Copyright Board Forced to Rethink Broadcasting Royalties
1
COPYRIGHTBOARDFORCEDTORETHINKBROADCASTINGROYALTIES
LaurentCarrièreandIrinaDinu*
LEGERROBICRICHARD
,L.L.P.
Lawyers,PatentandTrademarkAgents
CentreCDPCapital
1001Square-Victoria-BlocE–8thFloor
Montreal,Quebec,CanadaH2Z2B7
Tel.(514)9876242-Fax(514)8457874
info@robic.com-www.robic.ca
PRECIS:TheFederalCourtofAppealofCanadahasgrantedanapplication
forjudicialreviewandsetasidetheCopyrightBoard’scertifiedtariffsofthe
royaltiespayablebycommercialradiostationsforbroadcasting.Justice
Evansgrantedtheapplicationonthegroundsthattheboardfailedto
provideadequatereasonsforitstariffs.
InCanadianAssociationofBroadcastersvSocietyofComposers,Authors
andMusicPublishersofCanadatheFederalCourtofAppealofCanadahas
grantedanapplicationforjudicialreviewandsetasidetheCopyright
Board’scertifiedtariffsoftheroyaltiespayablebycommercialradiostations
forbroadcasting.TheapplicationwassubmittedbytheCanadian
AssociationofBroadcasters(CAB),whicharguedthattheboard’sdecision
shouldbesetasidepursuanttoSection68(3)oftheCopyrightAct.
Theboardcertifiedtariffsestablishingtheamountofroyaltiespayableby
commercialradiostationsintheyears2003to2007totheSocietyof
Composers,AuthorsandMusicPublishersofCanada(SOCAN)andthe
NeighbouringRightsCollectiveofCanada(NRCC)(see
CopyrightBoard
rulesthatradiostationsshouldpayhigherroyalties
).Thetariffsaredueforthe
publicperformanceofmusicalworksandsoundrecordingsinwhich
membersofbothcollectingsocietiesholdrights,andarebasedona
percentageofthegrossannualadvertisingrevenuesofcommercialradio
broadcasters.
TheboardcertifiedageneraltariffforSOCANof4.2%andof2.1%forNRCC,
andrejectedthemodelsdeterminingtheappropriateroyaltyproposedby
©CIPS,2007.*Lawyerandtrade-markagent,LaurentCarrière,isaseniorpartnerwithLEGERROBIC
RICHARD
,L.L.P.,amultidisciplinaryfirmoflawyers,andpatentandtrademarkagents.Irina
Dinuisanarticlingstudentwiththefirm.PublishedinWorldCopyrightLawReport.
Publication328.029.
2
CABandNRCC.Themethodusedbytheboardtodeterminetheroyalty
startedwiththeexistingtariffandadjusteditinlightoftheevidence
adducedbytheparties.Theboardsaidthatanincreaseinthetariffswas
warrantedonthreegrounds:
·theexistingtariffsunderestimatedthevalueofmusictoradiostations’
revenue;
·moremusicwasusedinbroadcasters’programming;and
·broadcasterswereabletotargetparticularaudiencesmoreefficiently
toincreasetheirrevenues.
TheCABchallengedtheestablishedtariffsbeforetheCourtofAppealon
twogrounds:thefailureoftheboardtoconsiderCAB’sobjections,and
inadequaciesinitsreasons.
CABarguedthattheboardfailedtotakeintoaccountitsobjections,namely
thattherehadbeenaproliferationinthenumberofrightsholderstobe
compensated.JusticeEvanswasoftheopinionthattheboarddidnoterrin
lawbyfailingtoconsiderarelevantfactor.Astothesecondgroundof
appeal,theboardhasastatutorydutytoprovidepartieswithadequate
reasons.‘Adequacy’istobeassessedinlightofthefollowingfactors:
enhancingthequalityofdecisions,assuringthepartiesthattheir
submissionshavebeenconsidered,enablingthedecisiontobesubject
toameaningfuljudicialreview,andprovidingfutureguidanceto
regulate[…]Equallyimportant,theadequacyofthereasonsmustbe
assessedincontext,includingtheagency’srecord,theissuestowhich
thereasonsrelate,andthescopeoftheagency’sexpertise.
Aboarddecisiononaroyaltyrateissubjecttojudicialreview,butonlyon
groundsofpatentunreasonableness.Eventhoughthejudgeconsideredthe
broaddiscretionoftheboard,hewasoftheopinionthatthegivenreasons
wereverythin.Thequantificationoftheundervaluationcannotbejustified
bymerelyreferringtotheevidencetakenasawhole.Theboarddidnotrefer
partiestoanythingintheevidencetoexplaintherange.Thus,itfailedto
explainthetariffs,whichisabreachofitsdutytoprovideadequatereasons
foritsjudgment.
Theinadequaciesoftheboard’sdecisionwarrantedthecourt’sintervention.
Theapplicationforjudicialreviewwasgrantedandthematterwasretuned
totheboardtoreconsidertheissues.
3
4
ROBIC,ungrouped avocatsetd agentsdebrevetsetdemarquesde
commercevouédepuis1892àlaprotectionetàlavalorisationdela
propriétéintellectuelledanstouslesdomaines:brevets,dessinsindustrielset
modèlesutilitaires;marquesdecommerce,marquesdecertificationet
appellationsd origine;droitsd auteur,propriétélittéraireetartistique,droits
voisinsetdel artisteinterprète;informatique,logicielsetcircuitsintégrés;
biotechnologies,pharmaceutiquesetobtentionsvégétales;secretsde
commerce,know-howetconcurrence;licences,franchisesettransfertsde
technologies;commerceélectronique,distributionetdroitdesaffaires;
marquage,publicitéetétiquetage;poursuite,litigeetarbitrage;vérification
diligenteetaudit.ROBIC,agroupoflawyersandofpatentandtrademark
agentsdedicatedsince1892totheprotectionandthevalorizationofall
fieldsofintellectualproperty:patents,industrialdesignsandutilitypatents;
trademarks,certificationmarksandindicationsoforigin;copyrightand
entertainmentlaw,artistsandperformers,neighbouringrights;computer,
softwareandintegratedcircuits;biotechnologies,pharmaceuticalsand
plantbreeders;tradesecrets,know-how,competitionandanti-trust;
licensing,franchisingandtechnologytransfers;e-commerce,distributionand
businesslaw;marketing,publicityandlabelling;prosecutionlitigationand
arbitration;duediligence.
COPYRIGHTER
IDEASLIVEHERE
ILATOUTDEMÊMEFALLUL INVENTER!
LAMAÎTRISEDESINTANGIBLES
LEGERROBICRICHARD
NOSFENÊTRESGRANDESOUVERTESSURLEMONDEDESAFFAIRES
PATENTER
R
ROBIC
ROBIC+DROIT+AFFAIRES+SCIENCES+ARTS
ROBIC++++
ROBIC+LAW+BUSINESS+SCIENCE+ART
THETRADEMARKERGROUP
TRADEMARKER
VOSIDÉESÀLAPORTÉEDUMONDE,DESAFFAIRESÀLAGRANDEURDELA
PLANÈTE
YOURBUSINESSISTHEWORLDOFIDEAS;OURBUSINESSBRINGSYOURIDEASTO
THEWORLD