Proposes $5 monthly tax on internet connections in exchange for allowing users to share music for free on P2P and file-sharing networks.
The Songwriters Association of Canada has announced a new proposal calling for the legalization of sharing music on P2P and file-sharing networks.
In “A Proposal for the Monetization of the File-Sharing of Music,” as they refer to it as, the SAC wants to make it legal to share music with others online. In return, it proposes that a $5.00 “licensing fee” be added to every internet subscription bill each month.
The songwriters argue that this revenue generated by legalizing both the uploading and downloading of music will help offset the current losses associated with illegal file-sharing and in fact lead to a significant new source of income for music creators and the record industry.
Revenue generated by the licensing fee will distributed based on a sampling of file-sharing activities at the time. The SAC would track internet and wireless file sharing activity on a census basis. Virtually all sharing on the internet and wireless devices would be tracked.
The SAC also says that existing music sites like iTunes and PureTracks would continue to be licenced directly by Creators and rights holders and would continue to develop the attractive “value added” services and security features that keep them distinct from file-sharing activities.
It also states that it is not opposed to the legal protection of Technical Protection Measures (TPM) or “digital locks”, however it believes the obvious “economic benefits” of the $5.00 per month licensing fee model make such protection measures obsolete. “Given the consumer aversion to TPM’s, we believe their use will inhibit the success of recordings in which they are embedded, and they will simply fall out of use,” it notes.
“A Proposal for the Monetization of the File-Sharing of Music”
Most Canadians are aware that the Internet and mobile phone networks have become major sources of music. What they may not know is that songwriters and performers typically receive no compensation of any kind when their music is shared or illegally downloaded.
We believe the time has come to put in place a reasonable and unobtrusive system of compensation for creators of music in regard to this popular and growing use of their work.
The plan we propose would not change or interfere with the way Canadians receive their music. No one would be sued for the online sharing of songs. On the contrary, the sharing of music on Peer-to-Peer networks and similar technologies would become perfectly legal. In addition, Music Publishers and Record Labels would be fairly compensated for the crucial role they play in supporting Canadian music creators.
Canada has given the world some of the greatest music ever produced. We believe that implementing a fair way of compensating Canada’s music creators for the online sharing of their music will usher in a new Golden Age of creativity.
Aside from the claim that “Canada has given the world some of the greatest music ever produced,” which I hope isn’t a reference to Celine Dixon or Bryan Adams, at first glance the idea seemed pretty darn good to me. I mean only $5 bucks each month for all the music you want to cram onto your PC’s HDD? But, then I read a couple of responses to the proposal and I had a change of heart.
Here’s a sampling of just a few:
- It’s not really making money from P2P. It’s coercing internet subscribers to subsidize a business they may never utilize. Taxation without representation?
- A bunch of Information Superhighway Tollbooth Collectors. It’s the Canadian way. Don’t bother selling your garbage to unwilling customers; ram it down their throats instead. Weather Channel and other pay TV stations get onto “basic cable”, and pick your pockets when you pay your cable/satellite bill. Artists get a tax imposed on CDs that I use for backing up my computer, and the SD cards in my camera. And now another bunch of freeloading-enterprisers wanting their pound of flesh.
- Sure – The Songwriters Association of Canada want their $5. Then the movie people will want THEIR $5. Then the gaming people will want THEIR $5. The recipe people will want their $5. ETC, ETC.
The Songwriters Association of Canada can’t have their $5 **AND** have the levy on blank CDRs. One or the other, or preferably none.
Why must we prop up the music industry in the first place? Does it have a right to exist simply because it exists? Businesses fail all the time and if all four majors were to go out of business, well, I’d not care much as I but from labels outside the major 4.
I think each of these guys make a really good point about why it may not be such a good thing after all. We currently pay a hidden tax on everything capable of storing music, irregardless of whether or not it’s even used for such a purpose. Buy a blank DVD-R to back up data. Tax. Memory card for your phone. Tax. Even media players were taxed for a time in Canada up until 2004.
The point is that it won’t be just this tax that file-sharers will have to pay, it will be in addition to all the existing taxes on memory and blank media. Also, what’s to prevent movie and software lobbying organizations from demanding their own $5 licensing fee?
Unless the $5 allows all types of content to be shared legally online then I think this proposal may be a tough sell to Canadian internet subscribers, especially those who don’t even use P2P or file-sharing programs.
Looking for more stuff to watch or download?
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News Tip? Comment? Suggestion? jared@zeropaid.com
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I don’t know about Canada but if that was proposed in the USA people would Scream “Bloody Murder” as Different groups of people would call it a “TAX” and blame the ones downloading Music Movies Games and such for causing their Rates to go Up. And it would create problems with the Government wanting to Tax all sales made over the Internet as if some were willing to pay a tax on Downloads then everything would or should be “In Play”
Just My opinion could be wrong But probably right !
Simple solution: make it optional. Those who want unlimited downloading and uploading pay the $5.00. However if it’s just Canadian music that would be too limiting (no offense to Canadian song writers but they are a small portion of the world’s music). This would need to be world-wide and I seriously doubt that that is going to happen!
This would work a lot better if it was optional. That way people who chose to pay would be able to share all the copyrighted music they want with immunity from CRIA. Forcing it onto everyone does not make sense.
“It’s not really making money from P2P. It’s coercing internet subscribers to subsidize a business they may never utilize. Taxation without representation?”
This what I thought at first however if they gave P2P legal protection then you would see people downloading more then $5 of music every month. Although I’m still uncomfortable with making people pay for a luxury service they may or may not use.
“Sure – The Songwriters Association of Canada want their $5. Then the movie people will want THEIR $5. Then the gaming people will want THEIR $5. The recipe people will want their $5. ETC ETC.”
This is what I find to be a big problem with the whole thing. It starts off as $5 for the music industry but then the movie and software industries will want to get a piece of the action and they will probably want more then $5 (since its more expensive to make movies and software). So it may end up a $20-$40 per month tax that could double the price people pay for internet service. Most people these days can’t afford that.
“Given the consumer aversion to TPM’s we believe their use will inhibit the success of recordings in which they are embedded and they will simply fall out of use”
Well finally someone admits that DRM (or TPM in this case) is hated by consumers and devalues a product. I wish I had him saying that on tape. Maybe I’d make it into a nice techno-mix…lol
@Burd and feeloader
Just how would you make this kind of thing optional??? You would have to look at every bit of data a consumer downloads/uploads and then check it against a list of copyrighted material. Its just not something possible nor something I want to ever be possible.
This is so NOT going to happen… I think that the Canadian songwriters should take a look at the Good Copy Bad Copy documentary.
@Gamer8585
Look at it this way: if you pay the $5 you do what you want with your music and you’re guaranteed to be safe from CRIA and the likes. If you don’t pay the $5 you had better be looking over your back all the time.
if the internet population of Canada stands at 234788864 then do the maths they would make about € 1173.94432 CD per month Humm or € 1408733184 per year from this.
i think its a great idea *IF* it can be adjusted correctly. Gemboy did the math. they CRIA would be making too much. drop it to $1 per month and that equals $12 per year per person. thats about 3 billion a year in money that they have to make no effort to get. just keep them under TIGHT scrutiny from the canadian IRS. if they start making too much more money compared t what they have made in the past per year they need the rates cut. conversely if CD sales drop to nothing after this goes in effect allow increases to compensate. as long as there is a reasonable cap set it should be fine.
As far as what other industries might say give them the same rules. make them PROVE they should be making a certain amount per year that they arent with legalized p2p. adding an extra $1 or $2 per major industry might not end up being that costly to the average customer.
Another idea i had while posting this is if its a government fund that gets split up between copyright holders. that way no one is saying “me too!” and making the tax go up and up. Just make everyone make a large pool of money that the copyright holders can dip into.
realisticly speaking though i dont think it would ever work. the CRIA would not settle for less than $5 per person and making a big pool would get everyone jumping in at the same time causing all sorts of hilarious fights. and all that mess without even considering the non-filesharers and their feelings.
Or they could just set up a bad ass music site that makes what Oink used to be look like crap… charge $5 a month for unlimited access. I would totally pay for that.
Crazy?
“The SAC would track internet and wireless file sharing activity on a census basis. Virtually all sharing on the internet and wireless devices would be tracked.”
In the U.S. that would be open season for the F.B.I. to tap into everyone.
Sure songwriters get paid then performers then movie distributors then screenwriters then actors then someone else needs their cut. But aren’t the labels paying them now?
Let’s face it. People are fed up with getting screwed and they’ve stopped buying their music. Celiene who? Indie is not just a genre. They are better anyway. I don’t miss labels or their big heads.
@iamyour41
THAT would be a much better idea. then again from their standpoint they wouldnt be making money from the people that arent downloading music. its legalized stealing for both P2P and the CRIA.
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This new internet tax is utter nonsense. We in Canada already pay a surcharge on blank CDs which goes directly to the Canadian music industry including the artists. A blanket tax like the one being proposed looks like double taxation to me. Also to force all internet users in Canada to pay and extra $60 a year for a service many of them might not use (ie. downloading music off p2p) is grossty unfair and damn well should be illegal. How much more effing money does the music industry want to gouge us out of?! We are already paying the copyright holders for their songs: enough is enough! Send your MP a message telling him/her what a load of crap this new tax proposal is. Besides three court rulings have already confirmed the legality of p2p in Canada.
this could mean a pain for any of those whod like to dl music via p2p…………..unless they know how to work it
but i cant really say that this is a solution to “legal downloading”
they had their chance and blew it –Oink R.I.P.– so they are too late……i think
people will just not do it because they know they can get it free
Well in all I think I’m glad Canada is trying to look for a solution rather than imprison or fine people with ridiculous charges. Its a different way of thinking if they keep at it hopefully something good will come out of it.
Well in all I think I’m glad Canada is trying to look for a solution rather than imprison or fine people with ridiculous charges. Its a different way of thinking if they keep at it hopefully something good will come out of it.
Well in all I think I’m glad Canada is trying to look for a solution rather than imprison or fine people with ridiculous charges. Its a different way of thinking if they keep at it hopefully something good will come out of it.
Well in all I think I’m glad Canada is trying to look for a solution rather than imprison or fine people with ridiculous charges. Its a different way of thinking if they keep at it hopefully something good will come out of it.