SODRAC renews its agreement with TVA Group on advantageous terms   Copyright Board issues a very favourable decision for SODRAC members for the reproduction of their works by TV channels operated by Astral Group and Teletoon Inc

SODRAC renews its agreement with TVA Group on advantageous terms

We are pleased to announce that SODRAC recently signed an improved general agreement with TVA Group, a TV network and longstanding corporate partner with which we initially signed an agreement back in 1993.

Under the terms of the new agreement, SODRAC will authorize use of its repertoire by the five specialty channels owned by Quebecor Media (Prise 2, Mystère, Argent, Les idées de ma maison and LCN) and will receive royalties in addition to those payable for conventional television.

The new agreement also raises the royalty rate currently paid by TVA Group for reproducing musical works in connection with its conventional TV broadcasting operations for the 2005-2008 period. For 2009 and future years, an interim agreement was signed to ensure that SODRAC members would be paid royalties in accordance with the new adjusted rate. Please note that the agreement concerning the Illico video-on-demand service remains in effect.

We are pursuing negotiations aimed at reaching agreement on the new royalty rate payable for use of SODRAC’s repertoire by the TVA Group, its Illico video-on-demand service and its specialty channels effective January 1, 2009. We will be sure to keep you updated on any developments in this regard.

Over the past 20 years, SODRAC has sought to conclude a series of general agreements concerning general and specialty French-language TV channels based in Quebec. A complete list is available by clicking here.

Did you know that the Copyright Board of Canada recently established interim terms and conditions governing royalty payments for use of SODRAC’s repertoire on TV channels operated by Astral Group and Teletoon Inc.?

On December 14, 2009, the Copyright Board of Canada issued a very favourable decision for SODRAC members when it fixed the royalty amount as well as the terms and conditions for a licensing agreement between SODRAC and the Astral and Teletoon television channels; the agreement is currently in effect. This decision provides for the payment of interim royalties in line with the temporary amount requested by SODRAC.

Since 1992, SODRAC has entered into general agreements covering reproductions of musical works in television productions with a number of general and specialized TV broadcasters, namely TVA Group, Illico, CBC/Radio-Canada, Télé-Québec, V Interaction (formerly TQS), MusiquePlus/MusiMax, the Consortium de télévision Québec Canada (TV5) and ARTV.

Under these agreements, broadcasters are authorized to reproduce works in SODRAC’s repertoire for archival purposes and for broadcast by conventional, cable and satellite television, as well as video on demand and, in certain cases, simultaneous transmission over the Internet.

In September 2009, since the negotiations with the Astral Group and Teletoon networks were making little progress, SODRAC submitted an arbitration request in which it asked the Copyright Board to determine the interim and permanent royalty payment terms and conditions for these networks. The Board’s recent decision stipulates that Astral and Teletoon are temporarily required to pay a fixed monthly amount of $7,367.79 retroactive to December 19, 2008, on which date SODRAC’s request was filed.

With respect to this initial interim decision, the Copyright Board sought to establish the validity of the economic model promoted by SODRAC; it emphasized that the proposed tariff formula reflects previous relevant Board decisions. In addition, we used the same methodology that the Copyright Board frequently uses to determine the value it assigns to SODRAC’s repertoire. Emphasizing the merit of its decision, the Copyright Board added: “Although preliminary, the analysis is serious. The adjustment is realistic considering television music use patterns.”

SODRAC did carry out a rigorous investigation in support of its position. Our staff conducted a systematic analysis of works in SODRAC’s repertoire used in productions broadcast during various periods on a dozen TV and Internet channels operated by the Astral Group. To document this sample, we used program schedules and cue sheets from various broadcast productions, i.e. the same technique we use when allocating royalties. We also demonstrated that the synchronisation licences granted by SODRAC to TV producers always include the requirement that third parties release the subsequent reproduction rights. Additional copyright royalties are thus payable at that time, on top of those previously charged for synchronization.

The Copyright Board’s positive comments in its recent decision reaffirm the importance of SODRAC’s sustained efforts as well as the resulting benefits for our members and the foreign rightsholders we represent. The Board will begin hearing our arbitration request on June 1, 2010; its final decision will be issued at a later date.

Please note that SODRAC will allocate the royalties collected once the Copyright Board’s final decision is made public, which could be at the end of 2010. However, SODRAC members who wish to do so may submit cue sheets for any of their works that are incorporated within productions broadcast on Astral and Teletoon channels, together with related publishing and commission contracts, by email to audiovisuel@sodrac.ca effectively immediately.

For further information concerning the tariff formula, please contact Sophie Givernaud, Manager, Licensing Department, at (514) 845-3268, ext. 227, or sgivernaud@sodrac.ca. If you would like to become a SODRAC member, please contact Chantal Beaudoin, Manager, Membership Department, at (514) 845-3268, ext. 232 or cbeaudoin@sodrac.ca