Recording industry opposes iPod levy, says it would legitimize illegal file sharing

OTTAWA--A levy on digital storage devices and music players such as iPods would help legitimize illegal music file sharing, the Canadian Recording Industry Association (CRIA) told the House Standing Committee on Canadian Heritage Thursday. “Do we have an issue with levies that are targeted and focused on private copies that were legally acquired? No, we do not have a problem,” Graham Henderson, president of CRIA, told the committee. “What we have a problem with are solutions that would have the effect of legalizing the entire world of piracy.” CRIA officially stated its position on the levy proposal as some political parties and arts groups are pushing for it. On April 14 the Liberal Party, Bloc Québécois and NDP voted in favour of a motion to extend the private copying levy--currently charged to blank tapes and CDs--to digital music devices like iPods and other mp3 players. The Conservative government opposes the idea, calling it a "tax" on iPods. Henderson, whose organization primarily represents the Canadian operations of the major recording labels, said the levy would send the message that it’s OK to download music illegally because artists would receive compensation from the levy. He said the levy would only cover about five per cent of an artist’s income. “The concern is that as a stand-alone solution, doesn’t address the behaviour ,” Henderson said. Carole Lavallée, Bloc Québécois’ heritage critic, said the levy on blank CDs and tapes has generated $180 million for Canadian artists since its implementation in 1997. She said she was surprised CRIA would not support the new levy as an ancillary revenue stream for artists. “I could make you a list of about 15 organizations that support the levy,” Lavallée said. She said arts and music groups such as the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), the American Federation of Musicians (Canada) and the Society of Composers, Authors and Music Publishers of Canada (SOCAN) support the proposed levy. Ferne Downey, president of ACTRA, said in a release April 15 that the levy is “an important source of income for thousands of musicians most of whom are struggling to make ends meet so they can keep creating the music Canadians love. But Henderson said Canada needs a more aggressive approach to protect artists and their copyrighted works. “Lots of countries are taking very aggressive stances to protect their creators, with France perhaps in the lead,” Henderson said. “We are nowhere near taking the steps that France has to protect their creative class, and in fact their business community.” Earlier this year, France instituted a “graduated response” approach to online copyright infringement. Under the new French law, illegal file sharers can be sent a warning email and eventually a letter if a copyright owner alleges they have shared copyrighted files illegally. If the file sharer continues the activity after the warning letter, they could appear before a judge who can impose a fine or cut-off their access to the Internet. Henderson said the government should implement the Internet treaties of the World Intellectual Property Organization (WIPO). “I think the best solution is to implement a set of laws which will provide an environment that will encourage creation and investment,” Henderson said. “That’s what the World Intellectual Property Organization’s treaties were designed to do.” Under questioning, Henderson didn’t get into specifics, but said he supported the policy approaches taken in the former Liberal government’s Bill C-60 in 2005, and the Conservative government’s Bill C-61 in 2008. Both bills died on the order paper due to elections. Darlene Gilliland, director of digital business development with Universal Music Canada, told the committee Thursday that Canada lacks a robust copyright regime that would give consumers more options outside of illegal file sharing. “When companies see the piracy that flourishes here in Canada, they are apt to invest elsewhere, and they do,” Gilliland said. “The result is that Canadian creators and consumers miss out on innovative music services that are launching elsewhere. We miss out on those job revenues, taxes, and the consumer choice that comes with them.” But user groups and digital rights advocates say that Canada’s laws are not weak, and that taking a strict approach to copyright law could hinder innovation. Copyright groups appeared before the Commons heritage committee this week as part of its study on new media in Canada. On April 20, the committee heard from Glenn Rollans, a partner with Lone Pine Publishing, who said proposed changes to the Copyright Act should clearly define any exceptions for fair dealing. Canada’s fair dealing provisions in the Copyright Act create exceptions for dealing with copyrighted material. The fair dealing exceptions specified in the act include private study, research, criticism, review and news reporting. “If the Copyright Act comes out with clear borders, if the limits of fair dealing are clearly expressed, if the exceptions to infringement are clearly expressed … what you’re going to see is an end to some of the litigation that is going on in the background or in the foreground now,” Rollans said. Roanie Levy, general counsel and director of the copyright collective Access Copyright, said Canada’s copyright laws should not have the kind of flexibility that will send disputes to the courts. “The court does not usually have the impact analysis that is part of policy-making and changes in legislation that is part of the process of law-making,” Levy said. “Don’t put into the hands of the courts what should be determined by Parliament.” User groups have argued that fair dealing should be expanded to facilitate documentary filmmaking and to cover activities such as format shifting, recording television shows, teaching, and parody. Rogers Communications Inc. has argued that Canada’s approach to fair dealing should be expanded to allow content providers to offer network personal video recorders, which store recordings on the providers’ networks rather than home devices. jmigneault@thewirereport.ca

Recording industry opposes iPod levy, says it would legitimize illegal file sharing

Broadcast | April 22, 2010

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