The CPCC is committed to ensuring that all manufacturers and importers who should be remitting private copying levies are doing so. Companies that should be remitting private copying levies can expect to be held accountable for all unpaid levies plus interest and should be aware that it is possible that a court decision could multiply levies owed by as much as five times.
Recording artists and other rights holders entitled to receive private copying levies are not the only ones affected by levy evasion. The many law-abiding businesses that remit levies to the CPCC are affected, too. Black market media creates an unbalanced and unfair market place, costing legitimate businesses money and causing confusion for consumers.
How the CPCC enforces the Private Copying Tariffs:
- Investigation
- Auditing
- Litigation
Investigation
The CPCC is able to identify which brands are sold by tracking distribution channels, conducting market research and following up on tips received from the public. The next step is to identify brands that are not reported to the CPCC or media that are being sold at prices that are the same as or lower than the amount of the levy.
Tracking
The levy is paid only once on each piece of blank media, upon first blank sale within Canada. The CPCC tracks the media back to the source of the first blank sale. The manufacturer or importer responsible for this sale is then contacted for payment.
Market Research
The CPCC tracks brands and prices for all leviable media by researching advertisements and by surveying retailers in Canada. This information allows the CPCC to determine whether levies have been received on the blank media that is being sold in the marketplace.
Tips
Any individual who is aware of any manufacturer or importer that should be remitting levies to the CPCC but is not or is selling media at or below the levy rate, is encouraged to contact us by phone or email. The information provided should be as accurate and detailed as possible. Individuals who wish to remain anonymous should call the CPCC from a pay phone or block their phone number and ensure that the email address used cannot lead to their identification.
Call toll-free at 1-800-892-7235, and ask to speak to a member of the CPCC’s enforcement team.
Send an e-mail to [email protected]
Auditing
The CPCC has the right to conduct on-site audits to confirm the accuracy of manufacturers’ and importers’ reports and payments. There are various factors that are assessed in choosing audit candidates such as:
- Has the company been audited before? If so, how long ago?
- Do the volumes and brands reported by the company seem reasonable, based on the media seen in the marketplace?
- Has there been a history of compliance issues with the company, such as late or missing reports?
- Did the company begin reporting as a result of enforcement efforts?
- Has the company advised the CPCC that it intends to cease reporting?
Litigation
Litigation is commenced by the CPCC in order to enforce compliance with the Copyright Act and the private copying tariffs. The CPCC has commenced litigation against companies in the following circumstances:
- when the CPCC has evidence that a company is importing and selling blank media in Canada without paying the levy to the CPCC and the company has not responded to the CPCC’s requests for payment;
- when a reporting company refuses to remit levies determined to be owing as a result of an audit of its books and records;
- when a company refuses to allow the CPCC to audit its books and records.