Today, the Federal Court of Appeal released its decision dismissing Re:Sound’s application for judicial review of the Copyright Board of Canada’s decision certifying Re:Sound’s inaugural tariff for Non-Interactive and Semi-Interactive Webcasts (Re:Sound Tariff 8). The Court’s decision upholds the rates set by the Copyright Board for 2009-2012.
“Re:Sound had no choice but to seek judicial review of the Copyright Board’s decision, which set rates in Canada that are approximately 10% or less of rates prevailing in most other territories as well as market rates in Canada” said Ian MacKay, President of Re:Sound. “As the Court’s decision only relates to the rates payable for the years 2009-2012, Re:Sound will now focus on seeking new rates for the years 2013-2018 and beyond, which properly reflect the realities of the music streaming industry which has evolved significantly since the last hearing. Given the importance of streaming to the future of the Canadian music industry, Re:Sound will continue to fight to obtain rates for its rights holders that reflect proper and equitable compensation.”
Re:Sound first proposed a tariff for Non-Interactive Webcasts in 2008 and for Semi-Interactive Webcasts in 2010. A hearing before the Copyright Board was held in the Fall of 2012. The Copyright Board certified Re:Sound Tariff 8 for the years 2009-2012 on May 17, 2014. Re:Sound brought an application for judicial review on June 16, 2014 and the hearing before the Federal Court of Appeal was held on February 24 & 25, 2016.
Re:Sound Tariff 8 applies to Non-Interactive and Semi-Interactive Webcasts. A Non-Interactive Webcast is an online music streaming service that does not allow the user to control the content or timing of the webcast e.g. no skipping or customizing the stream by genre or artist. A Semi-Interactive Webcast is a service that allows the user some level of control over the content or timing of the webcast such as skipping or pausing the stream or customizing the content by genre or artist. Tariff 8 does not apply to podcasts, fully interactive services such as downloads or on-demand streaming, or simulcasts by Canadian commercial radio broadcasters, CBC, pay audio or satellite radio services. Any other simulcasters, such as international radio stations streaming into Canada and noncommercial radio stations, are subject to the applicable webcasting royalties under Tariff 8.
Re:Sound Music Licensing Company is the Canadian not-for-profit music licensing company dedicated to obtaining fair compensation for artists and record companies for their performance rights. On behalf of its members, representing thousands of artists and record companies, Re:Sound licenses recorded music for public performance, broadcast and new media. All of the money collected by Re:Sound is distributed to our members, less only our actual costs. Created in 1997 (as NRCC), our member organisations are ACTRA RACS, ARTISTI, MROC, Connect Music Licensing, SOPROQ, Sony Music Entertainment Canada Inc., Warner Music Canada Co., and Universal Music Canada Inc. For any inquiries, please contact Eunice Kim, firstname.lastname@example.org, (416) 355-8320.