04-20-2005, 06:35 AM
<!-- m --><a class="postlink" href="http://www.metronews.ca/reuters_national.asp?id=68491">http://www.metronews.ca/reuters_national.asp?id=68491</a><!-- m -->
Canadian Recording Industry Battles File Sharing
Tuesday, April 19, 2005 1:02:15 PM ET -- Sue Thomas
TORONTO (Reuters) - The Canadian recording industry will go to court on Wednesday in a bid to overturn a ruling that legalized Internet file sharing in the country and gave momentum to a steep decline in retail sales.
Graham Henderson, president of the Canadian Recording Industry Association, is hesitant to speculate on his organization's chances of successfully appealing a ruling made in February last year that sided with Internet service providers and likened file sharing to using a photocopier.
"I like to think we had a very strong case at the first instance, and I think we have a very strong case now," Henderson told Reuters in an interview on Monday. "But who knows with appeals."
He would not comment on what tack the CRIA's lawyers will take, but if the appeal is successful, he says it will help stem unauthorized file sharing in Canada, which has the highest per capita rate of free music uploading in the world.
It will also start bringing Canada into line with other countries, including England, France, Japan and most of the United States, where unauthorized file sharing is illegal.
And suing offenders, who are mostly under 25 years old, would not be a last resort, Henderson said.
"The purpose of lawsuits is ... to attach consequences to activities, and lawsuits would be aimed at college-aged kids who should know better," he said.
In the month after the court decision, the CRIA noticed a big spike in free file sharing. The organization homed in on the Tragically Hip, a top Canadian band that had just released a new record: "There were 1,000 legal downloads, but 2.8 million unauthorized swaps of the music," Henderson said.
Overall in Canada, which is the sixth-largest global market per capita for sound recordings, there are one million paid downloads every month, compared with 134 million free ones.
"And it's climbing, and nobody gets a red cent, not a penny. It's just unconscionable," Henderson said.
While domestic sales of recorded music were flat in 2004, they have fallen by a total C$465 million since 1999, when file sharing began emerging. The CRIA says it has also noted a drop in investment in the industry, although it has no statistics.
"When something like this happens, investment flees the marketplace. Young Canadian entrepreneurs' ability to get private investors drops to nothing. The banks say, 'You're nuts, kids can do this for free with impunity'," he said.
"We need a legal environment that will encourage investment. A successful appeal will allow businesses to establish themselves, and from the point of view of music fans, those who swap files illegally will know once and for all they are doing something wrong."
Meantime, the CRIA has been lobbying hard for a revamp of Canada's copyright law, which the group says is outdated and does not reflect the digital age.
They were rewarded last month, when the government announced changes to the law are scheduled to be introduced in Parliament this year.
Canadian Recording Industry Battles File Sharing
Tuesday, April 19, 2005 1:02:15 PM ET -- Sue Thomas
TORONTO (Reuters) - The Canadian recording industry will go to court on Wednesday in a bid to overturn a ruling that legalized Internet file sharing in the country and gave momentum to a steep decline in retail sales.
Graham Henderson, president of the Canadian Recording Industry Association, is hesitant to speculate on his organization's chances of successfully appealing a ruling made in February last year that sided with Internet service providers and likened file sharing to using a photocopier.
"I like to think we had a very strong case at the first instance, and I think we have a very strong case now," Henderson told Reuters in an interview on Monday. "But who knows with appeals."
He would not comment on what tack the CRIA's lawyers will take, but if the appeal is successful, he says it will help stem unauthorized file sharing in Canada, which has the highest per capita rate of free music uploading in the world.
It will also start bringing Canada into line with other countries, including England, France, Japan and most of the United States, where unauthorized file sharing is illegal.
And suing offenders, who are mostly under 25 years old, would not be a last resort, Henderson said.
"The purpose of lawsuits is ... to attach consequences to activities, and lawsuits would be aimed at college-aged kids who should know better," he said.
In the month after the court decision, the CRIA noticed a big spike in free file sharing. The organization homed in on the Tragically Hip, a top Canadian band that had just released a new record: "There were 1,000 legal downloads, but 2.8 million unauthorized swaps of the music," Henderson said.
Overall in Canada, which is the sixth-largest global market per capita for sound recordings, there are one million paid downloads every month, compared with 134 million free ones.
"And it's climbing, and nobody gets a red cent, not a penny. It's just unconscionable," Henderson said.
While domestic sales of recorded music were flat in 2004, they have fallen by a total C$465 million since 1999, when file sharing began emerging. The CRIA says it has also noted a drop in investment in the industry, although it has no statistics.
"When something like this happens, investment flees the marketplace. Young Canadian entrepreneurs' ability to get private investors drops to nothing. The banks say, 'You're nuts, kids can do this for free with impunity'," he said.
"We need a legal environment that will encourage investment. A successful appeal will allow businesses to establish themselves, and from the point of view of music fans, those who swap files illegally will know once and for all they are doing something wrong."
Meantime, the CRIA has been lobbying hard for a revamp of Canada's copyright law, which the group says is outdated and does not reflect the digital age.
They were rewarded last month, when the government announced changes to the law are scheduled to be introduced in Parliament this year.
