Subj : cost of an MP3 player will increase in Canada
To   : All
From : August Abolins
Date : Mon Dec 15 2003 10:28 am

 + CrossPosted in: MUSIC
 + CrossPosted in: CDRECORD
Hi All,

TORONTO - The cost of an MP3 player will increase in Canada after the 
government's copyright agency decided Friday to charge a tax of up to $19 per 
unit to reimburse singers and songwriters.

The new levy on MP3s will use a sliding scale depending on memory size: $1.50 
for units with up to 1 gigabyte, $11.25 for 1 to 10 gigabytes, and $19 for 
devices of more than 10 gigabytes. Apple Computer Inc.'s iPod player, for 
example, comes with 10, 20 or 40 gigabytes. A group representing merchants that 
lobbied against the taxes said they would be bad for business and could drive 
shoppers across the border. She said the MP3 ruling is "double-dipping" because 
consumers have begun to pay for downloading music from the Internet, and she 
said the decision would be a "disincentive for the music industry to adopt new 
technology." The ruling could affect a case heard last month by Canada's 
Supreme Court that would force Internet service providers to pay royalties on 
downloaded music files. The court is also to rule on whether to extend the 
nation's copyright law to offshore Web sites that serve Canadians. A decision 
is expected in 2004. Analysts say the case could have far-reaching implications 
worth billions of dollars, especially as the music industry tries to rebound 
from declining sales in traditional stores. 

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