The government will move to exempt memory cards from a copyright levy that now applies to blank tapes and CDs.

Industry Minister Christian Paradis said Tuesday that the government will introduce regulations in the fall to add the exemption to the memory cards, which are commonly found in smartphones like BlackBerrys and iPhones, as well as other devices.

Paradis said it was a perfect example of striking the balance.

"We want to preserve the creators' rights but we want also to preserve consumers' rights, and I think that if we put extra costs on microSD [cards], this will impact on the economy, this will impact the consumer, they will have extra costs to pay and I think it's more than unwarranted. This is not fair," he said in Ottawa.

"The removable card, it should not be taxed or be put with extra costs."

Under previous copyright laws in Canada, there was already a levy on blank tapes and CDs, intended to compensate artists for lost revenue due to copying. Some groups had campaigned to have that levy introduced on digital devices, which Conservative MPs referred to as an iPod tax.

Cabinet has the power to exempt any type of recording medium from the levy, a news release from Paradis's office said.

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  • Digital Locks

    The Copyright Modernization Act, Bill C-11, will allow Canadians to copy content from one device to another, such as from a CD to a computer or an iPod. This provision, however, does not apply to content protected by a digital lock, which is any technological measure, such as encryption or digital signatures, that rights holders use to restrict access to or prevent the copying or playing of CDs, DVDs, e-books, digital files and other material. (Ryan Anson/AFP/Getty Images) <em>Slides use files from CBC</em>

  • Non-Commercial Recording

    The act will allow Canadians to record television, radio and internet broadcasts and listen to or view them later on whatever device they choose but not for the purposes of building up a library or for commercial use. This provision does not extend to content that is offered "on-demand" (streamed video, for example) or protected by a digital lock.

  • Backups

    The act will allow Canadians to make a backup copy of content to protect against loss or damage -- again unless that content is protected by a digital lock or offered as an on-demand service.

  • Mash-Ups

    The act will allow Canadians to incorporate legally acquired copyrighted content into their own user-generated work, as long as it's not for commercial gain and does not negatively impact the markets for the original material or the artist's reputation. An example would be the posting of your own mash-up of a Lady Gaga song and, say, a Beyoncé number on YouTube. (Photo by Ethan Miller/Getty Images for Clear Channel)

  • Education

    The act will allow Canadians to use copyrighted content for the purposes of education, satire or parody. This expands what is known as the fair dealing provisions of the existing law -- which until now covered only research, private study, criticism and news reporting. (Photo credit should read JOHN MACDOUGALL/AFP/Getty Images)

  • Book Burning?

    The act will allow Canadians to copy copyrighted material that is part of an online or distance learning course in order to listen to or view it at a later time. Under this provision, teachers can provide digital copies of copyrighted material to students as part of the course but only if they and the students destroy the course material within 30 days of the end of the course. Teachers are also expected to take reasonable measures to prevent the copying and distribution of the material other than for the purposes of the course. Critics have referred to this part of the Act as the "book burning" provisions. (Flickr: pcorreia)

  • Librarians

    The act will allow librarians to digitize print material and send a copy electronically to users, who can view the material on a computer or print one copy. (Photo by Matt Cardy/Getty Images)

  • Disabled People

    The act will allow consumers who are disabled to adapt copyrighted material to a format they can more easily use. (Pierre-Henry DESHAYES/AFP/Getty Images)

  • Banned Tech

    The act will prohibit the manufacture, importation and sale of technologies, devices and services designed primarily for the purpose of breaking digital locks. This includes technology designed to allow you to play foreign-bought DVDs on your North American player, for example.

  • Breaking Locks

    The act will prohibit the circumventing of digital locks, even for legal purposes -- such as the education or satire uses protected by other sections of the Act. This is one of the most controversial parts of the legislation. Many experts have criticized the government for not including an exemption that would allow for the bypassing of digital locks for legitimate purposes, such as the copying of parts of digitally locked textbooks to view on another device or for use in an assignment.

  • Piracy

    The act will require internet service providers to notify their customers that they are violating the copyright law if a copyright holder informs the ISP of possible piracy. The ISP is required to retain "relevant information" about the user such as their identity, and that information could potentially be released to the copyright holder with a court order.

  • ISP Liability

    The act will exempt ISPs and search engines from liability for the copyright violations of their users if they are acting strictly as intermediaries in the hosting, caching or communication of copyrighted content.

  • Sharing Sites

    The act will prohibit a person to provide a service over the internet or another digital network that the person "knows or should have known is designed primarily to enable acts of copyright infringement." This clause is targeted at websites created for the purpose of distributing copyrighted content, such as the many popular peer-to-peer file-sharing sites used to swap video and audio, and is meant to "make liability for enabling of infringement clear."

  • Commercial vs. Personal

    The act will differentiate between a commercial violation of copyright law and an individual violation. Individuals found violating the law could be liable for penalties between $100 and $5,000, which is below the current $20,000 maximum.