2020 Private Copying Levy for Recordable CDs

Summary#

The Copyright Board approved the Private Copying Tariff, 2020, setting a levy on the sale in Canada of blank audio recording media for the year 2020. The tariff takes effect January 1, 2020 and requires manufacturers and importers to pay 29¢ for each recordable CD sold in Canada.

What it does#

• Sets a levy of 29¢ on each CD-R, CD-RW, CD-R Audio and CD-RW Audio sold in Canada.
• Exempts media that are exported and media sold to organizations for people with a perceptual disability.
• Names the Canadian Private Copying Collective (CPCC) as the collecting body to receive these levies.
• Directs how collected levies are split after operating costs:
  • 58.2% shared among SOCAN, CMRRA and SODRAC for eligible authors.
  • 23.8% to Re:Sound Music Licensing Company for eligible performers.
  • 18.0% to Re:Sound Music Licensing Company for eligible makers.
• Requires manufacturers and importers to report sales and keep records for six years, and allows CPCC to audit those records.
• Allows smaller payers (those who paid less than $2,000 in the previous semester) to pay twice a year instead of more often.
• Charges interest on late payments at 1% above the Bank Rate (calculated daily).

Note: the tariff defines “blank audio recording medium” to include recordable CDs and any other media later prescribed by regulation. It’s not fully clear from this notice whether other formats beyond recordable CDs were prescribed for 2020.

Who's affected#

• Manufacturers and importers of blank audio recording media sold in Canada. They must collect, report and remit the levy and keep records.
• The designated collecting body, CPCC, which administers collection and distribution.
• Music industry groups and creators represented by SOCAN, CMRRA, SODRAC, and Re:Sound, who receive the distributed funds.
• Retailers and consumers could be indirectly affected if the levy is passed on in retail prices.
• It’s unclear from the notice whether sellers of non‑CD blank media are affected unless those media are later specified by regulation.

Why it matters#

• This is the mechanism Canada uses to compensate songwriters, performers and recording makers for private copying. The levy provides money to creators when people buy blank media that can be used to copy music.
• Businesses that make or import blank audio media must add administrative steps: reporting, record-keeping and possible audits. That can add small costs and bookkeeping work.
• Consumers may notice small price changes on blank recordable CDs if businesses pass the levy on.