Vol. 150, No. 17 — April 23, 2016

COPYRIGHT BOARD

Statement of Royalties to Be Collected by SOCAN, Re:Sound, CSI, Connect/SOPROQ and Artisti in Respect of Commercial Radio Stations

In accordance with subsection 68(4) and section 70.15 of the Copyright Act, the Copyright Board has certified and hereby publishes the statement of royalties to be collected from commercial radio stations by the Society of Composers, Authors and Music Publishers of Canada (SOCAN) for the communication to the public by telecommunication, in Canada, of musical or dramatico-musical works for the years 2011 to 2013, by Re:Sound Music Licensing Company (Re:Sound) for the communication to the public by telecommunication, in Canada, of published sound recordings embodying musical works and performers’ performances of such works for the years 2012 to 2014, by CMRRA-SODRAC Inc. (CSI) for the reproduction, in Canada, of musical works for the years 2012 and 2013, by Connect Music Licensing Service Inc. and the Société de gestion collective des droits des producteurs de phonogrammes et de vidéogrammes du Québec (Connect/SOPROQ) for the reproduction, in Canada, of sound recordings for the years 2012 to 2017, and by Artisti for the reproduction, in Canada, of performers’ performances for the years 2012 to 2014.

Ottawa, April 23, 2016

GILLES MCDOUGALL
Secretary General
56 Sparks Street, Suite 800
Ottawa, Ontario
K1A 0C9
613-952-8624 (telephone)
gilles.mcdougall@cb-cda.gc.ca (email)

STATEMENT OF ROYALTIES TO BE COLLECTED FROM COMMERCIAL RADIO STATIONS BY THE SOCIETY OF COMPOSERS, AUTHORS AND MUSIC PUBLISHERS OF CANADA (SOCAN) FOR THE COMMUNICATION TO THE PUBLIC BY TELECOMMUNICATION, IN CANADA, OF MUSICAL OR DRAMATICO-MUSICAL WORKS FOR THE YEARS 2011 TO 2013, BY RE:SOUND MUSIC LICENSING COMPANY (RE:SOUND) FOR THE COMMUNICATION TO THE PUBLIC BY TELECOMMUNICATION, IN CANADA, OF PUBLISHED SOUND RECORDINGS EMBODYING MUSICAL WORKS AND PERFORMERS’ PERFORMANCES OF SUCH WORKS FOR THE YEARS 2012 TO 2014, BY CMRRA-SODRAC INC. (CSI) FOR THE REPRODUCTION, IN CANADA, OF MUSICAL WORKS FOR THE YEARS 2012 AND 2013, BY CONNECT MUSIC LICENSING SERVICE INC. AND THE SOCIÉTÉ DE GESTION COLLECTIVE DES DROITS DES PRODUCTEURS DE PHONOGRAMMES ET DE VIDÉOGRAMMES DU QUÉBEC (CONNECT/SOPROQ) FOR THE REPRODUCTION, IN CANADA, OF SOUND RECORDINGS FOR THE YEARS 2012 TO 2017, AND BY ARTISTI FOR THE REPRODUCTION, IN CANADA, OF PERFORMERS’ PERFORMANCES FOR THE YEARS 2012 TO 2014

Short Title

1. This tariff may be cited as the Commercial Radio Tariff (SOCAN: 2011-2013; Re:Sound: 2012-2014; CSI: 2012-2013; Connect/SOPROQ: 2012-2017; Artisti: 2012-2014).

Definitions

2. In this tariff,

Act” means the Copyright Act; (« Loi »)

“collective societies” means SOCAN, Re:Sound, CSI, Connect/SOPROQ and Artisti; (« sociétés de gestion »)

“gross income” means the gross amounts paid by any person for the use of one or more broadcasting services or facilities provided by a station’s operator, including the value of any goods or services provided by any person in exchange for the use of such services or facilities, and the fair market value of non-monetary consideration (e.g. barter or “contra”), but excluding the following:

In the case of CSI, this definition is understood to include any income from simulcast; (« revenus bruts »)

“ingest copy” means a reproduction of a sound recording of a musical work made for the purpose of ingesting that sound recording into a radio station’s broadcast system; (« copie d’incorporation »)

“live performance copy” means a reproduction made by a radio station of a live performance of one or more musical works that occurs either at the radio station or at a remote location, but excludes any live performance embodied in a published sound recording; (« copie de prestation en direct »)

“low-use station (sound recordings)” means a station that

“low-use station (works)” means a station that

“month” means a calendar month; (« mois »)

“performer’s performance” means a performer’s performance that has been fixed with the authorization of the performer; (« prestation »)

“production music” means music used in interstitial programming such as commercials, public service announcements and jingles; (« musique de production »)

“reference month” means the second month before the month for which royalties are being paid; (« mois de référence »)

“service provider” means a professional service provider which may be retained by a collective society to assist in the conduct of an audit or in the distribution of royalties to rights holders; (« prestataire de services »)

“simulcast” means the simultaneous, unaltered, real-time streaming of the over-the-air broadcast signal of the station, or of another station that is part of the same network as the station, via the Internet or other similar digital network; (« diffusion simultanée »)

“voice-tracking copy” means a reproduction of a sound recording of a musical work made to facilitate the making of a spoken-word recording to be broadcast in association with that sound recording; (« copie de préenregistrement vocal »)

“year” means a calendar year. (« année »)

Application

3. (1) This tariff sets the royalties to be paid each month by commercial radio stations

(2) This tariff also entitles a station to authorize a person to communicate to the public by telecommunication a musical work, sound recording or performer’s performance and to reproduce a musical work or performer’s performance for the purpose of delivering it to the station, so that the station can use it as permitted in subsection (1).

(3) This tariff does not

(4) In respect of CSI, this tariff applies for the period of November 7, 2012, to December 31, 2013.

4. This tariff is subject to the special royalty rates set out in subparagraph 68.1(1)(a)(i) of the Act.

Royalties

5. (1) A low-use station (works) shall pay, on its gross income for the reference month,

  SOCAN CSI
on the first $625,000 gross income in a year 1.5% (0.103 × X)%
on the next $625,000 gross income in a year 1.5% (0.198 × X)%
on the rest 1.5% (0.332 × X)%

where the discount factor X = 1 - (0.363 × (A ÷ B)), and wherein

(2) A low-use station (sound recordings) shall pay, on its gross income for the reference month,

  Re:Sound Connect/ SOPROQ Artisti
on the first $625,000 gross income in a year 0.75% 0.134% 0.003%
on the next $625,000 gross income in a year 0.75% 0.257% 0.005%
on the rest 0.75% 0.431% 0.009%
  Re:Sound Connect/ SOPROQ Artisti
on the first $625,000 gross income in a year 0.75% (0.103 × Y)% (0.003 × Y)%
on the next $625,000 gross income in a year 0.75% (0.196 × Y)% (0.004 × Y)%
on the rest 0.75% (0.329 × Y)% (0.007 × Y)%

where the discount factor Y = 1 - (0.351 × (C ÷ D)), and wherein

(3) For the purpose of subsections 5(1) and 5(2), the discount factors X and Y are calculated twice a year for the most recent 6-month period ending on June 30 or December 31, and are used until new discount factors are calculated for the next 6-month period.

6. (1) Except as provided in section 5, a station shall pay, on its gross income for the reference month,

  SOCAN Re:Sound Connect/ SOPROQ Artisti
on the first $625,000 gross income in a year 3.2% 1.44% 0.302% 0.007%
on the next $625,000 gross income in a year 3.2% 1.44% 0.593% 0.012%
on the rest 4.4% 2.1% 1.231% 0.025%
  SOCAN Re:Sound CSI Connect/SOPROQ Artisti
on the first $625,000 gross income in a year 3.2% 1.44% (0.233 × X)% (0.230 × Y)% (0.005 × Y)%
on the next $625,000 gross income in a year 3.2% 1.44% (0.457 × X)% (0.452 × Y)% (0.009 × Y)%
on the rest 4.4% 2.1% (0.948 × X)% (0.940 × Y)% (0.019 × Y)%

where the discount factor X = 1 - (0.363 × (A ÷ B)), and wherein

(2) For the purpose of subsection 6(1), the discount factors X and Y are calculated twice a year for the most recent 6-month period ending on June 30 or December 31, and are used until new discount factors are calculated for the next 6-month period.

7. All royalties payable under this tariff are exclusive of any federal, provincial or other governmental taxes or levies of any kind.

Administrative Provisions

8. (1) No later than the first day of each month, a station shall

(2) On September 1 and March 1, a station electing to benefit from the discount factors X and Y referred to in sections 5 and 6 shall report to CSI, Connect/SOPROQ and Artisti the values A, B, C and D and provide all the information necessary to assess the level of compliance of the station with section 30.9 of the Act for the 6-month periods ending on June 30 and December 31 respectively.

9. At any time during the period set out in subsection 11(2), a collective society may require the production of any contract granting rights referred to in paragraph (c) of the definition of “gross income”, together with the billing or correspondence relating to the use of these rights by other parties.

Information on Repertoire Use

10. (1) Each entry provided under paragraph 8(1)(d) shall include the following information, where available:

(2) The information set out in subsection (1) shall be provided in electronic format (Excel format or any other format agreed upon by the collective societies and the station) where possible, with a separate field for each piece of information required in subsection (1) other than the cue sheets which are to be used to insert the relevant music use information into each field of the report.

(3) For certainty, the use of the expression “where available” in subsection (1) means that all the listed information in the station’s possession or control, regardless of the form or the way in which it was obtained, must mandatorily be provided to the collective societies.

Records and Audits

11. (1) A station shall keep and preserve, for a period of six months after the end of the month to which they relate, records from which the information set out in subsection 10(1) can be readily ascertained.

(2) A station shall keep and preserve, for a period of six years after the end of the year to which they relate, records from which the station’s gross income can be readily ascertained.

(3) A station shall keep and preserve, for a period of six months after the end of the period to which they relate, records from which the information set out in subsection 8(2) can be readily ascertained.

(4) A collective society may audit the records referred to in subsections (1) and (2) at any time during the period set out therein, on reasonable notice and during normal business hours. The collective society shall, upon receipt, supply a copy of the report of the audit to the station that was the object of the audit and to the other collective societies.

(5) Any of CSI, Connect, SOPROQ and Artisti may audit the records referred to in subsection (3) at any time during the period set out therein, on reasonable notice and during normal business hours. The collective society shall, upon receipt, supply a copy of the report of the audit to the station that was the object of the audit and may also supply a copy of the report to one or more of the other collective societies on request.

(6) If an audit discloses that royalties due have been understated in any month by more than 10 per cent, the station shall pay the reasonable costs of the audit within 30 days of the demand for such payment.

Confidentiality

12. (1) Subject to subsections (2), (3) and (4), information received from a station pursuant to this tariff shall be treated in confidence, unless the station that supplied the information consents in writing and in advance to each proposed disclosure of the information.

(2) Information referred to in subsection (1) may be shared

(3) Where confidential information is shared with service providers as per paragraph (2)(a), those service providers shall sign a confidentiality agreement which shall be shared with the affected station prior to the release of the information.

(4) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the station that supplied the information and who is not under an apparent duty of confidentiality to that station with respect to the supplied information.

Adjustments

13. Adjustments in the amount of royalties owed (including excess payments), as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.

Interest on Late Payments

14. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.

Addresses for Notices, etc.

15. (1) Anything addressed to SOCAN shall be sent to 41 Valleybrook Drive, Toronto, Ontario M3B 2S6, email: licence@socan.ca, fax number: 416-445-7108, or to any other address, email address or fax number of which a station has been notified in writing.

(2) Anything addressed to Re:Sound shall be sent to 1235 Bay Street, Suite 900, Toronto, Ontario M5R 3K4, email: radio@resound.ca, fax number: 416-962-7797, or to any other address, email address or fax number of which a station has been notified in writing.

(3) Anything addressed to CSI shall be sent to 1470 Peel Street, Tower B, Suite 1010, Montréal, Quebec H3A 1T1, email: csi@cmrrasodrac.ca, fax number: 514-845-3401, or to any other address, email address or fax number of which a station has been notified in writing.

(4) Anything addressed to Connect shall be sent to 85 Mowat Avenue, Toronto, Ontario M6K 3E3, email: radioreproduction@connectmusic.ca, fax number: 416-967-9415, or to any other address, email address or fax number of which a station has been notified in writing.

(5) Anything addressed to SOPROQ shall be sent to 6420 Saint-Denis Street, Montréal, Quebec H2S 2R7, email: radioreproduction@soproq.org, fax number: 514-842-7762, or to any other address, email address or fax number of which a station has been notified in writing.

(6) Anything addressed to Artisti shall be sent to 1441 René-Lévesque Boulevard W, Suite 400, Montréal, Quebec H3G 1T7, email: radiorepro@uda.ca, fax number: 514-288-7875, or to any other address, email address or fax number of which a station has been notified in writing.

(7) Anything addressed to a station shall be sent to the last address, email address or fax number of which a collective society has been notified in writing.

Delivery of Notices and Payments

16. (1) Royalties payable to Connect/SOPROQ are paid to Connect. All other information to which Connect/SOPROQ is entitled pursuant to this tariff is delivered to Connect and SOPROQ separately.

(2) A notice may be delivered by file transfer protocol (FTP), by hand, by postage-paid mail, by email or by fax. A payment must be delivered by hand, by postage-paid mail, or by electronic bank transfer (EBT), provided that the associated reporting is provided concurrently to the collective society by email.

(3) Information set out in sections 8 and 10 shall be sent by email.

(4) Anything mailed in Canada shall be presumed to have been received four business days after the day it was mailed.

(5) Anything sent by fax, email, FTP or EBT shall be presumed to have been received the day it was transmitted.

Transitional Provisions

17. For a period of a maximum of 180 days following the certification of this tariff, a radio station who has never provided a complete sequential list as required under paragraph 8(1)(d) in the past, and who is unable to comply with this requirement immediately, shall continue to be subject to the requirements of section 10 of the Commercial Radio Tariff certified on July 10, 2010. However, during this transitional period, the information it provides must include the music use information listed in subsection 10(1) of this tariff.

18. Any amount that is otherwise due or payable pursuant to this tariff on or before May 1, 2016, shall be due or payable no later than September 1, 2016, and shall be increased by using the multiplying interest factor (based on the Bank Rate) set out in the following table with respect to each period.

  2011 2012 2013 2014 2015 2016
January 1.0613 1.0488 1.0363 1.0238 1.0113 1.0025
February 1.0602 1.0477 1.0352 1.0227 1.0104 1.0019
March 1.0592 1.0467 1.0342 1.0217 1.0096 1.0013
April 1.0581 1.0456 1.0331 1.0206 1.0088 1.0006
May 1.0571 1.0446 1.0321 1.0196 1.0079 1.0000
June 1.0560 1.0435 1.0310 1.0185 1.0071  
July 1.0550 1.0425 1.0300 1.0175 1.0063  
August 1.0540 1.0415 1.0290 1.0165 1.0056  
September 1.0529 1.0404 1.0279 1.0154 1.0050  
October 1.0519 1.0394 1.0269 1.0144 1.0044  
November 1.0508 1.0383 1.0258 1.0133 1.0038  
December 1.0498 1.0373 1.0248 1.0123 1.0031