Canadian iPod Tax Moves Forward

By Ed Oswald | Published July 20, 2007, 3:19 PM

The Copyright Board of Canada has given the go ahead for a tax to be placed on iPods and removable memory storage cards for private copying.

The tax was opposed by both the Canadian Storage Media Alliance and the Retail Council of Canada, who claimed that previous court decisions had already struck down any kind of fine. The board disagreed.

In fact, the decision even opened up such a levy from being applied to other devices, including cell phones and computers. In its decision, the board said a device should not be excluded just because it may have other uses.

Kim Furlong, Director of Federal Government Relations with the Retail Council told BetaNews that this is a dangerous approach.

"It's like going into Best Buy and learning the computer is a hundred dollars more just because the government thinks you might download music. It's effectively a hidden tax," she argued.

"We're disappointed with the ruling," Furlong said. "We feel that the board has no jurisdiction here and that the Federal Courts have already struck down the levy. We're looking into legal avenues to fight it right now."

Levies could even be applied to P2P systems, which some argue could answer the problem of file sharing. Other countries have proposed similar fee-based structures, but such ideas are strongly opposed by the recording industry.

The decision will likely be appealed, although it is said that if the ruling stands, it would not mean immediate taxes on iPods. Instead, it is probable that new hearings on the subject would occur.

"They assume with the levy that everybody downloads illegally," Furlong said.

University of Ottawa professor Dr. Michael Geist added that the Canadian government must assert a position soon. "The government has yet to play its hand on this issue, but with the prospect of an unpopular levy and mounting pressure for a Canadian fair use provision, it will have to take a stand sometime soon," he said.

Comments

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Wouldn't you Canadians just start ordering from US retail stores? I can't imagine you'd have any trouble getting an iPod or laptop shipped from the States to avoid local sales tax. Or have they got some clever customs officers on the border? ;)

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I believe the customs taxes and shipping fees would probably negate any savings on the sales tax. :p

Don't know that for sure, though. Never had anything shipped to fantasyland. *grin*

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For all the Yankee's posting their wonderful comments, let's remember: The copyright board gave the go-ahead for a tax. Well no s***. This isn't in effect yet, and will probably never see the light of day between government flip-flopping and legal appeals.

And don't act like Bush doesn't try to pass retarded laws all the time. This is nothing new in the world of politics.

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No, it's nothing new, governments cave to special interest groups at the expense of the countries citizens all the time. It is rare, however, that so many of those citizens are so blinded by the propaganda that they cannot see how unjust it is.

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Did you even read the article? The government hasn't caved. Check the quotes again. Granted they could one day, but this has already been shut down in the courts. Meh why I am bothering with you.

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Recordable media levy.

Caved.

Point, Set, Match.

Wanna play again, spanky?

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The underlying scheme looks like this will open the gate to additional device taxes. As mentioned in the article; cellphones and computers. Taxes on taxes, upon hidden taxes. The ironic thing is that the Canadian music industry commissioned it's own study on illegal music downloads--the verdict; the ones downloading are the customers.

However, this is par for the course. This country has always taken a commodity, service, or anything profitable and taxed the living crap out of it. As for a socialist Canada, we have minority Conservative government that is as far way from socialism as you can get.

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Is this not assuming that the Charter is void in this case - they are taxing us because we "MAY" download music illegally.

I "MAY" speed on a highway, but that doesn't mean that I have to pay a fine in advance.

Stupidity rules when it comes to bureaucracy.

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I'm a storage administrator and I manage the availability & performance of hundreds of terabytes that is used to store corporate data. Why are these idiots assume that I store illegal music and force me to pay additionnal taxes for a possibility.

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"I'm a storage administrator and I manage the availability & performance of hundreds of terabytes that is used to store corporate data"

Uh...yea, what's that have to do with the ipod again??

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I wonder what is the true motivation of the The Copyright Board of Canada. I would love to see the bank accounts of the board members see if there has been any large deposits lately :)

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So shouldn't they tax paper or anything that can be printed on since data can be encoded and printed for data readers?

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Great idea... I used to DJ and I totally understand this concept. This way everyone pays... there's no nagging of what if you get caught with all this music on your computer anymore.

95% of the computer world is downloading and sharing their music anyway and this way the music world gets their share of the cut with no law suits.

Like I said good idea.

l8rs,

Me me me

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"95% of the computer world is downloading and sharing their music anyway and this way the music world gets their share of the cut with no law suits."

Where do you come up with 95%? Sounds like a bullsh** number the MAFFIA throws around. This concept makes _zero_ sense as it assumes everyone is a criminal without a fair trial.

You ususally see this sort of thing in the Third World where people have no rights, but Canada?

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I used to DJ and I totally understand this concept. This way everyone pays...

Now that's exactly what I'd expect from an entitled, irresponsible, disrespectful 11 year old.

"I don't want to pay for it, so it's really nice that my government forces everyone to do it so I don't have to pay as much."

Isn't it nice that Canada's government forces everyone to subsidize people like this?

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Isn't it nice that Canada's government forces everyone to subsidize people like this?

Depends on your point of view.

I would rather pay this than the unreal amounts of money we subsidize s1uts with family allowance houses as low as $100 a month(the houses are nice and well kept) cheap daycare and if they are in school free taxi rides.(heaven forbid they take the bus)

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ummm....now where exactly is Canada? Can't find it on the map. :)

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It's most commonly referred to as "America's National Park" someplace to the north.

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The Copyright Board of Canada is nothing more than an agency of legalized theft from the taxpayer. These 'special interest' agencies love putting taxes on taxes on taxes and hoping no one notices. We already pay tax on the initial purchase of a device, on the music we play. In deed, if I have a party and invite neighbours, I am even suppose to pay a tariff to SOCAN (a collective on behalf of composers/artists). This whole thing is utter bull crap.

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Maybe, but than again it is not illegal to download copyright stuff for personal use in Canada because of these taxes that go to the artists. They've been on recordable media for some time now as well.

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but than again it is not illegal to completely ignore the rights of the content owner.

Fixed that for ya.

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Just another in a long list of hidden taxes in the Canadian system, though it looks like Rev & Screw Canada is not responsible for this one.

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A few facts may be helpful here, and may calm you Yankees down.

For decades it has been Canadian policy to apply a tariff to recordable media which is included in the price of the media. The tariffs are then passed on to the recording industry to recompense them for lost sales.

For example, if I create my own music CD from songs I have downloaded from the Internet, the tariff built into the cost of the recordable CD is disbursed to the music industry to make up for the fact that I did not buy the music.

The amount of the tariff is set by a government board in consultation with the recording industry.

A similar tariff was applied to recordable devices like MP3 players, for exactly the same reason, but it was determined that this was not authorized by existing laws. The recent news on this subject was simply addressing this issue, so that a tariff can again be applied to devices like MP3 players, again to ensure that the music industry does not lose out.

The main difference between the US and Canadian approaches appears that the priority in Canada is to ensure that recording companies are fairly paid; and the priority in the US is to sue people left, right, and centre.

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it is not the priority in Canada to ensure record companies are fairly paid, it is priority to do what U.S. based agencies pressure us to do so we still receive their content. Canada is already full of bulls*** taxes and yes this ridiculous tax already exists on some blank media but that doesn't mean it should, or should be allowed to expand into any form of media they choose. if i purchase a thumb drive i could be using it for just about anything besides transporting illegally downloaded mp3s but thats not how our government likes to look at it.

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Don't try to defend a defenceless position. It makes you sound like a retarded recording industry executive.

I have no interest whatsoever in putting my hard-earned dollars into the pockets of Celine Dion or Bryan Adams. If I did, I would buy their crap...and I do NOT buy crap.

I doubt this tax will be implemented - the legal ruling that quashed it was quite clear - but if it is implimented I, like many others, will simply buy our media south of the boarder.

I'll be dancing on Warner's grave when Bronfman's empire - what's left of it - has fully imploded.

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I can't believe you are really defending this BS "tax". Why should someone who buys a memory card have to "pay the artists" when all they want to do is use it to store their family photos?

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Remember, Americans fear their government, we don't fear ours. It fears us. We may pay more taxes but we also get far more back from them as well and with the GST rebate, Family Allowance, etc, etc we also get another benefit.

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Because more than likely the card will be used to copy music at one point or another... that's why. Bla.

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so by your logic you should have to serve a jail sentence when you buy that memory card as at one point or another someone might shove the card downs someones throat and choke them to death.

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Apples and oranges.

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In other news...Canada is applying a "serve 2 years in jail" tax to car purchases...since chances are the car will one day be used to hit someone, wether by mistake or on purpose....and more then likely, the car will be driven by a drunk driver at some point. Pre-emptive jail time, good for you guys!

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no it is not. one is just as rediculous as the other. That was my point.

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Your post was nothing but hyperbole.

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and you fail to come up with a logical response as there is none possible.

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That's bull**** and you know it. You can't just pre-accuse someone of doing something. Buying a memory card does not mean that you'll likely use it to pirate music. ANY device that uses a memory card could be used to copy music. Should people have to pay a music tax when they buy a hard drive? How about a cell phone, or a handheld GPS receiver. This tax is unfair and idiotic. I can't imagine why any citizen would support such garbage.

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For decades it has been Canadian policy to apply a tariff to recordable media which is included in the price of the media. The tariffs are then passed on to the recording industry to recompense them for lost sales.

By "lost sales", you mean acts of copyright infringement. By "tarrifs", you mean taxes.

So, Canada taxes everyone to cover the costs of criminals, ya know, so they can keep being criminals. Gotta love it.

For example, if I create my own music CD from songs I have downloaded from the Internet, the tariff built into the cost of the recordable CD is disbursed to the music industry to make up for the fact that I did not buy the music.

Yes. Government sponsored infringement. Lets completely destroy the rights of content owners everywhere. Sounds like fun.

The main difference between the US and Canadian approaches appears that the priority in Canada is to ensure that recording companies are fairly paid; and the priority in the US is to sue people left, right, and centre.

Put another way:

Canada treats everyone like a criminal so that the criminals can still be criminals, and the US actually goes after the, ya know, actual criminals.

I admit the RIAA's blanket lawsuit approach is lame. We're working on making it so they have to use the criminal courts instead of the civil courts, which should alleviate a majority of them. We're *not* caving and taxing everyone for the infringement of a few.

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Funny. I don't recall living in fear of my government.

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You should ... :)

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Sorry to disappoint.

I don't fall prey to the FUD spread by the media. I don't hate my country (as is apparently so in vogue these days). I don't believe that the government owes me anything, and I don't feel victimized when they don't feed, clothe, or protect me from myself.

I don't want the government to be my parent, I don't want them to treat me like a child. Some moron once asked the candidates, "Which one of you will treat the American People as your children". Of course, Bill jumped in and pandered to him. I would have simply told him, "I treat children like children and adults like adults. If you feel the need to be treated like a child, perhaps you should look to your parents, and *not* your government."

Too many people expect government to have their hands in every aspect of their lives (and, of course, then they whine about it), and to protect them from their own complete lack of responsibility and morality.

This is one of those cases. To protect those who believe they are entitled to something they did not create and have no rights to, Canada has decided to tax everyone. For the sake of the few, the majority suffer. That is the kind of government I fear. Not the one that expects you to act like an adult and be responsible for your actions.

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You do know America has taxes too right? You also know America has socialized programs for welfare, education, certain services such as emergency, and more, right?

You're clearly one of those proud Yankees that loves the fact his country pisses on their own kind. Stick to your greedy ways. It's fun to hear your rants.

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You do know America has taxes too right?

Sure. Of course, none of them exist solely to protect criminals at the expense of honest taxpayers.

But hey, it's your country. Do what you want with it. Just keep it out of mine. :)

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"For the sake of the few, the majority suffer."

That is exactly the trouble here in Canada. Yes, I'm Canadian and actually very proud to be one ;) However, it is quite typical here to punish everyone simply because that is the easy, cop-out way to do things. The courts pander to the criminals, so it is often the victim that gets shafted in the end. Sad, really.

It is also appalling to see my fellow Canadians attacking our American neighbors in this forum with derogatory filth. There is no need for that, especially since their comments were only crticizing the tax and the way our Government employed it. There is no need to take it personally.

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Respectability points for PC_TOOL increased by 25.

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"You're clearly one of those proud Yankees that loves the fact his country pisses on their own kind. Stick to your greedy ways. It's fun to hear your rants."

Listen to yourself. I read nothing in PC_Tool's comment that indicates he "pisses on [his] own kind", nor did I hear anything about greed. Welfare? Well--that is something I cannot deny is more socialistic than any other "program" we have.

In the words of Thomas Jefferson: "The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."

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Correct--how can you post a logical response to an illogical post?

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*laughs*

In the US, the corporations treats everyone like a criminal.

Apparently, Canada's been watching and decided to engage in a little oneupmanship.

In Socialist Canada, the *government* treats everyone like a criminal.

Oh Canada... Thank you for letting me know it's not as bad here as it could be. :)

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You are right, it probably is not as bad in the US as you may have thought. The Canadian Government, affectionately known here as Rev & Screw Canada, is just a gentler form of organized crime.

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*laughs*

In the US, the corporations treat everyone like a criminal and the corporations are criminals.

Apparently, Canada has decided on an ipod tax but it would not mean immediate taxes on ipods. Instead, it is probable that new hearings on the subject would occur.

In the United States, the *government* treats everyone like a criminal. In order to ensure our security and continuing stability, the United States will be reorganized into the first Bush Empire, for a safe and secure society.

Oh, say can you see by the dawn's early light, Bush corrupted America and lost the fight!

Oh thank God I'm not a stupid american!

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Nevermind your bounced 'reality' checks, just believe everyone you hear that defies that there is a higher moral authority, then perhaps you can drag everyone else down with you. Or--perhaps you should consider the better alternative: accept reality--there is so much more to this life than living in defiance of the truth.

Don't pretend you don't know what I'm referring to (though I'm sure everyone else will be wondering what on earth I'm talking about).

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What a totally ignorant comment and shows just how little you actually know about the situation. But then again you are a product of your conditioning.

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Totally agree with you. Canada has not been taking 11 year olds to court because they've downloaded a movie from Disney or some other site... That's where we have our butts covered. If you can't afford a few extra pennys for a memeory card.... well it sucks to be you. Eh... :o)

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Sure they skip the courts and sentence everyone. That 11 year old is already guilty in Canada; alls they did was remove the courts from the public eye.

If you can not see that, i feel sorry for how ignorant you are of your present condition.

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I love how there's always at least one retarded American that states Canada is Socialist. And they wonder why the rest of the world thinks they're the most arrogant, ignorant pricks on the planet....

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like I had said, you don't have a clue, but hey look at the total crap hole America is becoming because of your kind of attitude. We don't fear our government, they fear us and that is why Canadians have a much higher quality of life than the average American does. America is becoming an anti-science theocracy.

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That is funny...you are addressing me as if i have posted in this thread before which i had not. And, you are no where even near the topic of the post.

By ignoring my response, i am assuming you realize your statements are invalid and are pissed that i am right and you are wrong.

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Whatever turns your crank, sparky. [rolls eyes]

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thanks for confirming my statement, nub

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Socialized Healthcare, taxing everyone to appease their corporate masters.

Please explain to us all how these aren't socialist behaviors.

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Right.

Let's see...

What more is there to know?

Tax everyone buying recorded media, no matter their intent to appease Big Media, thus making anyone buying recordable media guilty, right?

Now we'll just consider adding a tax to the iPod as well, because they're all pirates, too. They just aren't using recordable media.

Sounds pretty much like how I described it above. If there's something I've missed, please, do tell.

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Canada has not been taking 11 year olds to court because they've downloaded a movie from Disney or some other site.

Way to breed absolute disrespect for the rights of others.

That's where we have our butts covered. If you can't afford a few extra pennys for a memeory card.... well it sucks to be you.

Love it. Make everyone pay for the government sponsored destruction of Content Owners rights.

I'll stick with our system, thank you. If you choose to download a movie, well....sucks to be you.

Eh?

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Yay! He's back!

Missed you. Was hoping against hope you hadn't been beaten and killed on some street corner.

/sarcasm

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Ha it's always about the healtcare. Too bad your country's is an absolute joke. I like the comfort of knowing I can go to a hospital and not have to sell my car to pay the dues. Go watch Sicko. Then again you're American, so I don't expect much intelligence from you. Go away now.

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*laughs*

Go watch Sicko

Seen it. Helps if you go in informed, however. You do realize he leaves out anything and everything that doesn't support his views, right?

I like the comfort of knowing I can go to a hospital and not have to sell my car to pay the dues.

...as do I. you make it sound as though it's hard to get healthcare in the US. You couldn't be more wrong. Of course, you've already told us you've taken everything in 'Sicko' as gospel, so there's no surprise there.

Then again you're American, so I don't expect much intelligence from you. Go away now.

Oh! If I had a nickel for every dolt who tried to argue facts vs. emotional rhetoric with me and ended up posting some lame-ass reasoning such as this to imply such a discussion was worthless, I'd have my own island by now.

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That was laughable, and yet I'm still replying to your endless rants. Go back to class now - I'm going to enjoy the fact that I wasn't born American.

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*laughs*

Still not able to come up with anything better, eh?

Shocking...

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Respectability points +10

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Wow glad I'm not Canadian (not that the US is any better with this crap). What's next, a tax on my ears because my ears might be used to listen to pirated music?

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don't give them ideas!!

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LOL! That will be on their next agenda :)

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this is bulls***. already pay these extra taxes on cds cause somehow if you buy blank media it proves you're downloading music. being prosecuted for downloading the argument could be 'well i paid my taxes associated with downloading which your group imposed so why should i not download illegally?'

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This is actually a counter-argument by the retail sector. Many lawyers are now saying you'll be legally allowed to download music in Canada due to this levy. Interesting....

Of course this thing will probably never see the light of day between the gov't flip-flopping on its decision, appeals, etc.

Worse comes to worse, now that the Canadian dollar is almost par (and will exceed it in a month), I'll just drive across the border and get it cheaper.

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wont exceed in a month. hopefully 96.4 by September but wont exceed. but yea cheaper for me to fill up a tank of gas than buy almost anything big here, especially in Ontario 14% tax bs.

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I can't imagine the RIAA and MPAA will be too pleased with a law that effectively says Canadians have the right to download whatever they like because they've already paid a tax for the privilege. If they get the Canadian Gov't to stop the levy it would be the first time in history that those organizations did anything to benefit consumers.

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They aren't, this is old news. They don't like to bring cases on Canadians because the loser has to pay the court costs of both sides up here and they don't have to go to court, they usually just extort money out of court since they know they don't actually have a valid case in many situations.

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If everyone had their story straight.... Tape cassettes had this tax, blank cds had this tax, mp3 players had this tax, and now flash memory. The price will be higher for 5-8 months like it always was and then the prices drop like a rock! I remember finding blank cds for sale in the store for $65 for 50 and they were only 4x and the burner was $675 for an 8x. Just stock up now before they tax it, you still have atleast 2 weeks before everything is figured out anyway.

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Guess I'll go over the border to pick up an iPod, then.

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I won my 60gb video iPod last August.

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