Radio B'casters Urge Streamlining Of Royalty Process

Canadian radio stations on Thursday trumpeted their contribution to this country's bustling music industry, while complaining about expensive royalty checks that private radio stations must hand over to artists.

Glenn O'Farrell, president and CEO of the Canadian Association of Broadcasters, told the National Press Club in Ottawa that the process of setting industry tariffs is too expensive and complex.

"We believe creators are entitled to fair compensation for their work, and radio pays its dues to artists, performers and others. But we are also convinced that the process of making this happen is needlessly complicated and expensive," O'Farrell said in the lead-up to Sunday's Junos, Canada's top music awards.

He noted that the CAB spent about CAN$1.6 million ($1.08 million) in the two years before the Copyright Board of Canada last week set a new music reproduction tariff.

Canadian radio broadcasters must now pay royalties to copy songs onto hard drives in order to program their schedules by computer. The private broadcasters are expected to appeal the decision, incurring the expense of legal fees.

"Not one cent of this huge but misplaced investment of resources will go to developing talent or strengthening Canada's growing international reputation as a place where talent is nurtured, where innovation and creativity are rewarded and where achievement is recognized and promoted," O'Farrell said. "Let's stop the flow of money to the burgeoning sub-industry of copyright lawyers and consultants."

Stations pay CAN$47 million ($31.9 million) a year in copyright royalties, and contribute another CAN$20 million ($13.6 million) annually to developing Canadian talent through contests, CD compilations and original programming.