Upholds Ban

Canada's Supreme Court Upholds Ban on "iPod Tax"

Authored by Mark Hefflinger on July 29, 2005 - 7:07am.
Toronto -- The Canadian Supreme Court this week declined to hear an appeal of a ruling that set aside a tax on iPods and other digital music players, which would have set aside funds to offset any potential losses to copyright infringement posed by the devices. Canada also charges a tax on blank CDs, which provides rights holders with about 2.8 cents per "lost sale" due to potential music CD copying. The ruling was praised by the Canadian Recording Industry Association (CRIA), which believes it clarifies that unauthorized file-sharing is an illegal activity in Canada. An earlier decision, which many viewed as legitimizing unfettered file-sharing in Canada, referred to the iPod tax as just compensation for any losses from file-sharing. "For years, those supporting unauthorized file sharing have misleadingly used the existence of the Private Copying Levy to justify illegitimate file sharing," said CRIA president Graham Henderson. "Today, the Supreme Court says 'no such luck.'"