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.
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Cry me a river. What rock bands from Canada besides Rush have people heard of? lol
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