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<title>Techdirt. Stories filed under &quot;tariffs&quot;</title>
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<pubDate>Tue, 5 Jun 2012 03:03:00 PDT</pubDate>
<title>Canada Approves New Music Tariffs; Weddings Cost Double If You Dance</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20120604/08395219198/canada-approves-new-music-tariffs-weddings-cost-double-if-you-dance.shtml</link>
<guid>http://www.techdirt.com/articles/20120604/08395219198/canada-approves-new-music-tariffs-weddings-cost-double-if-you-dance.shtml</guid>
<description><![CDATA[ <p>The Copyright Board of Canada, which reviews copyright tariffs for various collection societies (like ASCAP and BMI in America, which collect performance licensing fees from venues) has <a href="http://www.cbc.ca/news/arts/story/2012/06/01/music-tariff-recorded-copyright-board.html" target="_blank">just approved a new set of fees to cover recorded music at a bunch of different live events</a>. Karaoke bars, conventions, parades, weddings and several other classes of event&mdash;which already pay fees to SOCAN, which represents songwriters&mdash;will now begin paying additional tariffs to collection society Re:Sound, which represents recording artists and labels.</p>

<p>We've talked a lot about the problems with the whole idea of the collection society structure in the past, especially the fact that most societies are constantly pushing for higher fees and trying to extract money for ridiculous things, even though they have a <a href="http://www.techdirt.com/articles/20120323/18055718229/how-ascap-takes-money-successful-indie-artists-gives-it-to-giant-rock-stars.shtml">poor track record</a> of actually redistributing the money they collect to the artists they supposedly represent. But of course, the people behind the tariff talk it up as a boon for small musicians:</p>

<blockquote><em>"We are trying to establish tariffs for the remuneration of everybody involved in the music &#8212; everybody that has some rights to receive some remuneration," said Gilles McDougall of the Copyright Association of Canada, adding that the tarriff will likely result in a few million dollars a year for performers.
<br /><br />
Re:Sound spokesman Matthew Fortier said the money collected will make a big difference to small operations.
<br /><br />
"Sometimes you think of the larger artists or record labels, but most often it goes to small, struggling artists and record labels &#8212; we have thousands signed up with us," he said.</em></blockquote>

<p>But as Howard Knopf <a href="http://excesscopyright.blogspot.ca/2012/06/big-fat-canadian-wedding-tax-socan.html">points out</a>, small artists are the last ones to get anything out of a scheme like this. Megastars and their labels can make money&mdash;but even that pales in comparison to the <em>real</em> beneficiaries of the tariff:</p>

<blockquote><em>Sadly, very little of this money through gets to the artists that need it the most.  This is because the copyright collective system tracks and rewards commercial success. Celine Dion, U2,  Lady Gaga and their record and publishing companies do very well by the this system but emerging creators see very little of this money. The ones who really and consistently benefit the most are those who run the collectives, those who are consultants to the collectives, and the lawyers who punctually pursue new and higher Copyright Board tariffs using money raised from the previous tariffs and paid for ultimately by the Canadian public. Many if not most Copyright Board hearings generate millions of dollars in legal fees in order to generate average annual payments to creators that are typically much less than a junior lawyer&#8217;s hourly rate.</em></blockquote>

<p>As with many such licensing schemes, the specifics of the fees seem almost completely arbitrary. Karaoke bars pay a rate based on nights-per-week, parades pay a different rate per-float, and weddings pay a third rate that for some insane reason <strong>gets doubled if the wedding involves dancing</strong>.</p>

<p>Some people will look at the fees themselves, which in any singular instance only generally add up to a few hundred dollars at most, and ask what the big deal is. But that's ignoring the big picture: Canada loves copyright tariffs, and each one serves to shift massive amounts of wealth around, often with little justification and no way of ensuring that the money is being properly distributed. And we just keep piling new tariffs on top of old ones, with no clear idea of how effective they are&mdash;except at funnelling money to the collection societies:</p>

<blockquote><em>It&#8217;s true that most people do not tend to get married very often. And many weddings cost $25,000 or more. So, some may not be too concerned about the macro or even microeconomic aspects this particular tariff item. It won&#8217;t likely harm Canada&#8217;s economy overall or even the institution of marriage. 
<br /><br />
But these little tariffs add up. The little tariffs such as $0.29 for a blank CD or $5.16 per year for each K-12 student, or $253.45 for a wedding soon add up to about $500 million a year in Canada. One is tempted to say that "A half billion here, a half billion there, pretty soon, you're talking real money."  Copyright Board tariffs siphon huge sums out of the educational system, the broadcasting and telecom industries, businesses of all kinds that use blank media for ordinary data storage and transfer purposes, etc.</em></blockquote>

<p>Now we can add this one to the bloated list. And you can guarantee it won't be long before Re:Sound is back before the Copyright Board, pushing to raise the fees and expand the tariff to new classes of events and venues. Copyright tariffs rarely decrease&mdash;even when they <a href="http://www.techdirt.com/articles/20120423/10484918612/canadian-universities-have-one-week-to-stop-disastrous-copyright-licensing-deal.shtml">absolutely should</a>.</p><br /><br /><a href="http://www.techdirt.com/articles/20120604/08395219198/canada-approves-new-music-tariffs-weddings-cost-double-if-you-dance.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120604/08395219198/canada-approves-new-music-tariffs-weddings-cost-double-if-you-dance.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120604/08395219198/canada-approves-new-music-tariffs-weddings-cost-double-if-you-dance.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>footloose?</slash:department>
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<pubDate>Tue, 8 Nov 2011 12:28:00 PST</pubDate>
<title>Rep. Steve King Decides American Consumers Should Pay For Chinese IP Violations</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20111108/09450916679/rep-steve-king-decides-american-consumers-should-pay-chinese-ip-violations.shtml</link>
<guid>http://www.techdirt.com/articles/20111108/09450916679/rep-steve-king-decides-american-consumers-should-pay-chinese-ip-violations.shtml</guid>
<description><![CDATA[ Iowa Congressman Steve King has had enough of China's blatant abuse of American intellectual property and has decided that something needs to be done. And that "something" is to <a href="http://steveking.house.gov/index.php?option=com_content&#038;view=article&#038;id=4312:king-cracks-down-on-china-for-intellectual-property-piracy&#038;catid=71:press-releases&#038;Itemid=300164&#038;Itemid=300099" target="_blank">introduce a bill that would reward American rightsholders with money taken from the wallets of other Americans</a>:
<blockquote>
<i>King's legislation, H.R. 3375, directs the President to impose duties on merchandise from China in an amount equivalent to the estimated annual loss of revenue to holders of United States intellectual property rights as a result of violations of such intellectual property rights in China. Under King's bill, the revenue raised by the imposition of duties on Chinese merchandise will be proportionally distributed to provide compensation to holders of United States intellectual property rights. </i>
</blockquote>
This is all well and good except that it's actually neither. Imposing a duty on goods just adds to the cost of the product, a cost that will be borne by Americans. China is not just going to swallow the tariff and feel chastened for its misbehavior. Targeting manufacturers who sell to the US with a "you must be a thief tax" is hardly going to improve trade relations with one of our biggest suppliers. And really, this bill is nothing more than barefaced favoritism which seeks to reward certain industries at the expense of American citizens.
<br /><br />
Topping it all off is the fact that this tariff will be based on faulty assumptions and faultier math:
<blockquote>
<i>"The creative genius of Americans, protected by our copyrights, trademarks and patents, is systematically being pirated by the Chinese whose government appears to be complicit," said King. "My bill levies a duty on all Chinese imports in an amount necessary to both pay U.S. property rights holders for their stolen intellectual property and to administer the program. In short, it says to the Chinese: '<b>Go ahead and steal U.S. intellectual property-we will do what you have refused to do and pay American innovators their due from the duties on Chinese goods.</b>'" </i>
</blockquote>
Are we Americans (you know, the ones who will be ultimately paying for all of this) also invited to "go ahead and steal U.S. intellectual property?" I mean, we're being assured that the Chinese are footing the bill, or at least forwarding it to us. By King's logic, it should be open season on IP once the bill passes, because the rights holders will still be getting their cut, one way or another.
<br /><br />
And as for the numbers? King's bill quotes a Congressional Research Report, which would seem to indicate some sort of fact-finding has occurred. But sadly, no. The report (at least what's quoted on King's site) simply regurgitates inflated numbers provided by the industries themselves:
<blockquote><p style="padding-left: 30px"><i>&bull; The U.S. International Trade Commission (USITC) estimates that U.S. intellectual property-intensive firms that conducted business in China lost $48.2 billion in sales, royalties, and license fees in 2009 because of IPR violations in China.</i></p> <p style="padding-left: 30px"><i>&bull; The International Intellectual Property Alliance (IIPA) estimated that business software piracy in China alone cost U.S. firms $3.4 billion in lost trade in 2009.</i></p> <p style="padding-left: 30px"><i>&bull; The Business Software Alliance (BSA) estimates the commercial value of illegally used software in China in 2009 was $7.6 billion, a $900 million increase over 2008 levels.</i>
</p></blockquote>
The USITC report? Oh, you mean the one that was based on <a href="http://www.techdirt.com/articles/20110518/16301314325/us-itc-uses-ridiculous-methodology-to-claim-piracy-china-costs-us-firms-48-billion-2009.shtml" target="_blank">pure speculation</a>? The IIPA? Sure, those numbers are solid if you decide to ignore the fact that the IIPA is a <a href="http://www.techdirt.com/articles/20100224/0229248284.shtml">lobbying group composed of lobbyists</a> for the RIAA, MPAA and the BSA (among others). And if anyone who regularly reads this site hasn't already laughed off the BSA's "contribution" to the inflated numbers, perhaps this <a href="http://www.techdirt.com/blog/?company=bsa" target="_blank">set of posts</a> might shed some more light on the subject. 
<br /><br />
What we have here is bad legislation based on bad numbers which aims to reward certain Americans while punishing other Americans. Politicians seem to be oblivious to the fact that imposed tariffs and subsidies is just another way to take money out of your constituents' pockets and the end result will be absolutely zero change in the way China handles American intellectual property. This bill is nothing more than King offering to hold down American citizens while IIPA members go through their pockets.<br /><br /><a href="http://www.techdirt.com/articles/20111108/09450916679/rep-steve-king-decides-american-consumers-should-pay-chinese-ip-violations.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111108/09450916679/rep-steve-king-decides-american-consumers-should-pay-chinese-ip-violations.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111108/09450916679/rep-steve-king-decides-american-consumers-should-pay-chinese-ip-violations.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>robbing-constituent-A-to-pay-constituent-B</slash:department>
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<pubDate>Thu, 11 Mar 2010 19:38:00 PST</pubDate>
<title>Brazil Moves Forward With Plan To Ignore US Patents And Copyrights After US Refuses To Abide By WTO Ruling</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100310/0324578497.shtml</link>
<guid>http://www.techdirt.com/articles/20100310/0324578497.shtml</guid>
<description><![CDATA[ Two years ago, we noted that Brazil had <a href="http://www.techdirt.com/articles/20080621/1318431471.shtml">asked the WTO</a> for permission to ignore certain US patents and copyrights as a retaliation against the US's refusal to abide by a WTO ruling.  This is, of course, typical of the US.  When the WTO sides with the US on certain issues, you see the US and industry lobbyists go nuts about how those countries need to capitulate due to "international obligations."  But when the WTO rules against the US, the USTR has a long history of <a href="http://www.techdirt.com/articles/20050407/1530229.shtml">ignoring the ruling</a> or even pretending (falsely) that it "won."  Given that most countries can't do much if the US just ignores the WTO, there's been a new push to allow countries to ignore US copyrights and patents up to a certain dollar amount.  In Antigua, for example, the WTO said it could ignore up to $21 million worth of US IP.
<br /><br />
Brazil is now moving forward with a plan to actually <a href="http://www.reuters.com/article/idUSN0810219620100308" target="_blank">ignore US patents and copyrights</a>.  It's putting forth a retaliation plan to the WTO that includes various tariffs and other sanctions -- but most interestingly, a plan to ignore $238 million annually in US copyrights and patents -- expected to cover both pharmaceutical patents and entertainment copyrights.  As is typical in such situations, the USTR is wagging its finger and warning, "don't do that," but doesn't seem willing to admit that the WTO already ruled against the US.<br /><br /><a href="http://www.techdirt.com/articles/20100310/0324578497.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100310/0324578497.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100310/0324578497.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ip-retaliation</slash:department>
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