AT 11 24/7

Hey...at least we're trying. Canadian Record Labels Call ISP Music Tax a 'Pipe Dream'

Posted about 1 year ago
From Zeropaid.comResponds to proposals by songwriters and music creators for a $5 monthly tax on internet connections in exchange for allowing users to share music for free on P2P and file-sharing networks.A little over a month ago now the Songwriters Association of Canada announced a new proposal calling for a $5.00 "licensing fee" to be added to every internet subscription bill each month, and in return, legalizing the sharing of music on P2P and file-sharing networks.In "A Proposal for the Monetization of the File-Sharing of Music," as they refer to it as, the songwriters argue that the revenue generated by legalizing both the uploading and downloading of music will help offset the current losses associated with illegal file-sharing and in fact lead to a significant new source of income for music creators and the record industry.Soon after the Canadian Music Creators Coalition (CMCC) also endorsed the proposal.“This is the first progressive proposal we’ve seen in Canada to address file-sharing,” said Andrew Cash, CMCC spokesperson. “It’s telling that creators, the people who actually make the music being shared, are the people showing leadership and pushing for a made- in-Canada approach to file-sharing. We can only hope that the Canadian government will follow the Songwriters’ lead and begin exploring alternatives to the failed ‘locks, lawsuits and lobbying’ strategy of the major labels.”Well, now it seems the Canadian Record Industry Assn. (CRIA) has chimed in and it's unsurprisingly not a big fan of the proposal. I don't think anybody would imagine that an association whose primary business is the DISTRIBUTION of music would support a proposal that essentially upends their business model. As usual, it's the ARTISTS, those who write and create the music that are willing to explore new opportunities to reach their fans. CRIA president Graham Henderson said he has discussed the plan with SAC Pres Eddie Schwartz, but his organization is reluctant to become involved. "We don't want to pursue what amounts to a pipe dream that is presented as a quick fix," he said. "We'll lose focus on the real issues that will help us resolve the industry's problems."Schwartz said he has received positive feedback from consumer groups. But he noted that the plan would require clearance from the Copyright Board of Canada, and the SAC has not yet taken the concept to the regulatory body.The SAC also has yet to present its proposal to Canadian Internet service providers, although some are dismissive of the plan."It appears (the SAC) would ask wireless carriers and ISPs to collect this surcharge on their behalf," said a spokesman for Bell Canada, one of the country's largest telecommunications companies and the majority owner of Puretracks. "(That) would not go over well with our client base, especially with the large number already signed up for our (legal) mobile and online music services."Music subscription services are also not too happy with the proposal because they know it would also mean the end for them as well. The SAC proposal "would signal the death of paid music services in Canada," said Alistair Mitchell, CEO of Canadian music service Puretracks. "It would be saying we're just giving up on developing new models. The concept is so flawed, I don't know where to start."As usual, the only people with objections are those who have the most to lose, and it's sadly those with the most to gain - actual music artists - that get forgotten in the process.

Comments (8)

  1. Jonh Ingham says This idea is being discussed privately in a number of places. What the Canadian proposal doesn't seem to take on board is that they're proposing 100% of Internet users pay for the activities of a minority. A better version would be to make the fee elective, but you will then be monitored if you decline to pay. And if you do then engage in p2p, you will be pursued under the law and fined.
    Permalink posted 01/14/2008
  2. davesonic says A good idea but being "monitered" may be less inviting than paying the $5 a month. I wouldn't have a problem with extra tax as there are lots of things I pay for that won't ever use. School tax, unemployment insurance,etc. No system they put in place is ever going to be perfect.
    Permalink posted 01/14/2008
  3. Jonh Ingham says Maybe, but unemployment insurance is a personal choice and school taxes are seen as benefitting the universal good. The average person buys less than 5 pieces of music a year. Why should they pay for something that only a few take advantage of and would be a very hard sell to convince it's as important as schools? Last year a German company did a global survey of 1million Internet users and found that only 20% of them use p2p networks.
    Permalink posted 01/14/2008
  4. davesonic says In my opinion that number should be a lot higher. We're in a society of pretty tech savy people now. I know people from 5 to 75 who know how to download. I would think that most people when questioned are shy about giving an honest answer.
    Permalink posted 01/14/2008
  5. darmuzz says Goes nicely with this story: Canadian iPod Levy Killed in Court (from ilounge.com) In July, the Copyright Board of Canada approved a private copying levy on iPods and removable memory storage cards, that could have resulted in tariffs of up to $75 per device, depending on storage capacity. That levy has effectively been struck down by Canada’s Federal Court of Appeal, which took only 24 hours to decide that the Copyright Board had no legal authority to impose the levy. Copyright lawyer Howard Knopf, who represented the Retail Council of Canada as well as Apple Canada et. al, said that “The applicants were awarded their costs. The reasons are very brief. The Court was very decisive.” The ruling was also welcomed by Retail Council of Canada president Diane J. Brisebois. “This has been a very long battle, but a necessary one,” said Brisebois in a prepared statement. “Retailers have fought against these levies since their creation in 1997 because it taxes a product based on what a consumer possibly could use it for.”
    Permalink posted 01/14/2008
  6. ZZTodd says not a bad idea. too bad it will never pass (atleast right now anyway)
    Permalink posted 01/14/2008
  7. Jonh Ingham says The German survey looked at ISP log in Europe, US, Australia. They didn't ask people - they looked at the actual usage of 1 million people over 3 months. I know it seems low. But those 20% did account for 80% of all Internet traffic.
    Permalink posted 01/14/2008
  8. Sturgell says Great... taxes.
    Permalink posted 01/14/2008

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