Decisions

Decision Information

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Overview

The Société de télédiffusion du Québec (STQ), a Québec crown corporation operating Télé-Québec and other digital platforms, uses musical works protected by copyright in its programming. The Society of Composers, Authors and Music Publishers of Canada (SOCAN), a collective society managing copyright in musical works, proposed tariffs for the use of its repertoire by the STQ for the years 2018 to 2022 (paras 4-5).

Parties' Submissions

  • SOCAN: Proposed tariffs for the public performance or communication to the public by telecommunication of musical works by the STQ, maintaining the same royalty rate and terms as the previously approved tariff for 2014-2017 (paras 5-7).
  • STQ: Did not oppose the proposed tariffs (para 6).

Legal Issues

  • Were the proposed SOCAN Tariff 2.C rates and terms for 2018-2022 fair and equitable?
  • Should the qualifier “for private or domestic use” be included in the approved tariff?

Decision

  • The Board approved SOCAN Tariff 2.C for 2018-2022 with minor modifications to the language, specifically removing the qualifier “for private or domestic use” (paras 11-12).

Reasons

  • Fair and Equitable Rates: The Board found the proposed royalty rate of $216,000 per year to be fair and equitable, as it remained unchanged from the last approved tariff (2014-2017) and no market changes justified a different rate (paras 7-8).
  • Ambiguity of “Private or Domestic Use”: The Board determined that the qualifier “for private or domestic use” was inappropriate, as broadcasters cannot control or verify the end-point use of their programming. Including this language would create enforcement and compliance issues (paras 10-11).
  • Consistency with Previous Tariffs: The Board concluded that the proposed tariffs were consistent with the terms and conditions of the last approved tariff, with only minor modifications to the language (paras 8, 12).

Decision Content

Copyright Board
Canada

Canada Coat of Arms/Armoiries du Canada

Commission du droit d’auteur
Canada

 

Date

2020-08-07

Citation

SOCAN Tariff 2.C (2018-2022), 2020 CB 007

Members

Nathalie Théberge

 

Proposed Tariffs Considered

SOCAN Tariff 2.C: Television – Société de télédiffusion du Québec (2018)

SOCAN Tariff 2.C: Television – Société de télédiffusion du Québec (2019-2020)

SOCAN Tariff 2.C: Television – Société de télédiffusion du Québec (2021-2022)

 

Approval of Proposed Tariffs

As
SOCAN Tariff 2.C – Television – Société de télédiffusion du Québec (2018-2022)

REASONS FOR DECISION

I. overview

TARIFFS CONSIDERED:

[1] The Society of Composers, Authors and Music Publishers of Canada (SOCAN) filed the following proposed tariffs, applicable to the Société de télédiffusion du Québec (STQ), for approval by the Copyright Board:

· Statement of Proposed Royalties to Be Collected by SOCAN for the Public Performance or the Communication to the Public by Telecommunication, in Canada, of Musical or Dramatico-Musical Works (2018), (29 April 2017) C Gaz Supplement, Vol 151 No 17;

· Statement of Proposed Royalties to Be Collected by SOCAN for the Public Performance or the Communication to the Public by Telecommunication, in Canada, of Musical or Dramatico-Musical Works (2019-2020), (5 May 2018) C Gaz Supplement, Vol 152 No 18;

· Statement of Proposed Royalties to Be Collected by SOCAN for the Public Performance or the Communication to the Public by Telecommunication, in Canada, of Musical or Dramatico-Musical Works (2021-2022), (18 May 2019) C Gaz Supplement, Vol 153 No 20.

[2] The proposed tariffs were published in the Canada Gazette on the dates indicated above, and prospective users and their representatives were given notice of their right to file objections to the proposed tariffs. There were no objections raised by any users or their representatives for the years 2018 to 2022.

[3] For the following reasons, we find that SOCAN Tariff 2.C meets the requirement of being fair and equitable, and as a result, we approve it.

II. background

[4] The STQ, a Québec crown corporation, operates Télé-Québec, a public television network, and other digital platforms, offering content which includes musical works protected by copyright.

[5] SOCAN, a collective society administrating certain aspects of copyright in musical works, filed with the Copyright Board for approval its proposed tariffs for the use of its repertoire (Tariff 2.C) by the STQ from 2018 to 2022 on March 31, 2017, March 29, 2018, and March 28, 2019.

[6] SOCAN’s proposals were duly published and never opposed by the STQ.

[7] SOCAN’s proposed tariffs set out a rate and terms and conditions that are unchanged from the last approved Tariff 2.C (for 2014-2017).

III. reasons for the decision

[8] The proposed tariffs set the same royalty rate as in the last approved tariff, namely a $216,000 annual fee. We are not aware of any changes in the market that would lead us to conclude that such royalty rate is not fair and equitable for the years 2018 to 2022. Furthermore, we have not identified any other aspect of the proposed tariffs that should be modified, except the described modification below.

[9] The tariffs proposed by SOCAN would allow television stations and websites operated by the STQ to communicate to the public by telecommunication works “for private or domestic use,” in connection with their over-the-air broadcasting or internet operations.

[10] In the past, the Board explained that the qualifier related to “private or domestic use” is ambiguous and inappropriate in the sense that it may restrict the tariff to those communications that result in private or domestic use.[1] Without repeating in detail the Board’s reasons for rejecting this restriction, suffice it to emphasize that a broadcaster or webcaster has no control over the end-point use of its programming, or any way of knowing anything about it, raising serious potential issues about enforcement and, in turn, compliance with the present tariff.

[11] Accordingly, we do not include this wording in the tariff we approve.

IV. conclusion

[12] Compared with the last approved SOCAN Tariff 2.C (for 2014-2017), the royalty rate and terms and conditions of the tariff proposals are mostly unchanged for the years 2018, 2019, 2020, 2021 and 2022. With only minor modifications to the language, we find these proposed tariffs to be fair and equitable, and approve them as SOCAN Tariff 2.C – Television – Société de télédiffusion du Québec (2018-2022).



[1] Commercial Radio (21 April 2016), Copyright Board at paras 377.

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