Canadian Federal Court of Appeal Confirms CRTC’s Authority for Fee-for-Signal Regime

The Canadian Federal Court of Appeal (Court) has ruled that the Canadian Radio-television and Telecommunications Commission (CRTC) can establish a regime for television broadcasters to negotiate fees with cable television service providers for the right to distribute programs broadcast by the television broadcasters. Television broadcasters, such as Global, CBC and CTV, currently transmit over-the-air television signals, which are picked up by cable television service providers, such as Bell, Rogers and Shaw. Although cable television service providers do not pay for accessing the television signals, they distribute these television signals to customers for a fee. In 2010, the CRTC proposed a regime whereby television broadcasters, which have the exclusive right to disseminate programs, can negotiate for payment with cable television service providers for the right to distribute the broadcasters’ signals. The CRTC asked the Court to rule on the CRTC’s authority to introduce the regime. On the one hand, the broadcasters argued that the CRTC was within its authority under the Broadcasting Act to introduce the regime. On the other hand, cable television service providers asserted that they had the right to distribute the television broadcaster’s signals without payment under the Copyright Act. The Court held that nothing in the Copyright Act precluded the CRTC from introducing a fee-for-signal regime, and such a regime was within the authority of the CRTC. Although no appeals to the Supreme Court of Canada have yet been filed, Rogers has indicated that it will appeal. For the reason for judgment in Reference re the Canadian Radio-television and Telecommunications Commission's Broadcasting Regulatory Policy CRTC 2010-167 and Broadcasting Order CRTC 2010-168, 2011 FCA 64, visit: http://decisions.fca-caf.gc.ca/en/2011/2011fca64/2011fca64.html For further information, see: http://tinyurl.com/6jfp9rf Summary by: Lauren Lodenquai