COPYRIGHT BOARD

FILE: Reproduction of Musical Works 1999 and 2000

Statement of Proposed Royalties to Be Collected for the Reproduction, in Canada, of Musical Works in the Exploitation of an Electronic Network

In accordance with section 70.14 of the Copyright Act, the Copyright Board publishes the statement of royalties filed by the Société du droit de reproduction des auteurs, compositeurs et éditeurs au Canada (SODRAC) on March 31, 1998, with respect to royalties that it proposes to collect, effective on January 1, 1999, for the reproduction, in Canada, of musical works in the exploitation of an electronic network.

And in accordance with the provisions of the same section, the Board hereby gives notice that all prospective users or their representatives who wish to object to the statement may file written objections with the Board, at the address indicated below, within 60 days of the publication hereof, that is no later than August 12, 1998.

Ottawa, June 13, 1998

CLAUDE MAJEAU
Secretary to the Board
56 Sparks Street, Suite 800
Ottawa, Ontario
K1A 0C9
(613) 952-8621 (Telephone)
(613) 952-8630 (Facsimile)

SOCIÉTÉ DU DROIT DE REPRODUCTION DES AUTEURS, COMPOSITEURS ET ÉDITEURS AU CANADA (SODRAC) INC.

Tariff No. 1

REPRODUCING OF MUSICAL WORKS IN A NETWORK EXPLOITATION

For a license relating to the class of use "network exploitation" during calendar years 1999 and 2000, authorizing reproducing, in whole or in part, of musical works of SODRAC's repertoire, by the network manager and its customers, the manager pays as a monthly royalty the highest of:

0.65% of its gross revenues

or

10 ¢ per month per customer.

This license does not exempt from the obligation to obtain a specific authorization for commercial advertisements or for producing sound, audiovisual or multimedia recordings incorporating works of SODRAC's repertoire.

In this tariff :

"Reproducing" means routing, memorizing, storing, hosting, caching, logging, mirroring, encoding, digitalizing, uploading, downloading, browsing and any other digital recording of a work.

"Manager, Network manager" means any person offering to customers access or services in connection with a network.

"Network" means the Internet, an Intranet, an Extranet or any other electronic network on which reproducing of works occurs.

"Customer" means any person for whom a manager provides hosting of a site or to whom a manager offers access or services in connection with a network.

"Gross revenues" means the total amount of income derived by a manager from exploitation of a network, including all revenues derived from customers and advertisement. Income derived from customers for sales of musical works on the network ("on line") is not computed, the customer being required to obtain a specific license from SODRAC.

"Revenues from advertisement" means revenue derived from sponsorship announcement, trade-mark, commercial message or other advertisement, displayed, communicated or accessible during connection to or with the network or to which the customer's attention is directly or indirectly guided by means of a hypertext link or other means.

The royalty shall be paid to SODRAC by the network manager within 10 days of the end of each month, together with a report of the number of customers and the gross revenues described above for the relevant month.

Late payment interests at the rate established from time to time in virtue of section 28 of the Revenue Department Act (L.R.Q., c. M-31) may be charged.

SODRAC shall have the right to audit the network manager's books and records, on a reasonable notice and during normal business hours, to verify the statements rendered and the royalty payable by the manager.

NOTICE:
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