• Younger Canadians aged 12-24 comprise just 21 percent of Canada's population but account for 78 percent of illegal downloading
• Canadians who have downloaded illegally are more likely to engage in other unethical activities such as making illegal copies of software programs (36 percent vs. 16 percent) and cheating on exams (18 percent vs. 7 percent)
• At least 14 illegal files downloaded in Canada for every legal one

The Canadian Recording Industry Association (CRIA) today launched a national campaign to protect and promote 'products of the mind' in advance of public hearings this fall on Bill C-60, the new federal copyright legislation. New national polls by POLLARA Inc. and Environics Research Group were released today in support of the campaign.

The POLLARA study estimates that at least 14 illegal files are downloaded for every legal one. The rise of file-swapping has coincided with a 41 percent - or $541 million -- decrease in retail sales of pre-recorded CDs and cassettes between 1999 and 2005 in Canada. The vast majority of this file-swapping activity, according to POLLARA, is concentrated in Canada's younger generation, contrary to the view of some observers that the phenomenon is widespread. Comprising just 21 percent of the population, Canadians between 12 and 24 years old are responsible for 78 percent of illegal music downloading.

"Not only does music file-swapping harm artists, but it also points to an erosion of respect for intellectual property that threatens Canada's economy and values at the core of our society," says CRIA President Graham Henderson, who is calling for stronger copyright legislation, education and other initiatives to secure a strong future for Canada's culture and economy.

Environics found that, compared with the general population, Canadians aged 18-29 are much more willing to engage in unethical or illegal activities such as making illegal copies of software programs (35 percent vs. 19 percent), cheating on a test or exam (27 percent vs. 10 percent) or leaving a store without paying for a piece of clothing (6 percent vs. 2 percent).

"The 'if it's there, it's free' thinking extends far beyond entertainment products and software to ideas themselves," adds Henderson, noting the rise of plagiarism in schools and universities. "As a society, we risk raising a generation less capable of creating original products of the mind that will in turn keep us at the top of the IP pyramid."

Social values research by Environics points to diminished concern with personal ethics among Canadian youth today compared with their parents and grandparents.

"This values shift, coupled with advances in technology, is creating a new landscape in which intellectual property is under unprecedented threat" says David MacDonald, Vice President, Environics Research Group. "Responses to this threat will require numerous tools -- from technological protections legal frameworks to education campaigns -- to ensure that creativity and innovation continue to receive their due rewards in the Canadian marketplace."

Expressing concern that an unregulated, "wild west" Internet culture has diminished respect for intellectual property, especially among younger Canadians, Henderson seeks to engage parents, educators, the business community and government in a dialogue on products of the mind.

"Canada will remain competitive internationally only if we can compete in a knowledge-based economy," Henderson remarks. "To do this we have to respect, value and protect products of the mind."

Copyright-related industries have become an important and fast-growing part of Canada's economy. The Government of Canada, in its study "A Framework for Copyright Reform," estimated that the copyright-related sectors accounted for 7.4 percent of Canada's GDP, or $65.9 billion, in 2000, with annual growth twice that of the economy overall.

"We need stronger copyright laws, comparable to those of our global competitors, to ensure the continued growth of copyright-based industries," Henderson says. "Today's weak protection discourages investment and innovation that are essential to Canada's future prosperity."

Additional Research Highlights

From the POLLARA study:

• There is a direct, inverse relationship between illegal downloading and purchasing music. Furthermore, the younger the age group, the higher the proportion that is downloading and the less music they buy.
• Only 6 percent of downloaders use legal sites.
• Rock and urban/top 40 listeners have the highest proportion of downloaders (41 percent and 46 percent) respectively.
• 12 - 17 year olds are most likely to strongly agree (16 percent) that "artists are too rich already so downloading won't hurt them" compared with other age groups (3-7 percent).
• Of those spending less on CDs this year vs. last year, by far the largest single reason cited (22 percent of respondents) was downloading/file sharing/CD burning.
• 37 percent of respondents used a CD burner to record music in the previous six months, up from 18 percent in 2001.
• 12-17 year olds are the only age group in which more respondents report that they are using sites like Kazaa more frequently this year (54 percent say they are using it more).
• Contrary to popular myth, there is no widespread belief that most CDs contain only one or two "good" songs. When asked their view of this, 71 percent of consumers thought that at least half or more of the CD they last bought contained good tracks, 59 percent said three-quarters or more were good and 30 percent said all of them. Only 1 percent said only one track was good.
  
  Comments Duncan McKie, President, POLLARA: "This calls into question the notion that CDs are hit-driven and that the rest of the content is just filler. Most music consumers don't agree. Assertions that this fuels the success of file-swapping sites make no sense in light of the data and the fact that all new releases are available on a pay-per-track basis through legal downloading services."

From the Environics study:

• 60 percent of Canadians aged 18-29 are willing to download music from the Internet without paying for it compared with 29 percent of the general population.
• 77 percent of 18-29 year olds (vs. 65 percent of all Canadians) who have downloaded from a peer-to-peer network do not think about the fact that the artist and recording company have not been compensated when they illegally download music.
• 49 percent of 18-29 year olds believe it is alright to illegally download music since others are doing it as well.
• Canadians aged 18-29 are the least likely to agree that downloading music without paying is similar to stealing CDs from a store (56 percent vs. 66 percent of the general population).
• Approximately three-quarters of Canadians are concerned that when they are using peer-to-peer networks, they risk downloading computer viruses (79 percent), links and pop-ups to pornographic websites (78 percent), spyware (75 percent) and that they might inadvertently share personal files (73 percent).

Organization for Economic Cooperation and Development (OECD):

• An October 2004 OECD report (OECD Information Technology Outlook 2004) noted that, per capita, Canada has the largest file sharing population in the world.

Survey Methodologies:

POLLARA conducted a national telephone survey of 1206 Canadian music consumers aged 12 and over between June 24 and July 12, 2005. Samples of this size are considered accurate within plus or minus 2.5 percent, 19 out of 20 times. (Only the 70 percent of Canadians who had obtained music in 'any' fashion were included in the survey as music consumers. Purchase of music was one, but not the only, criterion for inclusion).

Environics conducted a national telephone survey of 1,004 Canadians aged 18 or over as well as an online survey of 1,043 Canadians in May 2005. Within each methodology, samples of this size are considered accurate within plus or minus 3.1 percent, 19 out of 20 times.

About the Canadian Recording Industry Association

The Canadian Recording Industry Association (CRIA) promotes the interests of Canadian record companies and their partners, the artists. CRIA represents more than 95 per cent of all records produced and sold in Canada.