Copyright Board of Canada issued a decision setting the royalties for
non-interactive and semi-interactive Internet music streaming services
and similar services for their use of sound recordings.
The decision also set the royalties payable by the Canadian
Broadcasting Corporation (CBC) as well as by non-commercial webcasters
for their webcasting activities.
The tariff rate for commercial webcasters is set at 10.2 cents per
1,000 plays, payable to Re:Sound, the not-for-profit agency that
collects performance rights income for artists and record
companies. While Re:Sound was asking for a rate of between $1 and
$2.30 per 1,000 plays, the rate set by the Board is close to what the
users participating in the hearing (including Pandora) were suggesting.
Since the Board sets a rate per play, the total amount of royalties
paid by each webcaster will vary according to the number of plays made
during a year. The Board estimates however that a large music streaming
service, with annual revenues of about $130,000, will pay annual
royalties of about $7,000.
Smaller sized webcasters will pay a lower amount, subject to a minimum
fee of $100 per year.
For CBC, the tariff rate is set at 13.1 cents per 1,000 plays. This
slightly higher rate is essentially a reflection of a higher use of the
Re:Sound repertoire by CBC than by commercial webcasters.
The Board estimates that as a result of the rate it sets, CBC will be
paying annual royalties of about $36,000.
Finally, the tariff rate for non-commercial webcasters is set at $25
According to the Board, this fee is appropriate given the incidental
nature of the webcasting activities of community systems and other