I certainly wouldn't want to target the festival in particular because I don't know its situation, but some festivals don't pay us. I'd like to take it for granted that that one pays us, but some don't pay us. What especially troubles us here are the very big or enormous festivals such as the jazz and blues festivals that refuse to pay us on the ground that they are charities within the meaning of the Income Tax Act. However, the fact that they're designated as such doesn't automatically mean they're using musical works for charitable purposes.
Here's a specific example. The benefit concert that was held following the Lac-Mégantic tragedy was definitely a charity event, and, to my knowledge, all those who took part in it donated their time, products, and services. SOCAN would've done the same had it had to do so. The exception is entirely appropriate in that case.
However, it's different for festivals that are simply commercial in nature, that have nothing to do with fundraising, and that may be considered as competing with commercial producers. Why would those organizations, which take in millions of dollars in revenues, not pay the creators of the music that is performed, particularly since their only ground is that they've obtained charitable status from the Canada Revenue Agency?