Copyright Board
Commission du droit d’auteur
Canada
Canada
FACT SHEET
Re:Sound Tariff 8 – Non-Interactive and Semi-Interactive Webcasts, 2009-2012
May 16, 2014
1. What is the Copyright Board of Canada?
The Copyright Board of Canada is an independent, quasi-judicial tribunal created under the
Copyright Act to establish the royalties to be paid for the use of works, sound recordings or other
matters protected by copyright, when the administration of these rights is entrusted to a collective
society.
2. What is Re:Sound and who will benefit from the royalties?
Re:Sound Music Licensing Company (Re:Sound) is the Canadian, private, not-for-profit collective
society authorized under the Copyright Act to administer the performance rights of performers and
record labels in their sound recordings. Re:Sound will collect the royalties payable under Tariff 8 and
distribute them equally (50/50) between performers (singers, musicians) and makers (record labels).
3. What are the activities covered by the tariff?
The Re:Sound Tariff 8 covers non-interactive and semi-interactive webcasting by commercial
webcasters and by the Canadian Broadcasting Corporation (CBC). It also covers all webcasting
activities by non-commercial webcasters. It does not cover simulcasting by commercial webcasters
and the CBC.
4. What is a webcast, a non-interactive webcast and a semi-interactive webcast?
A webcast is a communication via the Internet of one or more music files for the purpose of listening
at substantially the same time as they are communicated. A non-interactive webcast is a webcast over
which the recipient exercises no control over the content or timing. A semi-interactive webcast is a
webcast over which the recipient exercises some level of control over the content or timing.
5. What are the rates set by the decision?
The rates certified by the Board can be seen in the following table:
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Item
Rates
CBC
Webcast
13.1¢ per thousand plays
Minimum fee
$100 per year
Commercial webcasters
Webcast
10.2¢ per thousand plays
Minimum fee
$100 per year
Community and non-commercial webcasters
Webcast
$25 per year
6. How do these rates compare with rates set in the United States for similar uses?
In the United States, for 2012, the rate that webcasters must pay for the same rights when their sole
business is webcasting is $1.10 per thousand plays (the “Pureplay rate”).
7. In general, how much royalties will commercial webcasters operating in Canada need to pay
in respect of this new Re:Sound Tariff?
The following table shows how much a webcaster would pay as a function of the number of plays it
transmits per year. The very large webcaster is based on the Board’s estimate for Pandora; the large
webcaster is based on the Board’s estimate for Songza. The very small webcaster pays the minimum
annual fee of $100 set in this decision.
Very Large
Large
Medium
Small
Very small
Webcaster
Webcaster
Webcaster
Webcaster
Webcaster
Plays per year
(millions)
3,000
70
15
1.5
0.5
Estimated Annual
Revenues
$5,800,000
$130,000
$30,000
$3,000
$1,000
Estimated Annual
Royalties
$306,000
$7,140
$1,530
$153
$100
8. How much will CBC pay?
The Board estimates that under this tariff, CBC will pay annual royalties of about $36,000 for all of
its webcasting operations, English and French.
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9. What was the process leading to the certification of this tariff?
The decision follows a public hearing that lasted 10 days where the Board heard experts and other
evidence from both Re:Sound and the potential music users who objected to the proposed tariff. The
Board also addressed a number of questions to all parties.
10. When does the tariff start to apply?
Re:Sound Tariff 8 starts to apply on January 1, 2009. Re:Sound is entitled by the Copyright Act to
collect royalties set in a tariff from the date on which the tariff takes effect. That date is determined
by the time at which the proposed tariff is filed, not by when the final tariff is certified. Re:Sound is
required to file a proposed tariff by March 31
st
of the year before it takes effect. Since Re:Sound filed
its proposed Tariff 8 in March 2008, it is entitled to collect royalties starting in 2009.
11. Is this tariff a tax?
No. Taxes are introduced by government, collected by government and spent for government
purposes. This tariff is a royalty, paid for the use of someone else’s intellectual property, to be
collected by a not-for-profit collective and distributed to individual rights holders. The purpose of
such royalties, established under the Copyright Act, is to provide fair compensation to performers and
record labels for the use of their sound recordings.
12. Why did the Board certify a tariff at all?
Artists and labels are entitled by the Copyright Act to be paid royalties for the use of their sound
recordings. Once a tariff is proposed by a collective society for a use protected under the Act, and
where there is proper and reliable evidence, the Board is required to certify a fair and equitable tariff
and has no discretion in this respect.
13. Can the Board create exemptions from the tariff?
No. The right of performers and record labels to royalties for the public performance of their sound
recordings is established by the Copyright Act. The Board cannot alter the requirements of the Act by
creating exemptions.
Note: The Certified Tariff, along with the Reasons and a News Release can be found on the
Board’s Website under “What’s New – Recent Decisions” at:
http://www.cb-cda.gc.ca/home-
accueil-e.html.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.