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December 15, 2000 Ottawa -- Following the recently concluded public review of the current private copying levies, the Copyright Board announced today that it is setting new levies on blank audio recording media. Effective January 1, 2001, private copying levies will increase to 29¢ on audio cassette tapes of 40 minutes or longer (remaining zero for tapes of shorter length), 21¢ on CD-Rs and CD-RWs and 77¢ on CD-R Audio, CD-RW Audio and MiniDiscs. Manufacturers and importers of blank audio recording media are required to pay these levies to the Canadian Private Copying Collective (CPCC) when these media are sold in Canada. The current private copying levies, which remain in effect until the end of this year, are 23.3¢ on audio cassette tapes of 40 minutes or longer, 5.2¢ on CD-Rs and CD-RWs and 60.8¢ on CD-R Audio, CD-RW Audio and MiniDiscs. The Copyright Board conducted an extensive public proceeding to set private copying levies for the years 2001 and 2002. While initiated in March of this year, the public hearings phase of the proceeding was concluded only a few weeks ago. To allow the new levies to be implemented by January 1, 2001, the Copyright Board is announcing today its decision regarding the level of the new levies. Claude Majeau, Secretary General to the Board, noted that: "The Board took into consideration the comprehensive body of evidence brought forward by participants to the proceeding in setting the new levies. The increases in the levies reflect, among other things, the significant changes in private copying behaviour since last year, especially the increased usage of digital media, such as CD-Rs, for copying pre-recorded music". Mr. Majeau added, however, that "a detailed rationale for the rates will be provided in the Board's decision which will be issued early in the New Year". Based on evidence presented at the public hearings, the levies are projected to raise approximately $27 million in 2001 and $32 million in 2002. These funds will be distributed by the CPCC to eligible authors, performers and makers of recorded musical works copied for personal use in Canada. For more information, contact: Mr. Claude Majeau Secretary General Copyright Board of Canada Ottawa, Ontario K1A 0C9 Tel: (613) 952-8621 Fax: (613) 952-8630 E-mail: majeau.claude@cb-cda.gc.ca - 30 -