Copyright Board Canada
Canada



Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome: Fair decision-making to provide proper incentives for the creation and uses of copyrighted works.

The achievement of this outcome relates to innovation, which is a main source of competitive advantage in all areas of economic activity.

The use and re-use of cultural and entertainment content (such as musical and audio-visual works) have become widespread with the advent of new media and online services, new playback and editing technologies and new uses in conventional media. These matters relate to some of society’s most complex and contentious issues, including the downloading of content over the Internet using file-sharing software and the proliferation of duplication technologies which have the capability to make digital copies. At the same time, new opportunities for streaming video and audio files, whether interactively, semi-interactively, or passively have emerged. Personal video recorders and other similar devices used in conjunction with television sets have begun to blur lines between the broadcasting sector and the entertainment rental/purchase sector. Personal digital audio recorders have the capacity to store entire libraries of music, literally thousands of songs. It is in this environment that the Board must operate to achieve its strategic outcome.

The Copyright Board of Canada recognizes the need to ensure an effective and efficient copyright regulatory regime in order to attain the maximum productivity in those sectors that create and use copyrighted works. Further, the performance of the Copyright Board will promote a fair and competitive marketplace as well as reasonable opportunities for Canadian firms to export copyright protected goods and services in the music, for content creation and programming areas, as well as for the broadcasting, publishing and entertainment industries.

Program: Copyright Tariff Setting and Issuance of Licences

This activity is in direct relation to the Board’s mandate, the first part of which is to establish, either mandatorily or at the request of an interested party, the royalties to be paid for the use of copyrighted works, when the administration of such copyright is entrusted to a collective-administration society. This part of the mandate is delivered through the setting of copyright tariffs.

This activity is in direct relation to the Board’s mandate, the first part of which is to establish, either mandatorily or at the request of an interested party, the royalties to be paid for the use of copyrighted works, when the administration of such copyright is entrusted to a collective-administration society. This part of the mandate is delivered through the setting of copyright tariffs.

The second part of the Board’s mandate is to issue licences when the copyright owner cannot be located.

Budgetary Financial Resources (dollars)

2014-15 Main Estimates 2014-15 Planned Spending 2014-15 Total Authorities Available for Use 2014-15 Actual Spending (authorities used) 2014-15 Difference (actual minus planned)
2,524,213 2,524,213 2,653,798 2,486,300 37,913
 

Human Resources (Full-Time Equivalents [FTEs])

2012-13 Financial Resources ($ thousands)
2014-15 Planned 2014-15 Actual 2014-15 Difference (actual minus planned)
11 11 0
 
Performance Results
Program: Copyright Tariff Setting and Issuance of Licences
Expected Results Performance Indicators Targets Actual Results

Fair and Equitable Tariffs and Conditions

  1. Percentage of tariff decisions published within 12 months
  2. Percentage of licences issued within 45 days
  3. Level of satisfaction of stakeholders

70% of tariff decisions will be published within one year

70% of licences will be issued within 45 days

70% satisfaction rate

78% of tariff decisions were published within one year

86% of licences were issued within 45 days

Satisfaction rate of 72%

 

Performance Analysis and Lessons Learned

What follows is a brief description of the activities of the Board for this fiscal year.

TARIFF PROPOSED BY COLLECTIVES SOCIETIES

In March 2015, the following collective societies filed their proposed statements of royalties to be collected in 2016 and beyond:

Access Copyright

  • Proposed tariff for the reprographic reproduction of works by employees of educational institutions, 2016-2019

Artisti

  • Proposed tariff for the fixation of performances and the reproduction and distribution of performances fixed by performers in the form of phonograms, 2016-2018
  • Proposed tariff for making available to the public and for the reproduction, in Canada, of performances fixed in a sound recording by online music services, 2016-2018

CMRRA

  • Proposed tariff for the reproduction of musical works embodied in music videos by online music services, 2016 (Tariff 4)
  • Proposed tariff for the reproduction of musical works by commercial television stations, 2016 (Tariff 5)
  • Proposed tariff for the reproduction of musical works by the Television Services of the Canadian Broadcasting Corporation, 2016 (Tariff 6)
  • Proposed tariff for the reproduction of musical works by audiovisual services, 2016 (Tariff 7)

CSI

  • Proposed tariff for the reproduction of musical works by commercial radio stations, 2016
  • Proposed tariff for the reproduction of musical works by non-commercial radio stations, 2016
  • Proposed tariff for the reproduction of musical works by online music services in 2016

SOCAN

  • Proposed tariffs for the public performance or the communication to the public by telecommunication of musical or dramatico-musical works, 2016:
    • Tariff 1.A – Commercial Radio
    • Tariff 1.B – Non-Commercial Radio
    • Tariff 1.C – CBC Radio
    • Tariff 2.A – Commercial Television Stations
    • Tariff 2.B – Ontario Educational Communications Authority
    • Tariff 2.C – Société de télédiffusion du Québec
    • Tariff 2.D – Canadian Broadcasting Corporation
    • Tariff 6 – Motion Pictures Theatres
    • Tariff 9 – Sports Events
    • Tariff 15.A – Background Music in Establishments not Covered by Tariff No. 16 – Background Music
    • Tariff 15.B – Background Music in Establishments not Covered by Tariff No. 16 – Telephone Music on Hold
    • Tariff 16 – Background Music Suppliers
    • Tariff 17 – Transmission of Pay, Specialty and Other Television Services by Distribution Undertakings
    • Tariff 22 – Internet
    • Tariff 24 – Ringtones and Ringbacks
    • Tariff 26 – Pay Audio Services
  • Proposed tariffs for the public performance or the communication to the public by telecommunication of musical or dramatico-musical works, 2016-2018:
    • Tariff 25 – Satellite Radio Services

SODRAC

  • Proposed tariff for the reproduction of musical works embedded into cinematographic works for the purpose of distribution of copies of the cinematographic works for private use or theatrical exhibition, 2016 (Tariff 5)
  • Proposed tariff for the reproduction of musical works embedded in musical audiovisual works for their transmission by a service, 2016 (Tariff 6)
  • Proposed tariff for the reproduction of musical works embedded in audiovisual works for their transmission by a service, 2016 (Tariff 7)

Re:Sound

  • Proposed tariff for the communication to the public by telecommunication and the performance in public of published sound recordings embodying musical works and performers’ performances of such works by commercial radio simulcasts, 2016-2017 (Tariff 1.A.2)
  • Proposed tariff for the communication to the public by telecommunication and the performance in public of published sound recordings embodying musical works and performers’ performances of such works by the Canadian Broadcasting Corporation (CBC) simulcasts, 2016 (Tariff 1.C.2)
  • Proposed tariff for the communication to the public by telecommunication of published sound recordings embodying musical works and performers’ performances of such works by pay audio services simulcasts, 2016 (Tariff 2.B)
  • Proposed tariff for the communication to the public by telecommunication of published sound recordings embodying musical works and performers’ performances of such works by multi-channel subscription satellite radio services simulcasts, 2016-2018 (Tariff 4.B)
  • Proposed tariff for the communication to the public by telecommunication of published sound recordings embodying musical works and performers’ performances of such works in respect of the use of music to accompany live events, 2016-2020 (Tariff 5.A-J)
  • Proposed tariff for the communication to the public by telecommunication of published sound recordings embodying musical works and performers’ performances of such works in respect of the use of recorded music to accompany dance, 2016-2018 (Tariff 6.A)
  • Proposed tariff for the communication to the public by telecommunication of published sound recordings embodying musical works and performers’ performances of such works in respect of the use of recorded music to accompany adult entertainment, 2016-2018 (Tariff 6.C)
  • Proposed tariff for the communication to the public by telecommunication of published sound recordings embodying musical works and performers’ performances of such works in respect of non-interactive and semi-interactive webcasts, 2016 (Tariff 8)

REQUEST FOR ARBITRATION

The Board did not receive any request for arbitration in the year 2014-15.

On May 26, 2014, SODRAC informed the Board that it had reached an agreement with Bell Media inc. On July 14, 2014, SODRAC also informed the Board of an agreement reached with Corus Entertainment inc. Pursuant to subsection 70.3(1) of the Act, the Board did not proceed with the examination of these applications.

HEARINGS

During the fiscal year, the Board held two hearings. The first concerned the communication to the public by telecommunication and the reproduction of musical works by online music services. This hearing took place in November 2013, and final arguments were made in May 2014. The parties participating in the hearing were SOCAN, CSI, SODRAC, Apple Canada Inc. and Apple Inc., the Canadian Association of Broadcasters, Bell Canada, Rogers Communications, Quebecor Media Inc., TELUS, Videotron G.P., and Pandora Media Inc.

The second hearing concerned the reproduction rights of literary works by elementary and secondary schools. The hearing took place in April and May of 2014 and final arguments were heard in September 2014. The parties involved were Access Copyright and a number of education departments as well as school boards, represented as a single objector.

DECISIONS

During the fiscal year 2014-15, the following nine decisions in respect of the indicated collective society and tariff were rendered:

Canadian Broadcasters Rights Association (CBRA)
  • August 8, 2014 – CBRA Tariff for the Fixation and Reproduction of Works and Communication Signals, in Canada, by Commercial and Non-Commercial Media Monitors, 2011-2016
Canadian Private Copying Collective (CPCC)
  • December 12, 2014 – Private copying, 2015-2016
Re:Sound
  • April 17, 2014 – Re:Sound Tariff No. 6.B – Use of Recorded Music to Accompany Fitness Activities (2008-2012) [Interim Decision]
  • May 16, 2014 – Re:Sound Tariff No. 8 – Non-interactive and semi-interactive webcasts, 2009-2012
  • March 27, 2015 – Re:Sound Tariff No 6.B – Use of Recorded Music to Accompany Fitness Activities (2008-2012) [Redetermination]
Society of Composers, Authors and Music Publishers of Canada (SOCAN)
  • July 18, 2014 – SOCAN Tariffs 22.D.1 (Audiovisual webcasts) and 22.D.2 (Audiovisual user-generated content), 2007-2013
  • July 25, 2014 – SOCAN Tariff 4 (Concerts), 2009-2014
  • November 29, 2014 – SOCAN Tariffs 22.D.1 (Audiovisual webcasts) and 22.D.2 (Audiovisual user-generated content), 2007-2013 - Erratum
Society for Reproduction Rights of Authors, Composers and Publishers in Canada (SODRAC)
  • November 27, 2014 – SODRAC v. ARTV

UNLOCATABLE COPYRIGHT OWNERS

The Board received 29 licence applications and 7 licences were granted.

AGREEMENTS FILED WITH THE BOARD

Pursuant to section 70.5 of the Act, 137 agreements were filed with the Board.

Internal Services

Description

Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Budgetary Financial Resources (dollars)
2014-15 Main Estimates 2014-15 Planned Spending 2014-15 Total Authorities Available for Use 2014-15 Actual Spending (authorities used) 2014-15 Difference (actual minus planned)
592,099 592,099 622,496 583,206 8,893
 
Human Resources (Full-Time Equivalents [FTEs])
Planned 2014-15 Actual 2014-15 Difference 2014-15
3 3 0
 

Performance Analysis and Lessons Learned

This activity deals with financial and materiel management policies, systems, processes and standards. In implementing these policies, compliance with Parliament’s requirements for financial stewardship and integrity is ensured. This activity also encompasses the responsibility of providing human resource services.

The Board receives timely support from the services mentioned above.