New DVDR (and higher CDR) levy in Canada - are you ready...?

[Savant]

I was talking with a friend about the CDR levy in Canada, and how we pay $0.21 on every blank CDR we buy. While they had heard of that (but didn't know the amount) they didn't know that this levy is reviewed regularly as well as adding new levies. It should be noted this is NOT A TAX. Taxes are collected by the government, and this fee is not collected by the government, it's collected by an agency that passes on the revenue to those entitled to it. (musicians and writers etc) I only mention this since many people start screaming TAX when they read this.

The hearings were held about a year ago, and while the new levies were supposed to be introduced in January 2003, they were delayed because of the controversey surrounding the new proposed levy rates.

To give you an idea of what they have proposed, here is an except from the actual official document outlining it. (link below - all values are Canadian dollars)

Levy
3. (1) Subject to subsection (2), the levy shall be
(a) 60¢ for each audio cassette of 40 minutes or more in length;
(b) 59¢ for each CD-R, CD-RW or each unit of any other type
of recordable or rewritable compact disc of 100 megabytes or
more of storage capacity;
(c) $1.23 for each CD-R Audio, CD-RW Audio or MiniDisc;
[Savant's note, these are the discs used in standalone CD audio
recorders - they are not the regular CDRs that people use]
(d) 0.8¢ for each megabyte of memory in each removable electronic
memory card, each removable flash memory storage
medium of any type, or each removable micro-hard drive;
(e) $2.27 for each DVD-R, DVD-RW, DVD+RW, DVD-RAM
or each unit of any other type of recordable or rewritable DVD;
(f) 2.1¢ for each megabyte of memory in each non-removable
electronic memory card or each non-removable flash memory
storage medium of any type incorporated into each MP3 player
or into each similar device with internal electronic or flash
memory that is intended for use primarily to record and play
music;
(g) $21 for each gigabyte of memory in each non-removable
hard drive incorporated into each MP3 player or into each similar
device with an internal hard drive that is intended for use
primarily to record and play music.

Full text available at the Canadian government website here.

Yes, you read that right $2.27 PER DVD! So add an extra $22.70 on that ten pack of DVDRs you want to buy.

Details on the organisation responsible for enforcement of the levy is here. If you're a glutton for reading, a full text of their position is here(pdf).

It's been suggested that the new levies will be adopted some time in the new year, and as such I would suggest that people start stocking up on DVDr media now before the levy is applied. Otherwise you'll need to start looking south of the border for your cheap DVDr media. (the levy does not apply to media you import yourself)

Regards,

Savant

[Gazorgan]

Correct me if I'm wrong please.

This fee is to compensate artist for people copying their works onto other media, correct?

That implies, in cannada, you have Carte Blanche to copy anything you want since you have paid the fee for the media? I can't see it any other way. They can't charge you a fee for something your not allowed to do, even in Cannada. It's one way or the other.

Hot dang.....I wonder how much I could make smuggling Riteks into Cannada? At least $1 US a disk, and I can cram a lot of DVDR's in a sucase :P I can bring back some cheap prescription drugs

[SLK001]

You say that this is not a tax? Anytime that you take money from me involuntarily, and you are not a government agency, that is theft. Since your levy has the backing of "law" for the enforcement, then this is a "tax" (a piece of shit by any other name would still be a piece of shit, if I may paraphrase Shakespear).

Sounds like a call to arms is necessary in Canada... which would be possible, if the government hadn't already confiscated your firearms.

[RabidDog]

8) flash memory equally used in cameras and mp3 players, taxed or untaxed? ... only 0.8$ per removable micro hard drive ... Ipods a gogo! cross border shopping up 1000%

[overloaded_ide]

So what your saying is if you backup your hard drive to CDR or DVDr, you are forced to compinsate musicians and writers for the data you created yourself???

What about stuff you record yourself? You mean no Canadian writes a song or plays an intrument for personal use?
How about all those DVD's and VHS tapes I made for a local non-profit play group that performed a freely available public domain play? Who is supposed to be compensated for that! Even I was not, I did it for them free! Paid for disks and tapes out of my own money even!

(, it's collected by an agency that passes on the revenue to those entitled to it. (musicians and writers etc)

I'll be dammed if any of them would be entitled to any thing I do myself!

I think you people this will effect need to start filling lawsuits now before it takes effect if you can!

NO-ONE is EVER intitled to be paid ANYTHING for YOUR WORKS you create on your own!!

[dengar]

I remember reading a previous post (either here or on another forum) that this is already done in the Netherlands.

[robrosen]

I'm glad I don't live in Canada. I suspect Canadians who live near the border are going to be making lots of trips to the Best Buy or Staples across the border.

[Savant]

Actually, many people feel that the 'private copying' law on the books in Canada will head off any action by the CRIA (Canadian Recording Industry Association) in Canada. Since 'private copying' is legal in Canada, there have been no threats of lawsuits against those downloading music. Unless the law is changed I don't see this changing. CRIA has said they have no intention to act against file traders as the RIAA has.

What is private copying? Basically it is copying of media for your own private use. So any copying of a CD you own is legal so long as you maintain possession of the copy. If you lend your original factory CD to a friend they can make a private copy for themselves and it is legal. If you were to make a copy and give it to them it would not be legal. While it is a minor distinction, it makes a big difference in terms of enforcement.

One could easily argue that a person (in Canada) who downloads music from someone else is actually making a 'private copy' under the copyright act.

The downside is that we pay for this ability to copy with a levy on blank media. So in reality the music (and soon to be movie) industry has found a way to win the war without fighting the battle. An article discussing this aspect is here.

Regards,

Savant

[The village idiot]

OK, so all I need is a boat, or smugglers truck....


Buy DVD recordable media in massive bulk, cross border, trade for smokes, come back sell smokes, rinse repeat! Sounds easy enough

Man is that going to suck major league @ss for you guys. That also implies that you will be able to copy any movies you ever wanted, without fear of imprisonment. Got netflix?

[unloaded]

Yea, I agree, this implies ability to copy anything, because you've already paid the fee for it. If I were in .ca I'd never buy a music cd or a movie dvd, I would rent/borrow/download and then burn them. DVDXCopy is gonna need a new splash screen: "Is this DVD borrowed or rented?" IF you hit YES it then asks "Are you in Cananda?" if so, it will then allow you to copy, lol.

peace.
unloaded

[Dubber]

Well, I haven't bought any CD-Rs lacally for awhile now, I guess, I'll be getting my DVDRs in the US now too.