NMPA_International_Survey_12th_Edition

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APPENDIX C <strong>NMPA</strong> INTERNATIONAL SURVEY TWELTH EDITION APPENDIX C: U.K., JAPAN, GERMANY, FRANCE, CANADA, ITALY AND SPAIN UPDATES SDRM OFFICER: General Manager: Thierry Desurmont The Society for the Administration of Mechanical Reproduction Rights for Authors,Composers and The Canadian music industry continues to slump. According to IFPI figures, the nation’s music market declined by 9.6% in units to 62.7 million, with a corresponding loss in value of 9.6% to C$1.02 billion ($651.3 million).The industry could take pride,however, in the international breakouts of such acts as Avril Lavigne, Nickelback, Great Big Sea and Sum 41, with continued strong sales from such veterans as Shania Twain and Celine Dion. In February 2003 came word that about $6.8 million raised from a levy on blank CDs and cassettes had been issued by the Canadian Private Copying Collective (CPCC) to organizations representing Canadian composers, performers, publishers and record companies. The payment is the first in an estimated C$28 million disbursement that is scheduled to be completed by the end of 2003.The initial payment was made at approximately the same time the CPCC was lobbying the Canadian Copyright Board (CCB) for significant increases in the levies and an extension of the levy to computer hard drives, MP3 players, mobile phones and other media. If those levies are granted, copyright owners could collectively be receiving up to C$120 million a year by mid-decade. Record companies have maintained they need the levy to recoup some of the losses from file-sharing and copying. The CPCC, a non-profit umbrella organization of songwriters, performers, record companies and music publishers,was created in 1999 to collect private copying royalties from consumers downloading music onto blank media.In December of that year,the CCB agreed that the CPCC could collect a levy of 23.3 cents on any blank cassette of 40 minutes duration manufactured (or imported) and sold in Canada, as well as 5.2 cents on CD-Recordable and ReWritable discs and 60.8 cents on MiniDiscs. (All rates in Canadian dollars). However,in 2000,the CPCC discovered that the supply and use of blank CDs in particular were much larger and “much more complex” than originally anticipated, and applied to the CCB for an adjustment in its tariffs for 2001 and 2002.The board agreed, for 2001-2002, to raise the tariffs on CD-Rs, MiniDiscs and blank cassettes to, respectively, 21 cents, 77 cents and 29 cents.As a result, the CPCC collected C$23.2 million in 2001—a 450% increase over the C$5 million collected for distribution in 2000. Publishers was founded in 1935 to act on behalf of its associate member societies. SDRM authorizes mechanical reproduction of members’ works on audio or video recordings, by radio or television, sets the conditions for such licensing,and collects and distributes those corresponding rights. CANADA UPDATE SDRM is administered by a Board of Directors comprised of nineteen members appointed by the associate members of a period of one year. SDRM can be contacted via SACEM. The Society of Composers, Authors and Music Publishers of Canada (SOCAN) has asked the CCB to approve a rate of 2.1% applicable to commercial TV stations’advertising revenues,a move that would return the royalty paid to composers,authors and music publishers for the use of their work to a rate that was in place for over 15 years before a 1998 Copyright Board decision.That ruling lowered the rate to 1.8%.SOCAN is also seeking the removal of the “modified blanket license” approved by the CCB in 1997, which allows broadcasters to reduce the tariff rate by negotiating and obtaining performing rights directly from music creators. Furthermore, SOCAN is seeking changes in Tariff 17.A to reflect the increased audiences and revenues enjoyed by Canadian and U.S. specialty services, requesting a move from the current 15.5 cents per subscriber to 18.6 cents in 2001, 23 cents in 2002 and 42 cents in 2003.Tariff 17.A currently requires the specialty services to pay SOCAN a rate of 1.8% of the affiliation payments they pay to the cable, satellite or digital services distributing their programming.SOCAN is seeking a new rate of 2.4%. Canadian Recording Industry Association (CRIA) has been negotiating an On-line Licensing Agreement for competing U.S.-based digital-music services Pressplay and Musicnet,alongside the songwriters and publishers represented by the Canadian Music Reproduction Rights Agency (CMRRA). A deal would allow for the launching of the two digital subscription services in Canada, possibly by spring 2003. Independent labels have expressed concern that they would have difficulty competing with the major-affiliated online services. CRIA has also launched a national campaign to educate consumers about the negative effects that CD burning and unlicensed downloading of music have on the music business. The campaign, “The Value of Music,”includes a widespread media initiative,including the launching of a website. CRIA has committed $1.2 million for its campaign and has lobbied several other music industry organizations for their financial support. The unlicensed downloading of music is not viewed in the same strict copyright law terms as it is in the U.S. An exemption in the Copyright Act of Canada legalizes home taping for personal use, with the proviso that it is illegal for a person to load a CD-R with MP3 52
APPENDIX C or sound recording files,or to make straight disc-to-disc copies, and sell them. However, in May 2002, Canada’s Federal Court of Appeal in Ottawa ruled that Internet service providers generally act as “common carriers,” but if they act as more than “passive providers” (by storing or “caching” music on their servers),they can be held responsible for paying music-copyright royalties.The ruling overturned a 1999 decision by the federal government's Canadian Copyright Board in which the Internet was deemed a means of communication for purposes of Canadian copyright law only if the server is located in Canada. Meanwhile, the Canadian government’s Copyright Board has ruled on royalties to be collected from commercial radio stations for making temporary or “ephemeral”copies of programs of music for later use. The payments, to be collected by the Canadian Musical Reproduction Rights Agency (CMRRA) and the Society For Reproduction Rights of Authors, Composers, and Publishers (SODRAC), are retroactive to January 2001. Under the two-tier tariff structure, a low-use station (defined as one that airs music for less than 20% of its total broadcast time) will pay 0.12% of its first C$625,000 in gross income each year, 0.23% of Canadian Music Publishers’ Association (CMPA) OFFICERS: Executive Director: David A. Basskin Founded in 1949, CMPA is a trade association composed of all the multinational, as well as many of the independent, music publishers in Canada. Membership is divided into two categories: active membership and associate membership, intended for those whose music publishing activity is infrequent. CMPA’s ten-member Executive Committee is elected annually by all the association’s members, with all votes receiving equal weight. For most of the past twenty years, CMPA’s activities have been limited largely to lobbying the Canadian government for improvements to copyright legislation. These efforts have resulted in the “Phase I” package of amendments to the Copyright Act of 1988 and “Phase II”in 1997. The Phase I package eliminated the sixty-four-year-old two cent statutory mechanical license, allowing for direct negotiation of the rates, terms and conditions of mechanical licensing between CMRRA and the record industry. The Phase II package included the creation of a levy on the sale of blank recording media, which will start to generate income for music publishers,authors,performers and record producers this year. Presently the CMPA is working to encourage the government to pass legislation implementing the 1996 WIPO treaties, which Canada signed in 1997. CMPA is also closely involved in other policy areas affecting publishers, including trade law, electronic commerce and broadcasting regulation. CMPA’s Executive Committee has also formed a subcommittee to focus on the development of conferences, training programs and better communications between the association, its members and prospective members,government, industry and the public at large. its next C$625,000 in gross income, and 0.35% of any additional income in the year. Any other station will make similar payments of 0.27%, 0.53%, and 0.8%. The ruling stems from a revision to Canada’s Copyright Act in 1997 that allows for such royalties. The Canadian Association of Broadcasters (CAB) has expressed its disappointment with the ruling, estimating the annual impact on its sector to be about C$6.5 million ($4.4 million). CAB had been seeking an exemption to ephemeral rights, and said it might appeal the decision. The Canadian government has also not yet ratified the two World Intellectual Property Organization (WIPO) treaties, the Performances and Phonogram Treaty and the Copyright Treaty. CRIA maintains that such failure to ratify the treaties, which were signed in 1997, weakens Canada’s domestic music industry. Also, Jody Scotchmer has been named the first executive director of the Canadian Songwriters Hall of Fame in Toronto. The Hall of Fame was launched in 1999 by the Canadian Music Publishers Assn. and the Songwriters Assn. of Canada. The Main Organizations of the Canadian Music Industry Are: CMPA 56 Wellesley Street West Suite 320 Toronto, ON Canada M5S 2S3 Tel: 416-926-1966 Fax: 416-926-7521 Email: inquiries@cmrra.ca Canadian Musical Reproduction Rights Agency Ltd. (CMRRA) OFFICERS: President: David A. Basskin Vice President: Fred Merritt The Canadian Musical Reproduction Rights Agency Ltd.(CMRRA) is a non-profit music licensing agency representing the vast majority of music copyright owners in Canada. Founded in 1975 by a group of Canadian music publishers, the CMRRA was involved with the fight <strong>NMPA</strong> INTERNATIONAL SURVEY TWELTH EDITION APPENDIX C: U.K., JAPAN, GERMANY, FRANCE, CANADA, ITALY AND SPAIN UPDATES 53
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12th e d i t i o n NATIONAL MUSIC P
Page 4 and 5: Preface The National Music Publishe
Page 6 and 7: Executive Summary This is the NMPA
Page 8 and 9: Following a solid 14% growth in rev
Page 10 and 11: Table 6 Master Survey Data 2001 INT
Page 12 and 13: Table 7 Flat Exchange Rates 2001 IN
Page 14 and 15: Chart 4 22 Other Countries Ireland
Page 16 and 17: REPRODUCTION-BASED INCOME In 2001,
Page 18 and 19: NMPA INTERNATIONAL SURVEY TWELTH ED
Page 20 and 21: International Year in Review:2002 C
Page 26 and 27: LATIN AMERICA NMPA INTERNATIONAL SU
Page 42 and 43: APPENDIX A NMPA INTERNATIONAL SURVE
Page 44 and 45: APPENDIX B International Involvemen
Page 46 and 47: APPENDIX C U.K., JAPAN, GERMANY, FR
Page 48 and 49: APPENDIX C NMPA INTERNATIONAL SURVE
Page 50 and 51: APPENDIX C The Main Organizations o
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Page 56 and 57: APPENDIX C NMPA INTERNATIONAL SURVE
Page 58 and 59: APPENDIX C ITALY UPDATE NMPA INTERN
Page 60 and 61: APPENDIX C SPAIN UPDATE NMPA INTERN
Page 62 and 63: APPENDIX D GLOSSARY OF TERMS INTERN
Page 64 and 65: NMPA: A Brief History As technology
Page 66: n m pa NATIONAL MUSIC PUBLISHERS’
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