an indirect Canadian subsidiary of a non-resident corporation ('Corp A") has been the Canadian distributor of products manufactured by Corp A, including embedded custom software to which Corp A has the copyright. In consideration for separate licensing fees paid to Corp A, there will commence to be a "separate acquisition of [equipment] Software in digital or CD-ROM media from Corp A;" and the Canadian distributor will license such software to third party customers. It also will continue to acquire products with embedded or pre-loaded software from other subsidiaries of Corp A which distribute Corp A's products.
"Payments for software acquired for distribution to end-users, in the various mediums, whether downloaded electronically, delivered on physical media, or embedded or pre-loaded in integrated circuits or ROM, are exempt under subparagraph 212(1)(d)(vi) because the custom software in this case, are in fact a reproduction of the original copyright software and thus, meets [sic] the requirements of subparagraph 212(1)(d)(vi)."