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.
Related Posts
- Traditional radio stations have to pay royalties for Net streaming
- Finnish taxi drivers to pay royalties for backseat music
- Canadian ISPs may be forced to pay song royalties
- Irish Music Industry Wants Hotels and Prisons to Pay Royalties
- Canada deems P2P downloading legal
Loading ...
