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SECTION II: Analysis of Program Activities by Strategic Outcome
2.1 Strategic Outcome: Fair decision-making to provide proper incentives for the creation and use of copyrighted works
The Board’s strategic outcome is to ensure 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 endeavour.
The use and re-use of cultural and entertainment content (such as musical works) have become widespread with the advent of new media and on-line services, new playback and editing technologies and new uses in conventional media. These matters manifest themselves in some of society’s most complex and contentious issues, including the downloading of musical content over the Internet using file-sharing software, the use of digital decoders to receive scrambled TV signals and the proliferation of duplication technologies, including computers, which have the capability to make digital copies of CDs and DVDs.
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 downstream broadcasting, publishing and entertainment industries.
Financial Resources, 2008-2009
($ thousands)
| Planned Spending | Total Authorities | Actual Spending |
|---|---|---|
| 2,606 | 2,768 | 2,678 |
Human Resources, 2008-2009
($ thousands)
| Planned | Actual | Difference |
|---|---|---|
| 17 | 17 | 0 |
Program Activity: Copyright Tariff Setting and Issuance of Licences
To contribute to this strategic outcome, the Board’s unique program activity is Copyright Tariff Setting and Issuance of Licences.
In 2008-2009, the Board held two hearings and issued eight decisions. What follows is a brief summary of these activities listed according to the legal regime that applies to each category. For further detail, please refer to the Board’s 2008-2009 Annual Report which can be found atwww.cb-cda.gc.ca.
- Public Performance of Music
During the fiscal year, the Board held four hearings on the following tariffs:
- Commercial Radio: joint examination of Tariffs 1.A of the Society of Composers, Authors and Music Publishers of Canada (SOCAN) for the years 2008-2009 and of the Neighbouring Rights Collective of Canada (NRCC) for the years 2008-2011 [as well as of CMRRA/SODRAC Inc. (CSI) for the reproduction of musical works for the years 2008-2012, of AVLA/SOPROQ for the reproduction of sound recordings for the years 2008-2011 and of ArtistI for the reproduction of performers’ performances for the years 2009-2011]. Hearings were held in December 2008 and January 2009. The matter is under advisement.
The Board issued two decisions certifying the following tariffs:
- SOCAN Tariffs 22.B to 22.G (Internet – Other Uses of Music) for the years 1996-2006 (October 24, 2008).
- SOCAN Tariff 9 (Sports Events) for the years 2002-2009 (January 23, 2009).
- Private Copying
On April 29, 2008, the Board held a hearing on the tariff proposed by the Canadian Private Copying Collective (CPCC) for the years 2008-2009 and certified the tariff on December 5, 2008.
Meanwhile, the Board initiated a process to examine an application filed by Z.E.I. Media Plus Inc. for a declaration that certain types of blank CDs should not be subject to a levy. The matter is under examination.
- Collective Administration (General Regime)
As mentioned in section 1 above, in December 2008 and January 2009, the Board held a joint hearing on five tariff proposals for commercial radio. One of the proposals was filed by CSI for the reproduction rights of musical works for the years 2008-2012, another by AVLA/SOPROQ for the reproduction of sound recordings for the years 2008-2011 and another by ArtistI for the reproduction of performers’ performances for the years 2009-2011. The other two were for performing rights. The matter is under advisement.
On March 31, 2009, the Board rendered an interim decision further to an application for arbitration filed by the Society for Reproduction Rights of Authors, Composers and Publishers in Canada (SODRAC) for the reproduction of musical works by the Canadian Broadcasting Corporation.
- Unlocatable Copyright Owners
In 2008-2009, 28 applications were filed with the Board for the use of published works for which rights holders could not be found and 14 non-exclusive licences were issued for the use of such works.
- Agreements Filed with the Board
In 2008-2009, 596 agreements were filed with the Board pursuant to section 70.5 of the Act.
Access Copyright, The Canadian Copyright Licensing Agency, which licenses reproduction rights such as digitization and photocopy, on behalf of writers, publishers and other creators, filed 334 agreements granting educational institutions, language schools, non-profit associations, copy shops and others a licence to photocopy works in its repertoire.
The Société québécoise de gestion collective des droits de reproduction (COPIBEC) filed 257 agreements. COPIBEC is the collective society which authorizes in Quebec the reproduction of works from Quebec, Canadian (through a bilateral agreement with Access Copyright) and foreign rights holders. The agreements filed in 2008-2009 concerned educational institutions, municipalities, municipal libraries and other users.
Access Copyright and COPIBEC have also filed two agreements they jointly entered into with the Bank of Canada and with Organon Canada Inc.
The Audio-Video Licensing Agency (AVLA), a copyright collective that administers the copyright in some master and music video recordings, filed one agreement.
Finally, the Canadian Broadcasters Rights Agency (CBRA) filed two agreements it entered into with the provinces of British Columbia and Ontario for media monitoring. CBRA represents various Canadian private broadcasters who create and own radio and television news and current affairs programs and communication signals.
The Board’s decisions and licences set fair and equitable rates and conditions for the use of copyright protected works. Overall, the Board is responsible for tariffs that are estimated to be worth over $300 million annually. In fact, copyright tariffs underpin several industries which, according to a Conference Board of Canada study (Valuing Culture, Measuring and Understanding Canada’s Creative Economy, Conference Board of Canada, August 2008), generated in 2007 an amount representing 7.4% of Canada’s GDP when taking into account the direct, indirect and induced contribution. They also contributed 1.1 million jobs to the economy.
Cultural industries are growing at a rapid pace and are at the heart of the knowledge economy. In particular, the Canadian system of collective copyright administration is a healthy and growing part of our economy. Cultural industries’ ability to continue to grow depends heavily on well-thought-out decisions respecting copyright. The mishandling of royalty issues related to retransmission, reproduction, neighbouring rights, private copying or public performance of music could cause serious disruptions in certain sectors of the industry, and would also lead to costly and time-consuming legal challenges. Timeliness in rendering decisions can impact on the growth and innovation in the Canadian economy.
The Board has been facing increasing workload pressures leading to unnecessary delays in issuing decisions and creating a backlog in the certification of uncontested tariffs. The Board recognized the need for stability to overcome the challenges it was facing. The first step taken by the Board was to establish its succession plans, which are crucial for the orderly continuation of the Board’s activities. The second step was to more directly deal with the delays and the backlog. Therefore, the Copyright Board undertook negotiations with the two departments that are responsible for the copyright legislation, Industry Canada and Canadian Heritage. As a result, starting in 2009-2010, the two Departments will transfer additional resources ($215,000 each), on a permanent basis, to the Copyright Board. The increased resources will allow the Board to meet its increasing workload and to more adequately fulfill its mandate
