Vol. 148, No. 9 — March 1, 2014

Statement Limiting the Right to Equitable Remuneration of Certain Rome Convention or WPPT Countries

Statutory authority

Copyright Act

Sponsoring department

Department of Industry

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Statement.)

Issues

When Canada ratifies the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty (WPPT), adopted in Geneva on December 20, 1996, performers and makers of sound recordings from WPPT countries will be eligible for equitable remuneration under section 19 of the Copyright Act. The Minister of Industry intends to issue a Statement to limit the scope of section 19 for right holders of certain WPPT countries that do not offer a similar right.

In addition, this Statement will ensure that Canada continues to provide an equitable remuneration right to performers and makers of sound recordings from member countries of the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome Convention) to the extent that these countries offer a similar right. The Statement will therefore provide an update to the Limitation of the Right to Equitable Remuneration of Certain Rome Convention Countries Statement (SOR/99-143) published in 1999, by accounting for any changes to the domestic laws of countries listed therein, or any countries that have since acceded to the Rome Convention.

Background

The Copyright Act provides performers and makers of sound recordings with equitable remuneration when their sound recording is performed in public (for example the playing of music in a restaurant) or is communicated to the public by telecommunication (for example radio broadcasts).

The WPPT and the Rome Convention provide the flexibility to its members to limit the scope of this equitable remuneration. A number of countries have availed themselves of this flexibility.

In accordance with the WPPT and the Rome Convention, the Minister of Industry has the power to issue a Statement to limit the scope and duration of the equitable remuneration right afforded to foreign sound recordings to the extent that it is limited in their country of origin.

Objectives

The objective of this Statement is to limit the scope and duration of protection of the right to remuneration in sound recordings originating from a WPPT or Rome Convention country, if that country does not offer a right similar in scope and duration to that granted in Canada.

Description

The Statement will limit the remuneration right in sound recordings originating from the following countries:

“One-for-One” Rule

The “One-for-One” Rule does not apply to this proposed Statement, as there is no change in administrative costs imposed by the Statement on businesses.

Small business lens

The small business lens does not apply to this proposed Statement, as there are no increased costs imposed on small business. In fact, the Statement will limit copyright royalties’ payments vis-à-vis sound recordings from countries that do not offer the full scope of equitable remuneration.

Consultation

Stakeholders that represent rights holders and users of copyright-protected sound recordings were consulted in the spring of 2013. The consultation involved an explanation of the proposed approach, and a review of preliminary analysis of the scope of the equitable remuneration right in certain WPPT countries.

The list of consulted stakeholders included a collective society representing performers and makers of sound recordings, sports leagues and sports clubs, media and telecommunications companies and retail and service business representatives.

In addition, Industry Canada had also informed potential countries of the Minister’s intent to limit the scope of the equitable remuneration right for sound recordings originating from those countries in Canada. Industry Canada sought confirmation by those countries of the interpretation of their domestic copyright framework with respect to the scope of the equitable remuneration right for Canadian performers and makers in those countries.

Rationale

The Statement will ensure continued reciprocity between relevant countries and Canada in terms of remuneration for certain uses of sound recordings. Without this Statement in place prior to Canada’s ratification of the WPPT, Canadian businesses will be required to pay a substantial increase in copyright royalties to foreign rights holders for certain uses of sound recordings. However, Canadian rights holders would not receive the similar benefit of collecting increased royalties abroad for those same uses of their sound recordings.

Updating the original Statement for Rome Convention countries to reflect changes to their equitable remuneration regime for Canadian rights holders is expected to have an overall minimal impact on Canadian businesses.

Implementation, enforcement and service standards

Implementation, enforcement and service standards are not applicable.

Contacts

Anne-Marie Monteith
Director
Copyright and Trade-mark Policy Directorate
Industry Canada
235 Queen Street
Ottawa, Ontario
K1A 0H5
Telephone: 613-952-2527
Email: anne-marie.monteith@ic.gc.ca

Lara Taylor
Director
Copyright and International Trade Policy Branch
Canadian Heritage
25 Eddy Street
Gatineau, Quebec
K1A 0M5
Telephone: 819-934-2826
Email: lara.taylor@pch.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Minister of Industry, pursuant to subsections 20(2) (see footnote a) and (2.1) (see footnote b) of the Copyright Act (see footnote c), proposes to make the annexed Statement Limiting the Right to Equitable Remuneration of Certain Rome Convention or WPPT Countries.

Interested persons may make representations concerning the proposed Statement within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Anne-Marie Monteith, Director, Copyright and Trade-mark Policy Directorate, Department of Industry, 235 Queen Street, Ottawa, Ontario K1A 0H5 (tel.: 613-952-2527; email: Anne-Marie.Monteith@ic.gc.ca) or Lara Taylor, Director, Copyright and International Trade Policy Branch, Department of Canadian Heritage, 25 Eddy Street, Gatineau, Quebec K1A 0M5 (tel.: 819-934-2826; email: lara.taylor@pch.gc.ca).

Ottawa, February 14, 2014

JAMES MOORE
Minister of Industry

STATEMENT LIMITING THE RIGHT TO EQUITABLE REMUNERATION OF CERTAIN ROME CONVENTION OR WPPT COUNTRIES

LIMITATIONS

Bolivia and Lesotho

1. A right to equitable remuneration applies only for a duration of 20 years to the performance in public or the communication to the public by telecommunication of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of Bolivia or Lesotho or was a corporation that had its headquarters in either of those countries.

Japan, Singapore and the United States

2. (1) Subject to subsections (2), (5) and (6), a right to equitable remuneration applies only to the communication to the public by telecommunication of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of Japan, Singapore or the United States or was a corporation that had its headquarters in any of those countries.

Exception: broadcasts and background music

(2) In the case of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of Singapore or the United States or was a corporation that had its headquarters in either of those countries, the right to equitable remuneration does not apply to

Background music: United States

(3) Despite paragraph (2)(b), a right to equitable remuneration does apply to the communication referred to in that paragraph if the maker of the sound recording was, at the date of its first fixation, a citizen or permanent resident of the United States or was a corporation that had its headquarters in that country and if, within any three-hour period of a program of sound recordings:

Album

(4) For the purposes of subsection (3), an album is a compilation that has been published or otherwise made available to the public and that contains sound recordings, more than half of which are recordings of performances of the same featured artist or artists.

Exception: first fixation before February 15, 1972

(5) A right to equitable remuneration does not apply to the communication to the public by telecommunication of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of the United States or was a corporation that had its headquarters in that country, if its first fixation was before February 15, 1972 and the sound recording was first published in

Exception: non-interactive Internet transmission

(6) In the case of a sound recording that has not been published but is deemed to have been published under subsection 19.2 of the Copyright Act and whose maker, at the date of its first fixation, was a citizen or permanent resident of Japan or was a corporation that had its headquarters in that country, the right to equitable remuneration applies only to the communication of the sound recording to the public by non-interactive Internet transmission.

Lebanon

3. A right to equitable remuneration applies only to the performance in public of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of Lebanon or was a corporation that had its headquarters in that country.

Vietnam

4. In the case of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of Vietnam or was a corporation that had its headquarters in that country, a right to equitable remuneration applies only with respect to

Barbados, Cabo Verde, Congo and Monaco

5. A right to equitable remuneration does not apply to the performance in public or the communication to the public by telecommunication of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of Barbados, Cabo Verde, Congo or Monaco or was a corporation that had its headquarters in any of those countries.

People’s Republic of China

6. (1) Subject to subsections (2) and (3), a right to equitable remuneration does not apply to a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of the People’s Republic of China or was a corporation that had its headquarters in that country.

Macao

(2) The performer of a sound recording whose maker, at the date of its first fixation, was a permanent resident of the Macao Special Administrative Region of the People’s Republic of China or was a corporation that had its headquarters in the Macao Special Administrative Region of the People’s Republic of China is entitled to be paid equitable remuneration in respect of the sound recording.

Hong Kong

(3) The maker of a sound recording who, at the date of its first fixation, was a permanent resident of the Hong Kong Special Administrative Region of the People’s Republic of China or was a corporation that had its headquarters in the Hong Kong Special Administrative Region of the People’s Republic of China is entitled to be paid equitable remuneration in respect of the sound recording.

Costa Rica

7. In the case of a sound recording whose maker, at the date of its first fixation, was a citizen or permanent resident of Costa Rica or was a corporation that had its headquarters in that country a right to equitable remuneration does not apply to

REPEAL

8. The Limitation of the Right to Equitable Remuneration of Certain Rome Convention Countries Statement (see footnote 1) is repealed.

COMING INTO FORCE

Coming into force

9. This Statement comes into force on the later of the day on which it is published in the Canada Gazette, Part II, and the day on which the WIPO Performances and Phonograms Treaty (WPPT), adopted in Geneva on December 20, 1996, comes into force for Canada.

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