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Bill C-11 committee  Good morning, Mr. Chairman, members of the committee, and ladies and gentlemen. I'm Michael McCarty, president of ole. We're Canada's largest music publisher. We have over $115 million invested in music copyrights. With that kind of investment on the line, we have a keen interes

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  Thank you. I'm not sure whether that's a TPM question or not, but those are different uses of music that use different technologies that invoke different rights of ours. In a reproduction environment, it's using a reproduction right. In a streaming environment, it's using both r

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  Right now, Firefox browser has a built-in StreamRipper. We have technology on our website to prevent people from ripping our streams of our music, including Taylor Swift, and kids get around it.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  If I could, I'd like to segue into the broadcast mechanical for a second. It has been said that it's double-dipping and paying twice. My neighbour, a guy named Chris, who works for one of the major broadcasters in Canada, has said that to me. He said, “I don't mind paying for m

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  I think you could lay that curve out and put a mirror image going downward for the music industry.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  We're the R and D of the industry. When you say that it only goes to the publishers, approximately 75% of every dollar we collect goes on to the songwriter and the composer. We're a middleman, in that sense. It's a false impression to think that the money stops when we get it.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  Well, most of the creators in the music industry are individuals in small businesses, and the cost of getting a major telecom to do that kind of work could easily be prohibitive for them. They would not be able to do it. As it is now, there's a similar system on YouTube, and we'r

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  It’s the free riders I was referring to, the people who profit parasitically from piracy. In the ISP situation, they're selling bandwidth to people who are pirating music and movies and other copyrighted materials; that's how they profit. They're not, by the way, dumb pipes; they

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  They could discriminate between different types of traffic on the network. They can identify their customers. They can identify child porn for the criminal investigators. They're not neutral. They're not dumb pipes.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  That process and resource would be required to avoid paying the royalty. My advice would be to pay the royalty.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  No. They could just take it to the hard drive and copy it.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  I don't know the details of his testimony, but it's not that hard to copy a hard drive. The point is that in discussions with the broadcasters, I'm well aware that most of them are intending to do whatever it takes to avoid playing the royalty.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  No, I don't, because, as I said, there are different rights. You know, I have a cable connection that I get from one of the big brand-name Canadian cable companies. If I want to add the Leafs to that, I have to pay separately. It's a new bundle, a new bundle of rights or elements

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  I believe that, first of all, it's not the rate that has tripled, or doubled, or whatever it has done; it's the increasing amount of repertoire that qualifies. They didn't used to pay on all the repertoire, and now they're paying on more of the repertoire that they use.

March 1st, 2012Committee meeting

Michael McCarty

Bill C-11 committee  The impact on the collective system will be serious. The revenues from the other sources are declining as it is, so combined it will really undermine the collective system. The collective licensing system is actually extremely helpful and invaluable to the licensees because it's

March 1st, 2012Committee meeting

Michael McCarty