Neighbouring Rights

NRCC

1235 Bay Street, Suite 910
Toronto, Ontario M5R 3K4
Tel: (416) 968-8870
Fax: (416) 962-7797
e-mail: info@nrdv.ca
Web: http://www.nrdv.ca

A. HISTORY AND STRUCTURE

NRCC is the Neighbouring Rights Collective of Canada. It was federally incorporated by Letters Patent in August 1997 NRCC Letters Patent.pdf ; NRCC Supplementary Letters Patent 2003.pdf to act as a "collective society" within the meaning of the Copyright Act (s. 70.1) "to collect royalties arising from or in connection with the right to receive remuneration for the public performance and communication to the public by telecommunication of eligible published sound recordings and performers' performances fixed thereon and to distribute such royalties..."

Its Board of directors is composed of six directors, representing one appointee from each of the founding members, except that AVLA and SOPROQ jointly appoint one additional director representing makers to ensure equal representation of the two "colleges" (see below).

B. MEMBERS / MEMBERSHIP

The membership of NRCC is divided into two "colleges" of collectives, representing the performers and sound recording makers respectively. A schematic of the relationships among the collectives appears at the end of this section.

The performers' college comprises three organizations: ACTRA PRS (The ACTRA Performers' Rights Society), AFM (The American Federation of Musicians of the United States and Canada) and ArtistI (La Socété de gestion collective de l'Union des artistes). 

The makers' college comprises AVLA (Audio-Visual Licensing Agency) and SOPROQ (La société de gestion collective des droits des producteurs de phonogrammes et de vidéogrammes du Québec).

Accordingly, in contrast to other collectives such as SOCAN and SODRAC, individuals and companies are not direct members of NRCC but derive their remuneration through a member collective that is the most appropriate for them to join.

NRCC has entered into identical Mandate Agreements with its five members (a sample of which is the NRCC - AVLA Mandate for neighbouring rights.pdf) under which it is granted an exclusive mandate to file and defend neighbouring rights tariffs before the Copyright Board, to collect fees thereunder and to remit to the member such portion as to which it is entitled.

NRCC is in turn a member of CPCC (see section on CPCC), which is the collective responsible for collecting and distributing private copying (home taping) levies. Each of NRCC's five members derives its remuneration right to those levies through NRCC. Accordingly, NRCC has entered into similar Mandate Agreements with its five members (a sample of which is the NRCC - AVLA Mandate for private copying.pdf) under which it is granted an exclusive mandate to file and defend blank audio recording media tariffs before the Copyright Board, to collect fees thereunder and to remit to the member such portion as to which it is entitled. (In turn, NRCC has entered into an agreement with CPCC under which CPCC is granted the exclusive mandate to carry out those functions NRCC Mandate to CPCC incl amendmts in 02 and 04.pdf).

The term of each Mandate Agreement, for both neighbouring rights and private copying, is two (2) years and automatically renews for successive two-year terms unless terminated on three months notice prior to the end of a term. Each member may unilaterally and without cause terminate an agreement at any time, however, on 180 days' notice.

NRCC publishes little informative literature. As its members are sophisticated music industry players, they are presumed to be well informed of the role of NRCC. For the general interest of the members of those members, however, NRCC offers a comprehensive web site: www.nrdv.ca.

C. OPERATIONS

NRCC has been operating since 1997 and has collected royalties since 1998.

1. Repertoire Administration

   NRCC administers the sound recording and performers' performing right associated with eligible sound recordings. In order to be eligible for remuneration, a sound recording must be:

   1. made by a corporation that is headquartered in Canada or in a Rome Convention country, or by an individual who is a citizen or permanent resident of Canada or of a Rome Convention country, OR
   2. all the fixations done for the sound recording occurred in Canada or in a Rome Convention country.

   Performers on eligible sound recordings are entitled to remuneration irrespective of their nationality or country of residence.

   As the United States is not a Rome Convention country, a sizeable portion of the repertoire of sound recordings that is performed in Canada is ineligible.

   NRCC has been building and adding to its repertoire by inputting the sound recording details that it receives from its members (via their respective members). NRCC's primary function, after collecting royalties owing, is determining eligibility of sound recordings.

2. Relationship with Users

   1. Statutory Requirements

      NRCC is required under section 67.1 of the Copyright Act to file tariffs of fees it proposes to collect from various broadcasters and broadcaster groups. The deadline for filing is March 31 of the year preceding the first year of the tariff period. Tariffs can be filed and certified for multiple years. There is a formal process by which music users may object to a proposed tariff or seek intervenor status in the proceedings. The Copyright Board is required, under section 68, to consider the proposed tariffs and any objections thereto. This may mean the scheduling of a hearing if the issues cannot be resolved through an exchange of arguments.

      The parties are not precluded from negotiating a settlement and filing it with the Board, but the Board remains bound to consider the settlement terms in the context of the public interest before certifying the agreed tariff.

      For the first NRCC commercial radio fees, the parties did not negotiate a rate. A hearing was held and a tariff was certified for five years, from 1998 through 2002. A similar procedure resulted in a tariff for CBC radio.

      Based on the notion that neighbouring rights should be equal in value to musical work (SOCAN) performing rights, the Copyright Board set the initial commercial radio rate at the equivalent of 3.2% of advertising revenues, corrected for ineligible repertoire. As the Copyright Board determined that, at the time, US and other ineligible repertoire accounted for 55% of the repertoire of sound recordings performed in Canada, the effective rate for most commercial radio stations was therefore set at 1.44%.  All commercial stations, however, are granted a statutory exemption for their first $1.25 million in revenue.

      A lower rate of 0.63% of advertising revenues was established for so-called "low-use" radio stations (who use music less than 20% of their total monthly broadcast time). A nominal $100 is payable on January 1 of every year by all stations, including all-talk stations which are otherwise exempt from payment obligations.

      NRCC's CBC tariff (1C) was fixed by the Board at a dollar value equal to $960,000.

      Section 68.1 of the Act also provided for a three-year phase-in of the initial tariffs for commercial radio and CBC, at 1/3, 2/3 and then full rates for years 1, 2 and 3 respectively of the tariffs.

      The commercial radio rates remained virtually unchanged until the Copyright Board certified the tariff for 2003-2007. On October 15, 2005, the Copyright Board of Canada rendered a decision establishing the royalties that commercial radio stations must pay to SOCAN and to NRCC for their use of music for the years 2003 through 2007. The Canadian Association of Broadcasters applied to the Federal Court of Appeal for judicial review of that decision, asserting that the Board had exceeded its jurisdiction.

      On October 19, 2006, the Federal Court of Appeal set aside the Board's October 15, 2005 decision, remitting it back to the Board for re-determination.

      On February 22, 2008, following its re-determination of the matter, the Board rendered a decision that maintained the rates it established in its October 2005 decision. The parties had submitted new evidence that allowed the Board to assess the value of music to broadcasters from different viewpoints. On the first $1.25 million of annual advertising revenues, music stations continue to pay SOCAN 3.2 per cent of that amount, and $100 to NRCC. Above that threshold, the rate is 4.4 per cent for SOCAN and 2.1 per cent for NRCC. The rates for low music-use stations (less than 20% of program time) increase from 1.4 to 1.5 per cent to SOCAN and from 0.64 to 0.75 per cent to NRCC.

      The CBC tariff remains unchanged. For the years 2003 to 2007, NRCC had proposed an annual royalty equal to six (6) per cent of CBC radio revenue in the reference year multiplied by 0.6139. This proposed tariff was intended to bring the CBC royalty rate in line with the tariff NRCC had proposed for commercial radio, the .6139 multiplying factor being an adjustment for the lower amount of music used by CBC than by commercial music stations. With the commercial radio rates still undetermined for 2003 and 2007, the parties agreed to extend the existing rate of $960,000 annually for 2003 to 2005 and, along with SOCAN, are awaiting the outcome of the commercial radio tariff before scheduling a hearing for later periods.

   2. Licences

      NRCC administers the equitable right of remuneration and therefore does not issue licences. Under subsection 70.17(1), NRCC cannot sue anyone who has paid the specified royalties.

      Its certified tariffs are described on NRCC's own website at http://www.nrdv.ca/english/tarFAQ.htm and their full text on the Copyright Board's web site at http://www.cb-cda.gc.ca/tariffs/certified/music-e.html.

      NRCC provides reporting forms and logs on line for its commercial radio, background music, and pay audio users on its web site at http://www.nrdv.ca/english/tarInfo.htm.

   3. Sources of Licence Revenue

      Revenues from the four tariffs currently in place for the past three years are as follows:

      	2004	2005	2006
      Commercial radio:	$9,183,160	$10,102,751	$10,612,191
      CBC:	$960,000	$960,000	$960,000
      Pay audio:	$1,658,071	$1,540,237	$1,694,754
      Background music:	(in process of collecting retroactive payments)

      Because the first $1.25 million in commercial radio advertising revenues is subject to a nominal royalty of $100, NRCC's cash flow is skewed toward the last months of the year.

      In addition, performers and makers receive 34% of CPCC's earned income, the bulk of which is distributed through NRCC. CPCC's historical earnings are posted at http://cpcc.ca/english/finHighlights.htm.

      The performer college members have taken responsibility for establishing and administering reciprocal agreements with their foreign counterparts; the maker college members rely on the intra-corporate arrangements many of their members have in place as well as reciprocal agreements with their foreign counterparts for effecting distributions to foreign rightsholders. Accordingly, foreign income and distribution do not flow through NRCC.

   4. Collections and Enforcement

      NRCC's main licensees have been the same sophisticated broadcasters who have become accustomed to paying SOCAN fees and with whom SOCAN has few compliance problems. NRCC does however report some compliance difficulties with its tariff payors, sometimes respecting payment of the tariff but more commonly respecting the provision of logs.

      NRCC has begun collecting its background music tariff and, while its efforts have been successful, there have been extensive enforcement challenges because NRCC is new to the users.

      As NRCC came into existence at the same time as the improved remedies provisions under the Copyright Act, NRCC does not have a reference point for measuring the effect of the latter on compliance rates, enforceability or legal costs.

D. DISTRIBUTION OF ROYALTIES

1. The Colleges

   NRCC divides its income into two equal parts, payable to the performers' college and the makers' college. Each member collective uses sound recording use information provided by NRCC for the relevant tariff (typically artist and song identification, frequency of play, weighting by audience size such as BBM data if available, and eligibility of the recording for remuneration) to determine payments to the individual performers and makers they represent. 

   In the case of the maker college members, claims for the amounts owing to the individual makers they represent are submitted to NRCC for payment. For the performer college, the total amount owing to performers is allocated to the college members in a manner determined from time to time by the college's members, to be reconciled according to the payments each collective has made on behalf of individual performers.

2. Music Monitoring

   In order to streamline the workload of commercial radio stations, NRCC asks the stations to log during the same logging periods selected by SOCAN. NRCC uses the data in a different way, however, applying a different weighting technique based on audience.

   The CBC national and regional radio services provide comprehensive music use information and the local services provide samples, as they do for SOCAN.

   Pay Audio services provide one week's music use information each month, again as they do for SOCAN.

3. Distribution Periods

   NRCC distributes royalties to the colleges' accounts semi-annually based on receipts in the preceding two quarters.

E. COOPERATION WITH OTHER COLLECTIVES

1. Internationally

   NRCC does not deal directly with its foreign counterparts on distribution matters, as its members have made arrangements for the flow of foreign income either with other societies (performers' college) or with their corporate affiliates (makers' college). NRCC does however cooperate with its foreign counterparts in sharing new developments in copyright law, tariff enforcement and collection strategies.

2. Domestically

   As required by the Copyright Board, NRCC cooperates with SOCAN on joint tariff hearings. Through its delegates, NRCC interacts with CPCC as a member of its Board.

F. REVENUE GROWTH ATTRIBUTABLE TO THE AMENDMENTS

All revenue since 1997 is the result of the new provisions of the Act.

G. CURRENT CONCERN

In NRCC's view, the nominal $100 royalty on the first $1.25 million for all commercial radio stations is not justified. The effective exemption reflected a concern by legislators that the rate later determined by the Copyright Board could put small stations in markets with only a single station out of business, or could reduce the amount of local programming. The Copyright Board, however, found that the evidence established that the industry could have absorbed the full tariff, absent any special statutory provisions. NRCC, through the professional associations representing makers and performers, has been lobbying for its removal from the Copyright Act but without success to date.

AVLA

85 Mowat Avenue
Toronto, Ontario M6K 3E3
Tel: (416) 922-8727
Toll Free: 1-800-668-8820
Fax: (416) 967-9415
e-mail: info@avla.ca
Web: www.avla.ca

A. HISTORY AND STRUCTURE

AVLA is the AVLA Audio-Video Licensing Agency Inc., a federally incorporated company established to act as a non-exclusive agent to license the duplication of audio recordings and the duplication and exhibition of music video recordings used in Canada on behalf of their owners and exclusive holders of copyright.

AVLA has been operating since 1985. Prior to its incorporation, record companies administered their own licensing in the relevant areas.

Its members are also generally members of either CRIA (the Canadian Recording Industry Association)or CIRPA (the Canadian Independent Record Production Association). CRIA was established in 1964 by the major international labels operating in Canada with a mission to promote the interests of Canadian record companies.

CIRPA was established in 1975 as a national trade association whose members are Canadian-owned companies involved in every aspect of the music and music-related industries, including record producers, record labels, recording studios, managers of recording acts, music publishers, music publicists, music video producers and directors.

B. MEMBERS - MEMBERSHIP

AVLA is the licensing agent of all the major record companies in Canada and many independent labels, artists and producers. AVLA's 400+ members own or control the copyright of over 95% of all musical audio recordings and music videos produced and/or distributed in Canada. Its full membership list, called Schedule A, is found at http://www.avla2007.ca/index.php/members/list. Applications for membership are at http://www.avla2007.ca/index.php/members/application.

Its members are record companies - not the artists who record for them. The artists are paid in accordance with the recording agreements entered into with their record companies. Some agreements provide for payment of 50% of the proceeds after recoupment of recording costs; others do not require recoupment. Some agreements do not provide for any payment to the artist for such "promotional" uses.

Under the AVLA Agency Agreement, the member appoints AVLA for an open-ended term as its non-exclusive agent to issue licences to third parties authorizing the copying of their sound recordings and the copying and exhibition of their music videos in the territory of Canada. AVLA's responsibilities include active solicitation and negotiation with licensees, issuing the licences and collecting the fees and royalties. As the appointment is non-exclusive, the member can prohibit AVLA from licensing any of its sound recordings and music videos at any time.

It also conducts audits on behalf of its members of its licensees and permits every member to inspect the records and books of AVLA only in respect to transactions between AVLA and the member that has requested the audit.

AVLA is also authorized to administer, collect and distribute royalties from the public performance of sound recordings (NRCC payments) and levies from manufacturers and importers of blank audio recording media (CPCC levies).

The AVLA Agency Agreement is not available online but a summary can be found at http://www.avla2007.ca/public/docs/membership_summary.pdf.

C. OPERATIONS

1. Repertoire Administration

   AVLA's needs for repertoire information stem from the requirements of NRCC. AVLA posts on its website a reminder to its members to update their repertoire information on a timely basis. It also posts a list of "missing members" at http://www.avla2007.ca/index.php/members/missing.

2. Relationship with Users
   1. Statutory Requirements

      AVLA's licensing activities are not subject to any mandatory tariff regime under the Copyright Act. However, its licenses are always subject to Copyright Board arbitration under s.70.2 of the Copyright Act, in the event that AVLA or any of its licensees requests its intervention.

   2. Statutory Requirements

      AVLA does not license any duplication of sound recordings or music videos for sale by its licensees. All AVLA licensed products must be returned when an agreement with a licensee terminates or expires. All licences granted by AVLA are collective in nature; it does not enter into licence agreements on behalf of only one member. AVLA's licensing program is overseen by its Board of Directors.

      Some of the main licences are: DJs/Dance Studios, DJ Pulse Articles, Exhibition License, In-flight Audio/Video, Music Supply Services,Radio Stations, In-Store Licences, Music Video Exhibition on Television, Video Road Show, Video Pools, Webcasting. The licence forms are downloadable at http://www.avla2007.ca/index.php/licensing.

   3. Sources of Licence Revenue

      AVLA is a private corporation and, as such, does not publish annual reports or release gross revenue figures. Its sources of revenue are its own direct licensing of audio and audiovisual uses; neighbouring rights (NRCC); private copying (CPCC) and retransmission rights (through Canadian Retransmission Collective - CRC).

   4. Collections and Enforcement

      AVLA does not publicly disclose its collection and enforcement expenses. Its operating overhead is 14% of its gross income.

      AVLA has the right under the Copyright Act to take civil and criminal action against unlicensed activities upon approval by its Board.

D. DISTRIBUTION OF ROYALTIES

Licence fees are passed through to the rights owners. An administration fee of 14% is retained by AVLA to administer and enforce the licensing of the program.

Licence fees collected by AVLA are paid out to its members within thirty days after the end of each fiscal quarter. Sound recording licence payments received by AVLA on behalf of its members are calculated and paid out annually.

AVLA shares with SOPROQ the fifty percent of NRCC monies allocated to the Makers' College. There is not yet an established breakdown, but each college member will correlate airplay information provided by NRCC and BBM audience data (for weighting), with the information in its own database to establish distribution. There are recordings whose eligibility or ownership has still not been determined. AVLA has retained a reserve to deal with any future payouts from further identification.

NRCC receives on behalf of AVLA all CPCC levies which are distributed in accordance with NRCC's rules.

E. COOPERATION WITH OTHER COLLECTIVES

1. Internationally

   In February, 2002, AVLA signed a reciprocal agreement with Phonographic Performance Limited (PPL) covering record company rights in the UK and Canada. Under the agreement, PPL represents Canadian independent record companies in the UK and AVLA represents UK independents in Canada. This is the first overseas agreement reached by AVLA and only the second signed by PPL.

   CRIA is a member of the International Federation of Phonographic Industry (IFPI).

2. Domestically

   AVLA represents members of both CRIA (the Canadian Recording Industry Association) and CIRPA (the Canadian Independent Record Production Association) and accordingly has direct relations with them.

   Through its participation on the NRCC Board, AVLA cooperates with the NRCC and its member organizations, ArtistI, AFM, ACTRA PRS and SOPROQ.

F. REVENUE GROWTH ATTRIBUTABLE TO THE AMENDMENTS

As the performance of audio sound recordings did not generate income until the recent amendments, all NRCC income represents new income. CPCC payments (received through NRCC) will certainly also benefit sound recording owners and artists. AVLA does not make its income public but NRCC does ($13.3 million in 2006 directly plus approximately $12.6 million through CPCC). AVLA does not make public its share of that NRCC income.

The AVLA/SOPROQ proposed tariff for the reproduction of sound recordings by commercial radio stations, if certified, will generate revenue unrelated to the amendments. The reproduction right was inherent in the Copyright Act prior to its amendment.

G. CURRENT CONCERNS

CRIA and CIRPA (the umbrella organizations of AVLA's members) share many concerns.

Declining record sales is cause for alarm. Advancing technology, especially digital distribution, is a major threat to the music industry, particularly without rights management in place. The industry is working on adapting its operating structures and business models to face these new challenges and turn them into opportunities.

The industry must achieve changes in copyright legislation to protect copyright owners and to reflect today's business realities. It must achieve appropriate rights payment structures while at the same time embarking on ongoing relationships with users and other content providers.

There is a critical need for access to funding mechanisms and programs to assist the sector. There is need for access to targeted information/knowledge in areas such as marketing and promotion, best practices and business tools. In addition, the sector needs access to business and professional skills development opportunities in order to stay alert to the changing business environment.

SOPROQ

6420, rue Saint-Denis
Montréal, Québec
H2S 2R7
Tel : (514) 842-5147
Fax : (514) 842-7762
Web site: www.soproq.org
email: info@soproq.org

A. HISTORY AND STRUCTURE

The Quebec Collective Society for the Rights of Makers of Sound and Video Recordings (SOPROQ), a non-profit organization, was founded in August 1991. Prior to the passage of Bill C-32, SOPROQ collected royalties only from the broadcast of video clips.

Now, SOPROQ has set up a structure whereby the makers of sound recordings can benefit from the royalties arising out of the neighbouring rights and private copying regimes as well as royalties from the granting of general licenses for sound recording reproduction rights. As a founding member of NRCC, the Society is very much involved in the activities of both NRCC and CPCC.

SOPROQ first had to collect from its members ("makers") the necessary mandates to establish its representation of their interests. It was then necessary to go about identifying the repertoire of its members, taking into account the eligibility of each sound recording under the two different regimes.

B. MEMBERS - MEMBERSHIP

SOPROQ has obtained the mandate to represent more than 600 independent makers.

Under the membership agreement, the maker assigns to SOPROQ its neighbouring rights and its private copying rights in consideration of receiving its share of royalties collected by SOPROQ, following deduction of administrative costs. In addition, SOPROQ's contract contains a non-exclusive license of the maker's reproduction rights to its sound recordings and of the maker's right to broadcast video clips, which allows SOPROQ to negotiate blanket licenses with potential users.

An informational brochure is available online at http://www.soproq.org/uploads/files/Depliant_2007.pdf

C. OPERATIONS

SOPROQ administers the royalties that derive from the equitable remuneration and private copying regimes.

SOPROQ also represents its members in collective negotiations relating to rights of its members in their sound recordings and video clips.

It was in this capacity that it negotiated together with SODRAC a license with the Quebec Ministry of Education for the reproduction, in educational institutions, of musical works and of the sound recordings embodying such works, which form part of the repertoires of the two societies. That license can be downloaded at http://www.meq.gouv.qc.ca/drd/aut/ent_music.html#serv.

SOPROQ, together with AVLA, has also filed a tariff proposal for the reproduction of sound recordings by commercial radio stations. The tariff proposal can be downloaded at http://www.cb-cda.gc.ca/tariffs/proposed/sr20070526-b.pdf.

SOPROQ has developed a versatile computerized system as well as a database that contains all the relevant information on the sound recordings and video clips of its members, for the purposes of receiving and equitably distributing royalties.

D. ROYALTIES - COLLECTION AND DISTRIBUTION

1. Neighbouring Rights

   On August 14, 1999, the Copyright Board published its decision setting the royalties to be paid by commercial radio stations to the makers of sound recordings and to the performers, with retroactive effect to January 1, 1998. The Board also rendered its decision on the CBC radio neighbouring rights tariff on September 29, 2000, also with retroactive effect to January 1, 1998. The Board rendered its decision on the pay audio radio services tariff on March 15, 2002, with the same retroactive effect.

   SOPROQ relies on NRCC to provide it with radio airplay information ("logs") for purposes of identifying the rights holders and weighting, in the context of those logs, the royalties received. For purposes of distribution, this information must be made available in a format that enables each society to cross-reference it with the information in its own database.

   SOPROQ has filed an undertaking with the Copyright Board that its members will not do anything nor impose any contractual obligation that would have the effect of appropriating the performer's share of neighbouring rights royalties.

2. Private Copying

   On December 17, 1999, the Copyright Board rendered its first decision on private copying, fixing the royalties to be paid by importers and manufacturers of blank media to eligible makers of sound recordings, performers and author-composers.

   The private copying royalties collected are distributed between the performer and maker colleges in the percentages determined by the Copyright Board.

3. Direct Licenses

   SOPROQ was initially created to administer the rights of the producers of video clips and continues to do so. It also issues the following direct licenses: radiophonic, back ground music, television, and transactional licenses customized based on the scope and need of particular projects.

E. COOPERATION WITH OTHER COLLECTIVES

1. Internationally

   To date, SOPROQ has not entered into any reciprocal agreements with foreign societies.

2. Domestically

   Through its participation on the NRCC Board, SOPROQ cooperates with the NRCC and its member organizations, ArtistI, AFM, ACTRA PRS and AVLA.

   As noted above, SOPROQ filed a joint tariff proposal with AVLA for the reproduction of sound recordings by commercial radio stations.

F. REVENUE GROWTH ATTRIBUTABLE TO THE AMENDMENTS

Apart from the direct licenses referred to above, SOPROQ's revenue derives from the 1997 amendments to the Copyright Act that led to the creation of NRCC and CPCC. SOPROQ does not make its income public but NRCC does ($13.3 million in 2006 directly plus approximately $12.6 million through CPCC). SOPROQ does not make public its share of that NRCC income.

The AVLA/SOPROQ proposed tariff for the reproduction of sound recordings by commercial radio stations, if certified, will generate revenue unrelated to the amendments. The reproduction right was inherent in the Copyright Act prior to its amendment.

G. CURRENT CONCERNS

SOPROQ believes it is the role of the professional associations to take positions with respect to the scope of the Copyright Act.

SOPROQ's concerns relate to the efficiency of its distribution process and the collection of data from its members. SOPROQ also wants to make sure that all eligible makers are able to collect the royalties to which they are entitled.

ARTISTI

1441 René Lévesque Boulevard West, Suite 400
Montréal, Québec H3G 1T7
Tel: (514) 288-6682
Toll-free: 1 (877) 288-6682
Fax: (514) 288-7875
email : artisti@uniondesartistes.com
Web: www.uniondesartistes.com/index_ArtistI.aspx

A. HISTORY AND STRUCTURE

With the passage of Bill C-32 into law, Union des Artistes (UDA) founded in 1997 la Société de gestion collective de l'union des artistes inc. (ArtistI). Its mission is to protect, preserve and promote the rights granted under the Copyright Act which it administers collectively. Among other things, ArtistI administers and distributes neighbouring rights and private copying royalties to its eligible performer members. UDA is the sole shareholder of ArtistI. It has tax status as a not-for-profit organization.

B. MEMBERS - MEMBERSHIP

Performers who are eligible for membership in ArtistI are those whose performances are embodied, or about to be embodied, on a sound recording and who sign the Assignment of Performer's Rights and the Performer's Initial Declaration. These documents are available in hard copy only from ArtristI.

As of November 26, 2007, ArtistI had 1,622 performing artists whose performances are embodied on recordings eligible to participate in the remuneration collected for neighbouring rights or private copying.

ArtistI is a founding member of the Neighbouring Rights Collective of Canada (NRCC).

C. OPERATIONS

ArtistI has given NRCC a mandate to negotiate tariffs, and to collect and remit to ArtistI its share of the neighbouring rights royalties.

ArtistI is also entitled to royalties under the private copying regime on behalf of its members through NRCC.

In addition to its administrative activities, ArtistI negotiates bilateral agreements with foreign collective societies, provides information to its members, and makes submissions and representations at the political level. Information for members can be found at http://www.uniondesartistes.com/index_artisti.aspx.

The initial tasks of the Society were to develop, for its own particular needs, a database of recordings which embody its members' performances, to recruit members and to conclude bilateral agreements with foreign societies. The Society is currently developing a new database. At present, there are 11,174 eligible albums in the database, for a total number of 114,744 tracks.

D. ROYALTIES - COLLECTION AND DISTRIBUTION

Together with ACTRA PRS and AFM, ArtistI receives from NRCC the royalties allocated to Canadian performers under the neighbouring rights regime and from CPCC, via NRCC, the private copying levies. ArtistI's share of NRCC's revenue from equitable remuneration is one-third (1/3) of the Performers' College share of fifty percent (50%) of the total.

NRCC collects data that is used for equitable remuneration. That data is then prepared, compiled and provided to its member collectives by NRCC, in the form of summary logs, for processing purposes.

NRCC also acts as an intermediary for CPCC regarding the management of private copying levies. Each collective receives from NRCC summary airplay logs and sales data, which enables the collectives to make claims on behalf of their represented performers/makers against the private copying levies collected by CPCC.

ArtistI must identify each performer who has participated on a given eligible and sampled recording. Identifying a feature performer is much easier than identifying each and every backup/session performer. When sampled recordings cannot be identified and the eligibility determinations cannot be confirmed, corresponding royalties are held in reserve.

Since its creation, ArtistI has distributed approximately $7 million in royalties to its members.

One of ArtistI's internal distribution rules provide that, for pop and country music, 80% of the royalties allocated to that track are paid to the feature performer, and the remainder paid to the backup singers and musicians. Different rules apply to jazz and classical recordings.

E. COOPERATION WITH OTHER COLLECTIVES

Internationally, ArtistI has entered into four bilateral agreements, with the following collective societies: ADAMI (France), URADEX (Belgium), SWISSPERFORM (Switzerland), and GDA (Portugal)

Domestically, through its participation on the NRCC Board, ArtistI cooperates with AFM, ACTRA PRS, AVLA and SOPROQ.

F. REVENUE GROWTH ATTRIBUTABLE TO THE AMENDMENTS

All revenue generated for the performers and related to neighbouring rights and private copying is the result of the new provisions of the Act introduced in 1997. Since its creation, ArtistI has distributed approximately $7 million in royalties to its members.

G. COMMENTS AND RECOMMENDATIONS

1. The $1.25 million exemption under the neighbouring rights tariff

   ArtistI believes that this exemption should be removed. Not only is it unacceptable, it is also discriminatory, as it does not apply to the calculation of public performance (SOCAN) royalties for authors and composers of music.

2. The neighbouring rights tariff

   The neighbouring rights tariff should not be calculated by reference to the SOCAN tariff. It should be an autonomous tariff and much higher.

AFM / MNRR

75 The Donway West, Suite 1010
Don Mills, Ontario
M3C 2E9
Tel: (416) 391-5161
Fax: (416) 391-5161
e-mail: afmcan@afm.org / info@mnrr.ca 
Web: www.afm.org (for AFM)
www.mnrr.ca (for neighbouring rights)

A. HISTORY AND STRUCTURE

The AFM is the American Federation of Musicians of the United States and Canada, founded in 1896. The organization operated as an unincorporated association until 1998 when it was incorporated in California as a not-for-profit corporation. There are 27 affiliated locals in Canada, centred in its largest cities but covering fairly broad geographical areas. Each local is separately chartered, some dating back to 1901. A full listing of US and Canadian locals is found at http://www.afm.org/about/locals.

AFM is certified as an artists' association under the federal Status of the Artist Act.

AFM is governed by the democratically elected International Executive Board (IEB) composed of an executive committee of five members and the International President, International Vice-President, Vice-President from Canada and International Secretary-Treasurer. This body has jurisdiction over all travelling musicians, negotiates international electronic media agreements, grants local charters and adjudicates disputes and claims.

The Canadian office of the AFM is situated in Toronto and employs a staff of ten. The Canadian Vice-President has authority to make decisions affecting solely Canadian locals and their members.

B. Members / Membership

The Canadian membership of AFM oscillates between 13,000 and 15,000 members during an average year. Of these members, 20-25% earn their livelihood from their musical performances. Of course, the remaining majority of earning musicians supplement their income through full-time or part-time jobs, often unrelated to the music industry.

There are no qualifications for membership other than having to be a professional musician. Membership is confirmed upon receipt of a completed application form (available online at http://www.afm.org/scripts/reg/regis1.html) and payment of an application fee and first year's membership dues. The application fee varies between $90 and $250, depending on the size of the local; and annual dues vary between $80 and $200, again depending on the size of the local. The performers' Appointment and Authorization form for neighbouring rights purposes is part of the application form downloadable at the above mentioned site.

AFM is a founding member of NRCC, one of three members representing the performers' college. AFM has entered into a Mandate Agreement with NRCC under which NRCC is granted an exclusive mandate to file and defend both performers' rights tariffs and blank audio recording media tariffs, to collect fees thereunder and to remit to AFM the portion to which it is entitled. (In turn, NRCC has entered into an agreement with CPCC under which it delegates to CPCC its functions under the blank audio recording media regime).

AFM publishes a wide variety of informative literature online, particularly under "Music Biz Resources": http://www.afm.org/public/musicbiz/index.php.

AFM Canada has established the Musicians' Neighbouring Rights Royalties division with a dedicated website - www.mnrr.ca - which gives information on making claims under the neighbouring rights regime. The website has a comprehensive FAQ page. Canadian members may download the Appointment and Authorization for neighbouring rights representation and the Repertoire Form: http://www.mnrr.ca/Repertoire%20Form.pdf.

Operations

1. Relations with Members

   The AFM offers a myriad of union-type services to its members. It operates the AFM-Employers' Pension and Welfare Fund (Canada) and two trust funds. The pension fund is funded by the signatory employers (producers or engagers) who generally add 10% to the "scale" fees on every engagement contract. The Recording Industry Music Performance Trust Fund (MPTF) is funded by royalties from signatory record companies to fund free live performances by musicians. The Phonograph Record Manufacturers Special Payments Fund (MSPF) is also funded by signatory record companies based on their total annual record sales and distributed on the basis of US $30 per musician per recording session played during the year.
   
   AFM Canada also supplies to its members standard form engagement contracts, enters into collective bargaining with major users (e.g. CBC, NFB), establishes minimum performance standards and provides dispute resolution services (member-member and member-engager).

   AFM Canada offers to administer neighbouring rights and private copying remuneration to its members and to non-member musicians. Not all assignors of the foregoing rights are AFM members nor have all AFM members assigned these rights to AFM.

2. Relations with Users

   1. Agreements with Engagers

      At the international level, the AFM maintains agreements in the recording, film and legitimate theatre areas for English language performers. The Phonograph Record Labor Agreement deals with minimum wages and working conditions for musicians working for the major record companies. The Basic Theatrical Motion Picture Agreement covers the same issues for musicians working for the major studios. A similar agreement covers major touring theatrical musicals. (These agreements are not available online).

      The federal Status of the Artist Act requires CRTC-licensed broadcasters to deal with the AFM. AFM Canada has negotiated two major broadcaster agreements in Canada, with CBC radio and with CBC television. Although most other Canadian broadcasters have not entered into formal agreements with the AFM, for each project they normally sign a "letter of adherence" promising to respect all the terms and conditions of the corresponding CBC agreement. 

      Agreements are also in place with the National Film Board (NFB), with TV Ontario, with many independent television producers (but not yet with CFTPA), with booking agents and with the Association of Canadian Advertisers / Institute of Communication Agencies (for radio and TV commercials).

   2. Collections and Enforcement

      The tariffs of fees (minimum fees or "scale") are established at the local level. It is the responsibility of the local to maintain and enforce the scale levels, through sanctions against both members and signatories who undercharge or underpay. Members are prohibited from working for an engager who is placed on an international or local "Unfair List" and, if they do so, may be fined up to $50,000 (international) or $10,000 (local) or expelled.

      The Guilde des musiciens (AFM in Quebec) has status under Quebec's Status of the Artist Act to initiate legal proceedings on behalf of its members. Under the federal Status of the Artist Act, the AFM has status to institute actions but the field of engagers under federal jurisdiction is limited. However, in December 2007, AFM was granted jurisdiction federally to represent all musicians, whether members of AFM or not. Other provinces, notably Saskatchewan (which has had legislation since 2002 but has not implemented it) and Ontario are in the process of establishing regimes under which AFM hopes to benefit as well.

D. DISTRIBUTION OF NRCC AND CPCC ROYALTIES

Together with ACTRA PRS and ArtistI, AFM receives from NRCC the royalties allocated to Canadian performers under the neighbouring rights regime and from CPCC, via NRCC, the private copying levies. AFMs interim share of NRCC's revenue from equitable remuneration is one-third (1/3) of the Performers' College share of fifty percent (50%) of the total. The shares of the three members of the performers' college will be reconciled following an analysis of the actual performances over time.

NRCC collects data that is used for equitable remuneration. That data is then prepared, compiled and provided to its member collectives by NRCC, in the form of summary logs, for processing purposes.

NRCC also acts as an intermediary for CPCC regarding the management of private copying levies. Each collective receives from NRCC summary airplay logs and sales data, which enables the collectives to make claims on behalf of their represented performers/makers against the private copying levies collected by CPCC.

AFM must identify each performer who has participated on a given eligible and sampled recording. Identifying a feature performer is much easier than identifying each and every backup/session performer. When sampled recordings cannot be identified and the eligibility determinations cannot be confirmed, corresponding royalties are held in reserve.

AFM has an agreement in place with ACTRA PRS to administer the distribution of its share of the NRCC royalties. Since its creation, AFM has distributed approximately $3 million in royalties to its assignors.

AFM's internal distribution rules provide that, for pop and country music, 80% of the royalties allocated to that track are paid to the feature performer, and the remainder paid to the backup singers and musicians.

E. COOPERATION WITH OTHER ORGANIZATIONS

1. Internationally

   AFM Canada's dealings are strictly with its US head office.

   AFM has also appointed ArtistI to represent its interests in the areas of neighbouring rights and private copying for France, Belgium, Switzerland and Portugal. For the rest of the world, AFM has appointed ACTRA PRS which has concluded reciprocal agreements with the United Kingdom and Ireland.

   There is little direct interaction between AFM and its counterparts abroad. However, its President (based in New York) sits on the Presidium of the International Federation of Musicians (FIM - La Fédération Internationale des Musiciens), an organization of musicians' associations and unions many of which operate performers' collectives.

   In addition, AFM representatives regularly attend meetings of WIPO in Geneva and discuss matters of international copyright concern with their counterparts.

2. Domestically

   AFM works closely with ACTRA PRS to assist in the latter's distribution mandate for AFM. For example, for certain recordings, ACTRA PRS may receive information only on ACTRA members which needs to be supplemented with information on the AFM member musicians who played on the recordings. Record company label copy information must be correlated with AFM contracts which, being issued at the beginning of a recording session, often list song titles as "TBA".

   Through its participation on the NRCC Board, AFM also cooperates with ArtsitI, AVLA and SOPROQ.

F. REVENUE GROWTH ATTRIBUTABLE TO THE AMENDMENTS

Prior to 1997, the income of musicians from live performances, radio, television and motion pictures had not been dependent on copyright. All revenue generated for performers arising out of the neighbouring rights and private copying regimes is the result of the 1997 amendments to the Copyright Act.

G. CURRENT CONCERNS

Canadian musicians enjoy no special preference when Telefilm Canada funds qualifying films. AFM is lobbying Telefilm Canada to introduce incentives for potential funding recipients to use Canadian musicians in their films.

An ongoing concern at the local level is the financial health of community orchestras. Even orchestras in major centres face financial difficulties from time to time. AFM staff offers consultation to the locals to assist the orchestras in securing public and private support. AFM also lends its support to Orchestras Canada.

ACTRA PRS

625 Church Street, Suite 300
Toronto, Ontario M4Y 2G1
Tel: (416) 489-1311
Toll Free: 1-800-387-3516
Fax: (416) 489-1040
e-mail: srd@actra.ca
Web: www.actra.ca/actra/control/prs

A. HISTORY AND STRUCTURE

The Alliance of Canadian Cinema Television and Radio Artists (ACTRA) Performers' Rights Society ("ACTRA PRS") was federally incorporated by Articles of Incorporation as a non-profit organization in 1983 to act as agent for collecting use fee payments for ACTRA members and to give ACTRA the ability to take stronger legal action against companies negligent in their payments to ACTRA members.

ACTRA PRS is responsible for the collection and disbursement of use fees, royalties, residuals and all other forms of compensation or remuneration to which members and permit holders of ACTRA and others may be entitled to as a result of their work or engagement in the entertainment and related industries.

ACTRA PRS' Sound Recording Division is also a member of the Neighbouring Rights Collective of Canada ("NRCC") and is one of the organizations responsible for distribution of royalties collected on all tariffs related to sound recordings (commercial radio, private copying, CBC, etc.) under the Copyright Act. Through individual assignment, any performer who has sound recording repertoire that qualifies under the Act may elect to have ACTRA PRS collect and distribute on his or her behalf. 

B. MEMBERS / MEMBERSHIP

ACTRA counts approximately 18,000 members. A smaller number of these members have also assigned their sound recording rights to ACTRA PRS for NRCC and CPCC purposes.

A performer with at least one work permit can become an Apprentice Member of ACTRA. There is a $30.00 initiation fee plus an annual fee of $30.00. Upon securing six work permits (three for visible minorities and the disabled), a performer can apply for full membership status.

In order to qualify for membership as an ACTRA Extra, a performer must have worked as a background performer at least 24 days within a 12-month period and to maintain membership must work 15 days in each successive year. The initiation fee is $75 and annual membership dues are $30.

While ACTRA's members are primarily TV actors, ACTRA also represents those performers who sing. This includes recording vocalists (who may also qualify for membership within the AF of M). For example, recording artists have assigned their rights for neighbouring rights and private copying purposes and so are members of ACTRA PRS by virtue of that assignment. ACTRA PRS is a founding member of NRCC, one of three members representing the performers' college. ACTRA PRS has entered into Mandate Agreements with NRCC under which NRCC is granted the exclusive mandate to file and defend respectively performers' rights tariffs and blank audio recording media tariffs, to collect fees thereunder and to remit to ACTRA PRS the portion to which it is entitled. (In turn, NRCC has entered into an agreement with CPCC under which it delegates to CPCC its functions under private copying regime).

ACTRA PRS' web page - http://www.actra.ca/actra/control/prs - is part of the ACTRA main web site. It offers members and potential members a wide range of information on how to participate in the neighbouring rights and private copying regimes. The Assignment Form and the Repertoire Form are downloadable at http://www.actra.ca/actra/control/nr_docs.

C. OPERATIONS

1. Repertoire Administration

   ACTRA PRS correlates information on sound recordings that it receives from a variety of sources: the performers and their managers or agents, music logs, reference books and liner notes from albums. This information forms the basis for the database which is used to distribute monies to all eligible rights holders who have assigned their rights to ACTRA PRS.

2. Relationship with Members

   ACTRA offers a myriad of union-type services to its members. It negotiates on behalf of its members contracts with Canadian broadcasters and producers. Through yet another related company, also governed by ACTRA members, ACTRA Fraternal Benefits Society ("AFBS") is a not-for-profit organization which has provided Insurance and Retirement benefits to the Canadian artistic community for over thirty years. AFBS currently administers and invests in excess of $300 million in Retirement Plan assets on behalf of its Members.

   ACTRA also supplies standard form engagement contracts, enters into collective bargaining with major users and provides dispute resolution services (member-member and member-engager).

   Bulletins are enclosed with quarterly payments made to the members.

   ACTRA PRS maintains an office out of the national ACTRA office, based in Toronto. ACTRA has regional offices in Toronto, Montreal, St. John's, The Maritimes, Ottawa, Manitoba, Saskatchewan, Vancouver, Edmonton and Calgary.

3. Relationship with Users

   1. Agreements with Engagers

      ACTRA has current collective agreements in place with the Canadian Film and Television Producers Association (CFTPA), CBC, CTV, CITY-TV and the NFB and is currently negotiating new agreements with the private broadcasters and the specialty services.

   2. Collections and Enforcement

      The collective agreements establish the minimum fees payable to performers under their separately negotiated contracts. During production, these use fees are enforced through the Branches; after production is completed, they are enforced by ACTRA PRS in accordance with the collective agreements. Members are prohibited from working for an engager who is placed on the Unfair Engager List posted and updated frequently on the ACTRA web site.

D. DISTRIBUTION OF NRCC AND CPCC ROYALTIES

Together with AFM and ArtistI, ACTRA PRS receives from NRCC the royalties allocated to Canadian performers under the neighbouring rights regime and from CPCC, via NRCC, the private copying levies. ACTRA PRS' share of NRCC's revenue from equitable remuneration is one-third (1/3) of the Performers' College share of fifty percent (50%) of the total. The shares of the three members of the performers' college will be reconciled following an analysis of the actual performances over time.

NRCC collects data that is used for equitable remuneration. That data is then prepared, compiled and provided to its member collectives by NRCC, in the form of summary logs, for processing purposes.

NRCC also acts as an intermediary for CPCC regarding the management of private copying levies. Each collective receives from NRCC summary airplay logs and sales data, which enables the collectives to make claims on behalf of their represented performers/makers against the private copying levies collected by CPCC.

ACTRA PRS must identify each performer who has participated on a given eligible and sampled recording. Identifying a feature performer is much easier than identifying each and every backup/session performer. When sampled recordings cannot be identified and the eligibility determinations cannot be confirmed, corresponding royalties are held in reserve.

For pop and country music, 80% of the royalties allocated to that track are paid to the feature performer, and the remainder paid to the backup singers and musicians.

NRCC and other members of the CPCC are working diligently on their distribution policies, using the historical experience available to them through their member collectives.

E. COOPERATION WITH OTHER ORGANIZATIONS

1. Internationally

   ACTRA has reciprocal agreements in place with American Federation of Television and Radio Artists (AFTRA) and Screen Actors Guild (SAG) in the United States.

   ACTRA PRS has appointed ArtistI to represent its interests internationally, in the areas of neighbouring rights and private copying in four countries: France, Belgium, Switzerland and Portugal. Elsewhere, on its own behalf and on behalf of AFM, it is directly establishing reciprocal agreements with sister societies, notably in the United Kingdom and Ireland.

2. Domestically

   ACTRA has reciprocal agreements in place with Canadian Actors Equity Association (CAEA), Union des Artistes (UDA) and American Federation of Musicians (AFM). The latter two agreements establish rules for representation of their respective members for different types of performances, primarily for the purposes of the Canadian Artists and Producers Professional Relations Tribunal under the Status of the Artist Act.

   ACTRA PRS is responsible for AFM's distribution for all neighbouring rights and private copying receipts.

   Through its participation on the NRCC Board, ACTRA PRS cooperates with ArtistI, AFM, SOPROQ and AVLA.

F. REVENUE GROWTH ATTRIBUTABLE TO THE AMENDMENTS

From 2000 through 2003, ACTRA PRS consistently distributed over $5 million annually to its members. Most of that money, however, consists of film and television use fees.

All revenue generated for performers arising out of the neighbouring rights and private copying regimes is the result of the 1997 amendments to the Copyright Act. However, the NRCC and CPCC source earnings are not broken out in the statistics section of the web site: http://www.actra.ca/actra/control/prs_stats.

G. CURRENT CONCERNS

Data collection for NRCC purposes: The building of a solid data base and of systems to track, maintain records, and distribute royalties for all eligible repertoire is a challenge, given the volume of eligible works played on commercial radio.

Emerging technologies: Like all organizations representing copyright holders, ACTRA PRS must continually keep abreast of new and emerging technologies, through research and information exchange on a national and international level.

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