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.
4:50 p.m.
Liberal
David Lametti Liberal LaSalle—Émard—Verdun, QC
The Copyright Board is dealing with the tariff and it's actually moving through the legal process.
4:50 p.m.
Chair, Board of Directors, Canadian Association of Broadcasters
That's a tariff that has been filed before the Copyright Board for reproduction works for SODRAC. It did go to the Supreme Court and we will respect that. They decided that was the way that the act had to be interpreted, so there's going to be an additional tariff to be paid by broadcasters on reproductions that are made mostly in the francophone market.
It is what it is. We are part of an ecosystem. If that's what has been decided, we're going to go with it.
4:55 p.m.
Liberal
David Lametti Liberal LaSalle—Émard—Verdun, QC
Okay.
Ms. Zaltz, do you have thoughts on that? You were the one who referred to SODRAC in an answer to one of your questions.
4:55 p.m.
Regulatory Affairs Director, National Campus and Community Radio Association
I'm not familiar with that particular decision or the impact that it would have on our sector. I'm not sure that it does have a significant impact. I would have to answer that question in writing.
4:55 p.m.
Conservative
Dane Lloyd Conservative Sturgeon River—Parkland, AB
I'll split my time with my colleague here.
I wanted to pick up on something when we had ended off with the community radio stations. Ms. Wheeler or Ms. Dorval, you might have more insight related to the two final tariffs that were listed that are paid. This would be the one to CMRRA and the SODRAC ones.
Could you describe what those tariffs are for, as exactly as you can? What are the purpose of those tariffs?
4:55 p.m.
Chair, Board of Directors, Canadian Association of Broadcasters
CMRRA-SODRAC are tariffs that are paid for the reproduction of musical work when they are used on radio stations.
4:55 p.m.
Vice-President, Legal and Business Affairs, Stingray Digital Group Inc.
It goes to publishers, writers and composers who are the members of CMRRA-SODRAC.
4:55 p.m.
Conservative
4:55 p.m.
Conservative
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Then SODRAC is for the francophone side.
How is that distinguished from the first tariff—for example, the performing rights or the Re:Sound rights? What's the distinction between those two things?
4:55 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
SOCAN is for the communication to the public by the composers and lyricists. Re:Sound is for the neighbouring rights—the performer and the owner of the sound recording, so the performer and the label. That's why it's split fifty-fifty. Then the CMRRA-SODRAC is the reproduction rights. That's when we take music from a digital service provider that is enabled by the labels and we download it to our hard drive. That triggers that reproduction right before we broadcast it for air.
4:55 p.m.
Conservative
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Thinking kind of big sky, policy-wise, is it necessary to have so many different tariff bodies? Is there some way it could be simpler? Could it be amalgamated and then provide the same benefits to the stakeholders? Would that help your business model?
4:55 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
Certainly it would help with the streamlining of our copyright liability. Right now, we have to defend ourselves or object to five different tariffs on a regular basis, sometimes without knowing what the rate is because of the length of the Copyright Board decisions. That certainly is an administrative challenge for us.
However, in fairness, they are separate rights recognized under the legislation. I have asked that question to our copyright council in the past. I've been told that to try to consolidate or unwind it would actually pull the strings that have been referenced earlier on in this committee appearance, and unravel certain fabric that has been woven together under this legislation.
4:55 p.m.
Conservative
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Thank you.
I'll pass it on to my colleague here.
4:55 p.m.
Vice-President, Legal and Business Affairs, Stingray Digital Group Inc.
If I may answer your question also.
Stingray does business outside of Canada and we've seen in many countries where some of the collectives have merged and represent both performance rights or communication rights and reproduction rights. It does help with the efficiency.
I can also tell you that it helps in terms of piracy. If it's easier to license a product, then there are fewer chances that you will have a lot of people going around and thinking that they are fully licensed. Not all people operate an illegal service knowingly. Some of them got a licence from SOCAN and from SODRAC and they think they are good to go but no, they're missing Connect or they're missing CMRRA. If everything were merged, or at least most of them were merged, it would make it easier for people.
4:55 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
I think there's a distinction between the administration of the right and the actual right in the legislation.
4:55 p.m.
Central Okanagan—Similkameen—Nicola, CPC
I would like to go back to the royalty exemption again. Once a station hits that $1.25 million, how does the process change in terms of paying the tariff?
4:55 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
We pay $100 on the first $1.25 million and then the Copyright Board sets a tariff for the revenue threshold over and above that amount.
5 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
We estimate that about 40% of our membership would be over that cap.
5 p.m.
Central Okanagan—Similkameen—Nicola, CPC
Okay, and roughly how much would they then be paying versus the other 60%?
5 p.m.
Chair, Copyright Committee, Canadian Association of Broadcasters
On that particular tariff?
