Thank you very much for having us here today.
I have been in the Canadian music industry for about 16 years. I'm a CPA by profession, so we all know how my brain works. I knew nothing about the industry when I first started, and I have grown to be a very passionate advocate for the power of music and what it means for the culture of Canada.
I started in the industry when it was on a decline, and I have seen the ability for an artist to join the middle class dwindle down. I've been involved in economic impact studies that have clearly shown the value gap, as well as the erosion of our industry. I know that some of the members around this table are new to the committee and were not here when many of our colleagues in the music sector appeared here before the summer recess. It may not surprise you to hear that we are very supportive of their recommendations.
We have four of them.
First, we call on the committee to to remove the $1.25-million radio royalty exemption. For two decades, commercial radio stations have been exempt from paying proper royalties on the first $1.25 million in advertising revenues. Much of this has changed in the business model of revenue, and this temporary exemption has done its job and should now be removed.
Second, the definition of a sound recording needs to be amended in the Copyright Act to allow performers and record labels to receive royalties for the use of their works in television and film soundtracks. As it stands currently, the composer of the work will receive compensation, but the performer won't. This substantial oversight is costing artists over $45 million a year in lost revenue and needs to be corrected.
Third, we need to extend the term of copyright for musical works to match our international partners. This has been a constant request not only from individual artists, but organizations such as CIMA, CMPA and SOCAN. Under our current laws, protection of musical works extends for the duration of the author's life plus 50 years. Almost all of our major trading partners, including those in the European Union and the United States, have terms of life plus 70 years for authors of musical works, which includes all music publishers, songwriters and composers. Not only would this bring Canada in line with its international trading partners, it would also ensure there is a robust compensation to allow these creators and their families to continue to receive monetary value for their works.
Finally, it's time that we bring support for creators into the 20th century. The private copying regime, which brings much-needed compensation directly into the hands of creators for copies of their music that are made, now applies only to media that are either out of date or obsolete, such as the blank CD or, until recently, the cassette tape. The regime needs to be made technologically neutral to keep up with the changes in how Canadians are making copies of their music today. This important source of income for over 100,000 music creators will soon be gone if the changes are not enacted soon.
I know for certain that these four changes will have a significant impact on our music sector, based on the work that I've done in the industry and what I have seen happen. It will ensure that we have a vibrant Canadian culture of music that we can continue to celebrate on the stage at the Juno awards each and every year across this country.
As a proud Canadian having belief in everything that we do as world leaders, I say that Canada can do better here, and Canada needs to do better here.
Thank you for your time. I look forward to your questions.