| The Copyright Board designates the proportion of total
royalties that forms the basis of CPCC’s distribution
amongst each of the three eligible groups: songwriters and
music publishers, recording artists, and record companies.
These proportions are recorded in the private
copying tariffs. It is then CPCC’s job to allocate
and pay the royalties to individual copyright holders. CPCC
and its constituent member collectives have developed a distribution
process that is enabling royalties to be distributed fairly
amongst tens of thousands of copyright holders.
Since no inventory of privately copied tracks exists, distribution
is based on representative samples of radio airplay and album
sales, which are given equal weight in the distribution. Together
they provide a proxy for determining the titles that Canadians
typically copy for private use. Samples are regularly used by copyright
collectives because the cost of capturing and analyzing all
available information would be excessive.
The airplay samples are prepared by CPCC member collectives
SOCAN and NRCC, and are based in an annual 14-day sample for
each commercial radio station in Canada and a sample of programming
from the CBC/SRC radio services. The specific methodologies
used in the airplay portion of the private copying distribution
are consistent with those used by SOCAN to distribute performing
rights royalties to authors and publishers and by NRCC to
distribute neighbouring rights royalties to performers and
to makers of sound recordings.
The sales sample is based in SoundScan data. This portion
of the private copying distribution of royalties for 2000
was based in a limited sample of album sales data, reflecting
the substantially lower royalty revenue available for that
year. Nevertheless, the albums identified in that sample accounted
for 80% of record sales in Canada during 2000. The sample
size was increased for the 2001 distribution, with the albums
identified in the sample accounting for 91% of all record
sales in Canada.
Recognizing the relatively modest level of collections for
2000, CPCC opted to pay out royalties for 2000 and 2001 in
a single, combined distribution.
While songwriters and music publishers are eligible regardless
of nationality, only Canadian recording artists and record
companies may receive payments under current law. In accordance
with the Copyright Board’s decisions, royalties collected
for 2001 through 2004 are allocated as follows:
- 66 % to eligible authors and publishers
- 18.9% to eligible performers
- 15.1% to eligible record companies.
The allocation for 2000 is:- 75% to eligible authors and publishers
- 13.7% to eligible performers
- 11.3% to eligible record companies.*
| * Allocations for 2000 differ from those
set out s. 5 of the Private Copying Tariff, 1999-2000,
reflecting instead allocations previously agreed between
CPCC member collectives. This agreement has been filed
with the Copyright Board and is acknowledged by it as
a legitimate basis of payment. |
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