January 14, 2003
Ms. Claudette Fortier
Chair
Canadian Private Copying Collective
150 Eglinton Ave. East, Suite 403
Toronto, ON
M4P 1E8
Dear Ms. Fortier:
The Canadian Advanced Technology Alliance is pleased that the Collective’s review of its zero-rating policy has led to a decision to apply zero-rating to high technology companies such as those that belong to CATAAlliance. The high tech industry uses large quantities of CD-R’s, CD-RW’s and DVD’s for a wide range of business purposes. Zero-rating will encourage companies to buy them locally, rather than importing them to avoid the levy. There will be a beneficial impact on the Canadian economy and employment.
Defining "high technology" companies may present some challenges. As you may know, Industry Canada maintains a list of knowledge based industries. It is divided into two tiers. Tier I is a narrow band of science and technology-based companies, composed of knowledge producers. Tier II is a broad band of firms which could be considered to be business innovators and high knowledge users. I suggest that CPCC and CATA work together to select the industries eligible for zero-rating from Tier I. It is used for similar purposes by other organisations. For example, the banking industry uses Tier I as the basis for reporting its lending to knowledge based industries.
CATAAlliance will be sending an announcement of CPCC’s initiative to or members shortly. We will direct them to your Website for detailed information on use of the zero-rating system. It will be helpful if we can publish the list of eligible industries in the near future. I will be happy to meet with your people in Toronto in the week of January 20, if that would be convenient. You can reach me by e-mail at dpaterson@cata.ca, and by phone at (613) 236-6550.
I look forward to working with you on zero-rating.
Yours sincerely,
David E. Paterson
National Director, Public Affairs