Vol. 133, No. 51 — December 18, 1999

Supplement, Vol. 133, No. 51 — December 18, 1999

COPYRIGHT BOARD

FILE: Private Copying 1999-2000

Tariff of Levies to Be Collected by CPCC in 1999 and 2000 for the Sale of Blank Audio Recording Media, in Canada, in Respect of the Reproduction for Private Use of Musical Works Embodied in Sound Recordings, of Performer's Performances of Such Works and of Sound Recordings in Which Such Works and Performances Are Embodied

In accordance with subsection 83(10) of the Copyright Act, the Copyright Board has certified and hereby publishes the statement of levies to be collected by the Canadian Private Copying Collective (CPCC) effective on January 1, 1999, for the sale, in Canada, of blank audio recording media for the years 1999 and 2000.

Ottawa, December 18, 1999

CLAUDE MAJEAU
Secretary to the Board

56 Sparks Street, Suite 800
Ottawa, Ontario
K1A 0C9
(613) 952-8621 (Telephone)
(613) 952-8630 (Facsimile)
majeauc@smtp.gc.ca (Electronic mail)

TARIFF OF LEVIES TO BE COLLECTED BY CPCC IN 1999 AND 2000 FOR THE SALE OF BLANK AUDIO RECORDING MEDIA, IN CANADA, IN RESPECT OF THE REPRODUCTION FOR PRIVATE USE OF MUSICAL WORKS EMBODIED IN SOUND RECORDINGS, OF PERFORMER'S PERFORMANCES OF SUCH WORKS AND OF SOUND RECORDINGS IN WHICH SUCH WORKS AND PERFORMANCES ARE EMBODIED

Notes (these notes are not part of the tariff)

(1) Pursuant to Part VIII of the Copyright Act, every person who, for the purpose of trade, manufactures a blank audio recording medium in Canada or imports such a medium into Canada is liable to pay a levy on selling or otherwise disposing of that medium in Canada, unless the medium is destined for export or unless it is sold to a society, association or corporation that represents persons with a perceptual disability. This tariff sets the levy as well as the related terms and conditions. It also determines the collecting body to whom the levy is paid and how that body will share the levy among collective societies representing eligible rights owners.

(2) Section 53 of An Act to Amend the Copyright Act(see footnote a) and Order in Council C.P. 1998-365(see footnote b) require that the Copyright Board set a tariff for the years 1999 and 2000. However, in a letter to the Copyright Board and in a press release dated January 18, 1999, the members of the Canadian Private Copying Collective (CPCC) agreed to delay collecting the levy until the earlier of the date of the Board's decision on the proposed levy or December 31, 1999.

(3) CPCC has also indicated that it intends to waive the levy on sales to certain persons or organizations. These include religious organizations, broadcasters, law enforcement agencies, courts, tribunals, court reporters, provincial ministers of education and members of the Association of Universities and Colleges of Canada, music and advertising industries. This waiver would apply to all blank audio media except CD-Rs and CD-RWs. Those interested in finding out more about this so-called zero-rating scheme may contact CPCC at the address indicated in subsection 13(1) of this statement.

Short Title

1. This tariff may be cited as the Private Copying Tariff, 1999-2000.

Definitions

2. In this tariff,

"accounting period" means the first two months of a calendar year, and each subsequent period of two months;" (période comptable)

"Act" means the Copyright Act; (Loi)

"blank audio recording medium" means

(a) a recording medium, regardless of its material form, onto which a sound recording may be reproduced, that is of a kind ordinarily used by individual consumers for that purpose and on which no sounds have ever been fixed, including

(b) any medium prescribed by regulations pursuant to sections 79 and 87 of the Act; (see footnote c) (support audio vierge)

"CPCC" means the Canadian Private Copying Collective; (SCPCP)

"importer" means a person who, for the purpose of trade, imports a blank audio recording medium in Canada; (importateur)

"manufacturer" means a person who, for the purpose of trade, manufactures a blank audio recording medium in Canada, and includes a person who assembles such a medium; (fabricant)

"semester" means from January to June or from July to December. (semestre)

SUBSTANTIVE PROVISIONS

Levy

3. (1) Subject to subsection (2), the levy shall be

(a) 23.3¢ for each audio cassette of 40 minutes or more in length;

(b) 5.2¢ for each CD-R or CD-RW;

(c) 60.8¢ for each CD-R Audio, CD-RW Audio or MiniDisc.

(2) Pursuant to subsections 82(2) and 86(1) of the Act, no levy is payable

Collecting Body

4. CPCC is the collecting body designated pursuant to paragraph 83(8)(d) of the Act.

Apportionment of Levy

5. CPCC shall distribute the amounts it collects, less its operating costs, as follows:

(a) 60.8 per cent, to be shared between the Society of Composers, Authors and Music Publishers of Canada (SOCAN), the Canadian Mechanical Reproduction Rights Agency (CMRRA) and the Société du droit de reproduction des auteurs, compositeurs et éditeurs au Canada (SODRAC), on account of eligible authors;

(b) 21.5 per cent, to be shared between the Neighbouring Rights Collective of Canada (NRCC) and the Société de gestion des droits des artistes-musiciens (SOGEDAM) on account of eligible performers;

(c) 17.7 per cent to the Neighbouring Rights Collective of Canada (NRCC) on account of eligible makers.

Taxes

6. All amounts payable under this tariff are exclusive of any federal, provincial or other governmental taxes or levies of any kind.

ADMINISTRATIVE PROVISIONS

Payments

7. (1) Subject to subsection (2), the levy for a blank audio recording medium sold or otherwise disposed of in any given accounting period shall be due no later than the last day of the month following that accounting period.

(2) Any manufacturer or importer who paid less than $2,000 in the previous semester may opt to make payments every semester after having so notified CPCC. The payment is then due on the last day of the month following that semester.

Reporting Requirements

8. Every manufacturer or importer shall provide to CPCC the following information with each payment:

(a) its name, that is,

together with any trade name (other than the above) under which it carries on business;

(b) the address of its principal place of business;

(c) its address, telephone number, telecopier number and e-mail address for the purposes of notice;

(d) the number of each type of blank audio recording medium on account of which the payment is being made;

(e) the number of each type of blank audio recording medium exported or sold or otherwise disposed of to a society, association or corporation that represents persons with a perceptual disability.

Accounts and Records

9. (1) Every manufacturer or importer shall keep and preserve until December 31, 2006, records from which CPCC can readily ascertain the amounts payable and the information required under this tariff.

(2) CPCC may audit these records at any time until December 31, 2006, on reasonable notice and during normal business hours.

(3) If an audit discloses that the amounts due to CPCC have been understated by more than

the manufacturer or importer shall pay the reasonable costs of audit within 30 days of the demand for such payment.

Confidentiality

10. (1) Subject to subsections (2) to (4), CPCC shall treat in confidence information received from a manufacturer or importer pursuant to this tariff, unless the manufacturer or importer consents in writing to the information being treated otherwise.

(2) CPCC may share information referred to in subsection (1)

(3) A collective society listed in section 5 may share information obtained pursuant to subsection (2)

(4) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the manufacturer or importer, who is not under an apparent duty of confidentiality to the manufacturer or importer.

Adjustments

11. Adjustments in the amount owed by a manufacturer or importer (including excess payments), as a result of the discovery of an error or otherwise, shall be made on the date the next payment is due.

Interest on Late Payments

12. Any amount not received by the due date shall bear interest calculated monthly on the last day of each month, at the Bank Rate effective on that day (as published by the Bank of Canada) plus one percent. Interest shall not compound.

Addresses for Notices, Reports and Payments

13. (1) Anything that a manufacturer or importer sends to CPCC shall be sent to 150 Eglinton Avenue East, Suite 403, Toronto, Ontario M4P 1E8, Telephone (416) 486-6832, Facsimile (416) 485-4373, or to any other address of which the manufacturer or importer has been notified.

(2) Anything that CPCC sends to a manufacturer or importer shall be sent to the last address of which CPCC has been notified.

Delivery of Notices and Payments

14. (1) A notice may be delivered by hand, by postage paid mail or by telecopier. Payments shall be delivered by hand or by postage paid mail.

(2) A notice or payment mailed in Canada shall be presumed to have been received three business days after the day it was mailed.

(3) A notice sent by telecopier shall be presumed to have been received on the day it is transmitted.

Footnote a

S.C., 1997, c. 24

Footnote b

Canada Gazette, part II, Vol. 132, No. 7, p. 1150

Footnote c

There was no such medium at the time of certifying the tariff.

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