Decisions
Decision Information
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Overview
The Collectives, including CMRRA/SODRAC, Connect/SOPROQ, and Artisti, proposed a statement of royalties to be collected from commercial radio stations in Canada for the reproduction of musical works, sound recordings, and performers’ performances for the year 2019. This proposal was made pursuant to subsection 70.13(1) of the Copyright Act (para 1).
- Copyright Board, December 14, 2018: Certified the 2012-2018 Tariff for commercial radio stations, which served as the reference point for the proposed 2019 tariff (para 3).
Parties' Submissions
- Collectives: Submitted a joint proposed statement of royalties for 2019, which was essentially identical to the 2012-2018 Tariff, except for a minor change substituting “CMRRA/SODRAC” for “CSI.” They argued that the proposed tariff should be certified as it aligns with the previous tariff and no objections were raised (paras 1-4).
- Canadian Association of Broadcasters (CAB): Supported the proposed tariff and jointly requested its certification with the Collectives, emphasizing that no objections were filed and the changes were minimal (para 2).
Legal Issues
- Should the proposed 2019 tariff for commercial radio stations be certified despite the minor change in the designation of rights holders?
- Is the inclusion of a provision barring users from seeking royalty reductions through exceptions under the Copyright Act necessary?
Decision
- The Board certified the proposed 2019 tariff as requested by the parties, with the exclusion of the provision barring users from seeking royalty reductions through exceptions under the Copyright Act (paras 6-7).
Reasons
- Comparison with Previous Tariff: The Board determined that the proposed 2019 tariff was essentially identical to the 2012-2018 Tariff, except for the substitution of “CMRRA/SODRAC” for “CSI.” This change was deemed to have minimal consequences for users, as it did not alter the payment or reporting requirements (paras 3-4).
- Unnecessary Provision: The Board excluded the provision barring users from seeking royalty reductions through exceptions under the Copyright Act. It reasoned that such a provision was unnecessary, as the determination of royalty rates already accounted for potential exceptions. Including this provision could create confusion regarding its applicability in other tariffs (paras 5-6).
- No Objections: The absence of objections to the proposed tariff further supported its certification (para 2).
Decision Content
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Copyright Board |
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Commission du droit d’auteur |
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Date |
2018-12-21 |
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Citation |
CB-CDA 2018-232 |
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Regime |
Collective Administration in Relation to Rights under Sections 3, 15, 18 and 21 Copyright Act, subsection 70.15(1) |
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Members |
The Honourable Robert A. Blair Mr. Claude Majeau |
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Proposed Tariffs Considered |
Commercial Radio Stations (2019) CMRRA/SODRAC Connect/SOPROQ Artisti |
Statement of Royalties to be collected for the reproduction, in Canada, of musical works, of sound recordings, and of performers’ performances
Reasons for decision
I. GENERAL
A. Introduction
[1] On March 29, 2018, CMRRA/SODRAC, Connect/SOPROQ, and Artisti (the “Collectives”) filed a joint proposed statement of royalties to be collected from commercial radio stations for the reproduction of musical works, sound recordings and performers’ performances for the year 2019, pursuant to subsection 70.13(1) of the Copyright Act.[1]
[2] The proposed statement of royalties was published in the Canada Gazette on May 12, 2018. No objections were filed by prospective users or their representatives. On July 20, 2018, the Collectives and the Canadian Association of Broadcasters (the “Parties”) jointly wrote to the Board, requesting that the proposed statement of royalties be certified.
[3] When a tariff is unopposed, the Board must examine it to see how it differs from its predecessor. This is because tariffs certified by the Board are of general application, as opposed to agreements signed among a smaller number of parties. We thus compare the proposed statement of royalties to the tariff certified by the Board on December 15, 2018 for the years 2012 to 2018 (the “2012-2018 Tariff”).
[4] The proposed statement of royalties is essentially the same as the 2012-2018 Tariff, except for one minor change relating to the substitution of “CMRRA/SODRAC” for “CSI”. In the Parties’ letter of July 20, there was no explanation for this change. Pursuant to subsection 15(1.1) of the proposed statement, royalties are payable to CSI but information is to be filed with CMRRA and SODRAC separately. The consequence of this change for users is minimal, given that this requirement is already present in the 2012-2018 Tariff in regards of Connect and SOPROQ: payments are made to Connect, but the information is filed separately with Connect and SOPROQ.
[5] Subsection 6(2) of the proposed statement of royalties provides that a user of the tariff may not seek a reduction in the royalties payable through the application of an exception under the Act. As we noted in the December 14, 2018, decision of the Board in respect of 2012-2018 Tariff:
[…] This provision is not necessary: as is the case for many of the Board’s tariffs, the determination of royalty rates in this matter already includes a discount for the possible application of exceptions. Where a discount may be sought in a tariff, the possibility is already explicitly provided for. Moreover, including such a provision in this tariff may erroneously suggest that seeking such a discount is possible in the context of other tariffs that do not include such a provision.[2]
[6] For the same reasons, we do not include such a provision in this tariff.
[7] Given the above, we certify the tariff for 2019 as requested by the Parties.
Gilles McDougall
Secretary General