC), which launched the appeal on behalf of
music rights holders, said there's nothing theoretical about the
issue.

"The law is pretty clear," said Basskin. "Unauthorized copies made to
digital audio recorders infringe copyright. This isn't just an iPod
issue, there are many other products that fit the description."

Basskin wouldn't say whether there was a serious risk of consumers
being sued, but industry observers say it's doubtful music companies
would target their best customers.

The case centred on a controversial levy that is currently applied to
blank CDs and other recordable media. It grants consumers an exemption
that allows them to make copies of music - say, from a CD collection —
for personal use.

In 2003, the music-industry collective convinced the Copyright Board
to approve a new $25 levy on digital audio recorders with more than 10
gigabits of embedded memory, $15 on devices with between 1 GB and 10
GB, and $2 for less than 1 GB.

The move was strongly opposed by a group of major retailers and
electronics manufacturers - including Apple Canada Inc. and Future
Shop — which convinced the Federal Court of Appeal to kill the
unpopular "MP3 player" levy in December.

But the legal battle didn't end there. With the music collective
hoping to reinstate the levy and the retailing and manufacturing group
wanting the entire levy scheme declared unfair and unconstitutional,
both parties separately appealed to the Supreme Court.

Now that the top court has refused to take on the case, partial
victories are being claimed on both sides.

The Retail Council of Canada and the Canadian Coalition for Fair
Digital Access, representing retailers and electronics manufacturers
in the case, said consumers will save millions of dollars by not
having to pay the levy.

"But we're disappointed that a constitutional case won't be heard at
this time," said Howard Knopf, a lawyer representing the retailers.

The music collective, interpreting the Supreme Court's refusal to hear
the appeal as indirect support for the constitutionality of the levy
system, said it was disappointed it couldn't reinstate the levy on
digital music recorders and will be exploring its options.

About $120 million collected to date through the levy is supposed to
be redistributed to copyright owners. Legal observers figure the music
collective accumulated more than $4 million in levies from iPods and
other digital music recorders in 2004, an amount it plans to
reimburse.

Basskin said with the levy gone, consumers should realize they no
longer have a blanket exemption to copy songs to digital music
recorders, though songs can be legally downloaded from specially
licensed music sites such as Puretracks and iTunes.

In a release, the Canadian Recording Industry Association said by not
accepting the appeal the Supreme Court affirmed that the "unauthorized
file sharing to hard drives of any kind — including those on home
computers — is illegal."

The association, however, seems to make a distinction between file
sharing through the Internet and the act of "ripping" CDs for personal
use.

----------------------------

Big Music fumbles in Canada

p2pnet.net News- Has the Big Four record labels' CRIA opened its mouth
too wide following yesterday's Canadian Supreme Court decision to
refuse an appeal by vested interests to confirm the tax on portable
music players?

Canadian law professor Michae Gesit believes that may be the case.

CRIA's Higher Risk Strategy
By Michael Geist

Of all the reactions to today's SCC decision to skip the appeal of the
private copying decision, I thought the Canadian Recording Industry
Association's was the most remarkable. I’ve obviously commented
regularly on its high risk strategy of suing individual file sharers.
I think this is a bad strategy for many reasons. Suing your customers
(and we should be clear, file sharers are the industry’s best
customers) is never a good idea. Further, the immense energy devoted
to fighting file sharing, despite ample evidence that any industry
woes have little do with the practice, is wasted time that could be
spent actually responding to the market.

Today's response represents an even higher risk strategy. CRIA is now
going to war not only with its customers, but now also with its
artists. There have been several indications of this in the past year,
namely CRIA's opposition to artists on ringtone compensation and on
satellite radio.

But opposing the artists on private copying takes this strategy to new
heights. CRIA today claimed that artists will make up private copying
levy losses through the marketplace. The truth is that artists and
rights holders lost $4 million today, the amount collected from the
iPod and digital audio recorders during a fairly brief period. Longer
term, they lost tens of millions of dollars of potential compensation.
These are not the nickels and dimes that CRIA derides. If anything,
for Canadian artists the levy represents a potentially important
revenue stream that will not be easily recouped.

Today's decision also likely means the end of a private copying levy
that CRIA spent 15 years fighting to get. The system is clearly broken
and policy makers will either drop it completely (perhaps supplemented
by a fair use doctrine that will permit copying such as store bought
CDs to personal iPods) or expand the levy so that it resembles a
European approach that extends to both audio and video, while
providing even greater compensation.

Further, today's decision represents a serious blow to the iPod, which
has been an incredible boon to the music industry. Simply put, copying
store bought CDs onto iPods, as CRIA’s own Graham Henderson has
supported, may now be unlawful in Canada since it is difficult to find
an exception within the Copyright Act that would permit that form of
copying. While perhaps some in the industry may think this is a good
thing as it transitions users to re-purchase the same music yet again
as MP3 files from services such as iTunes, I think it will ultimately
lower the value that consumers associate with music to the detriment
of everyone in the industry.

Finally, it is worth noting what this decision does not mean. While
CRIA claims yet again that this means that file sharing is unlawful in
Canada, the issue is still unsettled. They argue that "unauthorized
file sharing to hard drives of any kind, including those on home
computers, is illegal." Not so. A good argument can be made that
computer hard drives are not the equivalent of the hard drives
embedded in digital audio players. I don't think anyone knows for sure
and I doubt CRIA will try to test the issue. There is high risk and
higher risk but that lawsuit would involve perhaps the highest risk.
Rob McIntyre
2005-07-29 23:59:44 UTC
Permalink
At this moment the industry is considering copying of music to hard drives
of any kind as illegal, as stipulated by Cria's press release at
http://www.cria.ca/news/280705_n.php, especially when it's distribution is
unauthorised as described by our copyright act - Section 80, subsection 2
specifies that the private copying act does not apply to music that is
distributed ("whether or not for the purpose of trade") and communicated "to
the public by telecommunication" (i.e the internet).

But it is legal to make copies from the legal download services (whose
rights to copy for personal use are purchased). Some copy protected discs
also include an option to copy to these devices so copying from these discs
would also be legal, for private use.

I also believe this recent decision isn't retroactive, so those who have
made private copies to their hard drives, iPods and similar devices in the
past are not subject to prosecution. But copying music from standard CDs to
any hard drive or device may be illegal as of July 28th, 2005. :-/
--
-------------------------------------------------
Rob McIntyre (Ottawa,Canada)
http://www.buymusic.ca / http://www.stopspamhere.ca
-------------------------------------------------
Music Man
2005-07-30 02:11:48 UTC
Permalink
Post by Rob McIntyre
At this moment the industry is considering copying of music to
hard drives of any kind as illegal,
When I buy a music CD (in canada) - what exactly am I buying?

Am I buying a license to play the content of the disk on any
personally-owned device that will play it?

Do I own the disk?

Do I own the contents of the disk?

Can I sell the CD to a pawn shop or retail re-seller of used CD's?

If I don't "own" the disk (but just have the right to play it), then
if I break the disk do I have the right to obtain a second disk at a
much reduced cost (since presumably the majority of the original cost
was to purchase the rights to listen to the content, which should
continue even if the disk is broken or otherwise unplayable). ?

Presumably I can't re-transmit the contents (ie feed the audio signal
from a CD into an AM or FM transmitter) such that the community at
large can receive it (ignoring DOT/FCC rules for the moment about
illegal transmitters).

I understand that in the US there is something called "fair use" which
basically gives americans the right (technology permitting) to make a
backup copy of any copyrighted material they have legally acquired
(VHS tape, music CD, presumably a DVD, book or novel, etc). Do I
understand this correctly - and do Canadians have something similar to
"fair use" ?

Getting back to the current issue -

It seems that in Canada, if a music track (or entire CD) is copied to
some medium (the internet via file-sharing or binary nntp posting,
cassette tape, vhs tape, CD-R, DVD-R, MP3, SD-Ram, computer hard
drive, etc) that the music industry will consider (and the courts will
agree?) that such a copy is illegal unless the media in question has
some sort of use-tax applied to it at the retail or whole-sale level.

Do I understand this correctly? -> Is it the (Canadian) music
industry's position that if the medium does not have a music tax, then
the transfer of (legal) content to the un-taxed medium is in violation
of copyright law? Are the (Canadian) courts in agreement with that?

If so, how does that compare with the situation in the US, where there
is no such tax on MP3 and blank CD-R's, yet there is also no such
threat by the American music industry to go after people that transfer
content from a (legit) CD's onto their MP3 or burn duplicate copies
for themselves.
Rob McIntyre
2005-07-30 15:51:57 UTC
Permalink
Post by Music Man
Post by Rob McIntyre
At this moment the industry is considering copying of music to
hard drives of any kind as illegal,
When I buy a music CD (in canada) - what exactly am I buying?
Am I buying a license to play the content of the disk on any
personally-owned device that will play it?
You purchase the right to play the music (with limitations) and a licence to
make private copies to "audio recording media" as defined by our Copyright
Act :

" "audio recording medium" means a recording medium, regardless of its
material form, onto which a sound recording may be reproduced and that is of
a kind ordinarily used by individual consumers for that purpose, excluding
any prescribed kind of recording medium; "

Technically, one could argue that iPods and some similar devices contain
audio recording mediums and that these are primarily used to store music.

You'll also notice that the term "blank" isn't used in that definition and
that is it defined seperately in section 79 of the copyright act as " (a) an
audio recording medium onto which no sounds have ever been fixed, and (b)
any other prescribed audio recording medium"

So technically, we could further argue that there are two different audio
recording mediums defined in our copyright act, that only "blank audio
recording mediums" are subject to the levy and that the audio recording
mediums found on some devices aren't blank because some contain
pre-installed software and/or recordings.

I personally think CRIA will be concentaring their efforts on individuals
whose copies can't qualify as "private copies" with the limitations stated
in section 80, subsection 2.
Post by Music Man
Do I own the disk?
Yes.
Post by Music Man
Do I own the contents of the disk?
No. Read the fine print on the disc.
Post by Music Man
Can I sell the CD to a pawn shop or retail re-seller of used CD's?
This is iffy. Technically you would become a distributor, but then so would
the pawn shop. Selling may also void the legality of your private copies.
Post by Music Man
If I don't "own" the disk (but just have the right to play it), then
if I break the disk do I have the right to obtain a second disk at a
much reduced cost (since presumably the majority of the original cost
was to purchase the rights to listen to the content, which should
continue even if the disk is broken or otherwise unplayable). ?
No such rights have been established. It's up to the label's replacement
policies. Private copying establishes legal backups though ; My music's in
storage.
Post by Music Man
Presumably I can't re-transmit the contents (ie feed the audio signal
from a CD into an AM or FM transmitter) such that the community at
large can receive it (ignoring DOT/FCC rules for the moment about
illegal transmitters).
Just a clarification for some readers : Canadian broadcasts are regulated by
the CRTC and limited range, private transmittions are allowed (i.e wireless
broadcasts to headphones or stereos from within a residence, wireless
broadcasts from a device to a car stereo within a car).
Post by Music Man
I understand that in the US there is something called "fair use" which
basically gives americans the right (technology permitting) to make a
backup copy of any copyrighted material they have legally acquired
(VHS tape, music CD, presumably a DVD, book or novel, etc). Do I
understand this correctly - and do Canadians have something similar to
"fair use" ?
Only libraries, archives and broadcasters were allowed to make backups in
Canada until private copying was introduced for sound recordings. We do have
the right to perform computer software backups with limitations (Section
30).
Post by Music Man
Getting back to the current issue -
It seems that in Canada, if a music track (or entire CD) is copied to
some medium (the internet via file-sharing or binary nntp posting,
cassette tape, vhs tape, CD-R, DVD-R, MP3, SD-Ram, computer hard
drive, etc) that the music industry will consider (and the courts will
agree?) that such a copy is illegal unless the media in question has
some sort of use-tax applied to it at the retail or whole-sale level.
Transfering a recording from one medium to another is copying and the
industry believes they should be compensated for all distribution that isn't
specifically defined as legal by our copyright act.
Post by Music Man
Do I understand this correctly? -> Is it the (Canadian) music
industry's position that if the medium does not have a music tax, then
the transfer of (legal) content to the un-taxed medium is in violation
of copyright law? Are the (Canadian) courts in agreement with that?
CRIA's interpretations of the latest dismisal are debatable. We wont know
about the court's interpretation until CRIA decides to sue someone.
Post by Music Man
If so, how does that compare with the situation in the US, where there
is no such tax on MP3 and blank CD-R's, yet there is also no such
threat by the American music industry to go after people that transfer
content from a (legit) CD's onto their MP3 or burn duplicate copies
for themselves.
Actually, there are levies on "digital audio interface devices" and "digital
audio recording devices" in the states :

http://www.copyright.gov/title17/92chap10.html

The threat against Canadians who buy CDs and copy these to their devices for
personal use is minimal. You'll notice that CRIA used the term "file
sharing" in their press release at http://www.cria.ca/news/280705_n.php so
it appears that they're mostly interested in internet piracy.

BTW, the liberals have introduced an amendment to the copyright act in June
to address numerous issues. Bill C-60's text is available at the following :
http://makeashorterlink.com/?F22C3168B
--
-------------------------------------------------
Rob McIntyre (Ottawa,Canada)
http://www.buymusic.ca / http://www.stopspamhere.ca
-------------------------------------------------
Music Man
2005-07-30 03:12:26 UTC
Permalink
Section of 80 of Canada's Copyright Act states in no uncertain terms
that copying for private use, such as from CD to iPod, is NOT an
infringement.

80. (1) Subject to subsection (2), the act of reproducing all or any
substantial part of

(a) a musical work embodied in a sound recording,

(b) a performer's performance of a musical work embodied in a sound
recording, or

(c) a sound recording in which a musical work, or a performer's
performance of a musical work, is embodied

onto an audio recording medium for the private use of the person who
makes the copy does not constitute an infringement of the copyright in
the musical work, the performer's performance or the sound recording.
Rob McIntyre
2005-07-30 14:06:17 UTC
Permalink
Post by Music Man
Section of 80 of Canada's Copyright Act states in no uncertain terms
that copying for private use, such as from CD to iPod, is NOT an
infringement.
80. (1) Subject to subsection (2), the act of reproducing all or any
substantial part of
(a) a musical work embodied in a sound recording,
(b) a performer's performance of a musical work embodied in a sound
recording, or
(c) a sound recording in which a musical work, or a performer's
performance of a musical work, is embodied
onto an audio recording medium for the private use of the person who
makes the copy does not constitute an infringement of the copyright in
the musical work, the performer's performance or the sound recording.
The latest rulings have found that iPods and similar devices are not subject
to the levy because they aren't "audio recording mediums" but "devices" onto
which music can be placed.

Technically, only a small portion of these devices are audio recording
mediums anyway ; The hard drive disc and/or memory chip/stick and or smart
media disc. The extra electronics aren't. I also argued that they couldn't
possibly levy something that could be used to store legally obtained
material in my statement to the Copyright Board, including legal downloads
and material whose author and copyright owner is the owner of the device
(photographs, videos, text documents, etc).
--
-------------------------------------------------
Rob McIntyre (Ottawa,Canada)
http://www.buymusic.ca / http://www.stopspamhere.ca
-------------------------------------------------
Determinator
2005-08-02 06:47:26 UTC
Permalink
Post by Music Man
Note to reader: This issue does not pertain to people in the USA.
There is no such extra tax in the USA on digital media or media
devices like blank CD-R disks or MP3 players.
actually, there is indeed a levy in blank media in the USA (that's where
Canada got the idea from).

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