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Section II: Analysis of Program Activities by Strategic Outcome

Strategic Outcome

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 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 manifest themselves in 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 of CDs and DVDs. 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 audio players 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 downstream broadcasting, publishing and entertainment industries.

Program Activity: Copyright Tariff Setting and Issuance of Licences

The 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 collective societies and issues licences when the copyright owner cannot be located.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
2,621	2,621	2,078

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
14	11	3

Expected Results	Performance Indicators	Targets	Performance Status
N/A	N/A	N/A	N/A

Note: The Board being a micro organization, it has one strategic outcome with a single corresponding program activity, along with internal services. The performance indicators described below at the level of the strategic outcome thus equally apply to the program activity.

Performance Summary and Analysis of Program Activity

In 2010-11, the Board held four hearings and issued five 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 2010-11 Annual Report which can be found at www.cb-cda.gc.ca.

1. Public Performance of Music

During the fiscal year, the Board held two hearings as follows:

• In April and May 2010, the Board considered an inaugural tariff by Re:Sound for the use of recorded music to accompany dance and fitness activities (Tariff 6). This tariff is to set the royalties to be paid by fitness centres and dance venues for their use of recorded music.
• In June 2010, the Board conducted a joint examination of SOCAN's tariff for the communication to the public by telecommunication of musical works and of CSI's tariff for the reproduction for musical works, both in respect of online music services.

On July 9, 2010, the Board issued a decision dealing with the public performance as well as the reproduction of musical works, sound recordings and performers' performances by commercial radio stations. A total of five tariffs were certified covering SOCAN, Re:Sound, CSI, AVLA/SOPROQ and ArtistI for various years spanning the period 2008 through 2012. This was the first time that such a large number of collectives were heard jointly on tariffs that relate to the use of music by commercial radio stations.

2. Private Copying

The Board issued two decisions, as follows:

• On November 2, 2010, for the year 2010, setting a tariff of levies to be collected by the Canadian Private Copying Collective (CPCC) on the sale of blank audio recording media, in Canada, in respect of the reproduction for private use of musical works embodied in sound recordings, of performers' performances of such works or of sound recordings in which such works and performances are embodied.
• On December 17, 2010, setting a new tariff for the year 2011.

3. Collective Administration (General Regime)

During fiscal year 2010-11, the Board held the following hearing, which also dealt with two applications for arbitration:

• Immediately after hearing in June 2010 two applications for arbitration, namely SODRAC v. CBC and SODRAC v. Groupe Astral, merged into a single process, the Board examined SODRAC's tariff for the reproduction of musical works embedded in cinematographic works (Tariff 5). This tariff process was also partially merged with the two applications for arbitration.

On March 16, 2011, the Board issued the decision setting an interim tariff to be collected by Access Copyright, The Canadian Copyright Licensing Agency (Access Copyright) for the reprographic reproduction by post-secondary educational institutions for the years 2011-2013.

4. Applications for Arbitration

In June 2010, the Board heard two applications for arbitration, namely SODRAC v. CBC and SODRAC v. Groupe Astral, merged into a single process. SODRAC's Tariff 5 for the reproduction of musical works embedded in cinematographic works was also partially merged with the two applications for arbitration.

5. Unlocatable Copyright Owners

In 2010-11, 30 applications were filed with the Board for the use of published works for which rights holders could not be found and eight non-exclusive licences were issued for the use of such works.

On April 23, 2010, the Board issued a decision denying an application by the Ministère de l'Éducation, du Loisir et du Sport Québec (MELS) for the use of the soundtrack of a video recording of a speech delivered by Severn Cullis-Suzuki.

6. Agreements Filed with the Board

In 2010-11, 380 agreements were filed with the Board pursuant to section 70.5 of the Act.

Access Copyright which licenses reproduction rights such as digitization and photocopy, on behalf of writers, publishers and other creators, filed 298 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 79 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 2010-11 were concluded with various educational institutions, municipalities, non-profit associations and other users.

Finally, the Canadian Broadcasters Rights Agency (CBRA) filed three agreements it entered into with the Provinces of Alberta, British Columbia and Ontario. CBRA represents various Canadian private broadcasters who create and own radio and television news and current affairs programs and communication signals.

Lessons Learned

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. In that respect, the Board is still in the process of hiring additional staff that would be able to address the backlog. Because the Board is a micro organization however, this process is being challenged by the departure or retirement of key persons at the Board.

Program Activity: 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 Travel 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.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
615	615	488

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
2	2	0

2010-11 Human Resources (FTEs)

Expected Results	Performance Indicators	Targets	Performance Status
N/A	N/A	N/A	N/A

Performance Summary and Analysis of Program Activity

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 probity is ensured. This activity also encompasses the responsibility of providing human resource services.

The Board receives timely support from the services mentioned above.

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