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Private copying levy in Canada.

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Private copying levy in Canada.

Postby pranav81 on Mon Dec 22, 2008 2:07 pm

Hi guys.

How does private copying levy work in Canada? I checked the details of the same and found that the government charges $0.21 per CD-R/CD-RW(non-audio). More information can be seen at http://en.wikipedia.org/wiki/Private_copying_levy#Canada

I checked the price of Verbatim 52X CD-R on http://www.newegg.ca. Interestingly I found that they were selling it around $22. So, if you multiply $0.21 x 100 for a spindle pack, the levy itself comes to about $21.

I was wondering how this levy works...

::Pranav::
Increasingly mathematics will demand the courage to face its implications.
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Re: Private copying levy in Canada.

Postby Ian on Mon Dec 22, 2008 2:29 pm

I wish dolph were around. He knows this kind of stuff.

I was going to suggest that its because Newegg is based in the US but even Canadian companies like NCIX aren't charging the levy. For example, they have a 50 pack of Philips CD-R discs for $14.99

http://www.ncix.com/products/index.php? ... re=PHILIPS

Minus the levy, the discs would cost only $4.49. CD-R media has come down in price but I don't think they're that cheap yet.
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Re: Private copying levy in Canada.

Postby pranav81 on Tue Dec 23, 2008 2:48 am

Yep, you are right. In the case of Newegg you will get 100 Verbatim CD-R's for $1, if you substract the $21 levy...

After reading the wiki article I thought that any reseller who sells the discs has to pay the levy, which I am not sure of now.

Thanks!
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Re: Private copying levy in Canada.

Postby dolphinius_rex on Mon Jan 19, 2009 1:03 pm

Wow... I really need to visit more often eh? O.o

The levy basically is a stupid fee tacked on to recordable CDs and audio cassettes which is collected by the CPCC and in theory distributed to recording artists (minus working expenses for the CPCC, which has on at least one occasion included a big trip to Europe to better understand THEIR levies...). I do know that money is being distributed, through my own personal contacts in the recording industry who have received payment... but it's really only useful if you're a huge mega-star artist. The system they use for dividing the money is pretty weighted on popularity.

The concept of the levy is that CD-R/RW and cassette tape media is routinely used for private copying of music, and the levy is there to re-imburse artists for the loss in revenue from this private copying.

Businesses and non profit organizations can apply to get a levy-zero rated certificate number, and distributors (such as my workplace) are able to register to sell media levy free, as long as you jump through some serious accountability/reporting hoops (our system is fairly automated, we are lucky... actually we're told our system is the best in Canada! :o).

Another important point is that the levy was recently increased to $0.29 per CD-R, from $0.21. Making the levy now anywhere from 100% the cost of a CD-R, to 200% the cost of a CD-R.... excluding premium CD-Rs meant for archiving and such of course.

The next step for the CPCC is to put a levy on flash based recordable media. Current plans include levying SD, MS, and I believe CF also. Because (at least the first 2) can be used in MP3 players. Some effort into levying harddrives of various sorts is also being looked into.

Thank You Sheila Copps and the (previous) Liberal Government for this wonderful system you have put in place for all Canadians.
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Re: Private copying levy in Canada.

Postby pranav81 on Mon Jan 19, 2009 1:11 pm

Thanks dolphinius_rex for the information. Basically I was wondering how businesses sell the media so cheap if they have to pay the levy.

Thanks for clarification.

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