Radio Stations to Pay More Royalties After Copyright Board of Canada Ruling

Radio Stations to Pay More Royalties After Copyright Board of Canada Ruling
New tariffs will force commercial radio stations to pay Canadian music rights owners about $13 million more, according to a July 9 decision by the Copyright Board of Canada.

The tariffs came as a result of music rights organizations in Canada filing for more money with the Canadian government, who awarded the groups about a fifth of the amount they requested.

The decision raises royalty rates for CSI to 1.2 percent from from 0.8 percent (for gross income above $1.25 million), bringing the group up to the same rates as SOCAN and Re:Sound, whose royalty rates will stay the same. CSI represents the Canadian Musical Reproduction Rights Agency (CMRRA) and the Society for Reproduction Rights of Authors Composers and Publishers in Canada (SODRAC).

In addition, two new groups will now be able to collect commercial radio royalties. Again, for gross income higher than $1.25 million, the Audio-Video Licensing Agency (AVLA) and the Société de gestion collective des droits des producteurs de phonogrammes et de vidéogrammes du Québec (SOPROQ) will collect 1.2 percent together, while ArtistI, the collective society of the Union des artistes (UDA), will get 0.02 percent.

In the written decision, the copyright board stressed that "the increase does not reflect an increase in the fundamental value of music. It is mainly the result of the introduction of two new rates, for the reproduction of sound recordings and of performers' performances, which broadcasters already used but for which they had yet to pay."

The board estimates that the amount of royalties paid per year will be in the neighbourhood of $85 million, of which approximately $51 million will go to SOCAN, $13 million to Re:Sound, $11 million to CSI, $10 million to AVLA/SOPROQ and $200,000 to ArtistI.

For some not-so-light reading, check out the full PDF of the board's decision here.

Thanks to FYIMusic for the heads-up.

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