Canadian Heritage Minister Mélanie Joly has energetically crossed the country emphasizing the economic benefits of the cultural industries. Yet as the government conducts a national consultation on Canadian content in the digital world, my Globe and Mail tech law column notes that new digital taxes may ultimately play a starring role.
Joly has opened the door to an overhaul of Canadian cultural policy, but the million dollar – or perhaps billion dollar – question is how to pay for it. The industry has resisted policies that might increase foreign-backed productions, arguing that lowering qualifying requirements for the number of Canadians involved will lead to lost jobs and less distinctive content. Their hopes appear to rest primarily with the possibility of a series of new digital taxes. While new taxes are never popular, the possibilities include the proverbial good, bad, and ugly.
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Canadian Heritage Minister Mélanie Joly surprised culture and Internet watchers last week by announcing plans for a comprehensive review of Canadian content policies in a digital world. Joly says everything is on the table including broadcasting regulation, Cancon funding mechanisms, copyright law, the role of the CBC, and the future of the Canadian Radio-television and Telecommunications Commission (CRTC).
While there is little doubt that the current framework was established for a different era, rules that have sheltered the industry from foreign competition and transferred hundreds of millions of dollars from consumers to creator groups will not disappear without a fight. Indeed, my weekly technology column (Toronto Star version, homepage version) warns that the most common refrain from the Canadian cultural community is likely to be that the existing rules should be extended to the Internet.
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