Notice to Members : Reserve Clause
 
 

WHAT YOU NEED TO KNOW
 
Copyright is a legal protection that allows the creator of a work the possibility to control practically all of its uses. Therefore, each time a protected work is used in a production, it is mandatory to obtain an authorization from its owner.

This protection, extended under the Copyright Act, is granted to the author from the moment the original work is created without any other formality, except as otherwise provided. In Canada, the lenght of the protection is the life of the author plus 50 years. In many countries, protection is granted for the life of the author plus 70 years. A set of very diversified rights composes the copyright itself in fact, it can be seen as a network of rights including various elements, or in other words, a rainbow with its spectrum of colors.

For example, in the music world, the author of an original song owns - upon creation - personally and in exclusivity the copyright to his song. This exclusive right enables him to authorize or prohibit the song's publication, reproduction, translation/adaptation, synchronization to film/video, broadcasting on radio and television, on Internet, in elevators, in concert venues, and so on.

Because the authorization to exercise these rights is usually given in exchange for payment, they are also known as the author's « economic rights ».

On the other hand, the Copyright Act enables the author/composer to demand that he be recognized - under his name or a stage name - as the creator of his work or, if he so wishes, to remain anonymous. The author has the right to the integrity of his work; he can demand that his song be used without modification, distortion or in association with a specific cause, product, service, institution or in a way that would prejudice his honour or his reputation. These rights that belong to the personna of the creator are also known as his « moral rights ».

Being the first owner of the copyright, the creator of a work can transfer the economic rights - comprised in his copyright - in whole or in part, to another person or company. However, he can renounce but not transfer his moral rights to someone else.

Many composers and authors in the music world manage their own copyright, although they often transfer their rights by contracting a publisher to manage the economic exploitation of their works.

As one can easily guess, in order to ensure revenues from the exploitation of a song, the author/composer and the publisher will have to grant many authorizations. This is where groups of creators and publishers termed « collective societies » come into play. These societies grant authorizations for their members, collect royalties for the use of works and redistribute these sums to their members.

In the field of music there are two societies in Canada administered by authors, composers and publishers: SOCAN and SODRAC. SOCAN administers « public performance rights » which consists of giving authorizations for works' transmission through telecommunication or electronic media and for their public performance. SODRAC, handles the « reproduction rights », that is to say, it grants authorizations for a work's recording and its reproduction on any format.

On a daily basis , SODRAC signs agreements with the manufacturers of sound recordings and with the radio and television broadcasters who pay royalties, or fixed sums according to the use they make of the works of its catalogue. There are many possible uses, such as the sale of a recording, the rental of a film, the broadcasting of a video and so on, and each one of these implies payment of a specific royalty rate. The users provide SODRAC with a report of the uses made of works included in SODRAC's catalogue. These reports are analysed and the collected royalties are distributed to the right owners in exchange for a minimal commission.

Concerning the exploitation of works on the Internet, SODRAC is awaiting for the hearing and the decision from the Copyright Board - an administrative judicial court - on the approval of the tariff payable to SODRAC by network managers for the use of musical works of its catalogue. SODRAC has also tabled a proposed tariff to be collected from manufacturers and importers of blank audio recording media. This royalty would compensate copyright owners for losses due to home taping. This new provision in the Canadian Copyright Law is legally called Right of Remuneration in respect of the reproduction for private use.

In conclusion, it is important to know that the Copyright Act contains provisions for civil and criminal remedies which include severe sentences and penalties for anyone who does not respect the rights conferred to creators. In case of doubt about what to do to ensure the legality of the reproduction of a musical or artistic work, we would advise you to contact one of our agents.
 


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