TORONTO - When was the last time you made a mix tape?

For many Canadians the answer is likely not in a long, long time in an age when even the technology that replaced them -- recordable CDs -- is on its way out, in favour of iPods and similar devices.

But while evolving technologies may seem inevitable, and even exciting to Canadians, to those in the music industry it means a vital source of income may soon go the way of the cassette tape.

Since 1997 a small fee has been levied on blank media such as audio cassettes, mini-discs and CD-Rs as a way to compensate artists for copies made of their work.

Before that time it was illegal to make private copies, for example if someone purchased several CDs and then compiled their favourite songs on a recordable CD.

The non-profit Canadian Private Copying Collective was established to collect the levy and to date they have distributed more than $160 million to more than 100,000 songwriters, recording artists, music publishers and record companies.

But now the CPCC says that cash flow will dry up if Canadian law doesn't get with the times.

"Frankly the only remedy now is for a change in legislation," said the agency's David Basskin.

"If this change isn't made there's no question that the continuing decline in the use of recordable CDs for copying music will have the long-term effect of draining all the value out of the levy, but the copying won't stop."

The federal government has been holding consultations throughout the summer in cities across the country with an eye to drafting and tabling new Copyright Act legislation. A previous attempt to amend the act died on the order paper last year when the election was called, and this attempt may too be in jeopardy if the country faces another election.

The CPCC and the artists they dole out money to are hoping for a change in the wording to make it clear devices such as the iPod are not excluded -- as the courts have interpreted.

The distinction as it stands is just semantics, Basskin said.

"It doesn't change the essence of the activity, which is that people are copying music for private enjoyment and that those who create music deserve to be compensated," he said.

That money is so important for those in the Canadian music industry, especially those who operate on a smaller scale or who are just starting out, said jazz artist Sophie Milman.

"For an independent Canadian artist and an independent Canadian label that has to penny-pinch that is enormous, actually," Milman said.

"That will make the difference between whether they can invest in another album, whether they can underwrite a losing tour," which is often the case for a new artist, she said.

"Some songwriters and musicians rely on these funds to put food on the table or to pay rent."

Some have argued that once they buy a CD they shouldn't have to pay again and again to listen to those songs -- which they already purchased -- on a personal compilation CD or on their MP3 player.

But for people like Milman and Basskin, it's about recognizing the value of those works.

"There has to be some sort of way to compensate the artist for the hours and the sweat and the blood and the tears and the extreme, extreme expense that goes into making music," Milman said.

The Retail Council of Canada has argued against the levy, which it calls a "tax," but didn't return requests for an interview.

The proposed levy would be based on the size of the device -- for example a 4GB iPod would have a smaller fee than a 32GB one.

The levy would just be intended to account for private copies. File sharing programs, or peer-to-peer networks, on which people download music free and illegally are another matter.

"There's nothing about the levy that legalizes file sharing," Basskin said.

"Under the levy you're given the right to use (a copy) for yourself and pretty much that's it. You're expressly not given the right to redistribute it to others."