Government Slams ‘iPod Tax’ While Artists Cry Foul

Industry Minister and artists face off over copyright levy, aka the “iPod Tax.”
Government Slams ‘iPod Tax’ While Artists Cry Foul
Matthew Little
12/16/2010
Updated:
12/16/2010
PARLIAMENT HILL, Ottawa—Flagged by Heritage Minister James Moore, Industry Minister Tony Clement stopped by Rideau Centre, a popular downtown Ottawa shopping mall, on Tuesday to denounce a copyright levy, or what he called an “iPod tax,” that opposition parties and Canadian artists say is needed to support Canadian content makers.

The levy would update a levy currently applied to blank tapes and CDs which is quickly becoming irrelevant as that technology is outdated. Revenues from the levy are currently 29 cents per CD and compensate artists when users copy their work for their personal enjoyment (think mix tapes).

Clement says the levy could reach $75 and would hurt the economy.

“Our government is committed to ensuring fairness and balance for consumers and creators as we update Canada’s copyright laws. The opposition’s iPod Tax is not fair to anyone. It would just make it more expensive for Canadians to listen to Canadian music and hurt our music industry,” said Clement.

But the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) says the government is misrepresenting the levy, which ACTRA says would range from $2-$25 depending on the capacity of the MP3 player.

The group says revenue from the levy is crucial to Canadian artists who do not get additional royalties when their work is copied or used on another medium, and the levy provides critical funds to content makers. ACTRA says calling it a tax is a misnomer since the money is not collected for the government.

ACTRA takes the position that any copying should be compensated, including time-shifting TV programs.
The group came down hard on Clement’s comments in the mall.

“Today’s event was an election-style stunt in front of a foreign-owned retailer using young people as political props. It was completely unbecoming of two Ministers of the Crown working on the taxpayers’ dime,” said Stephen Waddell, ACTRA National Executive Director in a statement.

“Canadian voters are smarter than to fall for this kind of political manipulation.”

Clement says an update to the Copyright Act now being scrutinized by a parliamentary committee will update laws and legalize many everyday actions Canadians are now engaged in while protecting rights holders and creators.

“Bill C-32 includes new rights and protections to enable creators to prosper in a digital environment and tough tools to help rights holders combat piracy,” said Clement, adding that an “iPod Tax” would drive up prices.

ACTRA disagrees, saying the bill creates new exceptions that take away creators’ rights to compensation and exempts illegal file-sharing sites that facilitate online theft worth millions of dollars from statutory damages.