Ottawa, ON, January 15, 2001 . . . On December 15, 2000, the Copyright Board announced an increase in the private copying levy on CDs. It will more than quadruple, from 5.2 cents per CD to 21 cents. The new rate will apply from January 1, 2001 to December 31, 2002. The levies are projected to raise $27 million for the music industry in 2001, and $32 million in 2002.
The Board stated that: "The increases in the levies reflect, among other things, the significant changes in private copying behaviour since last year, especially the increased usage of digital media, such as CD-R's, for copying pre-recorded music".
Avoid the Levy:
John Reid, President of CATAAlliance, pointed out that members can avoid the levy. Under the Copyright Act, they do not have to pay the levy if they import CDs for their own use. When the levy was only a nickel it seemed hardly worth the trouble, but in wholesale quantities 22 cents is a big percentage of the cost of a CD. Looking for a foreign supplier may produce worthwhile savings.
CATAAlliance is leading a longstanding adovacy campaign objecting to to this type of user fee. See www.cata.ca/cata/advocacy/crboard/index.html.