Copyright Board Canada
Canada



Operating context and key risks

Operating Context

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.

A smaller risk, which the Board faces in achieving its strategic outcome, is reversal risk. Decisions of the Board 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 technical 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 works at creating a working environment conducive to a high retention rate among its employees.

Key risks

Risks Mitigating strategy and effectiveness Link to the department’s Programs Link to mandate letter commitments or to governmentwide and departmental priorities
Technology risk
  • Systematically monitor relevant journals, other publications and web sites, and to attend industry seminars and conferences.
  • Risk was identified in the 2017-18 RPP.
  • No modifications to the risk mitigation strategies.
Fair decision-making to provide proper incentives for the creation and use of copyrighted works. An innovative and knowledge-based economy.
Reversal risk
  • Issue fair and equitable decisions.
  • Risk was identified in the 2017-18 RPP.
  • No modifications to the risk mitigation strategies.
Fair decision-making to provide proper incentives for the creation and use of copyrighted works. An innovative and knowledge-based economy.
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 2017-18 RPP.
  • No modifications to the risk mitigation strategies.
Fair decision-making to provide proper incentives for the creation and use of copyrighted works. An innovative and knowledge-based economy.
 

Results: what we achieved

Programs

Copyright Tariff Setting and Issuance of Licences

Description

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.

Results

Tariffs proposed by Collective Societies

Proposed Statements of Royalties Filed by The Collective Societies

The following collective societies filed proposed statements of royalties to be collected in 2019 and beyond:

Access Copyright

  • Statement of proposed royalties to be collected for the reproduction, the communication to the public by telecommunication and the making available to the public by telecommunication of works in its repertoire by employees of provincial and territorial governments for the years 2019 and 2020.

Artisti

  • Statement of proposed royalties to be collected for the making available to the public, the communication to the public by telecommunication and the reproduction of performances fixed in a sound recording by online music services for the years 2019 to 2021.
  • Statement of proposed royalties to be collected for the fixation of performances and the reproduction and distribution of performances fixed by performers in the form of phonograms for the years 2019 to 2021.

BBI, CBRA, CRC, CRRA, CCC, DRTVC, FWS, MLB and SOCAN

  • Statement of proposed royalties to be collected for the retransmission of distant television signals for the years 2019 to 2023.

CBRA, CRRA, FWS and SOCAN

  • Statement of proposed royalties to be collected for the retransmission of distant radio signals for the years 2019 to 2023.

CMRRA

  • Statement of proposed royalties to be collected for the reproduction of musical works by commercial television stations for the year 2019 (Tariff 5).
  • Statement of proposed royalties to be collected for the reproduction of musical works by the television services of the CBC for the year 2019 (Tariff 6).

CMRRA/SODRAC, Connect/SOPROQ and Artisti

  • Statement of proposed royalties to be collected for the reproduction of musical works, of sound recordings and of performers’ performances by commercial radio stations for the year 2019.

Re:Sound

  • Statement of proposed royalties to be collected for the communication to the public by telecommunication of published sound recordings embodying musical works by pay audio services for the year 2019 (Tariff 2).
  • Statement of proposed royalties to be collected for the performance in public or the communication to the public by telecommunication of published sound recordings embodying musical works by background music suppliers for the years 2019 to 2022 (Tariff 3.A).
  • Statement of proposed royalties to be collected for the performance in public or the communication to the public by telecommunication of published sound recordings embodying musical works for the use of music as background music for the years 2019 to 2022 (Tariff 3.B).
  • Statement of proposed royalties to be collected for the communication to the public by telecommunication of published sound recordings embodying musical works for the use of music by satellite radio services for the years 2019 to 2021 (Tariff 4).
  • Statement of proposed royalties to be collected for the performance in public or the communication to the public by telecommunication of published sound recordings embodying musical works for the use of recorded music to accompany dance for the years 2019 to 2023 (Tariff 6.A).
  • Statement of proposed royalties to be collected for the performance in public or the communication to the public by telecommunication of published sound recordings embodying musical works for the use of recorded music to accompany adult entertainment for the years 2019 to 2023 (Tariff 6.C).
  • Statement of proposed royalties to be collected for the communication to the public by telecommunication of published sound recordings embodying musical works in respect of non-interactive and semi-interactive streaming for the year 2019 (Tariff 8).

SOCAN

  • Statements of proposed royalties to be collected for the public performance or the communication to the public by telecommunication of musical or dramatico-musical works:
  • For 2019:
    • Tariff 1.A – Commercial Radio
    • Tariff 1.C – CBC Radio
    • Tariff 2.D – CBC Television
    • Tariff 3.A – Cabarets, Cafes, Clubs, etc. – Live Music
    • Tariff 4.A.1 – Live Performances at Concert Halls, etc. – Popular Music Concerts – Per Event Licence
    • Tariff 4.A.2 – Live Performances at Concert Halls, etc. – Popular Music Concerts – Annual Licence
    • Tariff 4.B.1 – Live Performances at Concert Halls, etc. – Classical Music Concerts – Per Concert Licence
    • Tariff 4.B.2 – Live Performances at Concert Halls, etc. – Classical Music Concerts – Annual Licence for Orchestras
    • Tariff 4.B.3 – Live Performances at Concert Halls, etc. – Classical Music Concerts – Annual licence for Presenting Organizations
    • Tariff 6 – Motion Picture Theatres
    • Tariff 9 – Sports Events
    • Tariff 15.A – Background Music in Establishments not Covered by Tariff 16 – Background Music
    • Tariff 15.B – Background Music in Establishments not Covered by Tariff 16 – Telephone Music on Hold
    • Tariff 16 – Background Music Suppliers
    • Tariff 19 – Physical Exercises and Dance Instruction
    • Tariff 22.A – Internet – Online Music Services
    • Tariff 22.B – Internet – Other Uses of Music – Commercial Radio, Satellite Radio and Pay Audio
    • Tariff 22.C – Internet – Other Uses of Music – Other Audio Websites
    • Tariff 22.D.1 – Internet – Other Uses of Music – Audiovisual Content
    • Tariff 22.D.2 – Internet – Other Uses of Music – User-Generated Content
    • Tariff 22.E – Internet – Other Uses of Music – CBC
    • Tariff 22.G – Internet – Other Uses of Music – Game Sites
    • Tariff 24 – Ringtones and Ringbacks
    • Tariff 25 – Use of Music by Satellite Radio Services
    • Tariff 26 – Pay Audio Services
  • For the years 2019 and 2020:
    • Tariff 1.B – Non-Commercial Radio Other than the CBC
    • Tariff 2.A – Commercial Television Stations
    • Tariff 2.B – Television of the Ontario Educational Communications Authority
    • Tariff 2.C – Television of the Société de télédiffusion du Québec
    • Tariff 8 – Receptions, Conventions, Assemblies and Fashion Shows
    • Tariff 17 – Transmission of Pay, Specialty and other Television Services by Distribution Undertakings
    • Tariff 18 – Recorded Music for Dancing
    • Tariff 22.D.3 – Internet – Other Uses of Music – Audiovisual Services Allied with Broadcast and BDU Services

SODRAC

  • Statement of proposed royalties to be collected for the reproduction of musical works embedded in music videos for transmission by a service for the year 2019 (Tariff 6).
  • Statement of proposed royalties to be collected for the reproduction of musical works embedded in audiovisual works for transmission by a service for the year 2019 (Tariff 7).
  • Statement of proposed royalties to be collected for the reproduction of musical works by commercial television stations for the year 2019 (Tariff 8).

Requests for Arbitration

The Board did not receive any request for arbitration in the year 2017-18.

However, on March 31, 2017, SODRAC requested that the Board fix the terms of the CBC/SRC licence with respect to the reproduction of musical works for the period April 1, 2017 to March 31, 2018. SODRAC also asked that the consideration of this request be merged to the ongoing consideration of the licence for the period 2012-2017, which the Board did on April 27, 2017.

Finally, on March 28, 2018, SODRAC advised the Board that a partial agreement had been reached between the parties in respect of certain aspects of the SODRAC v. CBC licences file, and that this agreement resulted in the Board being no longer seized of the following:

  • The issue of synchronisation royalties for copies of existing and commissioned works done by CBC for the production of a CBC program for the purpose of its exploitation, for the period ending December 31, 2017;
  • The issue of synchronisation royalties for copies of existing works done by CBC for the production of a CBC program for the purpose of its exploitation, for the period starting January 1, 2018; and
  • The issue of royalties for interactive kiosks.

Hearings

The Board held two hearings during the fiscal year 2017-18.

The first hearing, held in May 2017, was in respect of SOCAN and Re:Sound’s Tariffs for Pay Audio Services for the years 2007 to 2016. In addition to the two collective societies, Stingray Digital Group Inc. and a group representing the Broadcasting Distributors Undertakings (Bell Canada, Rogers Communications Inc., Shaw Communications Inc., Cogeco Cable Inc., Videotron G.P., Telus Communications Company) participated in the hearing.

The second hearing, held in September 2017, was in respect of a SODRAC licence for the reproductions of musical works by CBC. For this hearing, the Board consolidated two cases. The first was devoted to the resolution of an issue remitted to the Board for redetermination by the Supreme Court of Canada in 2015. In that decision, the Court set aside the 2008-2012 SODRAC/CBC licence as it related to the valuation of some types of reproductions by CBC and directed the Board to reconsider its valuation taking into account the principles of “technological neutrality” and “balance”. The second case dealt with the same licence for the years 2012-2018.

Processes

The Board initiated fourteen new processes dealing with a number of proposed tariffs that were previously filed with it. These new processes include the merging of a number of different proposed tariffs with the overall objective of reducing participation costs for all stakeholders involved. Among these are Online Music Services and Online Audiovisual Services – Music, for both of which hearings are scheduled to be held in 2019. For each of these new processes, the Board issued various rulings and orders following requests pertaining mostly to the status of participants or the nature of the issues to be examined.

Decisions

During the fiscal year 2017-18, the following decisions were rendered:

  • May 5, 2017 – SOCAN Various Tariffs, 2007-2017
  • May 19, 2017 – SOCAN Tariff 1.C – Radio – CBC, 2012-2014; SOCAN Tariff 22.E – Internet – CBC, 2007-2013
  • May 19, 2017 – SOCAN Tariff 13.A – Public Conveyances – Aircrafts, 2011-2017
  • May 24, 2017 – Application to fix royalties for a licence and its related terms and conditions – SODRAC v. CBC, 2017-2018 – Interim Decision
  • June 2, 2017 – SOCAN Tariff 19 – Physical Exercises and Dance Instruction, 2013-2017
  • June 2, 2017 – Satellite Radio Services Tariffs – Re:Sound, 2011-2018; SOCAN, 2010-2018
  • July 21, 2017 – Re:Sound Tariff 6.C – Use of Recorded Music to Accompany Adult Entertainment, 2013-2018
  • August 25, 2017 – Online Music Services Tariff (CSI: 2011-2013; SOCAN: 2011-2013; SODRAC: 2010-2013)
  • August 25, 2017 – Scope of section 2.4(1.1) of the Copyright Act – Making Available
  • September 1, 2017 – Re:Sound Tariffs 5.A to 5.G, 2013-2015 and 5.H to 5.K, 2008-2015 – Use of Music to Accompany Live Events
  • September 1, 2017 – Re:Sound Tariff 3.A – Background Music Suppliers, 2010-2013; Re:Sound Tariff 3.B – Background Music, 2010-2015
  • December 1, 2017 – Private Copying, 2018 and 2019
  • January 12, 2018 – Re:Sound Tariff 6.B – Use of Recorded Music to Accompany Fitness Activities, 2013-2017
  • January 19, 2018 – Access Copyright – Elementary and Secondary Schools, 2010-2015 – Reconsideration

Unlocatable Copyright Owners

Pursuant to section 77 of the Act, the Board may grant licences authorizing the use of published works, fixed performances, published sound recordings and fixed communication signals, if the copyright owner is unlocatable. However, the Act requires the applicants to make reasonable efforts to find the copyright owner. Licences granted by the Board are non-exclusive and valid only in Canada.

During the fiscal year 2017-18, 33 applications were filed with the Board. The following 4 licences were issued:

  • Sophie Dubois, Montreal, Quebec, for the reproduction of an illustration, incorporation in a book and the distribution of the book;
  • Juke-Box, Cap-Chat, Quebec, for the reproduction, distribution and public performance of a musical work;
  • Tightrope Books, Toronto, Ontario, for the reproduction and distribution of a book; and
  • Wendy Mitchinson, Bright, Ontario, for the reproduction, communication to the public by telecommunication and distribution of three advertisements.
Results achieved
Expected Results Performance Indicators Target Date to achieve target 2017-18 Actual results 2016-17 Actual results 2015-16 Actual results
Fair and Equitable Tariffs and Conditions % of tariff decisions published within 12 months 70% End of fiscal year 93% 75% 50%
% of licences issued within 45 days 70% End of fiscal year 0% 100% 100%

The average number of days within which the licences were issued is 56, 11 days above the target of 45 days. This performance reflects a year where the Board was very active on other fronts and could not allocate the necessary resources to meet this particular performance objective.

 
Budgetary financial resources (dollars)
2017-18
Main Estimates
2017-18
Planned Spending
2017-18
Total authorities available for use
2017-18
Actual spending (authorities used)
2017-18
Difference (actual minus planned spending)
2,490,530 2,722,144 2,722,144 2,617,110 (105,034)
 
Human resources (full-time equivalents)
2017-18
Planned Full-time Equivalents
2017-18
Actual Full-time Equivalents
2017-18
Difference (actual minus planned full-time equivalents)
16 14 (2)
 

Internal Services

Description

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories 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; and Acquisition Services.

Results

Internal Services 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.

Budgetary financial resources (dollars)
2017-18
Main Estimates
2017-18
Planned Spending
2017-18
Total authorities available for use
2017-18
Actual spending (authorities used)
2017-18
Difference (actual minus planned spending)
584,199 638,528 638,528 613,890 (24,638)
 
Human resources (full-time equivalents)
2017-18
Planned Full-time Equivalents
2017-18
Actual Full-time Equivalents
2017-18
Difference (actual minus planned full-time equivalents
2 2 0