+ 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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