The microSD exclusion regulations have been published today, November 7, 2012 in the Canada Gazette Part II.
Congratulations to my client, the Retail Council of Canada, who sought this regulation and stated in a press release:
We thank the federal government for acting so quickly to protect Canadians from an unreasonable tariff imposed on these cards" said Brisebois. "This action, which is consistent with the government's approach to the digital economy, will save Canadians money and protect consumers from paying a ridiculous tax.
Here's the regulation.
***
Registration
SOR/2012-226 October 18, 2012
COPYRIGHT ACT
MicroSD Cards Exclusion Regulations (Copyright Act)
P.C. 2012-1370 October 18, 2012
His Excellency the Governor General in Council, on the
recommendation of the Minister of Industry, pursuant to sections 79 (see footnote a) and 87 (see footnote b) of the Copyright
Act (see footnote c), makes the annexed MicroSD
Cards Exclusion Regulations (Copyright Act).
MICROSD CARDS EXCLUSION REGULATIONS (COPYRIGHT
ACT)
MICROSD CARDS
1. Memory cards in microSD form factor,
including microSD, microSDHC and microSDXC cards, are excluded from the definition
“audio recording medium” in section 79 of the Copyright Act.
COMING INTO FORCE
2. These Regulations come into force on
the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Background
The private copying regime (Part VIII of the Copyright
Act, sections 79–88) is a legislative framework that aims to remunerate
rights holders for the private copying of sound recordings by individuals onto
a “blank audio recording medium.” This is accomplished by placing levies on
blank audio recording media that are “ordinarily used by individual consumers”
for the private copying of music.
The question of whether a medium is an eligible blank audio
recording medium and the amount of the levy for the importation or manufacture
of that medium are determined by the Copyright Board of Canada. However, any
audio recording medium may be exempted from the private copying regime by
regulation.
Issues and objectives
A proposal has been filed with the Copyright Board of
Canada seeking a levy on microSD cards. Such a levy would increase the costs to
manufacturers and importers of these cards, resulting in these costs indirectly
being passed on to retailers and consumers.
As a result, the cost of all technologies that use or
require microSD cards, such as smartphones, is likely to be affected, thereby
negatively impacting e-commerce businesses and Canada’s participation in the
digital economy.
The objectives of these Regulations are to
- support
the Government of Canada’s commitment to promoting a digital economy that
encourages the development and early adoption of new technologies; and
- avoid an
additional cost on the manufacture or importation of microSD cards, which
are commonly used in smartphones and other technologies that drive the
digital economy.
Description
The MicroSD Cards Exclusion Regulations (Copyright Act)
exclude microSD cards (the technical standards of which are set by the SD
Association) from the definition of “audio recording medium” for the purposes
of the private copying regime, meaning that no tariff can be certified for
their importation or manufacture.
Consultation
On July 3, 2012, the Minister of Industry announced the
Government’s intention to exempt microSD cards from the application of the
private copying regime. The Retail Council of Canada (RCC) welcomed this
announcement, while the Canadian Private Copying Collective (CPCC) criticized
it. The positions of both organizations were known in advance of the July 3
announcement.
The RCC is an association that represents retail merchants.
It previously joined other business associations in a letter sent to the
ministers of Industry and Canadian Heritage requesting that the Government
exempt electronic memory cards from the private copying levy. The letter was
co-signed by the Canadian Chamber of Commerce, the Canadian Federation of
Independent Business, Canadian Wireless Telecommunications, Electro-Federation
Canada, Hewlett-Packard (Canada) Co., Intel Corporation, the Information
Technology Association of Canada, LG Electronics Canada, Inc., Microsoft Canada
Inc., Nokia Products Limited, Panasonic Canada Inc., Research in Motion,
SanDisk Corporation, SaskTel, Telus Communications Company, and ZTE Canada.
The CPCC is a non-profit organization that administers and
collects the private copying levies and distributes the money to rights
holders. The CPCC previously sent a letter to the ministers of Industry and
Canadian Heritage objecting to any potential regulation to exempt microSD cards
from the private copying regime.
No further consultations were undertaken.
“One-for-One” Rule
The “One-for-One” Rule does not apply to this proposal, as
there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to this proposal, as
there are no costs to small businesses.
Rationale
Digital technologies are ubiquitous and are increasingly
being integrated into our economy and society. These technologies enable
businesses to be innovative and productive, help governments to provide
services, and allow citizens to interact and to transmit and share information
and knowledge. As a component in some of these technologies, microSD cards play
a role in the devices that drive the digital economy.
An increase in the cost of digital technologies acts as a
barrier to access and full participation in the digital economy, as higher
costs may discourage the adoption of new technologies by businesses and
consumers. These Regulations seek to promote the digital economy by ensuring
that no new costs will be added to microSD cards and to associated digital
technologies that use these cards, such as smartphones. In so doing, these Regulations
will also prevent the added cost of a levy from ultimately being passed on to
retailers and consumers.
These Regulations only seek to exempt a narrow subset of
audio recording media. It will be open to the Copyright Board of Canada to
consider future proposals on new forms of blank audio recording media, in
addition to previously approved media, such as blank CDs.
There are no expected costs to the public, industry or
copyright owners since the Regulations seek to maintain the current no-levy
status of microSD cards.
Contacts
Anne-Marie Monteith
Director
Copyright and Trade-mark Policy Directorate
Industry Canada
235 Queen Street
Ottawa, Ontario
K1A 0H5
Telephone: 613-952-2527
Fax: 613-941-8151
Director
Copyright and Trade-mark Policy Directorate
Industry Canada
235 Queen Street
Ottawa, Ontario
K1A 0H5
Telephone: 613-952-2527
Fax: 613-941-8151
Lara Taylor
Acting Director
Policy and Legislation
Copyright and International Trade Policy Branch
Canadian Heritage
25 Eddy Street
Gatineau, Quebec
K1A 0M5
Telephone: 819-934-8963
Fax: 819-953-6720
Acting Director
Policy and Legislation
Copyright and International Trade Policy Branch
Canadian Heritage
25 Eddy Street
Gatineau, Quebec
K1A 0M5
Telephone: 819-934-8963
Fax: 819-953-6720
Posts
Glad to hear it. My phone has both an internal hard drive and a MicroSD expansion card slot, with an 8GB MicroSD card in it. I have music is stored on both. It would have been a strange state of affairs if the private copying regime did or not did not apply to the music on my phone, depending where on my phone it was stored.
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