Retailers Welcome Federal Court of Appeal Decision on Digital Audio Recorders

Ottawa, January 11, 2008 – Ottawa, January10, 2008 - Retail Council of Canada (RCC) welcomes today's decision of the Federal Court of Appeal (FCA), which stated that IPods, cellular phones and computers should not be taxed. RCC has fought long and hard to ensure that technology not be subject to the levy on blank recordings.

The FCA held hearings on January 9, 2008, on whether the Copyright Board had erred in its July 19, 2007, decision to allow for the imposition of levies on digital audio recorders.

In its decision, the FCA stated: "The Copyright Board erred in law when it concluded that it has the legal authority to certify the tariff that CPCC has proposed for 2008-2009 on digital audio recorders."

"On behalf of retailers and consumers, RCC welcomes this decision," said Diane J. Brisebois, President, Retail Council of Canada. "This has been a very long battle, but a necessary one. Retailers have fought against these levies since their creation in 1997 because it taxes a product based what a consumer possibly could use it for."

In a North American market, where this tax would only affect Canadian sales, retailers have also adamantly argued that it creates a non-competitive environment.

"There is no doubt that the rapidity in which the decision was rendered demonstrates the strength of that decision by the courts. We certainly hope that this decision will bring this issue to a close once and for all," added Brisebois.

About RCC:
Founded in 1963, Retail Council of Canada (www.retailcouncil.org) is the voice of retail. It is a not-for-profit association whose more than 40,000 storefronts consist of all retail formats, including national and regional department stores, mass merchants, specialty chains, independent stores and online merchants. Collectively, Retail Council of Canada's members account for more than two-thirds of Canada's total general-merchandise retail sales.

Media Contact:
Kim Furlong
Vice President, Federal Government Relations
Retail Council of Canada
(613) 751-4442