The Federal Court of Canada in Toronto has handed down a substantial penalty on to a Montreal-based computers and software manufacturer that did not pay federally-mandated private copying levy.

The Federal Court of Canada in Toronto has handed down a substantial penalty on to a Montreal-based computers and software manufacturer that did not pay federally-mandated private copying levy.

The penalty against the incorporated company 9087-0718 Québec Inc., known commonly as Vortek Systèmes, amounts to just over C$900,000 ($777,000). This amount is in addition to the C$1.65 million ($1.42 million) in outstanding levies, plus interest, which the Federal Court says the Quebec company must pay.

The Federal Court ruled that the company owed outstanding levies to Canadian Private Copying Collective in Toronto on blank CD-Rs and CD-RWs that it had sold since Jan. 2003. The levy on blank CD-R and CD-RWs under Canadian Copyright Law is C$0.21 ($0.18) each. Vortek Systèmes had denied selling blank media.

"The CPCC is pleased with the Court's decision," says Claudette Fortier, chair of the CPCC.

Established in 1999, the CPCC is a collective that represents music authors, music publishers, recording artists, musicians and record companies charged with collecting and distributing private copying royalties set out in provisions of the Canadian Copyright Act, which was implemented in 1998.