OTTAWA – Despite three tornados having torn through the city just days prior, the Standing Committee on Industry, Science and Technology reconvened in Ottawa on Monday to further discuss the Statutory Review of the Copyright Act.
Speaking before the committee, Nathalie Dorval, chair of the board of the Canadian Association of Broadcasters and VP regulatory and copyright at Cogeco Inc., noted private radio broadcasters have contributed $47 million in Canadian content development funding.
Dorval said the majority of this funding is directed to Canada’s four largest music funding agencies, FACTOR, Quebec’s Musicaction, Radio Starmaker Fund and Fonds Radio Star, all of which provide support to both Canadian record labels and artists export their music to an international audience.
She said the current copyright act upholds a delicate balance of ensuring artists are remunerated for their work while also ensuring local radio has a reasonable and predictable copyright regime that reflects its continued investment in local communities.
“While the rate structure for Neighbouring Rights payment is subject to a special measure as Parliament intended in 1998, the music industry still collects more than $91 million in copyright payments from private radio each year,” Dorval said.
“If Parliament agrees to amend the Copyright Act by removing this exemption, the primary beneficiary will be the multinational record labels, who are proposing it. Under the existing Neighbouring Rights regime, payments are allocated 50/50 between performers and record labels. Where the money flows from there is unclear and worth further discussion before any amendments to the Act should be contemplated,” she continued.
Based on publicly available information, Dorval said Re:Sound, which collects Neighbouring Rights Royalties on behalf of Canadian artists, claims 14% in administration costs before any royalties are paid out. The disbursement of the remaining funds is then concealed by record labels, she says.
“If Parliament agrees to amend the Copyright Act by removing this exemption, the primary beneficiary will be the multinational record labels, who are proposing it.” – Nathalie Dorval, CAB
“The Canadian Association of Broadcasters urges the committee to reject any proposed amendment to the Copyright Act that would harm the Canadian broadcasting sector and jeopardize the important local service that broadcasters provide to Canadians.”
Annie Francoeur, Stingray Digital’s VP of legal and business affairs, told the committee her company actively participates in the development and promotion of Canadian artists, and that, during the last broadcast year, it has spent almost $379,000 in Canadian content development initiatives. Stingray’s primary business is delivering multiple music channels to TV service providers and other commercial clients in Canada and around the world and will soon be one of the largest radio station owners in Canada when its purchase of Newcap Broadcasting is approved.
In addition to featuring editorial coverage on its website, Stingray also hosts exclusive live performances from both new and established artists, which it distributes via the company’s social media channels, she noted.
Francoeur said the Copyright Act is fine as it is.
“We do not believe that any amendments are necessary. We believe the current Copyright Act establishes the right balance between rights holders and users such as Stingray,” she offered.
Freya Zaltz of the National Campus and Community Radio Association says the current Copyright Act helps provide community radio stations across the country with “certainty and protection” from some tariff increases that could otherwise impact their financial viability.
“Campus and community stations reflect the diversity of the communities they serve,” Zaltz said. “The Canadian music industry and the public derive great benefit from the support [campus and community] broadcasters provide to Canadian artists to provide diverse content and exposure for new artists. Because these stations focus on achieving their mandate rather than generating profit, they can afford to take the risk of playing works by unknown artists who otherwise lack radio exposure.”
Zaltz says one of the association’s primary concerns in the impending revision of the act is ensuring the portion of the Copyright Act that limits campus and community radio’s contributions to Re:Sound remains consistent at $100 per year.
