Evidence of meeting #127 for Industry, Science and Technology in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was artists.
A video is available from Parliament.
4:15 p.m.
NDP
Brian Masse NDP Windsor West, ON
How does that relate to advertising revenue, and attracting advertisers and revenue coming into the station?
Is there a correlation there as well?
4:15 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
Certainly I think that has been an ongoing challenge with border stations. That isn't exclusive to copyright; it's a matter of having a different regulatory regime in place in the Canadian market than you have in the U.S. market. There are certain operational costs associated with that which won't have parity across the border.
4:15 p.m.
Liberal
The Chair Liberal Dan Ruimy
Thank you very much.
We're going to move to Mr. Graham. You have seven minutes.
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
Thank you.
I will start with Ms. Dorval, and I will continue along the same lines as Mr. Masse's questions.
You say that the United States does not pay fees, that there is no such system. How is copyright managed in the United States for radio stations?
4:15 p.m.
Chair, Board of Directors, Canadian Association of Broadcasters
They do not pay for sound recordings, because they are related rights. This does not mean that they do not pay any copyright fees. This is the comparative measure we have used for this tariff, knowing that they have asked you to repeal the exemption provided for in section 68.1 of the act to increase those payments.
On the broader issue of the remuneration of copyright in the United States, I am not in a position to answer.
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
What's the relationship between Ms. Zaltz and Ms. Dorval and these organizations? Is it close, between campus and community and commercial radio, or is there a lot of tension between the two sides?
Could either of you answer that?
4:15 p.m.
Chair, Board of Directors, Canadian Association of Broadcasters
To my knowledge, there is no tension between the two sides, even if we look at the francophone market, where Cogeco radio is helping the community station in Montreal.
I would say in the French market, I have not experienced or seen any tension there.
4:15 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
It would be the same in the English market.
We should note, too, that as part of our regulatory requirements, we direct a portion of our revenues to a C and C radio association.
4:15 p.m.
Liberal
4:15 p.m.
Regulatory Affairs Director, National Campus and Community Radio Association
Could I ask you to clarify?
Is there a specific aspect that you're referring to in terms of tension?
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
In terms of what you're doing here, I'm wondering if C and C radio and the commercial radio stations agree with each other, or if you find disagreements between your positions.
4:15 p.m.
Regulatory Affairs Director, National Campus and Community Radio Association
Thank you. As far as I can tell, our positions are complementary, as they often are on copyright tariff issues. I don't see any difference of opinion here.
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
This applies to all of you.
When you play music, how do you know which of the five different tariff systems you have to pay into, or maybe you're playing something that doesn't even apply to this, and how do you know?
Is there some way of very quickly telling which regime a piece of music is under?
4:15 p.m.
Chair, Board of Directors, Canadian Association of Broadcasters
We pay the five tariffs, and then it's redistributed by the collective that oversees these tariffs. However, we pay the five tariffs all the time.
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
You can play any music you want in confidence that it will be covered by one of those tariffs.
4:15 p.m.
Chair, Board of Directors, Canadian Association of Broadcasters
Yes. It's not one or the other tariff; we pay the five of them.
4:15 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
We pay SOCAN, Re:Sound, CONNECT, Artisti and SODRAC.
4:15 p.m.
Chair, Board of Directors, Canadian Association of Broadcasters
This is for a total of $91 million for private radio stations per year.
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
With regard to the $100 that goes up to $1.25 million of revenue, if a company owns 20 different radio stations, and each one has its own call sign and is, effectively, a different station, is it revenue for the full company, or is each one of those radio stations administered separately for the $100?
4:15 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
It's on an individual market basis.
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
So, if a whole bunch of radio stations are each under the thresholds for the $100, then they don't have to pay a whole lot.
4:15 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
With regard to the particular Re:Sound tariff, they wouldn't. If their revenues are under $1.25 million, they'd only pay $100.
4:15 p.m.
Liberal
David Graham Liberal Laurentides—Labelle, QC
Okay.
With the rise of Internet radio, what are your ideas of how we address that? Anybody can set up a streaming service on their computer at home and they have an Internet radio station. They, obviously, don't pay into collectives. Is that something that has to be regulated, or are you saying that we should let that be as part of the organic Internet sphere?
4:20 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
I'll defer to my colleague from Stingray, but my understanding is that Internet radio broadcasters do pay copyright. They would be required to pay copyright.