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Canadian Songwriters Call For New Levy On Mobile Phone Ringtones

by Glen Shapiro, LawAndTax-News.com, New York

24 August 2004

The Canadian Society of Composers, Artists and Music Publishers (SOCAN) has launched an attempt to profit from the increasingly lucrative market in mobile phone ringtones by asking that a tariff be imposed on their sale.

According to reports in the national media, SOCAN has asked that the level of the tariff be set at 10% of a ringtone supplier's revenue, with a minimum royalty level of 10 cents per ringtone.

Eyebrows have been raised, however, by the fact that the move has been opposed by the Canadian Recording Industry Association (CRIA), traditionally a staunch defender of the rights of the country's creative community.

The Toronto Star revealed on Monday that the Association had condemned the proposed tariff as "excessive, unwarranted and unreasonable", and had argued that ringtones do not constitute a communication to the public which would necessitate the imposition of a new levy.

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