Media Centre > News Releases > Archive > 1996 > April 25, 1996

"Anti-competitive" copyright reform bill will cost jobs: Broadcasters

OTTAWA, April 25, 1996 - The government's long-awaited copyright reform bill tabled today runs directly counter to key Throne Speech promises to promote economic growth and create jobs, says the Canadian Association of Broadcasters (CAB).

"Competition is exploding all around us, yet this bill is clearly anti-competitive," stressed CAB President Michael McCabe. "At a time when broadcasters are most vulnerable, they're being denied rights enjoyed by their competitors south of the border, as well as facing obligations the Americans do not contend with."

In recent years, new U.S. television networks, specialty services and superstations have entered 80% of Canadian homes through cable and soon, DTH. FOX alone has doubled its Canadian viewership, capturing millions in advertising revenues.

Canadian stations are responding to increased competition with improved programs, aggressive cost cutting and use of the latest technologies. But their efforts are largely thwarted by a copyright system that adds tens of millions in overhead and excessive expenses.

Broadcasters are particularly incensed the bill does not provide an 'Ephemeral Exemption' that would allow stations to record music for later broadcast. Although repeatedly promised by government, the bill provides no such right. Meantime, American broadcasters benefit from a full 6 month exemption.

"This bill is a complete breach of faith with the industry," stressed Michael McCabe. "It leaves broadcasters in a ridiculous situation. For example, CTV cannot even provide its viewers with an instant replay of a figure-skating performance if it's accompanied by music."

Another major shortcoming, adds CAB, is not directing the Copyright Board to set copyright tariffs that reflect competitive market realities. As a result, Canadian stations pay significantly higher copyright rates than their U.S. competitors. In fact, Canadian broadcasters pay U.S. songwriters and publishers more than double what U.S. stations pay them.

Continued McCabe: "The absence of clear market criteria for setting copyright tariffs will seriously hamper the ability of Canadian broadcasters and other content providers to compete effectively on the information highway."

Other changes long sought by the CAB and necessary to keep Canadian broadcasting competitive:

A full 'Signal Right' that would give Canadian broadcasters the right to control, or receive compensation for the use of their signals by cable, satellite, phone companies or other distributors - a right enjoyed by U.S. broadcasters under 'retransmission consent'.

A related 'Transfer of Format Exemption' that would permit, for example, the transfer of music from disc to tape for purely technical purposes.

On the radio front, the Bill burdens the fragile radio industry with new neighbouring rights fees, from which American radio has already been exempted.

CAB represents the vast majority of Canada's local-serving, advertising-supported television and radio stations.

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For more information please contact:

Susan Tolusso
Director, Communications
(613) 233-4035 ext. 331
(stolusso@cab-acr.ca)