August 23, 2004
Music industry abruptly changes tune on ringtones
Professor Geist's regular Toronto Star column focuses on a recent application for a new Canadian copyright tariff on ringtones, known as Tariff 24.
The application by copyright collective SOCAN (Society of Composers, Authors and Music Publishers of Canada) has generated some surprising opposition, with the Canadian Recording Industry Association actively opposing the request for ten cents per ringtone. CRIA (The Canadian Recording Industry Association), which questions whether composers are entitled to any compensation for ringtones, argues that the proposed tariff is "excessive, unwarranted and unreasonable” and that the royalties are “neither fair nor equitable.”
"SOCAN recently asked the Canadian Copyright Board to award an escalating royalty rate, requesting that the 2004 royalty be set at 10 per cent of a ringtone supplier's revenue with a minimum royalty of 10 Canadian cents per ringtone.
Although some may object to further royalties for composers, it is tough to argue with the proposition that Canadian artists should benefit from a segment of the music market that some analysts say will account for nearly a third of global music revenue within four years. What may make this tariff particularly controversial, however, is that it directly challenges many industry claims about respect for copyright and artist compensation.
If the market success of ringtones comes as a surprise, the apparent source of opposition to the proposed ringtone tariff is an absolute shock. While most would have anticipated a showdown between the copyright collectives representing the creative community on the one side and the telecommunications providers selling the ringtones on the other, the Canadian creative community faces another formidable foe in their campaign for compensation. Amazingly, CRIA is siding against the creative community and is actively opposing the SOCAN tariff proposal.
Using language that it might otherwise reserve for alleged file sharers, CRIA claims that the proposed tariff is "excessive, unwarranted and unreasonable" and that the royalties are "neither fair nor equitable." In fact, CRIA, whose members represent only a fraction of Canadian recording artists, even raises doubts about whether the composers are entitled to any compensation at all, questioning whether the ringtone constitutes a communication to the public that would merit a new tarif." [ via Unwired.cc ]
Michael Geist is a law professor at the University of Ottawa specializing in Internet and e-commerce law. He is online at http://www.michaelgeist.ca.
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