July 11, 2008             Festivals & Events Ontario (FEO) Takes Proactive Steps On Behalf of the Membership to Intervene RE: NRCC Tariff No. 5  (Use of Music To Accompany Live Events) What is NRCC? The Neighbouring Rights Collective of Canada (NRCC) is a non-profit umbrella collective created in 1997 to administer the rights of performers and makers to be paid equitable (financial) remuneration for the public performance or communication to the public by telecommunications of their recordings in Canada.  In other words, this group functions as a flow-through organization to collect royalty payments and provide data on use of sound (music) recordings on behalf of its members.  It also files and defends tariffs with the Copyright Board of Canada on behalf of its members.  Whereas SOCAN (Society of Composers, Authors & Music Publishers of Canada) is the copyright collective representing one group, NRCC represents another group, namely the performers and makes of sound recordings. What is Tariff No. 5? Recently, Festivals & Events Ontario became aware that the NRCC had filed with the Copyright Board of Canada a new tariff (No. 5 - Use of Music to Accompany Live Events) that would significantly negatively impact FEO members.  Specifically, Tariff No. 5, if approved by the Copyright Board of Canada, would implement a levy of "5% of "gross receipts" (i.e. the total amount received for admission to an event and would include ticket sales, admission fees, and cover charges), payable monthly, on any festival and/or event organization that plays recorded background music at a live event,  If approved by the Copyright Board of Canada, this levy would be made retroactive to January 1, 2008. "Live event" is further defined as: festivals, concerts, live entertainment, sporting events, fashion shows, conventions, receptions, plays, circuses, parades, fireworks displays, comedy shows, magic shows, weddings and video game events. What it Means For You? Let's say, for example, that you play recorded music as background to a live act setting up their equipment on stage.  Assume further that the audience is 5,000 people and they have paid $20 for admission or entrance to your event or concert.  At approximately $100,000 in admission gate receipts, you could be liable to pay the NRCC approximately $5,000 (5%) for that single event.  Clearly, many of you might be talking much larger figures than this and it is possible that many, many more could be affected to at least some degree. What Organizations are Affected? As seen by the broad definition stated above, in addition to any FEO member that plays recorded music during its event, other affected organizations (in Ontario alone) could include such parties as: professional sports teams (Toronto Maple Leafs, Ottawa Senators, Toronto Blue Jays, Toronto Raptors, etc.), venues that host concerts (Air Canada Centre, Ottawa Scotiabank Place, Toronto Roy Thompson Hall, Hamilton Copps Coliseum, Hamilton Place, etc.), even a standard convention or a family wedding. The potential financial repercussions are enormous! What FEO Has Done On Your Behalf? Your FEO Board of Directors authorized a letter to be sent to Mr. Claude Majeau, Secretary General of the Copyright Board of Canada, challenging this application by the NRCC and seeking intervener status, which would enable FEO to subsequently present its case in more detail, should matters evolve to that point. The letter was sent under the signature of your FEO President, Sarah Wood, with a cc: to FEO Past President, Larry Blundell and FEO Executive Director, Gary Masters.  This has now been done. The letter expressed FEO's collective concern, on behalf of its industry members, of the significant negative impact such a levy would have on our industry. Moreover, it also noted that no effort appears to have been done by the NRCC, the Copyright Board of Canada, nor any other party, to seek to contact or advise the numerous parties that would be negatively affected by this levy, of the pending application.  It was also mentioned that many of our members have already closed the financial books on their 2008 events and re-opening the financials could result in uncertain abilities to source the required additional funds in many cases. FEO has now learned that lawyers representing many of the other parties (in Ontario alone), such as Maple Leaf Sports & Entertainment (Maple Leafs, Raptors, etc.), Scotiabank Place (Senators, etc.) SONY Centre for the Performing Arts / Massey Hall, etc. and others have also submitted a letter to Mr. Majeau seeking intervener status. Next Steps Your FEO Board will monitor developments in this major issue and FEO will keep you appraised of any updates as they evolve. In the interim, representatives from your FEO Board have drafted a templated letter and a backgrounder document that you may wish to send to your local federal MP to represent your interests and how this proposed tariff will affect you on this major potential national issue.  Both documents can be modified to better suit your local, individual needs as required.  Please click on the following underlined link for a copy of: * a templated letter that you can send to your local federal MP * a backgrounder document for your local federal MP   For additional information, please contact: Gary Masters Executive Director Festivals & Events Ontario 5 Graham Street, Suite 301 Woodstock, ON  N4S 6J5 Tel: (519) 537-2226 Email: director@festivalsandeventsontario.ca               ****** Festivals & Events Ontario is the professional, not for profit association of festival and event organizers from across the province of Ontario with a mission to develop, represent, enhance and promote the Ontario festivals & events industry. The Association provides a network for festival and special event organizers to share information and resources.  The Association is involved with collaborative advocacy, policy development, marketing and providing educational opportunities for members.  The Association also serves industry members whose goods and services are of use and benefit to Ontario's festivals and special events industry.   To unsubscribe, please send us a message at info@festivalsandeventsontario.ca.         5 Graham St., Suite 301, Woodstock, ON  N4S 6J5   Phone: (519) 537-2226     Fax: (519) 537-7226 www.festivalsandeventsontario.ca     info@festivalsandeventsontario.ca