OTTAWA – Does it sound right that radio stations should have to pay $7 million in fees for simply transferring a music file from one computer to another, or from a CD to a server, for use within its own operations – in order to get the song to air?
No it doesn’t, says the Canadian Association of Broadcasters, which is again at the doorstep of the House of Commons demanding that MPs pay attention to this detail when it examines the recently tabled copyright bill, C-60.
“When the government’s new copyright bill was tabled last month, Bill C-60 not only failed to address this important issue, it also opened the door for more transfer of format payments,” said CAB president and CEO Glenn O’Farrell.
The CAB is concerned that the government has once again turned a blind eye to the needs of Canada’s private broadcasters by delaying the introduction of legislation that would provide a copyright exception for the simple act of transferring music provided by the music industry into a format that broadcasters can use.
“The reproduction right fees effectively tax radio stations for being innovative – for using the latest technology to deliver the highest quality of music to listeners, ”
This is an issue of increasing importance to Canadian radio stations. “Canadian radio has always been at the cutting edge of technology, investing millions of dollars in capital expenses in new innovative ways to ensure Canadian listeners benefit from technological advances. Canadian radio has gone digital, with music from CDs being transferred onto the stations hard drives. The record industry expects to send 70 to 75% of all new music releases this year to stations in an electronic (MP3) format that necessitates copying to a hard drive before it can be broadcast,” says the CAB.
Canada’s private radio broadcasters already pay more than $43 million in copyright fees annually to rights holders to put music on the air. Since 2003, radio stations have been required to pay an additional $7 million in copyright fees for the simple act of transferring a digital copy of a song onto their hard drives.
Radio has been in the business of broadcasting music for a long time – and has previously transferred recordings to “carts” without paying a penalty. Radio already pays – to two different collectives – for the right to play music, and making copies of songs only facilitates the broadcasting of the music broadcasters have already paid to use. No new use is made of the music, and radio makes no additional revenues when they make the reproductions, adds the association.
The government had promised the broadcasting industry over the course of many years that it would provide true exceptions from copyright liability for these types of “technical reproductions.” The Phase II Copyright Reform bill as originally introduced in 1996 contained true exceptions. Many other countries, including the United States, grant exceptions to their broadcasters to facilitate these reproductions.
“The issue of an exception for broadcasters is long overdue and must be addressed in this round of amendments. Canada’s private radio stations cannot wait for another 10 years for the government to deal with this issue,” concludes the CAB.
