Liberals vote in support of iPod levy, but say it’s not a policy position

OTTAWA—Although the Liberal Party voted in favour of a non-binding motion in the Commons Wednesday to create a levy on digital music devices, the party says the vote was not an expression of support for the policy. Liberal MP and party heritage critic Pablo Rodriguez said the party is still consulting on the issue and that it is not yet prepared to officially support a levy on digital music devices—even in principle. “We support the best tool there is to compensate creators. It could be the levy, it could be something else,” Rodriguez told The Wire Report. “We’re in the process of consulting, of discussing with artists, with groups.” Rodriguez said the Liberals voted in favour of the motion to express “the principle of supporting artists.” Party lines appeared to sharpen on the levy proposal in the Commons Wednesday as MPs voted on a report referred to the House by the Standing Committee on Canadian Heritage. The levy would extend the private copying levy, currently charged to blank tapes and CDs, to digital music devices like iPods and other mp3 players. The non-binding committee report, which passed the Commons, recommended that the government amend the Copyright Act “so that the definition of ‘audio recording medium’ extends to devices with internal memory, so that the levy on copying music will apply to digital music recorders as well, thereby entitling music creators to some compensation for the copies made of their work.” MPs in the Liberal, Bloc Québécois and NDP caucuses voted in favour of the motion. The governing Conservatives—who say the proposal is a “tax” on iPods, or an “iTax”—voted against it. The motion passed by a vote of 156 to 137. The American Federation of Musicians (AFM) Canada and the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) released a statement Thursday supporting the passage of the motion. The release said the private copying levy has put “$180 million in the pockets of over 97,000 composers, musicians and other rights holders. However, with very few people still using audio cassettes and blank CDs, the money flowing to artists from the levy is heading for extinction. Without this important change to the private copying levy, many recording artists will not be able to continue their careers.” Other alternatives to compensate musicians in the digital age are also circulating. Eddie Schwartz, president of the Songwriters Association of Canada, has proposed a $4 or $5 licence fee tacked onto consumers’ monthly Internet bills to compensate artists, songwriters, and other rights holders for music file sharing. According to the proposal, subscribers who don’t share their music could opt out of the surcharge. “hose of us who actually write and perform and produce the music don’t call people who share music ‘pirates’ or ‘criminals.’ We call them our ‘audience’ and our ‘fans,’” Schwartz wrote in an article in The Mark on April 15. “Music file sharing is the freest, greenest, largest global distribution system for music of all kinds that has ever been invented in the history of the world. Nothing has ever delivered more music to more people in a more efficient and environmentally friendly manner.” During a House debate on the motion Tuesday, Rodriguez said that the wording of the motion was flawed. He said it was also “counterproductive” and premature because it has allowed the Conservatives to “completely shift the debate to make it an issue of taxes.” But Rodriguez said that the Liberals will work with the NDP and Bloc “to ensure that our artists are paid … This is why I agree in principle with my colleague's motion. Clearly, our creators should be compensated for the valuable work they do.” But the Liberals faced criticism for a not taking a clear position on the levy. Bloc MP and heritage critic Carole Lavallée said in the House that she fears the Liberals are intimidated by the Conservatives’ talk of an iPod tax, and that they feel supporting the motion could be unpopular with consumers. “We need to go beyond principles, beyond Liberal Party rhetoric, and take action to do something concrete and ensure that artists have an income,” Lavallée said. Lavallée, a member of the Commons heritage committee, said that when the committee voted to report the motion to the House, “two of the three Liberal members present voted in favour of this motion. The third abstained.” Conservative MP Cheryl Gallant noted during debate that the government consulted significantly with Canadians on copyright policy last summer. “We need to keep our eye on the bigger picture and the work our government has already begun well before the adoption of the motion,” she said. Gallant said the government wants to “ensure that Canadian businesses are equipped to deal with the challenges posed and take advantage of the opportunities offered by the digital revolution, with strong intellectual property laws that encourage new ideas and protect the rights of Canadians.” She said a proposed “tax” on digital recording devices would amount to “$80 per iPod and MP3 player for Canadian consumers.” But Charlie Angus, NDP MP and digital affairs critic, said he wants to know where the Conservatives get the figure of $80. Previous estimates about the levy have ranged from $2 to $10, he said. “It is not an enormous amount of money when we divide up how many songs are being put on iPods. It is a fairly reasonable amount,” said Angus, whose private members Bill C-499 also proposes a levy on digital music devices. He said the levy is a “progressive model” that acknowledges file sharing. “We want to support the new business models that are coming. However, we want to ensure artists are compensated. That is a fair and reasonable solution.” Industry Minister Tony Clement told The Wire Report last month that he intends to introduce a copyright reform bill before Parliament’s summer recess. Rodriguez told The Wire Report Thursday that the Liberals would have to consider the appropriate maximum levy that could be applied, and to what types of digital music devices, before the party supports the policy. He suggested that $20 may be an appropriate maximum for the levy and that it should not be applied to iPhones or BlackBerrys because consumers don’t necessarily buy them to listen to music. sdoyle@thewirereport.ca

Liberals vote in support of iPod levy, but say it’s not a policy position

News | 04/15/2010 7:47 pm EDT

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