The problem is this. The Copyright Board conducted an overall valuation of all of the copies used by radio broadcasters. It determined that if it were forced to allocate value among the different types of copies, some value would go to backup copies, some value would go to main automation system copies and so on and so forth, until you get to 100%.
The Copyright Board found that 22% of that value was allocable to backup copies. In other words, radio stations derive commercial value from the copies they make and 22% of that is allocable to backup copies. There is therefore significant commercial value to those backup copies, yet the Copyright Board felt compelled, under the expanded backup copies exception, to remove that value from the royalties that are paid to rights holders.
Now, if that was a correct interpretation of the backup copies exception, then the Copyright Board may have had no choice but to do what it did. My point is simply that the intention of these exceptions must not be to exempt large commercial interests from paying royalties for copies from which they themselves derive significant commercial value. That's an example to me of a system of exemptions that's out of whack in the grand scheme of balance between the interests of rights holders, users and the public interest.