CNM Special Edition Update

MP3 players targeted with proposed Canadian levy The Canadian Private Copying Collective has submitted its proposed tariffs for 2003-2004, this time asking the Copyright Board of Canada to include the hard drive and flash memory components of MP3 players and other portable devices. The proposed new tariffs include a $21/Gb charge for 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." To illustrate how controversial the proposed tariffs will be, an Apple iPod, which retails for $599 on the company’s Canadian web site, has a 5-Gb hard drive. If approved, the new tariff would increase the price of an iPod sold in Canada by $105, or 17.5%.Other tariffs will also increase. Following is the proposed list of tariffs for 2003-2004 (the application of the levy is subject to certain conditions). 60¢ for each audio cassette of 40 minutes or more in length; 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; $1.23 for each CD-R Audio, CD-RW Audio, or MiniDisc; 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; $2.27 for each DVD-R, DVD-RW, DVD+RW, DVD-RAM, or each unit of any other type of recordable or rewritable DVD; 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; and $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. Interested parties are given 60 days to object to the proposed tariffs, and hearings will likely be held this fall to hammer out final tariffs that would take effect on January 1, 2003. Canadian NEW MEDIA will examine the levy proposals in-depth in an upcoming edition.

CNM Special Edition Update

News | 03/11/2002 5:00 am EST

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