September 11, 2017 – On September 1, the Copyright Board of Canada rendered a long awaited decision on neighbouring rights tariffs for live events. The Copyright Board certified eleven tariffs. Of these, two are settlement tariffs negotiated by CAPACOA and its partner associations.
This decision concludes a four-year long negotiation between Re:Sound and CAPACOA about rights for the use of recorded music. The Copyright Board’s decision traces the entire chronology of correspondence between all parties. It also highlights the key roles played by CAPACOA and the Canadian Association of Fairs and Exhibitions in introducing the inaugural Re:Sound Tariff 5.K Recorded music accompanying theatrical, dance and other live performances, and in revising the fee structure for Tariff 5.D Festivals, Exhibitions and Fairs for 2015.
With regards to the Tariff 5.D Festivals, Exhibitions and Fairs 2015, the Copyright Board’s decision (paragraphs 33-47) notes: “CAFE and CAPACOA consulted extensively with their members and requested changes to the Tariff to make it simpler to administer and more equitable.”
Tariff 5.K Theatrical, Dance and Other Similar Live Performances 2008-2015 is a brand new tariff. This Tariff fills a gap in the initial proposed Re:Sound Live Events Tariffs for 2008-2012. It covers the use of recorded music during all types of live entertainment events not otherwise covered by other tariffs. The Board’s decision (paragraphs 68-74) acknowledges the extensive consultations made by CAPACOA and notes: “the rates were arrived at after careful consideration of the different types of use of recorded music at performing arts events.” This Tariff has been known as Tariff 5.A by CAPACOA members in the settlement agreement with Re:Sound. It is superseding the former Tariff 5.A (Recorded music accompanying live entertainment in cabarets, cafes, clubs, restaurants, roadhouses, taverns and similar establishments) in Re:Sound’s proposed 2016-2020 tariffs.
“We are extremely proud of the introduction of the inaugural Tariff 5.K. It is a simple, flexible and fair tariff. It opens the door to further consolidation of tariffs. And it can now benefit the entire performing arts sector,” affirmed Michel Emslie, CAPACOA Board Chair and Community Programming Director at the Yukon Arts Centre.
CAPACOA members will soon receive guidance on how to make the transition from the settlement tariffs and reporting form to the certified tariffs.
A webinar on Understanding the New Re:Sound Tariffs will be offered in January 2018.
- The Copyright Board’s decision pertains to live events tariffs filed by Re:Sound in 2007 and 2012. With this decision, the number of certified neighbouring rights tariffs for live events increases from 7 to 11.
- CAPACOA first objected to the proposed tariffs in August 2012 before undertaking negotiations with Re:Sound. CAPACOA and Re:Sound reached a settlement agreement in December 2014, and filed a joint request for certification in December 2015.
- The Copyright Board’s decision acknowledges important concerns raised by CAPACOA and other objectors:
-  “On the issue of the application of multiple tariffs, the Board notes Re:Sound’s willingness to consider the consolidation of tariffs where possible and appropriate.”
-  “the issue of the burden of minimum fees for multi-event presenters must be addressed.”
- Tariff 5.K applies to the use of recorded music as a part of any type of live entertainment events including theatrical, dance, acrobatic arts, integrated arts, contemporary circus arts or other similar live performances. It offers different fees depending on whether the use of recorded music is incidental or not, and an annual minimum fee is available for licensees that hold multiple events. Tariff 5.K is more flexible than most Re:Sound tariffs: the royalties can be established either on the basis of a minimum fee per performance, or on the basis of the total number of admissions in a series of performances.
- Tariff 5.K is superseding the former Tariff 5.A (Recorded music accompanying live entertainment in cabarets, cafes, clubs, restaurants, roadhouses, taverns and similar establishments) in Re:Sound’s proposed 2016-2020 tariffs.
- There is no SOCAN equivalent to Re:Sound Tariff 5.K.
- The Copyright Board decision certifies two tariffs to which CAPACOA had initially objected: Tariff 5.I (Comedy and Magic Shows) and Tariff 5.J (Concerts). CAPACOA removed its objection on these two tariffs for the purpose reaching a settlement and of hastening the certification of the entire suite of tariffs. CAPACOA filed another objection to these two tariffs further to the filing of the Re:Sound 2016-2020 tariffs.
- Tariff 5.I (Comedy and Magic Shows) covers for the same type of use of recorded music as Tariff 5.K, but is specific to two types live performances. As such, it could be the object of consolidation with Tariff 5.K.
- CAPACOA is having ongoing constructive discussions with Re:Sound, with the hope of addressing these concerns in the 2016-2020 tariffs.
- The entire certification process for the second series of live events tariffs, for the period 2013-2012, took four and half years (53 months). In comparison, the inaugural series of live event tariffs took more than five years (64 months) to get certified.
- The Government of Canada is currently conducting consultations on reforming the Copyright Board of Canada. The consultations aim to address the need for timely decisions on the use of copyrighted content.
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