File: Private Copying 2003-2004

Interrogatories

Date: June 7, 2002

From: Richard C. Pitt (BELCARRA)

In these interrogatories blank audio recording media and "media" refers to:

(i) Audio cassettes (1/8 inch tape) of 40 minutes or more in length;

(ii) Recordable compact discs (CD-R, CD-RW, CD-R Audio, CD-RW Audio or any other type of recordable or rewritable compact disc) of 100 megabytes or more of storage capacity;

(iii) MiniDiscs

(iv) Removable electronic memory cards, removable flash memory storage media of any type, and removable micro-hard drives (Microdrive and any similar removable hard drive);

(v) Recordable digital versatile discs (DVD-R, DVD-RW, DVD+RW, DVD-RAM or any other type of recordable or rewritable DVD);

(vi) Non-removable electronic memory cards or non-removable flash memory storage media of any type incorporated into an MP3 player or into any similar device with internal electronic or flash memory that is intended for use primarily to record and play music;

(vii) Non-removable hard drives incorporated into an MP3 player or into any similar device with an internal hard drive that is intended for use primarily to record and play music.

In these interrogatories "CD media" refers to the aggregate of (ii) and (iv) above.

In these interrogatories "PC/CF cards" refers to (iv) above.

In these interrogatories "Artist" refers to any and/or all of:

"Eligible Author", "Eligible Maker" and "Eligible Performer" as specified in section {79} of the Copyright Act.

Information about Canadian Private Copying Collective (CPCC)

1. What individuals and/or organizations make up the CPCC?
2. Please provide contact names and addresses including web and/or e-mail for each member of the Collective.
3. What is the relationship of SOCAN to CPCC?
4. Are any CPCC staff, management and/or executives paid any bonus or commission or other incrementally increased remuneration based on either the total levy collected in any period, or on the success of any proposal to levy, or on any other basis which is influenced by the outcome of the levy proposal process?
5. What is CPCC’s position with respect to the proposed Canadian version of the U.S. "Digital Millennium Copyright Act"? as discussed in consultation papers to the Copyright Reform Process.
6. Are there other collecting bodies involved in collecting royalties and/or fees for use of copyright music in Canada?
7. If the answer to 6 is yes, what is the relationship of CPCC to each of these other bodies?
8. If the answer to 6 is yes, please detail what they collect (total amounts per customer category will do), who they collect it from (broad customer categories will do), and what basis they collect it including fee/royalty schedules (as provided to payees in the course of explaining what, if anything, is due, and why).
9. How much has been collected by CPCC via levy each year and in 2002 to date (end of March, 2002 is fine)?

 

Information regarding CPCC’s levy case

10. What is CPCC’s understanding of the similarities and/or differences between copying which takes place in the course of playing digital versions of music due to the processes necessitated by the digital nature of the technology, and copying for which CPCC seeks "compensation in respect of" under section {81} of the Copyright Act?
11. Does music have to be created in an analogue medium in order for it to be considered music? If the answer is no, is there any restriction on how music is created in order for it to qualify as "music" under the Copyright act?
12. Is it possible that sound which has been created based upon mathematical formulae might constitute music? (Moog is such an example)
13. Does sound which embodies a section of repeated similar but subtly different notes and/or sounds still constitute music?
14. If a medium contains an ordered and reproducible stream of digital bits, is it blank?
15. What is the difference between the ordered and reproducible bits which make up a music track expressed as a digitized stream of bits, and the ordered and reproducible stream of bits which is impressed upon a disk when it is formatted for use in a computer for storing data of unknown type?
16. What is the difference between the ordered and reproducible bits which make up a music track expressed as a digitized stream of bits, and the ordered and reproducible stream of bits which is impressed upon a Flash RAM when it is formatted for use in a computer for storing data of unknown type?
17. What happens to the music when CD media is returned to its "raw" form (which happens to require heating)
18. What happens to the music when a Random Access Memory card is removed from its power source?
19. What is the difference between what happens to the music in the previous 2 questions above, and what happens to the music in the process of moving digital data from a retail-purchased CD work, though to Random Access Memory (used for example to buffer the music in portable CD players to eliminate track skipping) and through to the Digital Signal Processor and its associated memory for decoding to analogue prior to amplification?
20. If there is no difference noted in the previous question above, why is CPCC not proposing a levy on CD players similar to the one on MP3 players and other media which might be used to copy music?
21. What happens to the music when a CD-RW or DVD-RW (which had previously been used to copy music) is erased?
22. How is this (what happens in the previous question above) different from what happens to the music copied to the RAM in the process of playing music in a portable CD player?
23. How is this (what happens in the question prior to the one above) different from what happens to the music copied to intermediate storage (disk or RAM) in the process of a radio station using computer technology to play music?
24. What is the difference to the listener between playing music from a CD juke-box with 100 disks in it, using the technology built into it to choose only certain tracks and their playing order, and playing a CD-R created by the use of copying to create a "mix" of chosen music?
25. Does any agency or organization collect a royalty anywhere in the world from any commercial venture which has as its basis or as surcharge the order which music selections are play in?
26. What, in CPCC’s understanding, is the definition of "tied selling" under the laws of Canada?
27. In light of the answers to the previous 2 questions above, what is CPCC’s position on value added, if any by a private individual creating or imposing a custom "mix" of owned music by any technology whatever for their own use in playing music?
28. What % of copying by individuals is done in a fashion where it does not fall under the strict meaning of the wording of the Copyright Act section {80} (i.e. what % of copying by individuals is done with the intention of giving or selling the resulting copy to another individual – in other words is illegal according to the Act?) How did you arrive at this amount?
29. Does CPCC propose to collect a levy amount in respect of compensation for the illegal (by the wording of the Act) actions of private individuals? If not, what is the offset amount proposed in the calculations?
30. What is CPCC’s understanding of the Copyright Act’s provisions for "private study" as it relates to music?
31. Does CPCC propose that the amounts collected by levy compensate "in respect of" copying which is done for "private study"?
32. If the answer to 29 above is "no", what %offset does CPCC propose to lower the levy amount by in respect of "private study"?
33. What, in the opinion of CPCC is the difference between copying music in the process of playing it via digital means, and copying music as relates to "compensation in respect of" under part {81} of the act?
34. What, in the opinion of CPCC justifies the large difference between the proposed levy amounts and the amounts applied in similar situations in the United States? (i.e. 3% of value across the board)
35. What, in the opinion of CPCC justifies the possibility (probability) that any individual might pay more in levy under this proposal than they could possibly incur in royalties under present schedules by listening to streaming audio via legitimate Internet radio?
36. What was the % of use of pre-recorded Audio Tapes (as opposed to records) for playing music and % of copies made of Audio Tapes before CD's were available.
37. What is the % used of CD-R's for non-music copying vs music copying. What is your source for this information? Supply the same information for CD-RW, DVD-R, DVD-RW and Flash, RAM and micro-hard disk add-ons.
38. Zero Rating: explain in detail in how zero rating works and how and why it is applied.
39. Besides packaging, what is the technical difference between CD-R and CD-R Audio?
40. Besides the fact that it is advertised as being a portable MP3 player, what is the difference in functional capabilities between an Apple iPOD and any laptop computer with a recent Microsoft operating system, built-in speakers and sound card?
41. How much music does the average Canadian listen to each day? Of this, how much is from a royalty-paid source? Of the balance, how much is from owned (retail) music publications? What is the source of your information?
42. Does the purchase of a retail CD, tape, record entitle a private individual to listen to the music on the medium a limited number of times or an unlimited number of times? If limited, please be specific on what is the limiting factor. Is there a limit as to where and when the private individual might listen to the music? Is there any limit to how the individual may listen to the music with respect to what technology they use, who makes it, what it consists of, how loud, how well it is reproduced, etc?
43. What is the difference to the listener between a private individual owner of a music CD listening to that music via their CD player, and the same private individual listening to the exact same music via Digital Audio Broadcast on their new DAB radio?
44. What is the difference to the artist between a private individual owner of a music CD listening to that music via their CD player, and the same private individual listening to the exact same music via Digital Audio Broadcast on their new DAB radio?
45. To each of the listener and artist, what is the difference between a private individual owner of a music CD listening to 3 chosen selections via the technology in their CD player, and the same individual requesting a streaming Internet site to play the same selection of music, and listening to it via wireless Internet connection via their IEEE-802.11 equipped Apple iPOD?
46. To each of the listener and artist(s), what is the difference between:
    a private individual owner of a music CD library and a CD juke-box player with the audio output connected to an wireless speaker system in their house which uses 802.11 wireless technology to transmit the digitized sound to the next room
    and
    a private individual owner of a music CD library and a CD juke-box player with the audio output connected to a Virtual Private Network (encrypted so nobody except the individual can know what is being transmitted) over the Internet to where that private individual is listening in a hotel room 1000 miles away from their home?
47. Noting that the technologies described in the two questions above all involve and require due to the technologies involved the use of copying in the playing of music to some extent (and significant copying in some situations) what is the difference between that described in the two questions above and the same private individual owner of a music CD library creating a compilation CD to take with them to listen in their hotel room 1000 miles from their home?
48. Does the purchase of a retail CD, tape, record entitle a private individual to play the music on the medium in the company of others? Is there a limit to how many others? Is there a limit to where and when? Is any limit documented to the purchaser in the form of a license at the time of purchase, or is it statutory (enshrined in the laws of Canada)? If statutory, please give reference and details. If documented at the time of sale, please give example/sample wording.
49. How many times does the average music customer listen to each of the average music tracks on a purchased CD, tape, record or other music distribution medium within the lifetime of that medium? What is the source of your information?
50. What is the % breakdown in retail and re-manufacturing packaging quantities of CD media sold by manufacturers and importers of levied media? (example: what % are single CD-R packages, 10-packs, 25-packs, 100-packs, cartons with no printing, as might be identified by different Stock Keeping Units (SKU) in an inventory system, etc.)
51. How many individual, different, music tracks are there in the Canadian copyright jurisdiction? What is your source of information?
52. At "Normal" digitizing rates, how much storage is needed to hold a single copy of every different music track in the Canadian copyright jurisdiction?
53. How many music tracks did the average Canadian purchase each year (from 1960) prior to the wide-spread availability of digital copying technology (1995)?
54. What were the sales volumes (number of retail CDs sold) in each major category of popular music (Rock, POP, Country, etc.) for each of the top 10 selections in each category for the past 20 years?
55. Are sales of the top 10 selections in each category going up, down, or remaining steady year over year? Be specific for each one.
56. What are the last 50 sales records for an individual album of any type over each normally tracked period. Show total sales for each past sales record holder, the period for which the sales record relates, and the date when the sales record was recognized. ("sales record" means the point at which the total sales volume for a period surpassed the total sales volume in a similar period for any other previous album. Periods include but are not limited to: first day, first week, first month, first year, and album life) Example is recent (June 2, 2002) Eminem "The Eminem Show" first weekend (2 day) sales of 284,534 copies which is touted as a sales record.
57. What is the average length (in seconds) of a music track?
58. What is the median length of a music track?
59. What is the source of the information you used to arrive at the answers to the previous 2 questions above? What is the exact calculation including applicable numbers you used?
60. What is the minimum per-track royalty paid to an artist?
61. What is the maximum per-track royalty paid to an artist?
62. What is the median per-track royalty paid to an artist?
63. What is the average per-track royalty paid to an artist?
64. Are there any deductions or reductions of the above per-track royalty amounts which might be, or routinely are, deducted from the gross amount paid, other than normal personal or corporate taxes? (i.e. if sales targets are not met for example)
65. Does CPCC propose that revenue from the levy also be used to compensate "in respect of" copying in the technology used in the Internet during music reception not recorded to CD-R or other proposed levy media?
66. What is CPCC’s estimate of the number of MP3 players containing each of the levied media which will be sold in Canada in the proposed levy period? What is your source for this information?
67. What, in the opinion of CPCC, is the difference between an owner of a portable MP3 player with 64 Megabytes of RAM downloading a different mix of music each day of the year for playing, and the owner of an Apple iPOD with 10 Gigabyte disk downloading exactly the same number and titles of songs once at the beginning of the year and listening all year?
68. Is the result of "ripping" a retail CD music track to a digital stream encoded as MPEG2 layer 3 (aka MP3) bit stream capable of being re-encoded in standard CD music format such that the result of this 2 stage process is identical digitally to the original bits encoded on the retail CD music track?
69. If the answer to the previous question is no, how can CPCC characterize the "ripping" process as copying since it does not produce an exact copy?
70. What is CPCC’s estimate of the number of each type of proposed levy add-on media (Flash, RAM, micro-hard disk) which will be sold in Canada in the levy period? What is your source for this information?
71. How many digital cameras which use proposed levied media will be sold in Canada during the proposed levy period?
72. How many consumer-grade (purchase price less than $2000.00) digital cameras are there in Canada to date?
73. What is the average size of storage media included with digital cameras sold in Canada?
74. What % of purchasers of digital cameras purchase additional storage at the time of purchase of the camera?
75. How many CD media are used by the photo processing industry to deliver digital copies of consumer or industrial photographs at the time of film processing in Canada? What is the source of your information?
76. What is the trend in use of CD media in delivering digitized copies of consumer or industrial photographs by photo processing businesses over the proposed levy period?
77. How many businesses in Canada create non-music copies of digital data on levied CD media and how many of each levied CD media do they use?
78. What is the growth trend in this business sector for the proposed levy period?
79. What impact on the purchasing habits of Canadians does CPCC expect the proposed levy will cause for each of the media? What is the source of your information?
80. Please provide the results of any research into Canadian private individual Internet purchasing trends and habits with respect to the proposed levy media.
81. If CPCC has not done any research into Internet (or mail-order) purchase of the levied media from outside of Canada, please explain why. Provide any notes or meeting transcripts at which this subject was discussed.
82. What impact on the total levy amount collected for each medium does CPCC expect changes in purchasing habits of Canadians as answered in the previous question above will cause?
83. What are CPCC’s plans regarding levy evasion (grey market)?
84. Has there been any consultation between the CPCC and individual artists on previous levy settings and their effects? Provide notes and/or transcripts.
85. Was there any consultation prior to its filing with the Copyright board, between the CPCC and individual artists on the currently proposed levy amounts and their effects? Provide notes and/or transcripts.
86. From the report dated 2000-2001: Please provide the sources (names of research companies with contact information) from where the data was created for the following statements:

Pg 19 - Consumers purchased 45% of all CD-Rs and CD-RWs 56% were used to make private copies (music or all copies?) please break apart the audio and remainder from this %

Pg 26 - 4th paragraph: Such a scheme has to rely on a rough estimates... (how was this rough estimate sourced?

87. Please provide examples of currently available retail technology which may be used to listen to music on a DVD player? List the manufacture(s) that make a DVD player that can copy and/or play music.
88. What are the projected sales numbers for DVD recorders capable of copying just music for 2003 and 2004?
89. What % of these will be add-ons for computers?
90. What % of these will be sold only as part of a video system (camera, TV, VCR, etc.) where the ability to record music is either non-existent, or incidental and not the prime function.
91. What provisions has CPCC made to stop collecting levies if/when the average Canadian individual no longer needs to create their own copies of music because their access to their own individual play-list of music is available to them ubiquitously via technology either similar in nature to radio, or completely unknown at this time and for which a royalty is collected via other agencies and means?
92. Does CPCC expect to collect levies "forever"?
93. If the answer to the previous question is no, when does CPCC expect the collection of levies to end?
94. Does CPCC expect to propose to extend the range of levied media to include media normally used in desktop and/or server computer systems of any kind at any time in the future? If not, why not? If so, when?
95. Does CPCC plan to propose in the future that the levy amounts collected extend to "in respect of" any or all electronic copying done during the playing of music, regardless of how long the copy persists or why it is necessitated? If so, when. If not, why not?