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Bill S-225

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Second Session, Forty-third Parliament,
69-70 Elizabeth II, 2020-2021
SENATE OF CANADA
BILL S-225
An Act to amend the Copyright Act (remuneration for journalistic works)
FIRST READING, February 17, 2021
THE HONOURABLE SENATOR Carignan, P.‍C.
4322023


SUMMARY

This enactment amends the Copyright Act to provide Canadian journalistic organizations with a right to remuneration for the distribution of their journalistic works on digital platforms owned or controlled by providers that have been designated by the Governor in Council. It also amends the Act so that this remuneration is managed by a collective society.
Available on the Senate of Canada website at the following address:
www.sencanada.ca/en


2nd Session, 43rd Parliament,
69-70 Elizabeth II, 2020-2021
SENATE OF CANADA
BILL S-225
An Act to amend the Copyright Act (remuneration for journalistic works)

Preamble

Whereas journalism is important in a free and democratic society;
Whereas there are a number of excellent Canadian journalism organizations;
Whereas the massive influx of digital platforms and of social media in general has shaken up and disrupted advertising revenue for traditional media, thus threatening their survival;
Whereas it is commonplace for social media to supply their sites with the journalistic work generated by traditional media;
And whereas it is essential that a certain equilibrium be re-established by creating a right to remuneration for journalistic works and, thus, a right to royalties for those works;
Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.‍S.‍, c. C-42

Copyright Act

1The portion of the definition collective society before paragraph (a) in section 2 of the Copyright Act is replaced by the following:
collective society means a society, association or corporation that carries on the business of collective administration of copyright or of the remuneration right conferred by section 19, 26.‍3 or 81 for the benefit of those who, by assignment, grant of licence, appointment of it as their agent or otherwise, authorize it to act on their behalf in relation to that collective administration, and
2The title of Part II of the Act is replaced by the following:
Copyright in Performers’ Performances, Sound Recordings and Communications Signals, Moral Rights in Performers’ Performances and the Right to Remuneration for Journalistic Works
3The Act is amended by adding the following after section 26:
Definitions
26.‍1The following definitions apply in sections 26.‍2 to 26.‍4.
Canadian journalism organization means any corporation, partnership or trust that
(a)is primarily engaged in the production of journalistic works;
(b)in the case of a corporation or trust, is resident in Canada; and
(c)in the case of a partnership, has at least 75% of its interests held by individuals who are Canadian citizens or by corporations or trusts that are resident in Canada. (organisation journalistique canadienne)
digital platform means a service that is accessible to the public through the Internet or other digital network and on which works can be reproduced or published, whether or not those works are reproduced or published at the initiative of the owner or controller of the digital platform. (plateforme numérique)
journalistic work means any literary or artistic work that
(a)is created by one or more journalists;
(b)records, investigates, comments on or explains issues that
(i)are of public significance to Canadians,
(ii)are relevant in engaging Canadians in public debate and in informing democratic decision-making, or
(iii)relate to community and local events; and
(c) in discussing issues, maintains editorial independence from the subjects of those discussions. (œuvre journalistique)
Designation of digital platform provider
26.‍2The Governor in Council may, by order, designate the owner or controller of a digital platform to be a designated digital platform provider for the purposes of this Act.
Right to remuneration — journalistic works
26.‍3(1)If a journalistic work or any substantial part thereof is reproduced or published on a digital platform that is owned or controlled by a designated digital platform provider, the Canadian journalism organization that owns the copyright in that journalistic work is entitled to remuneration.
Royalties
(2)For the purpose of providing the remuneration mentioned in subsection (1), the designated digital platform provider that owns or controls the digital platform on which the work has been reproduced or published is liable to pay royalties to the collective society authorized under Part VII.‍1 to collect them.
Hyperlinks
(3)No entitlement to renumeration under subsection (1) exists in respect of a hyperlink to a journalistic work.
Freelancers
(4)For the purpose of subsection (1), if a journalist owns the copyright in a work and has granted a licence to a Canadian journalism organization to reproduce or publish that work, the Canadian journalism organization is deemed to own the copyright.
Term of right to remuneration
26.‍4The right to remuneration conferred on Canadian journalistic organizations by section 26.‍3 subsists until the end of two years after the end of the calendar year in which the first publication of the journalistic work occurs.
4Paragraph (b) of the definition technological protection measure in section 41 of the Act is replaced by the following:
(b)restricts the doing — with respect to a work, to a performer’s performance fixed in a sound recording or to a sound recording — of any act referred to in section 3, 15, or 18 and any act for which remuneration is payable under section 19 or 26.‍3. (mesure technique de protection)
5Subsection 41.‍22(1) of the Act is replaced by the following:
Prohibition — rights management information
41.‍22(1)No person shall knowingly remove or alter any rights management information in electronic form without the consent of the owner of the copyright in the work, the performer’s performance or the sound recording, if the person knows or should have known that the removal or alteration will facilitate or conceal any infringement of the owner’s copyright or adversely affect the owner’s right to remuneration under section 19 or 26.‍3.
6(1)Paragaph 42(3.‍2)‍(a) of the Act is replaced by the following:
(a)removes or alters any rights management information in electronic form without the consent of the owner of the copyright in the work, the performer’s performance fixed in a sound recording or the sound recording, if the person knows that the removal or alteration will facilitate or conceal any infringement of the owner’s copyright or adversely affect the owner’s right to remuneration under section 19 or 26.‍3; or
(2)Subparagraph 42(3.‍2)‍(b)‍(ii) of the Act is replaced by the following:
(ii)the removal or alteration will facilitate or conceal any infringement of the owner’s copyright or adversely affect the owner’s right to remuneration under section 19 or 26.‍3.
7(1)Subsection 67(1) of the Act is replaced by the following:
Filing of proposed tariffs
67(1)A collective society may file a proposed tariff with the Board for the purposes of establishing royalties with respect to rights the collective society administers under section 3, 15, 18, 19, 21 or 26.‍3.
(2)Subsection 67(3) of the Act is replaced by the following:
Entering into agreements
(3)A collective society may enter into agreements for the purposes of establishing royalties with respect to rights the collective society administers under section 3, 15, 18, 19, 21 or 26.‍3, other than the royalties referred to in subsection 29.‍7(2) or (3) or paragraph 31(2)‍(d).
8Section 67.‍1 of the Act is replaced by the following:
Designation of collective society
67.‍1On application by a collective society, the Board may designate the collective society as the sole collective society authorized to collect all royalties referred to in
(a)paragraph 19(2)‍(a) with respect to a sound recording of a musical work; or
(b)subsection 26.‍3(2) with respect to a journalistic work as defined in section 26.‍1.
9(1)Subsection 71(1) of the Act is replaced by the following:
Application to fix
71(1)If a collective society and a user are unable to agree on royalties to be paid with respect to rights under section 3, 15, 18, 19, 21 or 26.‍3, other than royalties referred to in subsection 29.‍7(2) or (3) or paragraph 31(2)‍(d), or are unable to agree on any related terms and conditions, the collective society or user may, after giving notice to the other party, apply to the Board to fix the royalty rates or any related terms and conditions, or both.
(2)Paragraph 71(6)‍(b) of the Act is replaced by the following:
(b)a user who is required to pay,
(i)in respect of sound recordings included in a collective society’s repertoire, a royalty referred to in section 19 that has not been agreed upon, or
(ii)in respect of a journalistic work as defined in section 26.‍1 and included in a collective society’s repertoire, a royalty referred to in section 26.‍3 that has not been agreed upon.
Published under authority of the Senate of Canada



explanatory notes

Copyright Act
Clause 1:Existing text of relevant portion of the definition:
collective society means a society, association or corporation that carries on the business of collective administration of copyright or of the remuneration right conferred by section 19 or 81 for the benefit of those who, by assignment, grant of licence, appointment of it as their agent or otherwise, authorize it to act on their behalf in relation to that collective administration, and
Clause 2:Existing text of the title:
Copyright in Performers’ Performances, Sound Recordings and Communications Signals and Moral Rights in Performers’ Performances
Clause 3:New.
Clause 4:Existing text of relevant portions of section 41:
41The following definitions apply in this section and in sections 41.‍1 to 41.‍21.
. . .
technological protection measure means any effective technology, device or component that, in the ordinary course of its operation,
. . .
(b)restricts the doing — with respect to a work, to a performer’s performance fixed in a sound recording or to a sound recording — of any act referred to in section 3, 15 or 18 and any act for which remuneration is payable under section 19.‍ (mesure technique de protection)
Clause 5:Existing text of subsection 41.‍22(1):
41.‍22(1)No person shall knowingly remove or alter any rights management information in electronic form without the consent of the owner of the copyright in the work, the performer’s performance or the sound recording, if the person knows or should have known that the removal or alteration will facilitate or conceal any infringement of the owner’s copyright or adversely affect the owner’s right to remuneration under section 19.
Clause 6:Existing text of relevant portions of subsection 42(3.‍2):
(3.‍2)Every person, except a person who is acting on behalf of a library, archive or museum or an educational institution, commits an offence who knowingly and for commercial purposes
(a)removes or alters any rights management information in electronic form without the consent of the owner of the copyright in the work, the performer’s performance fixed in a sound recording or the sound recording, if the person knows that the removal or alteration will facilitate or conceal any infringement of the owner’s copyright or adversely affect the owner’s right to remuneration under section 19; or
(b)does any of the acts referred to in paragraphs 41.‍22(3)‍(a) to (e) with respect to any material form of the work, the performer’s performance fixed in a sound recording or the sound recording without the consent of the owner of the copyright and knows that
. . .
(ii)the removal or alteration will facilitate or conceal any infringement of the owner’s copyright or adversely affect the owner’s right to remuneration under section 19.
Clause 7:Existing text of relevant portions of section 67:
67(1)A collective society may file a proposed tariff with the Board for the purpose of establishing royalties with respect to rights the collective society administers under section 3, 15, 18, 19 or 21.
. . .
(3)A collective society may enter into agreements for the purpose of establishing royalties with respect to rights the collective society administers under section 3, 15, 18, 19 or 21, other than royalties referred to in subsection 29.‍7(2) or (3) or paragraph 31(2)‍(d).
Clause 8:Existing text of section 67.‍1:
67.‍1On application by a collective society, the Board may designate the collective society as the sole collective society authorized to collect all royalties referred to in paragraph 19(2)‍(a) with respect to a sound recording of a musical work.
Clause 9:Existing text of relevant portions of section 71:
71(1)If a collective society and a user are unable to agree on royalties to be paid with respect to rights under section 3, 15, 18, 19 or 21, other than royalties referred to in subsection 29.‍7(2) or (3) or paragraph 31(2)‍(d), or are unable to agree on any related terms and conditions, the collective society or user may, after giving notice to the other party, apply to the Board to fix the royalty rates or any related terms and conditions, or both.
. . .
(6)In this section, user means
. . .
(b)a user who is required to pay, in respect of sound recordings included in a collective society’s repertoire, a royalty referred to in section 19 that has not otherwise been fixed or agreed on.

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