Your music org requests for Budget 2024

Canada's federal government provides various funding mechanisms for Canadian music creation, showcase opportunity support, touring funds, artist development programs, and more, that support the Ottawa music industry.

With Budget 2024 set to be announced by the governing Liberal party on April 16, 2024, we take a look at the various requests submitted by music organizations to the Finance Committee as part of Pre-Budgetary Submissions. Notably, submissions were made in Fall 2023.

Also, recently Ottawa announced additional funding that would be distributed as part of the Canada Music Fund by FACTOR and MUSICACTION. The $32m was short of the $60m in requested funding that a consortium of music associations had requested in their budgetary recommendations, seen below.

• Recommendation 1: That the government amend the Copyright Act to make the private copying regime technologically neutral, by requiring the big tech companies to pay their fair share to copyright holders. The focus of these amendments would be to allow the regime to apply to both audio recording media and devices.

• Recommendation 1: Ensure the Copyright Act Protects Creators in the Context of Artificial Intelligence That the Government ensure a) that artificial intelligence systems comply with fair market principles to obtain licences and compensate copyright owners for the use of their works, and b) that no new exemptions from copyright or other intellectual property rights are created.
• Recommendation 2: Clarify the exemption at section 32.2(3) in the Copyright Act That the Government amend the language of the exemption at section 32.2(3) of the Copyright Act to clarify that the exemption only applies where an organization acts “without motive of gain.”
• Recommendation 3: Modernize private copying That the Government amend the Copyright Act to make the private copying regime technologicallyneutral and confirm the ability of the Copyright Board to set levies for unlicensed private copies made on audio recording media and audio recording devices.
• Recommendation 4: Clarify enforceability of copyright tariffs That the Government amend the Copyright Act to clarify that tariffs approved by the Copyright Board of Canada are enforceable against users of copyright-protected works for uses that fall within the ambit of an approved tariff unless the user has already obtained a valid licence for the use.

• Recommendation 1: Provide financial fairness to music creators by amending the definition of “sound recording” in the Copyright Act to address its unfair exclusion of performers and record labels/makers from performance royalties from television, film, video streaming platforms and other audio-visual content.
• Recommendation 2: Eliminate the “temporary” $1.25 Million exemption for commercial radio stations instituted in 1997 – a subsidy for commercial radio at the direct expense of music rights holders.
• Recommendation 3: Update the private copying regime to make it technologically neutral.

Music Publishers Canada
• Recommendation 1: That the government follow up on its promise to protect creators and copyright holders by overhauling the private copying regime to become technologically neutral.
• Recommendation 2: That the government fulfil its promise to increase the annual funding to the Canada Music Fund (CMF) to $50 million in the Fall Economic Statement as well as a further $10 million per year to support the live music sector, for a total increase of $60 million.
• Recommendation 3: That the government develop incentives targeted at increasing the profile and usage of Canadian songs and composers within audio-visual and interactive productions.
• Recommendation 4: That the government ensure that copyright law mandates compliance by AI developers with core principles of fair market competition and compensation, while also collaborating with the creative industries sector to support international efforts in acknowledging and respecting creators' and copyright holders’ intellectual property rights used in emerging technologies.

Canadian Live Music Association
• Recommendation 1: Harness the momentum of live music activity, for artists and for the Canadian and visitor economies: Increase the Canada Music Fund (CMF) permanently to $60M; preserve existing programs and earmark $10M for a new, live music-specific program inside the CMF to support commercial live music companies to present and help grow the careers of Canadian artists while driving domestic and international tourism and touring through live concert and event activity.
• Recommendation 2: Make permanent the supplementary investments of $8 million per year in the Canada Arts Presentation Fund (CAPF) and $7 million per year in the Building Communities Through Arts and Heritage (BCAH) program, first announced in the 2019 budget and extended in the 2021 budget.
•Recommendation 3: Invest an additional $30 million per year in these two programs ($21 million for CAPF and $9 million for BCAH) to support the adaptation and growth of the live performance sector in the post-pandemic era.

Canadian Independent Music Association
• Recommendation 1: Fulfill the Government commitment to a permanent increase to the Canada Music Fund (CMF) from $26 million to $50 million in 2024-25, along with an additional $10 million for new live programming for a total of $60 million.
• Recommendation 2: Move forward with amendments to the Copyright Act in an expedited fashion and support reforms that benefit Canadian-owned independent music.
• Recommendation 3: Ensure that new funding mechanisms resulting from C-11, the Online Streaming Act, currently under review by the CRTC, prioritize provisions for funding to be directed to FACTOR and Musicaction.

Association des professionnels de l'edition musicale
• Recommendation 1: That core funding for the Canada Music Fund increase to $60 million a year
• Recommendation 2: That the Copyright Act be amended to increase the music sector’s revenues, particularly by making the private copying regime technologically neutral
• Recommendation 3: That the government ensure that rights holders receive recognition and remuneration when AI or AI developers use a rights holder’s work

Notably, as part of hearings in support of the Finance Committee's work, Andrew Cash, President and CEO of CIMA, and Eve Paré, Executive Director and Simon Claus, Director, Public Affairs of Association québécoise de l'industrie du disque, du spectacle et de la vidéo (ADISQ) appeared on November 13, 2023 to present on the impacts of FACTOR and Musicaction on the Canadian independent music industry.

Evidence - FINA (44-1) - No. 117 - House of Commons of Canada
Evidence - FINA (44-1) - No. 117 - House of Commons of Canada