Musicians' Neighbouring Rights Royalties

News:

December 17, 2004 - Appeal Court Upholds Constitutionality of Private Copying Levy and Legality of CPCC’s Zero-Rating Program

December 14, 2004 - Canadian music rights holders welcome approval of interim tariff for 2005

September 14, 2004 - Creators of recorded music have benefited to the tune of $26.4 million from Canadian blank media levy

Appeal Court Upholds Constitutionality of Private Copying Levy and Legality of CPCC’s Zero-Rating Program

(Toronto) – The Federal Court of Appeal has dismissed an application for judicial review filed by the Retail Council of Canada following the December 2003 Decision of the Copyright Board. The Retail Council had sought to overturn the private copying levy. The Canadian Private Copying Collective (CPCC) welcomes this confirmation by the Court of Appeal that the private copying levy is constitutional and is not a tax.

Chair of the CPCC Board of Directors, Claudette Fortier said, “We expected that the validity of the levy would be upheld, but it is still a great relief to have the Appeal Court’s decision. It removes any uncertainty about whether the levy will continue to be collected”.

The CPCC expressed satisfaction as well at the Federal Court of Appeal’s confirmation that the CPCC is free to continue to operate its zero-rating program. Under that program the CPCC allows businesses and other organizations that register with the CPCC to acquire blank audio recording media, such as CD-Rs, without paying the levy.

The Copyright Board had stated in its December 2003 Decision that the zero-rating program was illegal. CPCC had asked the Federal Court of Appeal to confirm that it was free to voluntarily waive the collection of the levy. The Appeal Court’s Decision states that “The Board had no statutory authority to pronounce on the legality of the program” and, based on its reading of the Copyright Board’s decision, concludes that the Board had not held that the program is illegal, “to the extent it is based on the waiver by rightsholders of their rightful entitlement”.

“The Copyright Board’s decision last year”, said CPCC’s Executive Director, Anna Bucci, “had caused some importers who supplied blank media at a zero-rate to registered participants in the program to withdraw because the program had been labeled illegal. With this important confirmation that it is perfectly legal to continue the program, there should be no further concern about participating”.

The Federal Court of Appeal ruled at the same time on a third issue: the application of a private copying levy to digital audio recorders such as the iPod. Since the Copyright Board’s December 2003 Decision a levy has been collected on the flash memory or hard drive incorporated into a digital audio recorder.

However, the Federal Court of Appeal has now held that CPCC’s levy on the memory embedded in recording devices is invalid because the Copyright Board had no jurisdiction to impose a levy on digital audio recorders.

CPCC Director David Basskin stated, “We disagree with the Court’s finding on the levy with respect to media used in digital audio recorders”. He added, “CPCC’s Board of Directors is actively considering an appeal on this issue to the Supreme Court of Canada and our decision on this question will be announced shortly”.

The Canadian Private Copying Collective (CPCC) is a non-profit agency charged with collecting and distributing private copying royalties. Established in 1999, CPCC is a collective of collectives that represent authors, composers, music publishers, artists and record companies.

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Canadian music rights holders welcome approval of interim tariff for 2005

(Toronto) – The Canadian Private Copying Collective (CPCC) welcomes the Copyright Board’s certification of an interim tariff for 2005.

In March 2004 the CPCC asked the Copyright Board to extend the 2003-2004 private copying tariff for another year to cover 2005. Four parties filed objections to the proposal, but all agreed to an interim tariff for 2005 pending a final decision by the Board next year after the Federal Court of Appeal rules on three judicial review applications. Under both the interim tariff and CPCC’s proposed tariff for 2005, private copying royalties remain at their current levels.

“After the Board’s decision in December, the CPCC had too little time to develop a proposal for 2005 that would challenge the rates certified for 2003 and 2004,” commented Claudette Fortier, Chair of the Board of Directors of the CPCC. “In spite of CPCC’s disappointment with the Copyright Board’s decision, and because of the initiation of a process of judicial review, CPCC agreed to accept a continuation of the existing rates."

Three groups, including the CPCC, appealed various aspects of the Copyright Board’s December 2003 decision. The Federal Court of Appeal heard all three challenges in a combined hearing on October 12 and 13, 2004. The Court’s rulings are not expected until the new year.

The private copying law came into effect in 1998 in recognition of the increasing number of Canadians who were making unauthorized copies of music for their own personal use. The levy was put in place to ensure that the rights holders in recorded music receive some compensation for their work and investment. The first private copying tariff to be approved under the new law came into effect in December of 1999.

The Canadian Private Copying Collective (CPCC) is a non-profit agency charged with collecting and distributing private copying royalties. Established in 1999, CPCC is a collective of collectives that represent authors, composers, music publishers, artists and record companies.

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Creators of recorded music have benefited to the tune of $26.4 million from Canadian blank media levy

(Toronto) – The Canadian Private Copying Collective (CPCC) announced today that, with the recent distribution of a further $2.2 million, creators of recorded music have now received a total of $26.4 million in royalty payments from private copying of music in Canada. The private copying royalties are collected through a levy on the sale of blank audio recording media implemented following federal copyright legislation that took effect in 1998.

After a lengthy and arduous process of identifying rights holders eligible to receive private copying royalties, CPCC began distributing funds early in 2003. Just over $17 million was distributed in 2003, with a further $9.4 million distributed so far this year. Additional distributions are expected later this year.

“I’m very pleased that we have been able to distribute $26.4 million to rights holders,” comments Claudette Fortier, Chair of the Board of Directors of CPCC. “These royalties provide some compensation to rights holders when the recorded music they create is copied without their approval.”

“I can’t tell you how gratifying it is to see that envelope in the mail,” adds recording artist and songwriter Amy Sky. “As an artist, you pour your heart and soul into your creation. The driving force for most creators is to share your work with an audience but you depend on the revenue it produces to enable you to focus on your next work.”

"Thanks to legislators in Ottawa, the private copying levy provides significant compensation which coincides with the intangible rewards of creating music that is enjoyed by Canadians. Receiving that check is what enables me to be able to make a living from my art,” concludes performer Marie Denise Pelletier.

The royalties are derived from the private copying provisions of the Copyright Act implemented in recognition of the fact that Canadians copy without authorization a substantial amount of music for their own use in the privacy of their home. The levy was put in place to ensure that the rights holders in recorded music receive some compensation for their work and investment.

The Canadian Private Copying Collective (CPCC) is a non-profit agency charged with collecting and distributing private copying royalties. Established in 1999, CPCC is a collective of collectives that represent music authors, music publishers, recording artists and record companies.

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