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For a long time it was legal to download music in Canada because there was a levy on recording media such as blank CDs. The money was then disbursed among copyright holders.
It wasn't perfect, it was limited to music, but at least it was a different approach that tried to balance the rights of copyright holders against what has become very common practice.
As for getting ebooks for free, that's easy: Subscribe to some free ebook blogs or mailing lists and you'll be inundated in free books faster than you can blink. Certainly faster than any normal person can be expected to read.
If you're looking for fiction, it's really not hard to find 2 or 3 free novels a day in a matter of minutes.
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