Copyright Board of Canada

 
 

2014-2015

 
 

Report on Plans and Priorities

 
 

 

James Moore
Minister of Industry


Ministerís Message

Ministerís Message Canada is poised to enjoy continued economic stability in 2014-15, with a focus on balanced budgets. The country's strong consumer- driven marketplace, world-class research hubs, educated and productive workforce, strong financial institutions, and transparent and predictable regulatory environment are just a few of its many competitive advantages.

As Minister of Industry, I am pleased that the Industry Portfolio is building on these strengths by encouraging innovation, modernizing Canada's marketplace policies, and effectively managing programs and services.

In further developing the federal Science, Technology and Innovation Strategy, the Industry Portfolio aims to strengthen the private sector's participation in Canadian science and technology, knowledge and innovation. This year, small and medium-sized enterprises will also be better served by improved access to information, programs and services offered by Industry Canada, the portfolio partners and the Government of Canada.

In 2014-15, the Copyright Board of Canada will continue rendering decisions related to tariffs of general application and issuing licences when parties cannot agree or the owner of the work cannot be found. These decisions will continue to be based on the principle of ensuring fairness, while seeking to provide tangible incentives for the creation and use of copyrighted works in Canada. The Board will also examine possible avenues for improving its practices and procedures while safeguarding fairness.

In support of the government's efforts to return to fiscal balance, the Industry Portfolio will

continue to ensure financial and human resources are managed responsibly and efficiently.

This year's Report on Plans and Priorities defines our approach to supporting a competitive marketplace; facilitating advancements in science, technology and innovation, and their resulting economic and social benefits; and driving the competitiveness of Canadian businesses and communities. On behalf of the Industry Portfolio, I am confident we will meet our objectives and fulfill the promise of another successful year.

The Honourable James Moore
Minister of Industry

Section I: Organizational Expenditure Overview

Organizational Profile

Minister: The Honourable James Moore

Deputy Head: Claude Majeau, Vice-Chairman and CEO

Ministerial portfolio: Industry Canada

Year established: 1989

Main legislative authorities: Copyright Actv

Organizational Context

Raison díÍtre

The Copyright Board is an economic regulatory body empowered 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. The Board also has the right to supervise agreements between users and licensing bodies and issues licences when the copyright owner cannot be located.

Responsibilities

The responsibilities of the Copyright Board under the Act are to:

  • certify tariffs for
    • the public performance or the communication to the public by telecommunication of musical works and sound recordings;
    • the doing of any protected act mentioned in sections 3, 15, 18 and 21 of the Act; and,
    • the retransmission of distant television and radio signals or the reproduction and public performance by educational institutions, of radio or television news or news commentary programs and all other programs, for educational or training purposes.
  • set levies for the private copying of recorded musical works;
  • set royalties payable by a user to a collective society, when there is disagreement on the royalties or on the related terms and conditions;
  • rule on applications for nonexclusive licences to use published works, fixed performances, published sound recordings and fixed communication signals, when the copyright owner cannot be located;
  • examine agreements made between a collective society and a user which have been filed with the Board by either party, where the Commissioner of Competition considers that the agreement is contrary to the public interest;
  • receive such agreements with collective societies that are filed with it by any part y to those agreements withindays of their conclusion; and,
  • determine the compensation to be paid by a copyright owner to a person to stop her from performing formerly unprotected acts in countries that later join the Berne Convention, the Universal Convention or the Agreement establishing the World Trade Organization.

Finally, the Minister of Industry can direct the Board to conduct studies with respect to the exercise of its powers.

Strategic Outcome and Program Alignment Architecture (PAA)

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

1.1 Program: Copyright Tariff Setting and Issuance of Licences

Internal Services

Organizational Priorities

Priority Type1 Strategic Outcome
Ensure timely and fair processes and decisions Ongoing Fair decision-making to provide proper incentives for the creation and use of copyrighted works
Description

Why is this a priority?

The requirement to have timely decisions is expressly stated in the Act: the Board is to certify and publish tariffs "as soon as is practicable." The requirement to have fair processes and decisions is implicit: the Act gives the Board the powers, rights and privileges of a superior court; as such, the Board is required to follow the principles of natural justice which, taken together, ensure both fair processes and fair outcomes.

Plans for meeting this priority

To achieve this priority, the Board will need to ensure that participation costs in the hearing process are kept as low as possible, thus encouraging participation of the parties and streamlining the process. The Board will also need to provide appropriate guidance, information and analysis to the participants in order to facilitate the examination process and to foster greater participants' satisfaction. This will be done, in particular, through telephone advisories and case management meetings with representatives. Finally, by engaging in pre-hearing consultations and information gathering, and by conducting well-organized proceedings which address key issues facing copyright-related industries, the Board will be able to issue timely and fair decisions.

The monitoring of this priority will be achieved by informally surveying hearing participants, with follow-up examination and determination of alternative procedural practices to improve the efficiency of the regulatory process. The achievement of this result is also directly monitored through the timely conduct of hearing processes and lack of interruption in proceedings due to administrative and technical delays.

In addition, the implementation of a pre-hearing joint statement of (non-contested) facts and handling of legal issues solely through written submissions will improve the efficiency of the process. Finally, the Board plans to continue to examine, for each process, how to structure and sequence witnesses and hearing stages so as to eliminate duplication and maximize time spent on relevant issues.

In addition, the Board established a working group comprised of key stakeholders that will examine possible avenues to improve the Board's rules of practice and procedure. These improvements should aim at reducing uncertainty and streamlining the procedures while safeguarding the fairness of the process. The Board plans to have further meetings of this working group in 2014-15.

The rationale underlying this priority is to minimize administrative costs to Canadians from the setting of tariffs and to streamline the process in the face of increasing complexities in hearing subject matter, thus increasing regulatory efficiency. To the extent that this also leads to fairer decision-making, the overall innovation capability of parties affected by the copyright tariff process will be improved.

Priority Type Strategic Outcome(s) and/or Program(s)
Advance the analytical framework for decisions and the regulatory processes for tariff-setting Ongoing Fair decision-making to provide proper incentives for the creation and use of copyrighted works
Description

Why is this a priority?

The Board is required, under the Act, to give reasons for its decisions. In keeping with the modern principles of judicial review, the Federal Court of Appeal typically defers to the Board's expert understanding of the facts before it. The Board can only maintain this defere nce by constantly advancing its analytical frameworks.

Plans for meeting this priority

Among the most significant risks which the Board faces in achieving its strategic outcomes are the potentially disruptive impact of new technologies, in particular on how copyright material is utilized, distributed and monitored. Fair and equitable decisions critically depend on the Board's ability to identify, understand and assess the industry issues before they adversely impact

existing copyright regimes. The Board's approach to managing the technology risk is to systematically monitor relevant journals, other publications and websites, and to attend industry seminars and conferences.

Knowledge of the international experience is also a key tool in addressing the challenges of changing technology and the impact of global events. By comparing experiences across different countries, the Board expects to gain early warning of significant developments and their likely impacts on the Canadian situation.

Leadership in copyright matters will continue to build on the groundwork performed in the past. The Board plans to continue its leadership role in the establishment and expansion of international activities such as sharing of procedures, data, analysis and other informatio n. With a view to further this leadership, the Board will continue to be actively involved with the international organization Society for Economic Research on Copyright Issues in 2014-15.

By its involvement in international activities as they relate to copyright tariff setting in other parts of the world, the Board ensures that its own tariff-setting processes and decisions are cognizant of developments outside of Canada.

 

1 Type is defined as follows: previously committed to - committed to in the first or second fiscal year prior to the subject year of the report; ongoing - committed to at least three fiscal years prior to the subject year of the report; and new - newly committed to in the reporting year of the RPP or DPR.

 

Risk Analysis

Risk Risk Response Strategy Link to Program Alignment Architecture
Technology risk
  • Systematically monitor relevant journals, other publications and web sites, and to attend industry seminars and conferences.
  • Risk was identified in theRPP.
  • No modifications to the risk mitigation strategies.
Fair decision-making to provide proper incentives for the creation and use of copyrighted works.
Reversal risk
  • Issue fair and equitable decisions.
  • Risk was identified in the 2013-14 RPP.
  • No modifications to the risk mitigation strategies.
Fair decision-making to provide proper incentives for the creation and use of copyrighted works.
HR risk
  • Run well-organized job competitions, designed to target a significant share of the pool of potential candidates;
  • Take measures to encourage a large number of applications;
  • Create a stimulating working environment conducive to a high retention rate among its employees;
  • Risk was identified in the 2013-14 RPP;
  • No modifications to the risk mitigation strategies.
Fair decision-making to provide proper incentives for the creation and use of copyrighted works.
 

Among the most significant risks which the Board faces in achieving its strategic outcomes is the potentially disruptive impact of new technologies (i.e., in terms of how copyright material is utilized, distributed and monitored). The Board's approach to managing the technology risk is to systematically monitor relevant journals, other publications and web sites, and to attend industry seminars and conferences, as described before in this report.

The decisions the Board makes are constrained in several respects. These constraints come from sources external to the Board: the law, regulations and judicial pronouncements. Others are self- imposed, in the form of guiding principles that can be found in the Board's decisions: for instance, the coherence between the various tariffs, their ease of administration and the need for some stability in the tariffs.

Court decisions also provide a large part of the framework within which the Board operates. Most decisions focus on issues of procedure, or apply the general principles of administrative decision-making to the specific circumstances of the Board. However, the courts have also set out several substantive principles for the Board to follow or that determine the ambit of the Board's mandate or discretion.

A smaller risk, which the Board faces in achieving its strategic outcome, is reversal risk. While decisions of the Board are not appealable, they are subject to judicial review. The ability to schedule a number of cases in a year could be impaired if a case from a previous year were reversed on judicial review. The Board's principal strategy to mitigate this risk is issuing fair and equitable decisions.

There is always a risk of not being able to hire or retain the staff with the necessary t echnical expertise to achieve required results. To mitigate this risk, the Board runs well-organized job competitions, designed to target a significant share of the pool of potential candidates. The Board also takes measures to encourage a large number of applications. The Board also works at creating a stimulating working environment conducive to a high retention rate among its employees.

Planned Expenditures

Budgetary Financial Resources (Planned Spending - Dollars)
2014-15
Main Estimates
2014-15
Planned Spending
2015-16
Planned Spending
2016-17
Planned Spending
3,116,312 3,111,187 3,104,640 3,104,640
 
Human Resources (Full-time equivalents - FTEs)
2014-15 2015-16 2016-17
16 16 16
 
Budgetary Planning Summary
Strategic Outcome(s), Program(s) and Internal Services 2011-12
Expenditures
2013-14
Expenditures
2013-14
Forecast Spending
2014-15
Main Estimates
2014-15
Planned Spending
2015-16
Planned Spending
2016-17
Planned Spending
Strategic Outcome 1: Fair decision-making to provide proper incentives for the creation and use of copyrighted works
Copyright Tariff Setting and Issuance of Licences 2,058,000 2,032,000 2,533,676 2,524,213 2,514,213 2,520,061 2,514,758
Strategic Outcome 1 2,058,000 2,032,000 2,533,676 2,524,213 2,514,213 2,520,061 2,514,758
Internal Services 483,000 477,000 594,319 592,099 592,099 591,126 589,882
Total 2,541,000 2,509,000 3,127,995 3,116,312 3,116,312 3,111,187 3,104,640
 

For fiscal year 2012-13, total expenditures for the Board's unique strategic outcome were $2 million, essentially unchanged since 2011-12. The 2013-14 forecast spending is about $2.5 million, $500,000 above 2012-13 expenditures. This is mainly the reflection of processes that are now in place to fill positions that are vacant at the Board.

Over the next three fiscal years, total planned spending for the strategic outcome will be about $2.5 million essentially the same as the 2013-14 forecast spending.

Alignment to Government of Canada Outcomes

2014-15 Planned Spending by Whole-of-Government-Framework Spending Areavi
(Dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2014-15 Planned Spending
Fair decision-making to provide proper incentives for the creation and use of copyrighted works Copyright Tariff Setting and Issuance of Licences Economic Affairs An innovative and knowledge-based economy 2,514,213
 
Total Planned Spending by Spending Area (Dollars)
Spending Area Total Planned Spending
Economic Affairs 2,524,213
Social Affairs
International Affairs
Government Affairs
 

Departmental Spending Trend

Departmental Spending Trend Graph

Departmental Spending Trend Graph

For fiscal year 2012-13, total expenditures were $2.5 million, essentially unchanged since 2011-12. The 2013-14 forecast spending are at about $3.1 million, $600,000 above 2012-13 expenditures. This is mainly the reflection of processes that are now in place to fill positions that are vacant at the Board.

Over the next three fiscal years, total planned spending will be about $3.1 million, essentially the same as the 2013-14 forecast spending.

Estimates by Vote

For information on the Copyright Board's organizational appropriations, please see the 2014-15 Main Estimates publication.vii

Section II: Analysis of Program Activities by Strategic Outcome

Strategic Outcome

The Board's strategic outcome is fair decision-making to provide proper incentives for the creation and uses of copyrighted works.

Program 1.1: Copyright Tariff Setting and Issuance of Licences

The statutory mandate of the Board is to establish tariffs to be paid for the use of copyrighted works, when the administration of such copyright is entrusted to a collective-administration society, and to issue licences when the copyright owner cannot be located. This program activity allows the Board to renders decisions and issue licences such that the Board fulfills its mandate.

Budgetary Financial Resources (dollars)
2014-15
Main Estimates
2014-15
Planned Spending
2015-16
Planned Spending
2016-17
Planned Spending
2,524,213 2,514,213 2,520,061 2,514,758
 
Human Resources (FTEs)
2014-15 2015-16 2016-17
14 14 14
 
Performance Measurement
Program Expected Results Performance Indicators Targets
Fair decision-making to provide proper incentives for the creation and uses of copyrighted works
  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
 

Planning Highlights

To ensure fair decision-making, the Board periodically measures stakeholders' satisfaction. A formal survey was conducted electronically. The survey assesses the degree of satisfaction of its stakeholders with regard to the services it provides as part of a process leading to the issuance of

a licence when the copyright owner cannot be located. We believe that an initial satisfaction rate target of 70 per cent is reasonable. The results of this survey will be reported in the next Departmental Performance Report of the Board.

In addition, in view of assessing the degree of satisfaction in respect of the process leading to the certification of a tariff, the Board held consultation meetings with its stakeholders. These consultations led to the establishment of a Working Committee whose mandate is to propose possible changes to procedures that may lead to Board proceedings being more efficient and, possibly, less costly, and propose improvements to other aspects of Board processes and operations that may enhance the quality of the Board's services to collective societies, copyright users and the public in general. The Working Committee is expected to hold meetings during fiscal year 2014-15.

Improving the efficiency of the regulatory process involves continual refinements in scheduling of witnesses, establishing and communicating the parameters of the hearing to participants, consulting with key stakeholders and developing codes of hearing practice and related guidelines for the conduct of hearings. By improving the efficiency of the tariff hearing pro cess, this

activity is expected to contribute to the objective of reducing the regulatory burden.

Delays in providing written decisions to Canadian copyright industry stakeholders can cause uncertainty, thus impacting on the Board's capacity to provide incentives for the creation and use of copyrighted works. Therefore, we will gather data on the number of months between the date when a particular tariff file is closed, and the date of the corresponding decision.

With respect to the number of months before a tariff decision is issued, the Board believes that a target of 12 months should be set for the next fiscal year, with a complying percentage of 70 per cent. Considering that the Board's resources have been increased only recently, it would be unrealistic to set a shorter target. However, in the next few years, while currently vacant positions are being gradually filled, the Board will re-examine the possibility of reducing the

12-month target.

In addition, pursuant to section 77 of the Act, the Board may grant licences that authorize the use of published works, fixed performances, published sound recordings and fixed communication signals if the copyright owner cannot be located. Since 1989, the Board has issued 266 such licences. The Board's objective with respect to this activity is to issue licences in a timely manner. Therefore, we will also gather data on the number of months between the date when a particular licence file is closed, and the date of issuance of the licence.

With respect to the number of months before a licence is issued, the Board believes that a delay of 45 days between the file completion date and the issuance of the licence is appropriate, and that this delay should be met in at least 70 per cent of the files.

Internal Services

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.

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.

Financial Resources (dollars)
2014-15
Main Estimates
2014-15
Planned Spending
2015-16
Planned Spending
2016-17
Planned Spending
592,099 592,099 591,126 589,882
 
Human Resources (FTEs)
2014-15 2015-16 2016-17
2 2 2
 

Planning Highlights

The Board receives timely support from internal services, namely: finance; human resources; communications; information management and information technology. This activity contributes to the creation of an environment that will allow the Board to fulfill its mandate and realize its objective.

In 2014-15, Internal Services will continue to carry out a human resources plan that provides for the staffing of some positions, notably a senior legal counsel and a senior clerk, thus reducing the number of vacant positions.

Section III: Supplementary Information

The future-oriented financial highlights presented within this RPP are intended to serve as a general overview of the Board's financial position and operations. These future-oriented financial highlights are prepared on an accrual basis to strengthen accountability and improve transparency and financial management.

Future-Oriented Financial Statements

The future-oriented condensed statement of operations presented in this subsection is intended to serve as a general overview of the Copyright Board's operations. The forecasted financial information on expenses and revenues are prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management.

Because the future-oriented statement of operations is prepared on an accrual accounting basis and the forecast and planned spending amounts presented in other sections of this report are prepared on an expenditure basis, amounts will differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net costs of operations to the requested authorities, can be found on the Board's website at: http://www.cb-cda.gc.ca.

Future-Oriented Condensed Statement of Operations
For the Year Ended March 31
(dollars)
Financial information Estimated Results
2013-14
Planned Results
2014-15
Change
Total expenses 3,516,203 3,506,118 (10,085)
Total revenues - - -
Net cost of operations 3,516,203 3,506,118 (10,085)
 

Total expenses are estimated in 2013-14, and planned for 2014-15, at essentially the same level of $3.5 million. Because the Copyright Board has no revenues, the net cost of operations was also constant at $3.5 million.

Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations viii publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.

Section IV: Organizational Contact Information

Copyright Board of Canada
Suite 800 - 56 Sparks Street
Ottawa, Ontario K1A 0C9
Telephone : 613.952.8621
E-mail : secretariat@cb-cda.gc.ca


  1. Treasury Board Secretariat Website: http://publiservice.tbssct.gc.ca/ems-sgd/esp-pbc/esp-pbc-eng.asp
  2. Selected Departmental Performance Reports for? Department of Industry, Department of Transport. Report of the Standing Committee on Public Accounts, September 2010: http://www.parl.gc.ca/HousePublications/Publication.aspx?Mode=&Par l=40&Ses=3&Language=E&DocId=4&File=0
  3. Report of the Standing Committee on Government and Operations Estimates, June 2012: http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=&Language=E&Mode=1&Parl=41&Ses=1
  4. Wholeof-government framework: http://publiservice.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx
  5. Copyright Act: http://laws-lois.justice.gc.ca/eng/acts/C-42/index.html
  6. Wholeof-Government-Framework Spending Area: http://publiservice.tbs-sct.gc.ca/ppg-cpr/frame-cadre- eng.aspx
  7. Main Estimates: http://www.tbs-sct.gc.ca/ems-sgd/esp-pbc/esp-pbc-eng.asp
  8. Tax Expenditures and Evaluations: http://www.fin.gc.ca/purl/taxexp-eng.asp