New Rights Collective Seeks Tariff for Online Music

A newly-formed Canadian music rights collective, CSI, has proposed three new tariffs for online music. The proposed tariffs for permanent downloads, subscription-based downloads, and on-demand music streams stand in contrast to claims made by other industry stakeholders, including the Canadian Recording Industry Association, the Canadian Association of Broadcasters, Apple Canada and Bell Canada, that digital music sales should be treated as record sales and not licences. CSI, a joint venture between the Society For Reproduction Rights of Authors, Composers and Publishers in Canada (SODRAC), and the Canadian Musical Reproduction Rights Agency (CMRRA), proposes: the greater of 15% of the retail price or 10 cents per track downloaded; 8% of gross revenue for subscription services; and the greater of 5.8% of gross revenue or 45 cents per month per subscriber for on-demand streaming. Services authorizing the copying of musical works onto portable devices, such as Apple Canada's iTunes, would pay a proposed additional fee monthly fee of $1.40 per subscriber, or a minimum of 60 cents per month per subscriber for non-portable services. It is unclear what effect the tariffs may have on the price of online music in Canada. Since 2003, online music services have been paying CSI advance royalties pending a tariff decision by the Copyright Board, though this interim rate has reportedly not been published. The Copyright Board will hold a public hearing on the proposed tariffs on September 6th, 2006 in Ottawa. For a news article, see: http://haggiote.notlong.com For information on the Copyright Board and its hearings, visit: http://www.cb-cda.gc.ca/ Summary by: Jason Young