Copyright Board Canada
Canada



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