SESSIOrtAr PAPER rlo.

URSDA Y FEB _2 7 1936

REP.O RT
OF

ts Honour JUDGE PARKER,

a <;ommissioner appointed by The Inquiries Act
and The Copyright Amendment Act of 1931,
pursuant to Order in Council No. 738,
dated March 22nd, 1935.

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' l ' - "~ Ir

;_ . r. l, " -~ENTARY rt\PE.RS

:- ~ r' 1.- r I . I
noo rn 167. House of Comm.o ns.

-
O'ITAWA
I. o. PATBNAUDB, 1.8.0.
DINTD TO TD ICINO'B MOST DCBLLDIT KAID'ft
 INDEX
PMm
PART I. lntroduetiOG.. . . . . . . . . . . . . . .. . . . . . . . . . t
- ---Jl;-- 11idor7-of-J.aw-of-Cop)'risb, ...... .. . ... .. ... . . ' .... ~ , - --111----

m. Performilts Rilbt. . . .. t
IV. InfriqemeD' ol Copyriah,.. .. .. .. .. .. .. .. .. .. .. .. .. .. 10
V. Pr.Jmptiou u to Copyripi and Onembip.. . . . . . . . . 11
VI. Collltitutio~ of the Cuadian Perf~-8ociet7 Limited. . . . 12
VII. Collltitut.ion of the Pelformias Jlisbi Bocieb' Limited ol Load,,.,
. Etwlancf. .. : 11
VDI. CollltitutioD ol the Ameriean 8ocie'7 ol Coaapom8, Au&bom IDd
Publimem.. . 17
IX. Repertoire of Cuadian Penormiq Bigbi Socieb' Limited .- . . . . It
x. AaliPment ol Performiq Jtish&e to the Caudiaa Sooieb'. . . . . . . . ti
XI. Score Charp:. .. .. :. .. .. .. :. .. .. .. .. .. .. .: .. .. ., .. ti
xn. Relltric&ed tut..~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '1
xm. Licences. . . . . . . . --.-... . . . . . . . . . . . . . . . . . . . . .
XIV. lliRory IDd General Nature ol the Taril.. . . .. .. . . .. .. .. ...
xv. Complain&e.. .. , ao
XVI Diltribution ol DlODeJll b7 Caaclian PerfonniDc Bilbi Soeie'Y

XVII
XVIII.
Limited.. . .
..
Filiq of Lilla.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , .
BftllldcaaiDI Taria.. .. .. .. .. . .. . . .. .. . . .. . . .. .. .. .. . ..
.-
..
XIX. Theatre Tariff.. .. .. . . .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. '1
xx. Hotel Tariff . . .. ... . . . . ... ; . .. ..... :. . . . 40
XD. Parb, Small Pain, CommUDib' ~ IDd otlaer-.Miloellueoul - G
xxn. Jt-.unDt.I, 8klms JliDb, 8pon Gloalm, B&c. . . . . G
. XXDI. The C.wian Nalioul Esbi>i&ioa.. . . . . . . . . . . . . . . . . . M
XXIV. ~ in Tari& ooDoedecl bJ C.Mdian Performils JUpi 8oeM'7
Limi&ecl..
xxv................. .. .. .. .. .: ........ .... .. ............
 REPORT

Royal CommlsaioD Appointed to lnveatipte the

Acthidea of the.Qmadlan Psformln& lU&hta
. Society, IJmlted;- and SlmU.r Sodedea .

'
To the Governor General in Couno:l;
Ottawa, Oiltario.
Aa Commi,aioner appointed bj Roy~ Lett.en Patent, dated the twenty-
leCOnd day of Maich, um,to inftltipte and report:- "
1. (a) Whether the Canadian Performing Right Soeiet7 ~'or &n"I other
Society, Aaaociation or company, unduly withholdal the illue or grant
of liceneee for or in reepect of the performance of such worb in Canada;
(b) Whether the Canadian Performing Right Society Limited, .OJ ua7 other
10Ciety, 8880Ciation or CQJDp&nf, proP0191 to eollect acellive fees,
charges, or royalties in compensation for the ilaue or grant of 1Uch
licences; .
(c) Whether the Canadian Performing Right Society Limited, or uy other-
eociety, 8880Ciation or company, otherwile ooilducta it.a operations in
Canada in a manner which is deemed detrimental -to the iiat.enN of
the public, .and -
(d) Generally ~ch other matten u the uid Cnmmiaieoiaer may demi
relevanr. and material to the eaid inveetigati(>D, and report thereon;
- - - .
2. And to p&rticularly invemgate and report on the fees, charpe or l'Ofattii.
which the Canadian Performing Right Society Limited, or any IUch
other society, UIC>Ciation or company, lhould be entitled to collect from
licensees in compemation for. the iaue or grant of aueh lioeDC11, and
.the buee on which auch fees, charges or royaltie1 should properly be
comp~.

I have the honour to mAke the following report:-

PART 1
IN'l'llODUCJ'ION
The C-ommillioa after DOUlcMicm to pen0m . . _ . , IDtm!ded bl tbe
proceedinp held it.I flnt ~ in Toronto OD tbe IUa of Aptil, t, 1ritla tbe
objeet. of malrini arranpmelltl for and'~ the IDl&hod of proeldare
to be adopted in the eoaduet of the inftltigatioa.
--. .
 At that meeting the following penona appeared npreeentinc the following
interests:-
G. W. Mason, Esq., K.C.............. A-ppearing for the Commiaion.
A.G. Slaght, Esq., K.C.............. The Musieal Protective Society.
A. J. Thomson, Esq., K.C.......... Famous Players Canadian Corporation
Limited.
J . C. M. Germ.a, FAq., K.C.... Butel AllC'ielat.ioll of Canada.
Fred A. Campbe.11, Eaq.,. K.C........ Cwwlian Natioaai Emibition.
E.G. Gowlina, Eaq Canadian_Radio Broadeig C~
aion.
Samuel Rogers, Eeq....... CanacJian Aalociation of Broadcasters.
K. V. Stratton, Eaq., K.C........... Allied Exhibitors of Ontario.
A. W. Anglin, Eaq., K.C.... . .... . ..... (Pro tem) Canadian Performing Right
Society.
It was made clearthat the Commiaioner desired to afford the fullest oppor-
tunity to au persons to make .representations to the Commiaion in connection
with the matters under inquiry and that while sitting in Toront.o the Commis-
sion would go into the various branches u far u possible and then sit in
Montreal and Ottawa and in any other centresin Canada in which it seemed
desirable to hear representations and take evidence. Counsel for the Commis-
sion tOok steps, including not.iflcation to the Premiers of all the provinces, to
ucertain the places in whieh the Commis8ion ought to sit for inquiry. As a
result the Commission sat in Toronto, Montreal, Ottawa, Halifax, Moncton,
Winnipeg and Regina, a~ was engaged for thirty-three days in hearing
e~ence and recehojcg information, and for three days in hearing argument
of coUIUlel. Due to the necessity of adjournments from time to time the Com-
mission did not conclude its sittinp until the 19th of July, 1936. Altogether
there were one hundred and forty-thrP.e witnelt!el who appeared before the Com-
miion ~d two hundred and aeventy-four Exhibits flied.
During theSittings in addition C.O tboee mentioned above the following
Couneel representing the following intereata-appeM'ed before the Commillion:-
F. C. Carter, Esq.. . . . . . . . . Assisting o: W. Mason, Esq., K.C.,
Counsel for the Commiuion.
D. Carrick, Esq. . . . . . . . . . . ~ . Assiating A. G. Slaght, K.C., Counsel
for the Musical Protective Society.
C. F. H. C~n, Esq.. . . . . . . . ._For Famous Players Canadian Cor-
poration.
W. R. West, Eeq. . . . . . . . . . . For Canadian National Cbon Com-
. pany Limited.
R. C. H. C888els, Esq., K.C., H. G.
Nolan, Esq., K.C., and R. A. Butchon,
Esq. . -. . .. . .. For Canadian PerlormiDa ~gbt Society
Limited. . I
J. Sedgewick, Elq., K~O. . . . . . . . . . For the A~ General' Dep~
Pioviiloe of Ontario.
 6
-5. N. Herapath, Eaq .. For the City of Toronto.
J. Jllltin, Eaq., and R. H. Parment.,
Eaq., K.C. . . . . . . ~ . . . . . For Famous Playen Canadian Cor-
poradoa.
A. _D. McDonald, Esq. . . . For Canadian Nati~al Railwa71.
8. J. Dempeey, Eeq. . . . . . . . . . For Canadien Pacific Railw&f', (Mont-
nal).
E. C. Phinney, Eaq., K.C........ l'or Allied Exhibit.on of Nova Seotia.
-- C.-Jr.Smifli, Eiq., K.rr.-.- :-. -.... ._.For lrotil Amociation ollfova Sootia.
C. P. Bethune, Eaq.. . . . For the City of Balifu.
W. C. Macdonald, FAq., K.C . . . . . For Canadian Performina Right SO.Uety
(Balifa).
L. McC. Ritchie, Eaq ....... For Allied Exhibit.on of New Brum-
wick.
H. E. Sampson, Eaq., K.C. . . . . Fo'r Sukatchewan Motion Picture
.Ezhibiton; All,ociation.
S. B. Woods, Eaq., K.C. and S. W. Field, . .
Esq., K.C . . . . . . . . . . . . . . . . For Canadian Western Broadcutin1
Auoeiation.
T. Sweatman, Eaq., K.C . . . ; . . . For Manitoba Exhibit.on.
H. A. Aylen, Esq., K.C. . . . . . . . . For New Edinburgh Canoe Club,
Ottawa.
At the commencement of the Inquiry, and for a little time afterwards, it
wu obvious there were miundentandinp and a hesitancy to appreciate the
other eide's point of view. Tbanb to the fmr.. of thoee appeariq, or represent-
ed by counsel, these misundentandinp 100D diuppeared. Coumel on the one aide
appreciated that the of.he! owned ripte for the 111e of whieh they were legally
entitled to eompensation; .and CoUDlel on. the other aide desired fair, and. only
fair, compensation. The undentandiDg attitude of all -parties, ud their appre-
ciation of the other's point of view, materially abortened the b~np of the
Inquiry. There is reilon to hope that one of the results of thil Inquiry may be
a better undentanding between the difterent interelta and, in part at leut, a
ttlement of the dilerence1 which at ~- Gilt..
Mr. A.G. Slaght, K.C. who wu llllior OOUD11l fo.r thoee oppoeinc the....,
Yrila of t.lle Canadian Performins Right Societ1 Limited, Aid a\ the com-
mencement of bis argument, aft. tbe evidence ~ad been 1Ubmitted:-
. " The investigation cannot help wtdo good, no maltier what the relU1t
may ,~. It will eerve to impret1 upon.tbe public the fact that thq (The
Canadian Performing Risht Society, Limited) haw legal riahtl that the
parties they represent have legal rights in copyright, and that the performhlc
rightll, with which we are IO c0ncenled, ii in law a matt.er for wbidl theJ an
eati&lecl tG receift lair CltlCI ,,,.,,,.r pcartlNtd." :
 8

PART Il

1115TOILY OP 1AW OP COPYIUGBT

Coumel flor the Commiuion 1C"1tlined the law of copyright u it m.cl at.
Gmnmon LllW, and how the riitJt.., of Common Law were extended by varioua
statutes,_comm~nc with thCJeel puaed in the reign of Queen Anne, up to the
Copyright Act of Canada, pallled in 1921, and t e ameJ'.!.dlrieDt o f 1931-a-
synoJ>8is of which is u folloWI:.
Copyright originally meant the exclusive righ' of multiplying copies of an
original work or composition, but subsequently the meamng Of the Word WU
extended to include the exclMfaive right of performing a work in public. Ite
object was to prcDtect the fJUitof an-author' brain. Aa far back u i483 legisla-
tion was passed to encou,..e the printing of boob, but no Copyright Act wu
pueed in England i\llltil the reign of Queen Anne. Chapter 19 of the Statutes
of Anne gave au.t hors of '9ob then.printed the sole right of printing them for a
period of twen~-one yea!S, ~d of books not then printed for a period of
fourteen years, with a. )'l'OVision for a further extension of fourteen years if the
authors were living at tlte expiration of the first term.
The most important of the earlier Imperial Acte was the Copyright. Act of
18'2, which extende4 the period of copyright tO the life of the author, and seven
years thereafter, or a tam of forty-two years,_whichever should be the longer.
\\rule musical oompositions were held to be boob within the meaning of
the Copyright Acte u far back as th,, year 1777, there was no protection by
Imperial Statutes of the performing light in respect of musical compoeitions
udil tile year '1842, when Chapter 45 of the statutes of that year gave the
author an exclusive right of public performanee for fo~y-two years, or t.he life
of the author and seven yean thereafter, whichever should be longer. .
The CopYrilfit Ad .now in foree in Great Britain is the Act of 1911, which
became neceseary .M&Ule of tl'8 agnemente made at. the Inte~ational Con-
ventions to whick Great Britain became a party, the first beintfthe Berne
Conventien of I. .
hl Canada, the tint copyright statute was the Act of 1875, w~ich provided
proteetion for- the auther for twenty-eight yean, together with a further fourteen
years for the autaor) lli1 wife and children should they IUl'Vive. The Ratute
required that the swk had to be printed and publiabed in Canada, but Britilh
authon couldpt, protection in Canada -under the Imperial Act of 18'2 withoat
obeerviDg t.he proviliom, of the Canadian Act.
The preeent Cadian Copyright Act was paseed in 19'J1; came into foroe
OD January 1, 1 - and was amended substantially by the .amending Act of
Ital. . .
The-~tter of copyright in musical compoeitiou wu comParatively limpl,
when thq were published in the form of lheet muaic, but the question u to
what protMtion lhould be given to authon became much more complicated witb
the inventioQ. ef Mechanical means of reproducing IOUJld, and the coininc into
 U1e of
'
larp numben of gramophones and other musical inltrumenta. Thea came
the radio and the IOUlld film, and the employment of many thouand8 of people
in the production of mmic for broadC)Uting and the thowing of tlbm.
With such dnelopmenta it became , "bJe for &DJ indmdua1 author or
compcmr to be able to ascertain the ~1Twhich the compolition which w
the eubject of bis coPJright wu being produced in one or at.Mr of the many
fol'IDI of mUlical production which had COID9 into aiatence. Thia ma ii
llece9U'J for authon and com~ to have aome kind of orpnisatian to
protect their intereltl. Such an organisation had been ailtent in Pnnoe for
- many yean, but the need for such organbation1 wu emphubecl bJ' the MW
eondition1 which had arilen.
The formation of such organisations gave rile to further probleml u to
their tariffs for licences to uae th~ music controlled by them oil behalf of their
memben. They acquired a substantial monopoly of mUlical product.iODI and
to a large extent individual authon ceued to make arrmigementa for the
performance of their works by any pereon except through the medium of thele
organisations. -
The development of inecbanical production of iiiueic bu DeCellarily reftected
iteelf in the statutory provisions of variom countriea. MUlic produoed in
country ii broadcuted into many countries, and the matter of copyright bae,
for this reason, been constantly aauming greater international importance.
The Canadian Act of 19'Jl, which .came into force on January 1, lnt,
' .
'carried into effect the provisions of the Berne Convention. 'l1le emting Canadian
copyright bu been deecribed u reciprocal, automatic coPJright, the meaning of
which ii that autbon who are subject.II or citileDI of a country adhering to the
Berne Convention enjoy for their worb in other countriee adhering to the
Convention the righta ~hich euch countries grant to their own IUbjecta and
citilene, and that their enjoyment of theee right.I ii n~ subject to the compliance
with any formality. Regiatntion ii DO longer required. The United S&atee did
not adhere to the <;onvention, but special arrangement. ailt with nepec\ to the
. right.I of Canadian authon in the United Statee. Al a reeult of t.hele arnnp--
menta, the Cana~an author bu the protection of the United SW. CopJrilht
A' to the same extent u eitilenl of the UDMd SW. hilz.~, but he mUlt nsiU.
bis copyright at Wathington to get the protection of the UniW Statee AA
The Canadian Act of lDl repealed the Imperial Copyright Statut.e u to.
Canada; but this repeal does not affect lepl riahta ailting at the time of repeal
Thia statute contaim DO provilion apnllly COftring radiographic performanoe1
or reproduction, but certain amendment.I made in _1931 wen deeiped to deal
therewith and to m~ provilion with NllplGt to IOCietiee inc lieeD08I in
Canada for tbe perf0rmance !f mecbanical worb. The definition of " oopJ'
right " wu aprellly at.ended to include reproduotiona, ad;aptation and publlo
plllllltat.ion of any mUlical work bJ ~.
n wu further provided that mir, 10CietJ w1111 u. . . for the perfarm-
anee in Canada of mUlical worb lhould file .u the copyright oJlloe IWI of all
worb in ntpeCt of which mch eociety claimed aatbority to - - . . . . . OI' t.o
co.... feei, and statement.I of..the feee which it prOpmed to oolW Ima tbll9 .
to time for the imue oflioenoee.

--
 I
The amendment. of 1131 followed the Rome Copyright Convention of 1118,
$o wbiob both Greai Britain and Canada adhered. Thia convention ineludel
eeveral proviliODI ufeparding the right. of autbon with ~ to tlae
mechanical production of muaio. Tbeee include proviaioal that the aatharl of
mlllical workl aball enjoy the excluaive right of authoriling tlae communication
of their work to the public by radii>; and cinematograpb productiona lball he
protected if the author bas given. the work an original character.
 HRT III
PDFOIUllNG lllGll'l'S
Performing Right.a were first protected by Statute in England u early u
1833-~e_lm~pve-furilae-protion and- both the: Imperial
Copyright of 1911 and the Canadian Copyright Act oi 19'll, ~ amended in
1931, continued the protection of performing right.a.
Copyright in a musical work is divided into three separate property right.a.
They are, .fint, the right of publicaiion in printed. form; second, the right of
reproduction on mechanical contrivances; and third, the right of performance.
The Copyright Act of Canada eeta out specifically what it meant by performing
right. In a non-technical senae, and with partir.ular reference to music, it may
be described as the uclusive right to i)erform a mUlical work in public.
Until recent years, autbon, compoien and publi1hen looked mainly to
the fint property right mentioned above in the forin of 1alee of lheet mulic for
their revenue. With the popularisation of records, the aecond property right
came into prominence, and although thie provided a new llCiUl'ee of revenue to
the owner of the copyright, there wu a decrease in the sales of ebeet music,
with a eonsequent Joss of revenue from that source. It ie to lie observed that
these first two righte which we.re looked to for revenue are not performing right.a.
In the last few years the development of radio bu cauaed a decreue in
the eale of sheet music and records. The broadcasting statione have undoubt-
edly familiariled the public with many pieces of music, but the total result bu
been a reduction in revenue for the authors, composers and publiehers from the
sale of eheet mueic and recorde. The societies which control the copyright,
including the performing right, bav~ looked to ihe f~ from licences conferring
the performing right upon music users to compeneate them in part for the 1'"8
suffered from the decrease of sales of sheet musiC and recorde. Thie coDlidera-
tion bu been one of the facto~ determining tbe tariff' of feee for performb:ig .
rigbte.

-: .
 10

PART IV
.INFRINGEMENT OF COPYBIGBT
Section 17 of the Copyright Act (Canada) 1921 as amended by Section
-S-of Cliaptei'B;-2t-;22-0eorge-V,-tbua-definee "h/riflf6'MR141J1'"t~n;-:-~-----
" Copyright in a work shall be deemed' to be infringed by any penon
who, without the consent of the owner of the copyright, does anything tlie
sole right to do which is by this Act conferred on the owner of the copy-
right.
"Provided that the foUowing acts (inter alia) shall not constitute
an infringement of copyright:-
" The performance of any musical work by any church, college or
echool, or by any religi'>us, charitable or fratemal organisation, provided
1uch performance is given without private fWO/it for religioue, educational
or charitable purposes.
'' The performance without private profit of any mueical work at any
agricultural exhibition or fair which is held by Dominion, Provincial or
Municipal authority."
Under the above clause, the institutions bad aaeumed that they were
exempt from payment of fees for the performance of music ,rben, although they
paid their musicians, they were operating without profit to the1111elvee. Bow-
e_ver, from the decision in the. case of Canadian Performing Right Society,
Limited vs. Canadian National Exhibition, repo~ in 193' Ontario Law
Reports, page 620, it would appear that in 1uch caaes they are not exempt.
It was there held that even if the exhibition is an agricultural exhibition or
fair, the performance complained -of was not a performance without private
profit. Whether it was or was not a performance witJiout private profit to
the defendanta, it was not a private performance without profit to the band.
The exhibition was held liable to the Society for infringement of its copyright.
 11

PARTY
PBESUMP'DONS AS TO COPYIUGBT AND OW'NEBSBIP
By an amendment to the Copyright Act in 1931, being Sect.ion 7 of 21-22
--Geo.~it-is-pnmded aa foHowr. - - -----
11 In any action for infringement of copyright in .any work in which

the defendant puhl in issue either the existence of the copyright -or the
~tie of the plaintiff thereto, then in any such cue,
11
(a) The work shall1 unlese the contrary be proved, be presumed to
be a work in which copyright nbeist.e; and
11
(b) the author of the work shall unlea the contrary is proved be
presumed to be the owner of the copyright:
" PaoVJDED, that where any auch question is at illlue and no grant of
a copyright or of an interest in the copyright either by ueignment or
licence has been' registered under this Act, then in any auch cue;
"(i) if a name purporting to be that of the author of the work i1
printed or otherwise indicated thereon ill the usual manner, that petaon
whose name is 80 printed or indicated shall, unle18 the contrary is proved,
be presumed to be the author of the work;
"(ii) if no name is so printed or indicated or if the name so printed
or . indicated. is not. '~ author's true name or the name by which he is
commonly known, and a name purporting to be that of the publisher or
proprietor of the work is printed or otherwise indicated thereon in the
usual .manner, the penon whoee name i" 80 printed or indicated shall,
unlese the contrary is proved, be preBUm :I to be the owner of the copy-
right in the ~ork for the purpose of proceedings in respect of the infringe-
ment of copyright therein.!'
 12

PART VI

CONS'ITl'U110N OF THE CANADIAN PERFORMING RIGHT SOCIETY

uu1m -
The Canadian Performing Right Society, Limited, wu incorporated in
. 19'l5, under the Dominion Companies Act, with a _capital et.oek of 10,000 1hare9
without nominal or par value, with the following among ~ther objecta:-
(a) 1. To acquire and hold the right.a of performance in public of mueical,
literary or dramatic works, and to exereiae and enfone on it.a own behalf, or
on behalf of pereone, being the composen of any mcal works or the authore
of any literary or dramatic works, or the o~en or publiabere of or being
otherwise entitled fAl)be benefit of or interested in the- copyright.a in euch
works (hereinafter called 11 the proprietore " all rights and remedies in respect
of the public performance of euch works;
2. In the exereiae or enforcement of such tight.a and remediee, t.o' make,
and from time to time to rescind, alter or vary any arrangement.a and agree-
menta with respect to the public perfo.rmance of auch works in regard to the
mode, periods or extent in, for or to which, and the ~ on ~hich any public
performance of &tic~ works may be made, employed, or authorised, and tO
collect and receive and give effectual diecharges for all royaltiee, . feee and
other moneys payable under any such agreementa or arrangement.a or other-
wise _in respect of euch public performance by all neceaary actio~ or other
proceedings, and to recover euch royaltiee, feee and other' moneys, and to
restl'ain and recover damages for tlie infringement by means .of euch public
performances as aforesaid of the copyright.a of euch works or any ~er right.a
of the proprietors or of the company in respect of such works, and to releue,
compromise or refer to arbitration any euch proceedingsor actione or any other
disputes or dift'erences in relation to the premisee;
3. To obtain from the proprietore euch assignment.a, assurancee, powen
of attorney or other authorities or instrument.a as may be deemed neeeeear;
or expedient for enabling the company to exerciae and enforce in it.a awn nam~
or otherwise allsuch rights. and remedies as. aforesaid, Bild to execute and do
all such assurances, agreements and ~ther inetrumenta and acts as may be
deemed neceasary or expedient ror the p~ of the exercise or enforcement
by the eompany of sueh right.a and remedies as aforesaid; upon term1 as to
payment to the-proprietors. ne s received and eollected in respect of euch
rights or as to other consideration, or othennse;
811PPLBlizNTABY Ll:'rl'l:ll8 PATENT were obtained on the 20th of May, 19.10,
~mending the Letters Patent by converting:-
1. The one thoueand (1,000) abaree without nominal or par value whieh
are i88Ued fully paid up, non-USP.88able and outstanding, into one tboueand
 13

(1,000) illued fully paid up, DOJl.....1ble and outetudiag C1--- "A,,~
without nominal or par value;
2. _Four thousand (4,000) of the nine thoUl&lld (9,000) unillued lharel
Without nominal or par value into four thousand (4,000) um.ied Clue "A,,
shares without nominal or par value;
3. The remaining -five tbouland (1,000) of the uniaued eb&n11 without
nominal or par value into five thoUl&lld (1,000) uni.ued Clue -us,, shaNS
without nominal or par value; and therefor delete and apunge frona the said
Lett.era Patent incorporating the said Com~y, the capital etock clause read-
ing u followe:-
" The capital etock of -~he said Company ehall conaiat of ten thqu1a11d
(10,000) shares without nominal or par value, aubject to tb~ inereue of
auch capital etock under the provilione of the eaid ct, and amending
-Acta, provided, that the said shares may be eold at a price not exceeding
five (15.00) dollars per share.', -

And substitute therefor the followiDg:-

" The capital stock of the l&id Company shall ooneiet of five thoueand
(5,000) Clau "A,, shares ad five ihoueand (li,~) Cl_ue "B,, mares, all
without nominal or par value, one thau1and (1,000)-.'>f the said Clua "A,,
shares being i88Ued fully p~id up, non-weaable and outetan~ng, subject
to the increue of auch capital stock under the provilione of the aid Act,
provided, however, ~at the four thouand (4,000) unillued Clua ~,A,,
shares and the five thousand (6,000) uniuued Clua "B', 1hare1 may be
iuued and allotfAMI for such coneideration u 0 may from time to time be
fixed by reaolution of the Board of Di~n, Dot exceeding 8-.e (15.00)
dollan per 1bare.
"The _holden Qf the Clue "A,, shares and Clw "B,, 1h&N11 reepec-
tively aball haft fM rigbta and piiVilegal" anc1 be eabjeet to the limitatione
and conditione benbaafter IM fort.la, that ii to ay::.:.
" 1. The holden of Clue "A" eharee aball have -the eole and
aeluei-.e right to vote for the election of one-baK of the number of -
the Board of Directon of the Company which ibalt al1'a18 CODlid
of an nen mnnber, and the holden of Cius "B". ._... lbaU -have
the eole and exchaeive right to wt.e far tJie election of_the ...,.....
one-ball of the Dumber of the Board of Directon of the ec..p.ay.
FMh director of the Company-lhall be e1eat.ed to held . _ tit tm
&r8' _annual meeting Jter
l'uaeor lhall-baft hem duly qnaliW ud-elected. The,,..
he eball ha~ been eleded ud uatil Ml

~all be eleet.ed at ch ~ . - . ud lhall be ellaible for

baud

re-eleetion if otlaenri qualifled. At uy lueetiic at Whieh direet.m

of- llie CompiiaJ are to be eleet.d tlae Cl "A" lbvehgkln mif
vote by- ballot for tbe- election of one-half of the Baud - ' .-..
queatly tile Ct. . "B" lhanholda'I lhall wt.e bJ bAIW ,_ ta.I
election of the remajnin1 half of the BOud."
 8BAUHOLDDl8 or TBS CANADIAN P!aroBMINO Rion 8oclSTr LDlrnD
The shares are. now owned and held as follows:-
Claaa A Sharu:
Performing Right Society Limited. . . .... 4,996 shares
Mr. H. T. Jamieson, Toronto .... . ... . . . . . . 1 share
Mr. John Woodhouse, London, England . . . . . . 1 "
Mr. Holmes Maddock, .Toronto . . . . . . 1 ..
Mr. Ralph Hawkes, London, Englan4 . . .. .. .1 "
Claaa B Sharu:
Ameri~~n Society of Composers, Authol'I and
Publishers . . . . . . '. . . . . . . . . . . . . . 4,997 ehares
Mr. Gene Buck, New York .. .... . . . . . . . . .. 1 share
Mr. Louis Bernstein, New York . . . . . . . ". .. 1 II

Mr. E. C. Mills, New York.. . . . . ..:;-. . . . . . . . 1 "

DmEcroBS AND 0nICEl8

Mr. H. T. Jamieson, Toronto,. President.

Mr. Holmes Maddock, Toronto, Director.
Mr. Ralph Hawkes, London, England, Director.
Mr. Gene Buck, New York, Dfrector.
Mr. Louie Bernste~n, New York, Director.
Mr. E. C. Mills, New York, Director.

The first three Directors represent, or are the nominees of, the British
Society, vii. the Performing Right Society Limited, and the latter three repre-
sent, or are the nominees of the American Society of Composers, Authors and
Publiehers. -
The original Compatif was incorporated at the instance of the Performing
Right Society, Limited, of Gr_eat Britain,. and Supplementary LeUers Pat.em
were obtained 8o as to permit the American Society of Com~, Authors and
Publishers to j)articipate in the ownership of sharet in the CaUdiaa Performin:g
Right Society Limited. .
On the 6th of January, 1930, 1the Performing Right Society Limited (British)
and the American Society. of Compoeers, Authors and Publiahen, eaeh entered _
into agreement with the Canadian Performing Right Society, Limited, in aimilar,
if not in identical term1, pnting to the Canadian Performing Right Society
Limited, the exclusive right to licep in the I>Ominio~ of Canada tbe public
performance of non-dramatic rendeHbp of separate musical" compoeitiou.
As will be seen, the Canadian Performing Right Society Limited, since ltaO,
bu been jointly controlled by th.e Performing Right Society 'Limited ol London,
England, and the American Society of Authors, Compoeen and Publishers, of
~ew York, and wu eetablillbed toexercise and "'orce, on behalf of authors,
compoeers and publishers and others, tb8 right of puhile-performan.-in-muaical
works protected by the Canadian Copyright.
-
ctof ll'Jl. to relf.rain unautboiiud
 11
uae of the worb, and to collect fees for licences to perform the laid worb in
public. .
The Canadian Performing Right Society, Limited, repreeente authon, com'."
pole1.'I and publishers and arrangers who are. members Of the American Society
of Composers, Authort and Publishers, and the Performing Right Society Limitied,
of London, England, and ite a&lliated IOCietia in Prance, Spain, Italy, Germany,
Austria, Brasil, Portugal, Switserland, Finland, Sweden, Poland, Csecho-Slovakia,
Hungary, Denmark; Nonray, Roumania, Holland and Belgium.
It is a ~ntral bureau atablished for the convenience of the Copyright
owners on the one hand, and the music ~rs on Che other hand, and it wu
conceded by all those appearing at the Inquiey that such a bureau ie necesaary
to protect the performing righte of authors, compoeers and publiahen, 'and is a
convenience to the users of music in obtaining the performing righte.

.. -
 PART VII
CONSTITU110N OI" THE PDl'OlilDNG BtGBT SOCIETY LllllTED, OI'
LONDON; ENGLAND
The Performing Right Society Limited, of London, England, is an a1SOOia-
tion limited by guarantee (not having a share capital) and ftgistered in 1914
under the Company's Act. It was established tO exercise the public performillg
rights in ite member musical works, to collect fees in respect of such rights, and
to restrain unauthorised performances of said works. Its membership at prelent
numbers 1,205, comprising 824 composers, 225 authon, 24 arrangen, 102 musical
- publishers, .and 10 copyright owners. .
In Great Britain, the practice of the Britieh compoeers and authors in
making terms with the publisher to publish their worki is to ~gn to the
publi~r the 1rhole of their copyright, inclu~ th~_right of public performance.
The Society was fomied by the co-operation of a number of compoeen,
auth<11s &fld pqblishers, and the latter agreed that composen and authon -lhould
become members of the soeiety, to ehare in the net fees collected by the Society
in respect of their works, notwithstanding that they had parted with their
performing rights in such works to the publiehen. .
Members have a right to withdraw from membenbip at the end of each
seven-year period by giving written notice within a month of the expiry of such
period. ThEi present Septennial period expires .in March of UK1.
All moneys received bj the Society are, after ~deducting . the expenses of
adminietration, distributed amongst the members and af&liated foreip eocieties
entitled to them.
The business of the Society is carried on iubjeet to the directipn of a Board
of twenty-four direct.on, elected from ~embers of the Society, and comprisig
an equal nlimber of ~posers and authors on the one h""d, and mUiic pub-
lishers on the other hand.
The foreign allliated ioeieties. have been enumerated abrve, and it i1
estimated that the agregate number of foreign authoril and eompoeen aiid
music publisher memben of theie allliated eocieties i1 apprmimately f0,000.
The.Society oi)erates di~y in Great Britain and Ireland, Ud through ite
-.ents, in the varioue British dominione or colonies, and in the cue of Canada
the Society bas an agreement with the Canadian Perfol'll)ing Right ~
Limited whereby the Society grants to the Can~ Soetety the acluein riahti
to license in Canada the public performance ofthe worb eontrollecl by. it.
The net revenue of the Performing Right .Society of London, &land, I.
divided, in the case of vocal worb, one-third each to the compoeen, authon and
publiehen, and in the cue of instrumental worb, two-thirde to the compo1er
and one-third to the pQbliahen. _ - - - - - - - - - - -
 li

PART VID
CONS"ITl1JTION .Of' 1'11B AMDICMf 90CIBTY OP COllPOSEllS,
AtJTllOU AND PUllUSllD9
This Society is not an incorporated Company, but is a voluntary &llOCia-
tion,. founded m 1914, for the following pUl'pOlll, .... alia:-
(ca) To prot.ect tJie compoeen, autbon and ~blilhen of mulical wora
against pinciel of any kiild: ,
(b) To promote reform1 in the law respecting literary jJroperty.
(c) To p~ure uniformity and certainty in the law respecting literary prop-
erty in all countriea.
{d) To facilitate the adminiltration of copyright law1 for the protection
of compoeen, autbon ~d publisben of muaical worb.
(e) To abolish ab111e1 and unfair practices and methods in connection
with the reproduction of muaical worb. _
(/) To promote and foeter by all lawful meane the intereet of compotel'I,
authon and publilben of mulical works.
(g) To collect royaltiea and grant iicencea for the public repreientation
of the works of ita memben by inltrumentalistl, singen, mechanical inltru
menu, radio broadcaiting ltationl, or any kind of combination of linpr,
instrumentaliMe and mechanical instrument., and to allot and dietribute euola
royaltiea. t
(k) To enter into &greemellt with. other ihnilar. ueociatiOlll in foreign
countries providing for the reciprocal protection of the rigbta of the memben
of each sociei,.
There is no capital etock, but each of the ~ve memberi pa)'I to the
Society annually U folJOWI:-
-
Mull.cal Pabl.iDrl.. ~. : llC) 00
Compcmrw w Autlacn. . ~. . 10
8_ucee.>ra to com~m ud authon.. : 10 00
The membenbip of the American Society of Compoeen, Authqn and '
Publilben ii, in round figures one thOUl&Dd two hundred. ne method of
distribu~on of the net. revenue ii not important ~ond thia, th~t one-baU
is paid to the mueic publilber memben, and one-half to author 1Dd CQIDpolef .
memben.
Emch member upon election to aictive membenhip ia required to, and doil
ulign to thil Society the exclueive npt to liceDle the non-dramatic per-
formance of memben' works. : -- .
The American Society of Compoeen,~utJian ad Publilfiiii-il orpn-
iled to operate in Ive-year periode. At the end of each ln-11&r period ....
.......
 18
member ii at liberty tA> renew hil licence tA> the American Society of Com-
posers, Authors. and Publishera for another five yeara, or. tA> withdraw from
membership.
The preeent five-year period expiree on the 31st day of December, 1935,
and the American Society of Compoeers, Authors and Publiahen bu been
notified by music publisher memben, ripreeenting t1'enty-five per oed of its
re}iertoire, of their intention tA> Withdraw from membership at the end of this
. .
year.
The Government of the Society ii vested m; and it.a alain managed. by'
a Board of twenty-four DirectA>rs, elected at each umual meeting, not by the
members of the Society, but by a two-thirds vote of the entire Board ~f
Direct.Ors, and the Board ahall always COD1ist of twelve memben repreeentr
ing the publisher members, six members repreeenting the author members, and
aix members repreaenting the compoeer members. .
From this it Jrill be aeen that the Bo~ of' DilectA>n ia eelfperPetuating.
 19

PART IX

llEPEllTOlllE OP CANADIAN PbJoJuoNG BIGHT 90CIBTY Uill'i'ED

It may be noted that the Society doee not control the p8rforming right.a
in operu, musical playe, ete. when performed in their entirety, or vocal
excerpt.e therefrom. In mpect of such works it only enrcieel .what are known .
u the " Small right.a " aa dietinot from the atqe or draniatic right.a. .
The Canacijan Performing Right Society acquired it.a rigbta by ulip-
ment from American Society of Compoeen, Authon and Publiahen, and the
Performing Right Society, and aftiliated Societiea.
Moat of the preeent U8el'I of music cannot carry OD tbejr buaine11 and
cater t.o-the public without muaic and it ii eatimated tbat. bet1'een eiahty and
ninety per cent of the popular and semi-clueical muaio-eucb ai the muaio
mer req~il under the conWol of Canadian Performing Right. Society,
and unieea the mer obtains a licence to perform the repertoire of Canadian
Performing. Right Society, h~ has DO other mppty available and the public
are denied the pleasure of. hearing .music. Competit.'on no longer exiata. A.
monopoly, or IUpeMl)O~opoly, hu arilen. No one quarrels with the author,
conipoeer and pub~r pooling their right.a and placing them in a central
bureau for ~e purpoee of collecting a fair fee for the same and of prevent.mg
infringement thereof. It ii an ineVitable monopoly existing for the conven-
ience of. the owner and the Uler; but it ehould not be exercieed arbitrarily and
without rartraint.
It may here be noted-and the fact merit.a much colllideration-that.
autbon, compoeen and publiahen in Canada do not enjoy membenhip in
Canadian Performing Right Society, nor- can they untU the constitution of tho
Society ia changed. They have no practical means of collecting a reuonable
or fair fee for the performance of their worb. Thia must ~t in dilcoung-
. ing_the develcpment .of musical gemus i~ c anada and in making the 11181' and
the public inc~uingly. dependmt on foreign ta'.~t. I~ also mjlitaiee .pimt
the sale of nmsic compoeedby Canadiuia. TbL lamentable situation ie apPl'e
ciated by the President and Dirictora of lianadian Performing Right.~'
but 10 far they have made only a ~ t.o rectify the situa~ion. Evi~
wu given, and. it wu generally admitted, that. w have in Canada ~
compoeen ~f out.atanding genius, none of w~ derive any benefit. from the
performance of tbeir works. They are not in a poeition to form and C&ITJ
on a Society in ~petition ~tb a Society ba\.ing 8'ICh a larP repertoire.
The Society controls approximately two million worb, but thit 'reperioire
includes innumerable works; many of which are out of print and rarely, if.enr,
performed. . .
Mr. Claude Mille, General M~ of the American Society of Com)>Olel'8,
Authors and Publilhen, ltated in his evidence with reference t.o the repertoire
of bis Society, that there were 180,000 active numben, .. uc1 aoo,ooo relativelJ
inactive but .~onally Used.
---411t '

.....
 It WH found on an analysis of the program in Canada for the )"\Sat 193'
that eighty per cent of the musi~ played by licemees of the Canadian.Performing
Right Society Limited belonged to the reper.toire of the ~rican ,Society of
Composen, Authon and Publishen, and tweqty per cent belonged to the Per--
forming Right Society Limited of London, England, and it. allli&ted eocietiee.
Assuming that all of the 160,000 numbers in the repertoire of the American
Society of Composers, Authon and Publiehen, were played in Canada in the
year 19M. and that this number represents eighty per cent of the pieces played,
then the total num~ of pieces played in Canada would be two hundred thousand,
of which forty thousand would belong to the repertoire of the Performing Right.
Society Limited of London, England.
Thi&, of course, ii a remote assumption and rather favourable to the claim
c,1 ihe societies, because on a program ~alyais it would be found that many
popular numbers were frequently performed, so that, if anything, the nQmber of
active numbers in the repertoire for which the Canadian Performing Right
:~iety Limited claims to collect a performing right fee ii considerably leu than
, 200,000. . . -l .
. An analysis (Exbihit. 236) of the Canadian programs of performance of
muaica.l numbers for the year lspa.t ihowed that 25,982 different numben of the
Societies' repertoire had been perlormed and the number of performances totalled
~,155;525. The analysis ii as follows:-
Total
Number of number of
wora - performaneee
performed recorded
Performina Riaht 8ociet1 . . . . . . . . . . . 4,att m ,oeo
American A->eiaiioa of Compoeen, Authora and
Publisher . . .. ... ... .. ... 18,771 1,815,985
Continental Societiew.. .. .. .... .. . . . . . . .. 4,370 182,480 .
 21

PARTX
ASSIGNllBNT 01' PEllFOlUONG RIGBTs TO THE CANADIAN SOCIETT
The Performing Right Sc;cietf Limited wignecl to the Canadian PerformiJll
Right Society Limited the right pf performance in Canada of the mueic of each
.and every IOng or musical work, not a musical play, which now belonp to, or
which shall hereafter be acquired by, or be .or becom~ vested in the Performial
Right Society of London1 England; eecondly, the riaht of performance ill Canada
of the music of_each and eyeey musical play of which the right of performance ill
.Canad now belonp to or shall hereinafter be acquired by, or become vested ill
the Performing Right Society of London, England. -
The American Society of Compoaers, Authors and Publishers Uligned to
the Canadian Performing Right ~i~ty Limited~ exclusive right to licenee ill
the Dominion of Canada the public ierformance of no~-dramatic renditiona of:-
(a) Sepu.te musical compositions, copyrighted or compoeed by the mem-
bers of the American Society of. dompoeers, Authors and Publilhen. .
(b) Any ieparM.e musical composition.
But the.American Society of Compoaers, Authors and Publilhers reeervee the
right at-any time to retain or .withdraw from it.a repfttoire, or the operation of the
licence, any musical _woJ')m. . (Thi clauae gives rile to what bu been referred to
ill the evidence u the "'restricted list.")
 PART XI
SOOD CHARGE
As the " Score Charge " is frequently mentioned in th-e complaints and in
the arguments as being a. factor having to do with the consideration of the reduc-
tion of the theatre tariffs, it is necessary for the proper understanding, especiftlly
by theatre owners, that some explanation of this charge be included in this
~~ . .

Mr. Mills, of the American Society of Composers, Authors and Publishers,

in his evidence, says:--
" The theatre owner complains that he pays for the filma, . and then
p_ays a score charge, and then is asked to pay a licence fee by the Canadian
Performing Right Society Limited. Regarding the score charge, there ii
not one single element in this whole music combination that ii ~ conf~g,
or has been as confu8ed or as difficult to undentand, as ii the score cbarp. o

"Firstly, the AmericanSociety-of Gempoeen, Authors and Publilhen,

or the Canadian Performing Right Society Limited, .or bOth, have never
received directly or indirectly in any manner, shape or form, one tingle
cent of that charge a11&e119ed against the exhibiton by the producers com-
monly called ' acore charge.'
" With the advent of sound movies, it became neceaary for the pro-
ducers of motion pictures to re-cast their entire operationa. The .wdioe in
which pictures had been previously produced were uselea for the purpose
of producing sound p~~tures. The studi0s had to be sound-proofed and
almost rebuilt, All of the apparatus for making _pictures wu me:
less. Sound recordi~g cameras and devices had tO be installed. . The whole
technique of acting for the movies had to be ehanged. People could . no
longer say one thing while acting another. The sound had to be syn-
chronised with the acting. The studios had to immediately employ
orchestras and to ,i nstall musical libraries and begin to learn . something
about music, u welf u the spoken voice.
"Now, millions and millions of dolian were apent by the producers of
pictures to equip themselves to give the exhibitors a ao-ealled aound picture,
which w.ould give to the audience in the motion picture theatre the voices
or music in synchronism, or timed in the projection of the picture. The
exhibitor, of course, immediately the sound pictures became available for
his use, coUld dispense with his orchestra, bis living musicians. Jn other .
words, the service of sound pictures to theatres represented a subetantial
reduction in bis operating coet. And the production of thoee sound picturee
represented an unbelievable increase in the coet to producers in order that '
they might furnish sound pictures to the theatres.
" The producen of picturee incurring .this tremendous additional coet
assessed against the exhibitors a so-called ; 11Coi'e charge ' which was suo-:
 poled to recoup for tbe produoer hie eoit, and perhapa a profit, on what wu
involved in putting the IOUDd tract on the film or reeord tbe IOUDd on a
dilc, timed in Wllation to the film."
Mr. Milla believea that the producen ultimately 11rolted very grouly on
tliat charge. _
Mr. Milla eontinued:- -
" The sum paid by the exhibit.ore on the North American Continent in
the aggregate to the producera of picturea under the heading of ' acore
charges ' bu been many milliona of dollan per annum for the lut four
years. It has not been paid in any aenae as a licenCB fee for the uae of
muaic, ex~t to thia extent: prodvcer1 o/ pictvru were claarged a fee by
the awnera of murical -copyriolat Jar a licence to rtcar4 the muic on the
film.
" One hundred per cent of the moneys collected on the acore charge
goea to the producer, and is one hundred per cent retained by him, except
as to the portion of it he pays to the ownera of the patent under which he
manufactures his sobnd pictures, and to the ownen of -copyright for the
licence to record the music OD the film!." -
To show the large amount collected in o~ year in the United Stat.ea, he
says that one-third of eight per cent_of the acore charpa collected in a year
wu 18,000,000, which meana that approzimately 8300,000.000 wu oollect.ed
by the producera of filma in one year.
It ii to be noted that in Mont.nal it wu BUgelted that there wu atill
another fee which ought to be impaled on music Ullerl jn Canada1 and that wu
a fee which mould be cbarpd by the manwacturer- of recorde in addition to
the fee charpd for the ale of th~ recordl themselves, and in ~dition to the
performing right fee for the' mUlic. .
Such a right ia not "r ecopisecl by the law of the United Stat.ea, but ii recog-
nised in our Copyript Act. . .
Mr. Milla atatee the theorJ upGD which they bue their elaim for WI
charge ia that. the manufaeturen of the noordl for, say, tbe voice of CanllO,
to whom they paid a hiab price for ,a putieular IODlt in their contract wWa
him have taken .all of.. th ~ ~n tllU partieular recordiDs, .and thq elaim
that no one bu the ~.aht. to uil tbe~ or -the reoordina of that voice... Tbey
uy "If yuu IN)' that. neord aDd perform it in ~. t.bea y~ mUlt pay a
fee for the a. of it.." .
Mr. Payne ii the Chairman of the BO.nl of ~ M111ioal Publilhen Amoeia-
tion, which ~ti~ ia eompoled of publillMft only. It hM two awraI
functiona. One ii to grant. ayaehroniution lioencea to m~on j,iCt.ure compania
which delire to - muaic in qnchraailm, oi timed relati~ to pict.urel. .The
other ii to grant. lioencel to elect.rioal t.nwrip&ion comp{nt. wliicb delin to
manufadure dmcee whieh ~can ~ Ul8d for radlo performanr--
Spealrinc of the Copyright Law in the United St.ata tie u:p:-
" 'l'1le t.alldnc machine reeord, ,.. ,., ii not a proper aub)M of copy-_
riaht., therefore, it. ii not copJrighted u it ii here in Canada, and no IUch

:
right exilte under the Copyright Law of the United Stata in ccnmeet.ion
with tbeee records, and no claim can be made under the Copyright Law,
but the Victor Talking Machine Company bu claimed that in connection
with these records which they make, they bavethe common law ri&ht iii and
to the rendi~it:ins which are eventually engraved upon the records."
. " They claim a property right in that, where an individual buys oae of
these records, and from that record by a te-recording procesa makes a
' dupe ' of that record, and preseea fro~ that ' dupe ' other records and
SP.Ila them on the market, the courte of the United States have enjoinedthe
person making that kind of a ' dupe ' record, on the ground that the Victor
Talking Machine Company had certain property rights therein."
" Based 011 that decision, the Talking Machine Company felt that they
could go furtller, and that they had a property right which would permit them
to enjoin anybody performing it. That is the subject of conversation now,
and they claim, eventually, they should h3ve that right !eeogniled by
the Copyright Law of the United States."
The origin of the score charge u explained by Mr. J>ayne, ii u follows:-
" When the Western Electric Company originally invented the method
by which sound could be ueed synchronously with pietureG, it cut around
for somebody in the motion pieture field to lieenee under the patent.a which
they controlled, covering its inventions, and they finally made a n agreement
with the War.ner Broe. Picturee, and they gave to Warner Broe. PicturN the
exclusive right to use these patents, both in the manufaeture of the pieturea,
and 1Ubnqvmtl11 in tlae reprodtu:titm of aound wlaicla accompaaiea tu
picturu,-patents covering both phaaee of the work-and Warner Broe.
Pictures have the exclusive right to the acquisition of apparatus with which
theatres were to be equipped, and they were to become the 1alee agent.a of
the' Western Electric in the sale of this apparatus to theatres."
" Subsequently Warner Bros: Pictures proceeded to manufacture pic-
tures under these processes; the terms of the licence agreement-the
eltclusive licence agreement-bf.tween Warner Bros. Pictures and the West.em
electric provided that Warner Bros. Pictures were to pay, u a licence fee
for the use of theee patent.a, a sum equal to 8 per cent of the amount
derived from the exercise of the licence.
" To solve this, they recognised that a picture which they. bad manu-
factured and rented to the theatre wu not neceuarily a sound picture unleee
the sound :was also rented to .the theatre to accompany it, and the rental rates
which they received from the tbu +.re for the use of that picture in exhibiti~n
form was not a fee which was der. ved from the exercise of the ll0\1Dd licence,
and in order to carry out the terms of their licence agreement they incor-
porated a separate corporation, which they called the ' Vitaphone Corpora-
tiOn ', which became the licensee of the Weetern El~c.
" The Vitaphone Corporation then proceeded to rent the sound to the
theatres which would accompany the pictures which Warner BrOI. Pictures
-:ented to the theatres.

" Warner Bl'OI. Picturee rented a picture to the theatres, and Vitaphone
rented the eound ayncblonised eeore to the theatres, which accompanied
the pictures.
"For imtance, when '.Warner Broe. Pictures m_Mft the Don Juan
picture, there had to be eound l)'llcbroniled eeorea which could be Uled in
the synchro~tion or timed relation to a picture, eo that Warner Broe.
pictures rented the Don Juan picture to a theatre, and the. Vitaphone
Corporation rented the records on which the eound l)'llchroniution ecore
wu recorded. They did that in order to aacertain what wu the gtoa
derived from the exerciae of the licence,-and they paid the .Weltem Electric
8 per cent of that groee u a conaideration for the ri~ to uae these- pictura
"Finally, Warner Broe. Pictures were induced to give up that acl~ve
eoniract and they rented the exclusive contract to a new corporation, which
Western Electric had then organised, known u the ' Electric Reeearcb
Products Incorporated,' known in the trade u ERPI.
IC ERPI in taking back from the warner Broe: Pictula this exclusi~e

con-act, entered into an agreement with Warner Broi. Pieturea-whereby

they 1aid, ' We will license other motion picture producen to uae theee
patent. in ~ development of eound l)'llchroniled pictures, and we will
license them on the 1ame terms which you en!ey in your licence, namely,
__/ - 8 per cent of the poa. derived from ~~;; exerciee of the licence.'
" W amer Broe. Pictures reeerved the right to . colleet three-eighths
of the total royaltiee which ERPI reeeil'td, and.that wu the contract.
IC The amount which ii charged ~ the motion pictuN companiee for

the uae of the music in l)'llchronism with the eeore ii largely comideree
. by the motion picture companiee u production ct.lite, and goes into ti:
product.ion aide of the accoun~g. The ICOre charge never had. anything
to do with whether a picture did or did Dot uae music, there wu a ecore
charge with all pictures, even tlioee in which there would 1lot be a single
piece of music 'used, but. a talking picture all the way through.
~ The score charge ii collectA!d by the Diatribution Company and paid
by it to the motion picture producen."
The members af the Musical Publi1hen Prot.ective Auociation are all
publi&her memben, and thoee memben are also meniben of the American
Society of Composen, Authon and Publishen. The Musical Publishen Protec-
tive AuOciation ii compoeecl.of thi!V pub~her ~hers, and through-arr!Ulge-
ment. with copyright proprieton repreeent in all 117 publilhen.
In 19'J7 they commenced granting licencee to motion picture companiee
for l)'llchronisation, and received for licencee for the year ended September,
um, 11oa,ooo; for the year ended Bept.iber, .1929, 1137,~; for the yeaJ'.
ended um, 1137,000; for the year ended Se. .mber, 1931, U.14,000; for the
year ended September, 1932, 1310,000. After that a diapute aroee over the
hiterpretation of t~ contract and that dispute wu eettled by the payment to
the Musical Publilber Protective Allociation of '511,000.
It hu been thought advisableto quotA9 verbatim from the evidence in order
to indicate tbe obecurity iUrroUDding the n ature of the ecore charp and the

ultimat.e destination of the moneys received from ita imposition. It diacloeee
that at least -some music publisben have a aource of revenue arising out of
copyright other than that provided by the fees collected by the Performing_
Riibt Societie.a; but how Qr to what extent it should affect the theatre tarift1
is impossible to -def.ermine. A strong impression is left that somepenons have
divided copyright -into many parte-diatinct in theJDlelve&-iJO that the right
--hand~does-not or- cannot kDow what- the -left hand i1 doiD1- Tbe mnifolL
ramifications of the music tu~ and f~ by which the organised 111\llic industey-
has exaet.ed millions of dollan from exhibiton and motion picture produeen
may become the ~bject of broad federal regulation in the Unit.ed Stat.el of
Amenca, 18 the opnion expressed by film company attomeYI. - -
" Score charge " as such is aot heard _of in Great Britain but there is a
" recording right" held by music publishen under. the name of. Sound -Fil.J!l _
Music Bureau, the memben of which are eubetantially publisher memben of
Performing Right_Society (Great Britain). _
While it cannot be said that the revenue from the.ae " recording ri~UI "
goes directl7 int& the l>ocketa of ihe Performing Right SocietY Limi~, of
London, England; the evidence make& it clear that the memben of the Sound
Film Music Bureau correspond in large part With "the members of the Per-
forming Right Society Limited, of London, Englan4, and thus the m9ney, in
. part at least., ultimately reaches the same destination.

'
\.
 27

PART XII
llESTIUCTED l.JSTS
~~~~~~=-=--~~~~~~~~~ - ~~~~~~~~~~~~~

The American Society of Compoeen, . Authon and Publiaben h"u a

" restricted list,11 which applies in Canada u well u in the United States.
When new mqeic ia published, authon and publilhen, behig desiroua of
reaping the muimum beneflt from the penormance of their music in certain
quart.en, and desirous -of aelling 11 many copiee of sheet muaic. 11 they can,
-,rithhold frOm the Broadcasting atatiom a certain number of tbeee wora when
they are new, generally for an average period of one year, and the radio atationa
are not permitted, under their licence, to perform any of th., musical numben_
which the American Society of Compoeeri, Authon and ~Publisben placee on
tbia list, unlea the etationa directly obtain from the author or publisher the
right to do so.
The result ia that out. of the. new and attractive mulic there are on the
average five hundred numbers which be broadcuting stationl.,are not Permitted
to Perform; and it ~ aigued throughout by eo~ far 'the broadcuting
atationa, that because this music ia withheld from them for performance, thia
abould have a bearing upon the broadcutina tan. -Thia argument ean tiav4'
weight only when comparing broadcut.ing taris of count.nee, other than the
Unit.ed States~ with the broadcuj.ing tan in Canada.

PART XIII
UCBNCD
With few exceptioDI, licences have been _granted by the Canadian Per-
forming Right SOciety for a period of _a year. They are. granted, not. to tbe
perfoners, but to the place of perfonilance, and entitle the licensee to per-
form in the Dominion of Canada i(on~c renderinp of any and every
musical work for the time being in the repertoire of the Society. The right
to licenae public performance of 1Ucb works hu beeil conveyed to tbie ~
by Tlie American Soci.;ty of Comp.11er1, Authors and Publillben by the Per-
forming Right Society, Limited, of EnglanCI,_and by the eocietiee in France,
Germany, Austria, Italy, Spaip, Sweden, Denmark, BunlarY, Poland, Csecho-
Slovakia, Roumania, Switserland, Portugal, Brui\ Norway, Finland, Holland
and ~lgium wbicli are af&liated with the British Society.
Only_three of the elaUlel in the licence were .object.eel to, hich clauees
are as followa:-
J_ll.. 11 The Society reserves -the right at any time to withdraw any
musical work from the operation of tlli1 licence and/or limit or reetrict.
the -..se of any mlllical work, and upon any euch withdrawal, limitation
or res.lrictiot'. the Licensee may immediately cancel this licence anti receive_
pro rata refr~tf of any licence feei! in the bande-of the Society, applicable
to the then unexp~. part of the ~icence period.. -
(2) 11 The Licensee shall for the duration of thi1 licence, eupply to the
\
Society or ita authorised agent, weekly..,by poet,_on the fol'IDI which may be
obtained from the Society without charge, a lilt liped by or on behalf of
the Licens: "' of all musical works performed, vocally, instrumentally or
musically, at the premiles hereby licenaed, with the names of the author,
compoeer, arranger and publisher of each eucb work and the number of
times each bu been performed during the weeJt.
. . .
11
(3) If the Licen1ee shall commit any breach of the provilions or
conditiops hereof or of the covenants eontained in the Application Form, or
fail to make any payment herein provided or to comply with any other of
the terms of this licence, or of the terms of eucb Applicatjon form, on the -
day named or thereafter within seven days from the date of any demand
for payment or compliance, the Society may, notwitheanding anything in
this licence expressed to the contrary, forthwith terminate tbie licence by
written notice sent by re~red post to ~e I.deemee at, the addnu given
hetein, aild thereupon this licen~ lhall determine, 1&ve as to the riibt of the
Society to recover .any moneys previoU1ly due hereunder. Upon mch
termination, the Licemee lhall forfeit any licence feee in the hande of. the
Society." \

PART XIV
,I BIST08Y AND GBNEILU. NA'l1JU .
OI' THE TAlllll'
-
The Canadian Performing Right Society Limited, furnished the ' Commil-
1ion with the following brief biltory of the making of the' tariff: .
" The Society' earliest taritr1 were drawn .UP under imtruction and
authority received from tbe Britilh Society, having regard to the taritr1 ~f the
Britilh Society, which then had been in operation for e!even yean, and.. liaving
regard to the mUlic WJerl' operating requirement.I. The intention wu, 10 far u
they IUited the operating requirement.a of Canada, to Wl8 the Britilh taritr1.
. Owing, however, to 1epl difttculties, rractically no buaiDe. ... done by the
Society before 193( in which year the American Society joined with the
JJritilh Society in the contAl and ~tion of the Canadian Company. Due to .
the fact. thau.he taritr1 of the American &v..jety were dra.wn on buel entirely
different from thoee contained in the taritr1 of the Britiah Society, it wu lift- W--
the Canadian ~ to . .iopt wh~ ha.a and taritr1 appeared belt to
auit Canadian requirement.I. The logical buil, of coune, would have been to
make individual charge for each perfonnance of each individual work, but ~hll
buia had beeia found in European countries not to be practicable. Otrina t0 the
fact that ~hP. joint repertoire of *1ie ae\Wal Societiea wu IO larp, and the uae of
it b_y the muaic usen 10 irequent, it woQ}d have been DecellllUY for the Societiea
to prepare thowiandl of ditr~t prices for the maDJ cl&llel of worb for ~
uee in many difierent typea ~f eatablilhmelltt, to numberle11 Ii.lea of ~cea, !
but hi particular it would have been neceu&ry for the muaic u.r uu:l the
Bocietiea to prepare and check apeDlive and troubleeome aceOunta of the 11r~.b
performed and of the length of times of . perf~cea, and of the n~ben ~.f
the audiencee, in order to reckon the amount due,, greatly increaaing tbe coat of'
the Societiiea' operatiou and greatly in~ the ~ feea. In other
countriea all thia wu aeen to be umieeeelary. u 100D u the ecope of tbe
8ocietiea' repertoire WU .recopiled; U aoon '8 the mueic 11181' came to realiM
that of the worb he deeired to perform in hia perforniancee a larae pait, and in
IOIDe cuea practically all, were work.I controlled by the SOcieti. Then bu,
therefore, come into U. hi other countriea a licen~ permitting performanC. at
will, to any extent, from the joint repertoire of the Societiee, that ii to 1ay, a
right of 111er licence. .
The. buic principles of the right of 111er licence are two:-
(1) The maximum length of time within w~ch permilaion- to perform ii
desiled.
(2) The maximum audience to which permilaioil to perform ii delired.
In regard to -tbia aecOlld ~t of u.r;in every cue, without aeepUcm,
the liceuc., ie a licence to' per{~ to a nertain e.timated potential ~.
The potential audienee hiaia wu taken u it providee an mieal
meuuie by which the fee can be puaed. A licence OD an actual a~anee
buil would neeellitate a higher rat.e per penon ~ prodUee tbe .umi n&ura
given on a potential -audience buil becauae of ~ atra GpeDll alMI trouble
involved in account.I of, and pomible dilputee concernina, Mtual att.endanoe
..

- - - - - - - _::.~---=---
 30

1..

PART XV

OOMPLAIN'l's
The major complaint against the Canadian Performing Right Society wal
in connection with it.a tariff of fees. The following were the more important
objections:-
1. (a) It was stated that the fees were excessive because_ they were
designed to bring to the Society more than a fair return on-it.a. investmEMt ;,
(b) The charge was made that the tariff was exeeaive becaWJe it im-
posed tees which were beyond the capacity of the music uaen to pay. A good
deal of evidence was submitted showing the financial difficulties experienced
by both large and 1mail uaen of music during the Jut few yean. .
(c) It was objected tit_at the ininimum fee of '30.00 required by the
Society as a condition precedent to the right to use the Society's music amounted
virtually to an undue withholding of its licence, because many BIDall Ul!lel8 were
wholly unable to pay such a large minimum fee.
~ J) The Society can ,ise its fee as high ai:: wishf:I in the future and
th~ music mier baa no safeguard against aueh r ~. The Society poae8l!lel
a monopoly of music and iitlie music users ca1,dot carry on businea WithoUt
t-he Society's music, whatever fees are demanded by the Society will have t,o
be paid by the music ~
(e) In connection with broadcasting, it wai objected that. the fees should
be reduced because of foreign . competition and interference; that a greater
diecomt should be allowed fQr each competing b~cuting station in the
aame broadcasting centre; that atations on ihe bon;ler of Canada and the
United States should not be required to pay a higher fee b~ on the larger
number of receiver seta within it.a effective range in the United States; that
the.193' tariff places an unfair b~en on atati~ in the more thickly popu-
late.cl cities in Eutem Canada. . .
(/) In connection with thea,. it waa stat.eel that the tariffs abould .not
be based entirely on the seating capacity of the theatre.; but some allowuee
should be made for reduced actual attendance; that the ~iety. wu receiving
revenue from ecore-charges and that performing rights we; e in reality a .llCODd
charge.
"'
(g) The botelt objected to a fee being demanded for the ue of a radio
in the lobby of tbe Hotel to provide music for its guest.a and the ue of radiot
in the rooms of the hotels.
(A) In connection ~th agri~al fain and ah~tiona, it wu laid there
ought to be_a exemption for nch lqaDi1atiom because they 1rere conducted
for govemmental.and educational p~ and that .the Copyright Aet. ~d
be amended to grant this exemption.

- - - - -----
I
 31
Additional complaint.a were made against the Society in connection with
it.a mode of operation. The following were eome of the more important com-
plaint.a in this connection:-
2. (a) The Society waa accused of using the c0urta to dragoon the music
Ulen into lhie and obtain payment of it.a feee. _
(b) The SocietY refmed to publlab liata ahowing the pieces of muaic in
which it held copyright., and the muaic Ulef wal Unable to acertabi what pieces
were not subject to ~e 8ociety!1 copyright.
(c) That the retunil demanded by the Society 1howiq the number of
piecee play~, the length of time, the author, etc., impoeed an undue bUrden -
on the m~c WJer, and the ~i~ should be deprived of it.I right._to can~l
licensee for failure to make such returnS.
(d) That the W1e of niltricied lists d~rived the m~c Ulef of much inusic
. that WU of gret coinmercial value, and either'the practice of havina restricted
lilts should be discontinued or eome reduction ahouid be made in the tan of
feee for the inab~ of a muaic WJer to avail hUJuielf of thil mueie.
(e) T6e--SOCiety wu criticised f~r eo orpnishig iteelf that Canadian
authon, compoaera and publishen were excluded from it.a mnbenllip. . It WU
charPd that a great deal of music from foreign countriee wu popularised in
Canada through -t he medium of the Societv, and that the general result of the
Society' aetivitiee in C~-. had been to diacoUrap the development of
musical talent in ~anada and stifle Canadian national mueical .geniUI.

- - - ..:.- ----

.i

..
'
 PART XVI
DISTRIBV'DON 01' MONEYS BY CANADIAN PEUOUDNG BIGHT
SOCIETY LDll'dD
All moneys collected by the Canadian Perfonning Right. Society from the
sale of licences, after deducting lbe eoet of administration, ~ad been transmitted
up to 1934 u follows: One-half to Perfgnning Right Society and one-half to the
Ameriean Society of Compoeers, Authors and Publishers.
The Performing Right Society in turn distribut.ee the net amount reeeived
amo~ its own members and members of the varil'UI aftlliated Societies; u
follows: One-third to the author, one-third to the compoeer, and one-third to
the publisher.
The American Society of Composers, Authors and Publishers, on the other
hand, distributes the net amount received by it u follows: Fifty per cent to the
publiahers and fifty per cent to th., ~mpoeers and authors.
E:irly in 19M the British and American Societies adopted a new method of
distributi~n based upon the analysis- of programs. Thie new method of distri-
bution among the parent Societies resulted in payment by the"', Panadian Society
to the American Society of eighty per cent of its net revenue, ai;id to the Engliab
Society of twenty per cent of its net revenue. This distribution wu baaed upon
an analysis of the programe of the music performed in c.~nada for that yeir.
From this it would appe that of the repertoire of Ameriean ~iety of Com-
posers, Authors and P..;blishers end Performing Right Society and its af6liated
Societies, eighty )er cent of .the musfo performed.In Canadi.wu owned and eoa-
trolled by the members of American sOciety of Composers, Authors and Pub-
litlhen, and twenty per cent was owned and c0ntrolled by the Performing Right,
Society and its af6liated Societies. _. .
No part t>~ the moneys collected up to date by Canadian Performing Right
Society has bee11 paid direct to any Canadian author or Composer. The evi-
dence disclosed~ however, that four or five Canadian compc>eers who bad, while
residing in the United States, become members of American SOeiety of Com-
poseu, Authors and Publishers, had received small amounts from .J'ear toy~.
While no firm udertaking wu given by the British Society or the Canadian
Society to pay a portion of the net revenue received by the latter to Canadian
authors and composers for the purpose of encouraging them in developing .their
genius, it was intimated by Mr. Jamee, of the Britilh Society, and not objected
to by Mr. Jamie8on of the Canadian Society, that' probably one-tenth of the
Canadian Society's net revenue might be set uide as fund forthat purpole.
 \
aa I

PARTXVII
FILING OI' USTS
Every mer of music in Canada complained that the Canadian Perf9rming
Rigat Society, while claiming copyright in from two tothree million musical
works, had up to date filed at Ottawa o:ily 105,000 works. itwu further claimed
that as the 111er wu required to~ a tieenee to perform any or all of tbeee
works, he ahould know w1at he wu paying for. The Canadian Society con-
tended that it would be impouible to file a complete lilt of 1Uch an extensive
repertoire, and in tbil the Q)mmi~n_ apee1: But when it.ii eetablilbed by the
evidence thM of all tbe repertoire- controlled by Canadian Performing BigM
Society, there ii not more by a liberal computation th.- 200,000 numberaOD the
active list, i.e., niunben performed in public, filing of a lilt of thoee numben.
most commonly performed preeents no impollible tut. The Commileion'1 con-
clusion from the evidence ii that the Cuadiu Society, although required by the
Copyright Act to do ao, wu reluctant to coi;npiy with. the tenna ~f the Act.
Mr. Booi.tey, Chairman of the Britilh ~ety, when uked regarding tbia, eaid-
they &Ulpected it wu requested by .the Ulel'I to enable them t-0 " pick holes."
Further ~vuion of filing requirem'n~ that woutd aatilfy the ueen is abown by
the fact. that the French Socjety bad forwarded to the Canadian Society a lilt
of aom~ 70,000 of it.I copyright works, and eardl -foi tbeee were being prepared
for filini- When it is shown by program analysis that of the 25,_muaieal
nuinbel'I performed in Canada in 19.:H only f,Ml numberl were controlled by
Performing Riaht Society and. f,370 numten .were controlled by all other
EUropean Soclettes, it seems abititd ind aipilleant tliat Oinidian Performing
Right Society 1h0uld wute time and money on filing a lilt of the works that
po111ibly never have been and .never m9J be performed in Canada.
.If the .Canadian Society, with the .co-operation of the parent 8ocietiee,
would I le a list of ita active numben, it would remcrve the ~taint of ite
Lieenieee Oil thil ICOre; and in the Commilaion' opinion there is no "valid IUIOD

. The ~iWaoli it ban.,

why such a lilt should not be ftled.
of tbe farther- opimc. that if a~ iiat
of the Mtive. namben were lled, the lilt would eeldcml, if n,er, be refenecl to
_by the Lieen11111 aaept, pem..,., to check up OD the pnponioll of tM 8ooiltiel
repertoire they were actually performing.

>
J~

"
 PART XVIII

BllOADCASTING TAllln'
The Broadcasting tariff in 1931 .of the Canadian Performing Right Society
Limited was as follows:-
1100 for stations with power under SOO wattr,
l250 for stations with power under 1000 watts but not lea than SOO watt.a.
l500 for stations with power under 2M>O watts but not lea than 1000 watts.
1750 for stations with nower under lSOOO watts b ut not lea than 2SOO watt.a.
11,000 for stations dtb power of sOoo watts and over.
After the report of the Hon. Mr! Justice Ewing, in 1932, on the ef~t of
this tariff on stations in the Prairie Provi'nee8, where the number of listeners
was found to be smaller than in some other parle of Canada, the finding was
apparently accepted by the Canadian Performing Right Soeiety Lim7.~, and
no d<''.:'b t had a good deal to do with the .revision of the b~casting tariff.
The report of the Hon. Mr. Justice Ewing has been very helpful to ~ia Com-
mi8sion.
The Canadian Performing Right Society Limited then flied & new tariff
in 1934, wh'ich is the same as the tariff filed in 1935:
Applying the 19M tariff tO a 100-watt station located in Toronto, the licence
fee wou'd be 1353..fOper hour per annum1 and if ~~ station performed music
during ten hours a day, the annual licence f~ woqld be 13,634, subject, of
- ---jcourse, to a discmmt hued on the number of stationl in the Toronto broadcasting
area, which. discount is as f~llowa:- -
Two stations having the same broadcasting centre, 25 per cent reduction.
Three ,stations having the same broadcasting centre, 35 per cent reduction.
Four stations having the same broadcasting centre, 40 per cent reduction.
Five stations having the same broadcasting centre, '5 per cent reduction.
s:x stations having the same broadcasting ~tre, ao per cent reduction.
A eompariaon with the fee charged for a 100-watt station under the 1931
tariff shows a. great ~crease, and the etatioiia required to pay the bcreased
fee naturally objected and complained that the ne1' taril chargecl wu aceaive
and unreasonable.. .
Referring to the evidence ofM". Jamielon, it eeema quite clear to this
commission that the Canadian PerfonQing. Ript Society Limit.eel desired to
obtain from ~a a fised groa revenue from it.a broadcutinc licences. The
new tariff of 19M did not reduce the groea revenue ~at the Society was recei~ng
from licences i88Ued to broadcasting stations, but inerely abifted the burden of
providing the :tevenue ~uction from the etationa in the le11 thickly populated
areas in the Weat on the statiQDI in the more thickly populated Oentrea in the
Eaet. . .
 31
In arriving at the gro11 -tbe Canadian Performing Right Society Limited
apparently oomidered the number of radio receiving eete in Canada and con-
cluded that it abould receive a revenue _bued upon an arbitrary priee of 10
cents per eel
The Britiab Broadcuting Corporation controll all broadcasting statiom in .
Great Britain, and the licence fee it pays to the Performing Right Society of
London, England-a licence fee baaed upon the number of receiving aete in
Great Britam-ia at the rate of eeven and three-quartera cente peJ. eet~ It
should be borne in mind, however,. that the broadcasting stations in Great
Britain are not subject to_the aupe degree of interference from outeide countries
a& ~ statiODI in Canada~. Great Britain is surrounded by countries speaking
dierent languages; while Canada borden on a country with .a large population
speaking the same language,. and with a great many very powerful statiom having
good reception in Canada. Then, too, the American. statiom undoubtedly
receive a . greater relative proportion of national advertising than the Canadian
statiom.
Furthermore, the evidence diacloeed th~t the number of channels of trana-
miaion allocated to Canada by agreement between the Canadian Radio dom-
miuion and the Federal Communications' Comm~on is limited, and several
of the channell -allocated to Canada are not exclusive cbannell.
In the United States the method of computing ~e licence fee for broad-
cuting stations is eomewhat dierent. After lengthy negotiationa the Ameri-
can Society of Compoeera, Authol'll and Publiabers agreed to grant a licence lor
. bro~_caating, and the broadcasti.ng statiom agreed to accept a licence, at a
fee fixed, fint of all, upon a basic IU!taininl fee plus a percentage of the. grol'
revenue from advertising of each station; and taking the number of radio
receiving aete in the United States, and the groa revenue derived by the
American Soo~ty of Coll!poaera, Au~ora and Publiaben from the American
~the rnte per rece~vmg. set worb out at a ut ii.me_and
one-half cents.
A suggestion was made that a methOd be adopted in Canada similar to
that adopted in the United Sta~~ but it was pointed out that auc1l a method
' could not be applied to the Canadian Radio Commimion nor perbape, to th~
Manitoba Telephone System.
The Commission is of opinion that the basis adopted by the Canadian
Performing Right Society Limited is the better basis.
The Canadian Performing Riillt Society Limited in arriving at. the buic
fee of ten cents per receiving eet in Canada bad regard to the r*8 charged
in other countries, giving the following examples:-
. Cea&I . . .,
l>eamuk. . . . . . . . . . . . .. . . . ~ 13
Great Britain. . . . . . . . . . . . . . ,. . . . . 7f
Australia. . . . . . . . . . . .~
United 8tatea. . . . . . . ll
German,... . -. 9
Au.ltria. IOI-
Norwa)'.. . ~ ll
Caeeho-Slovakia. . . ,. 10
JPraaee.. . . . .. I
Pinlaacl.. I
Ital,... . . . . . . . . . . .. -. 11
.-.....
 31
The above rate& are for unlimit.l right to broldcut.
It ehould_be noted with regard to the Australian rate, that that ii a rate
arirved at by negotiation, and the Australian_ Broadcuing C ompany-which
is controlled by the Australian Govemment-paya out of the licenee ~- col-
lected from receiving eete one ehilling (or twenty-four centl) per tet, which
leaves the privately-owned atat.iou to pay only three penee (or six cmte)
per eet. -
Colonel St.le, of the Canadian Radio Commillion, in giving his evi-
dence, filed IOIDe very illuminating mape showing great American nation inter-
ference with. broadcuting etationa in Canada, and if the return of 91 centl
per eet~,to the American Society -of Compoeen, Autbon and Publilhen could
obtain on the principle adopted by them, which ii, " as much ~ the ueer can
pay "-then this Commiion is of opinion that the r:et.um of ten cente per
receiving eet in Canada is ueeisive. -
After hearing all the evidence given on this branch of the inquiry, and
aft.er carefully considering the argument of counael, this Commiaion th~
that a return of eight cente per eet in Canada would give a generous return
ro the Canadian Performing Right Society Limited, and may not be unfair
or unreasonable to the broadcaeting ltatione.-1
In arriving at the rate of eight cents per Mt, conaidera~ion wae given to the
fact, which seemed generally admitted, that all the receiving let.a in Canada
are not licensed, and that the number of receiving teta is eomewhat greater
than the number which had been licemed. If a more careful check ii made of
the licences, and the number of licenc4'9 ii made to fairly repreeent the actual
number of radio receiving eete, then the rate of eight centa per._receiving en
should be reduced at least to 7f eenta to conform With the rate adopkd in
Great Btjtain.

I
\
 PART XIX

'l'BBA'IWB T.AIUll'
The fees for ~atrea charpd in the tuil of 1934 ii u followa:-
Ten cent.a per eeat when performing more than three days per week.
Five .cent. per eeat when .Ot performing more than three days per week.
Then there are special rat. for eeuonal theatres.
The above rates were practically the tame u tbOM then i~ force in the
United States prior to. October 1, 1934, which rates, u amended, are u
follows:-
Electift Prior to
October I, October 1,
IOU 1116
Per8e&t Pereea'
Per Amlum. Per Amlum.
I. All theaV. with . . ma capacity of 800 or
1.. (reprcllem of admillion pnoe or per-
formiq policy);; . . . . . . . . . . . . . . . . .. 10 cenw 10 cent.I
-ma
2. All &beau. with capacity ol 801 to
1.-e................ . .. .. .. .. II cent.I 10 cent.I
3. All theatree with .-w., capacity of 1,800 or
mote 10 cent.I
' All tbeatree with ie. &baD 800 eeaw, ud lhcnr-
ing three. cla19 or lea per week.. .. . .. .. I ceat.I I ceabi
From this it Will be noted that up to October, 193f, the maximum charge
per seat in the United States w.ai ten cent.. Mr. Milli, of the American
Society of Compoeen, Authon and Publishen, having concluded that. the
experimental period for eolleeting fces for performing right. in the United
States wu over, increued the rate effective after the let of October, 1934, to:-
Theatres with a eeatiDg capacitY of 801 to I.Ml.. 11 cent. per 1eat
'nleaV. with a -tins capacity of 1;800 or more.: ~ti per 1eat
.Leaving the small theatree of B egg oi lat U-they 1JeJ'8 in- the previOUI
tariJf.
- It should be remembered that in the United States t'fre American Society
of Compoeen, Auth~n and Publishen had been carrying on the- bulin -of
telling the performing rigbta of it.a repertoire lince 1914, and it wu only lllA
year they deci~ that the "aperimental tt.p wu over." 1'he Canadiara -
Performing Right Society Limited bu been llina tbe performing right.I of
it.a repertoire only since 1930, beeaUe, before that time, it did not own the
valuable repertoire of the American Society of Ccapmen, Autbon aild Pub-
lilben; 10 that the "..,erimeDtal tta&e" in Canada cu
hardl~ be llid to
be cmr, but apparently the Canadian Performlns JUaht Sooi~ Limited UIUIDed
 38

it was, and followed the lead of the American Society of Compoeen, Authon and
Publishers, and filed a new tariff iu January, 1936, which ia u follon:-
1. Theatres performing more than three daJS per
week, . 1rith the right to per(orm at any time
during the week. . . . . . . . . 20 cents per . .t
2. Performing more than three da19 a week, limited
::.~:eae~kfy.~~- ~~~~g .~ .~fi~ 15- centl per eeat
3. Performing more than three da)'I a week, Jimited
to evening performances. . . . . 121 centl per eeat
4. Performing not more - than three da19 per week,
with the right to perform at any time apeeified.. 12 centl per eeat
5. Performing not more than three days per week,
limited to evening performances and three speci-
fied matineea per week.. . . . . . . . . . . 10 centl per eeat
6. Performin1 not more than three days per week,
limited to evening performan~ . . . . . . . 71 centl per eeat
Midnight shows are cO\mted as " Matinees,'' arid the minimum annual
fea was raised from SlO to $30.
Comparing the two tariffs, it. may be noted that the American Society
of Composers, Authora and Publisben de-es not. take into consideration, except
in one part of its tari~, the number of performances. Its rate for a theatre'
with a seating capacity of 800 :>r less-and this would in..:lud& the great
majority of thie theatres b Canada-is 10 cents per seat. .The tame theatre
under the Canadian tariff might be required to pay 20 cent.a per seal _
The evidence makes it. clear that. the raising of the minimum fee from
110 to S30 "l8 done under pressure of Mr. Mills of the American Society of
Composers, Authora and Publishers. _ J.t was _not looked upon with favom
by the directors of the Performing Right So~iety of London, England; but the
raising o{ the minimum fee in the United States by Mr. Milla wu reluctantly
folJowed by the Canadian Performing Right Society Limited in Canada. Mr.
Jamieson in-justification, however, said in his evidence that he regwed the
theatre tariff as inadequate and only waited to raise the rates in Canada until
the rates had been raised in the United States.
--Thtrapplr~at.\on oltlieWitrortne&nerican SOC1ety of Compoeen, Authon- -- -
and Publishers differed somewhat from the application of the. tariff .of the -
Canadian Performing Right Society. Mr. Mills, in referring to the tarif1
of the American Society of Compoeen~ Autht>rs and Publiiheri 9aid, -" Thoee
were the tariffs but they were not &lwaye adhered to." The application of
the tariffs in Canada has been strictly adhered to, and the in8aibility of the
administration bas DO doubt been reeponeible for a pat many complaint.I
which otherwiee might not have been made. .,
A comparison of the ~o tariffs ehowa that in IOmt c... the feee of
CanlMlian Performing Right Soci:ty are hilber than thoee of the Alneriean Society
of Compoeen, Authon and Publie.len, nd in no cue are the feee in the 1181
tariff of Canadian Performing Right Society I than the fees in the 193' tan.
of the American Society of Compoeen, Authon and Publishers..
 In _1931 the tariff in Canada wu reprded u fair and reasonable by the
Society, and DO sound rMeoD ii glven for the raising Of the ~tea he,e except
that prellUl'e for more revenue wu plaeed on the Canadian Performing Right
Society Limited. If anything the rate in Canada should be slightly le11 than the
old rate of the ~eri~ Society of Com~, Authon and Publiahen, because
. in the United States, "generally apealdng, the theatres are open seven days
a week.
Bearing these conaiderationa in mind, and having regard to the fact that
10 cent.a per seat in the put hU been acceptable to the Canadian Performing
Right Society ~imited and wu not atrenuoualyr objected to by the larger theatres
in Canada, it seems a fair conclusion that the_rate of 1931 should not be changed,
and that the um tarir is unjuat and unfair. .
While the 11 experimental ltage" in the United States may be over, the
evidenoe ahOWB clearly that the " experimental stage " in Canada is only at
its ~iilg. No doub~, after this inquiry, there will be leu reeiatAnc~, aod
a dilpoeition on the part of both the uaen and tlle Canadimf Performing Right
Society Limited to enter into negotiationa when a ny departure from the tariff
is contemplated. .
The theatre tariff of the Amel"ican Society of .Compoeen, Authon and
Publisben is regarded by that Society u the maximum tf.rifr. The same may
be said of the tariff of the Performing Right Society of Lond~~ England. It
is to be noted that in arriving at the Hotel tariffs after negotiations the Canadian
_Performing Right Society agreed to make ~ conceuion on the buie of occupancy;
and it seems only fair and reasonable that the Caliadian Performing Right
Society Limited should extend that con~on to all thtatrea, and especially
to those in the Weet where they are trdmng from drought, _and to other placee
in the ~ Wh~ the toWM were dependent UPoD one indUitry, and that
industry is not DOW in operation. The -theatrea were built some. time ago and
seating capacity _provided when conditiom were more proeperoU.. You have in
the Maritime Provincee, far instance, district.a dependent solely upon coal min-
ing and district.a dependent aolely upon lumbering. Both of these industriee,.
according to the evidenee, are at a standstill, and in 8'Jme localities the per-
centage of people on relief is vsy conaiderable.
- - --------~---------:----\!_______~----
 PART XX
HOTEL TABD'I'
The Canadian Society, as already atakd, values all ol it.a liceneea on two
basic principles: the maximum time within which permiaion to ~orm is
desired, an~ tjie maximum audience before which the. performance is to be
given. ',
This being so, there is little value in eomi4~ring the amount of money 1pent
by the various hotels 9n musicians. In the evidenee of Mr. Jamieaon, and in
the argt_1.ment of the Society's counsel, the expenditure on music and musicians
waa repeatedly referred to as showing by way of comparison the llllall amount
relatively demanded by the. ~iety f~r fees.
. Mr. O'Neill, - President of the Ontario Hotel-keepe~ Aseociation waa of
opinion that the 193' tarif waa fair for the large hotela, and t-he 1Q35 tarif ill
entirely too high for the small hotelt. -
In the 1934 tan the mimmum fee per annum for amall hotels was 115;
in 1935 it waa railed to '30. Small hot.ell are thoee using radioe, phoDopaph,
loudspeaker, mech.a nieal iutrument or piano alone.
__ _ The taril for large hotels is moet intricate and complicated. It haa been
applied to the large hotels after negotiation, and therefore it undentood to IOllie
extent by the negotiating partiee. The tariff it ffamed, u are all the Society'
tariffs, on the basil of the potential audience, with thit exception-that redUc-
tions are made to hotels where the oceupancy falls below a bed percentage.
With the exeeption of the minimum initial fee, which in the tariff filed in
19.15 is $30.00, that tariff is identicai with the hotel tarift' filed in January, 1934,
in respect to hotels using radio, pbonogra~b or other mechanical instrument&
The rates for these ire:-:- -
Minim'Um fee, ISO.OD.
The annual fee ie calculated as follows:-
ln Public Rooma
At the rate of 5 cents per room for each imtrument operated in the public
rooms of the hotel, the maximtim rate per room being 21 centa and the- 'rate
being charged on the total room capacity of the hotel.
In Gvat Booma
At ihe rate of 10 centi per roi>m for radio receiving let& or loud l))eaken
in the gueet rooms of the hotel, the rate being charged on the _total room
capacity of the hotel.
Nan.-No reduction in the above rates is allow~ for a term o_f l than
one year.
 . . .
The tuil of 1931 ~u the eame u~that in effect in 't he Un_ited Statea at
that time. . The tar.ls of 1934 and um are 'not bued upon the experience of
any other eountry, but were worked out OD the plan adopted bY the Canadian
Socie~~ . .
On examination of the 193& tan, it apPearl that the uier may-hav~ ~ .
pay two .minimum tariffs in oile JW. When tbia WU blOQlht :to the-notice -
of the Society during the Inquiry, Mr. Jami.on taid:-
"In the ea99 of bote1a where a licence is deeired under one or JDOre of
., the tarifts, only one minimum annual fee is payable, mch f4'6. to be .
treated u payment on account ~til meb.time u amoante paJable witbm
the 'y~ Uilder all tariff exceed the min,...um_." ... '
. A miall hotAtl of, eay, twenty room1 1abjected t.o the minim~ taiil Of
'30.00 ii required t.o pay one and a half times tbe ft!IU)ar rate per roc>m. In
many of ~- bote1a tlie !only mUlic ued ii .a _radio receiving - in the lobby
of th hotel, or sometimea ha the dining-room. ~ . many ~. the mder -:e
1bowi, theee were plaeed there primarily (particularly in thePrairie Provin~)
for obtaining grain quotationa, and in many _other .....U plw !or obtaining
market reporte.-. What i;n~c ii lietenfd t.o ia of eecoQd'ary and little ~t..
Thie Commiaion agrees with .Mr. Mills, when referring t.o neh amall 111en
of music, thai the use liu no eommercial value. _Generally apeakin1, where _
the COit of eelling a licence is 121.IQ, which ia the- COit given by the Society,
no return t.o tbe author, compoeer and publilbef ~ ever be -derived from thie
!01irce. When it becomes neceeea17 t.o impoee minimum fee, it ii an admiseion
that the licence. bu little commercial .value, and the CommilliOn ia of opwon
that ihe Society, from the ltandpoint. of . ~ int.erest of the memben of it.I
parent Societiee, should take thia ~t.o c~...tion. Al Iona u th& mi'croecope
ii uaed to locate the small 118el', eo long will the Society' COit of operation be
unduly high. _-
This Commiaion qreee entirely with Mr. Mil1a, General Manapr of the
American Society of Co~n, Author and ~bliahen, when be stated that
theee small U1er1 were not-worth bothering about, and the limited amomat ~f
- mUlic they were caP&ble of performiDg wu negligible and of no-~~,J
value. ,,._ing out thi very slnall 118el' in Canada and imposing 1.1leence on
~' ii one of the remaini attempte t.o apply- in Canaela the metbode adopted
by tbe Performing Right Society, Limited, .i n Great Britain. where conditiona .
~ . dierent and where nep_tiatiou are c~ed OD, not with the individual,
but witb an ueociation of. which the individual ia member, and where
li~ fee, if ~poeed, ia collected without undue COil

; -
 . a .

PART XXI .
. pARD, ~ l'Allis, COIDllJlV1'Y BAU.S AND O'l1IEll
lll!MZUANEOUS USEllS .

it doel .not eeem neeeseary to JD&lyee aqd deal aeriatim with theee tari&.
Any m'l!lic performed at theae places ii1arge1y or wholly eduoatioDaJ. Where
no prot11oter ~ theee various instituti0m u a means to enable him to profit
. by the 'performances, they lhould be made exempt from payhig a 'performing
fee to the SoCiety. The American Society of Compoeen, Authon and Publilhen
makes DO attempt to iiiipoee a licence on or collect a fee from tlieee Ul8J'L
A very good example o( the unfairnell in impoeing any mnall fee on the
small fain ii fumilhed in Exhibit 93, eubmi*d by Mr. John A. Canoll of the
Department of AgricUJture in Ontario. It ii a lilt of fall fain held each year
in Ontario, and ahould fairly represent the situation in all the Other provinces in
CanadL There are 278 fain listed,.and the atUmc:lanceranpe from one hundred
to &even or eighi thouund. Moet of them, however, have an attiendance of
under one thousand; they ate supported by .Municipal and Legiela~ grant.a
and private donations. If the propoeed minimum of l80 were demanded from
theee and they all toc:k out a liceil~ the Society would derive a nmmue from
Ontario small fain of 18;3t0. What for? Beea111e at each of theee fain, for"cme
or two da11, muaie wu played by gramophone of by ibe- ~Dage band. The
Perfcmning Right Society, Limit.eel, of London, cbarpe f' Village and Rural
Pariah Halls, SCbool Roome, Clube .and WeUare lllltitutee from lOl:ed. per
annum ~d up, accordini to the eeating capacity, with a minimum fee of 1:
ls:Od.
That Society' tariff for Co-operative Halla,-Muonic Halla, etc., ii relatively
low, with a minimum fee of 2:21:0d. The American Society of Compwn,
Authon and Publiaherl impoee DO. performing right fee on any of tbMe eltab-
liahment.e, unlea they lend .their patronage ~ a promotA>r. _
 uSTAUllANTS, SKATING mNU, 9l'OaT GllOONos, BTC.
~ . .
From the evidaaee, it ._. unfair tbU -..., . . . . . . . fee ebould be
collected from our mna1l i'eltauJ'aDtt. Ia ..., fta\ it lhOuld be mucb..M tbaa-
ia colleeted in the United St.._ ~ ha Cauda pnen11y dO not
receive patronage in the _ ,,way and to the - at.ent u nltaurante in the _
United Stat& Thoee few reMUrallte that employ orcheltru, or m ... of
11!'aM ia :!Iferred to in the evidenCe " live mlllio," lhoald pay a .fee bMed upon
the fnqueney of .performucee and the number of perfOl'IDSI eiappd. Tbe
objectionable feature of the tari u applied to U... llltauianta ii that they are
requind to pay upon a muim~ number of hoan of all cit UJ IDlllical perform-
ancee, wl the muimum numbet of performen. It ii oonoeivMle that d~
. festive peftoda the maiJDJDD number of boun of petf~ wl the muim1im
number of perf~ 1'ould 'be ueecl, but then there ii the balance of the year
when they return to normaley. . .
. Aa for ekatin1 rinb, lpOft ground.e,.etc., a 1m&u Cbarie such .. . hu been
adopted in_the UnHecl Sta~ed at by~ more Nuonable
and fair than the mieroeeopic tarm adopt.eel bJ the Canadian Society.

._
 . L:-

PARTXXllI

Fairs in Canada, generally .,.king, are primarily agriealtural aDd eduea-

. Uollal. The Canadian National EUibition, Me0rdi111 to the evidence.befON the
Commission, ii the ODI aception. Ji ii partlJ agriculmr.J, bat to a Yf81 . . .
atantial atent commerCi~, Ucl llhould pay 101De fee for the 111e of \be 8oeie&J'1
repertoire. .
The preeent taril for large ahibitiom ii bwd upon the to&al' a~WndAee for
the duration of the exhibition, and ii as. folloft.:,-
l'int 10,000 of at~ Ol' part tMreof .
Nest 11,000 of attadaw or part thereof

..
,. .....
' .....
I _.. -
- - Nm 2l,CMll of aU'9oe .or tart ta.eof . . . . . . . . . t ....
Nest I0,000 of attadallOf or part th-.of . . . . . . . . . . . . .. I eem
Nm 100,000 of att=cl80t cir pan ..._, . . . . . . . . 1 ellll
Nm 300,000 of aUndi,,,. or part dMnof . . ... .071 .. . -
Additional atteDclnce . . : .OI eat
A payment ii required Oil account and in advance equal to 71. per .eeat due
~t the hove rates Oil the estimated total attendance. Immeditely, after the
cloee of the eshibition, the ahibition manager ii required to. Certify the total
actual attendance and then make payment ,of any b-1ance due. The repre-
tentative of the Canadian National Exhibition objected to the Society inliltiDc
that the actual attend~ biclu~ aiI thoee at the various cwpmercial boot.hi and
buildings, all attendants and W>ouren, and all penoDlil who may enter oa pu111.
It seems that a conaiderable part of the musfo performed at tbil ~bition ii
highly educative and cultural; eome of it ii competitive, having as ita objective
t.o mate an incentive ~ better performance; and there ii the commercial lide.
The Commiaion is of opinion that any fee impoeed upon ihe Canadian National
Exhibition 1hould only be after there' bu been reuonabie negotiation,. and
failing negotiation, it abould be eubmitted to u Appeal Tribunal, eueh as ii here-
inafter referred to,. to determine 1'h~t ii a fair and reuonable fee under all the
circumatancee. No evidence was given that would be of lllietance in flnclillc
what would l>e a fair basil upon which to fix a fee.
~ :- ~-

..."- ~ . .,, -
-
~.
..

PAB.TXXIV
'CllANGB8 IN TAlllllS . 8Y QNADWt ......utG
mGll'I' 90CD1T,..U iii'fiW .
Mr. Jemimn, Prllida& of tile Cuwti PerfarmillcIUP\ 8oeWJ LimiW,
aw in reply to the mclmaee ,PNJioally mbmiUed Jbhi~ . ..ia wla.ieb ..
~ncedel:- : "' . ..
a
(1) That the Broadcuthig tarilf shall_CO!ltahi 'proYiaion 'thatt.en hom1
w ii the maximum for which ~e 8oeiet1will4wp; .
(2) 'nlat the additional percentage-for period Pa1mentl will not be charpd
where mcb payment.a amount to llJO or ont; .
,
(3) That mthe oa11. of ho&eJa, wbele a JieeDoe ia delired UDcler OM f'll 1DOl8
of the tarila, only one miniliaum annal fee ii paJ'altle, meh fee &o be
treated u a payment on account until meb .f.ime ~...OUDtl pA7abJe
within t.he year, under all tarift1, aoeeci' the minimum;
(4) . That the Soeiety will UOlpt a minim~ 1..c.1 11tj;.fqr,~olwdar, paJ'
nlent, bat where pa)'IDellt ii not made volunt&rily,,tht..~,ihi~wn ,.. will ,.
be l30. . ..
46) That Border broad- ~ou shall be charPcl only ill ~ of
t.he Canadian reeeiving let.I allotted &o. the area in whieh .tbe- ltatiOD ii
situated. ,..

-
.
,._

....

..-:, . ..
 PARTXXV

~Old .
While discU88ing particular topice \in the body of the report, it bu been
necessary to expreee conclusions and IUgeat recommendatiau witli reference to
the mat~ra disculled. It eeema desirable, however, at. the :iiak of repetition, to
gather toget~er the more important flndinp and recommendatio111.,. .
The most importot problem before the _Qommiaioa._waa to ~termine-what- -
would be.a fair t.arift of feee. .
It ia a fail UIUIDption that the preaent tarif of the Canadiui PerfOrming
Right Society Limited was made hlgber becaWle of the aPenees in~ in
penuaJing a public that was often Ulll'ealOning ad ignorant of the Society'
legal rights to purchue a li~nce. The demand for payment by the Society
,vu regarded u an unjust impoaition, and the music uaer honestly believed that
the a11thor, ~mpoaer or publiaber wu not entitled to any paj'lnent. for hia
,tlerlorming rights. On the other band, the Canadian Performing Riibt Society _
Limited was at tiines domineering in it.I attitude, and perbaJ>ll a little huty in
resorting to ,t he courts, fqr the enforcement. of ite lepl right.I.
Due to the very nature of the intangible right poae11ed by the Society, it. ii
IDOlt difficult, if not impouibte, to determine what. ia fair fee. 1t ii to be
regretted that no P.~~hor or compoeer melliben of an7 of the ~ieti appeancl
to give evidence .,. to their need.for greater remuneration fCll' the product of their
genius. It is alao to be regretted that no publiahen ap~ to cive eyident:e
u to their need for greater returna on their mveltijielit If they had ahown what. .
investment was WNpped up in their publishing- hOUlel, what. tbq paid .the
authon and compoaen for the~ copyright, and what ~ returna on their in-
vestments were, it woul_d have helped materially to aolvethe problem.
As hai been 1tated ellewbere in thil report, the Commiaion.ii of opinion
that a n,tum to the Canadian Performing Right. Society Limited of eigb~ oente
for every licensed ~iving aet i .. Canada will provide a fair revenue for the
Society and may not be unfair to the b~adcut.ina ltat.ioDI. The Society, bow-
ever, ia not in .. good a poaition .. the . broadcuting atationa themaelve1 to
determine what part of thia gro11 ahould be contribUted by the variOUI ltatiou -
in Canada, and it. wu sugeated by one o( the witne11e1, wh~ wu clolll7 con-
n1cted with broadcasting, that an ~iation of the varioua atationa could belt
determine wha~ each atation ahould contribut..
The Commiaion bu come to t he conclusion that. the -~ obt.aini':'I in
C&nd at preaent, buecl upon the nlimber of receiWlg let.I within the eleoUve
range of the. atat.ion, etc., ahould be continued.
In reprd to tbeatrea, the Commialion ii of opinjon that t.be 1111 taril
ii excellive, and the tariff o; 1931 givea a fair ietum to the Society and thould
be restored. .
 ID nprd.to boWt, *'- itru1a\ -
aria ii .Wut.arJ to tbe JiJp ...,..,
bm TWJ unfair to the ~ ~ - - of wlaieh lhoalcl be ~1*}~ .,.
...nof f - f the -_;of a radio iD tbe.JallbJ. : - ~-;-' .
PerformaDell of allJ mmieal wmb bJ W/ mu
-.rfoalWnl fain .and
abibi-., eharohee, oalleall er 111ieelll, .Wti-, tlluitable or fraternal
. orpnilMiom, lhoald - oaamtate .. -~ '
.. . ehould Id be aubjeet to the ~ of W/ - "1 the ~ if the per-
eapJrip~ ucl ~ .
fonnanee. aie given for relialom, educatioDal or c~ pmpc.., wi~t
pro$\
,
to themaelv, twitbltandina that. tHJ may pay the performen ;.
of
muic. . .L
.. As 1iu been alreadJ lltated, tbe new tariff railed the minimum fei in ~
--branehei>of~tarUHrom-110-.00 to '30.00. 1'ie only nuom given for rai;- ..
iDg thil ~ wu that the eOet of lllJing the liceneee wu .eo, ad that. the
minimum fee wu conaidered inadequate. Tbe COmmiMian ii of opinion that
witli reprd to the varioue maall UMn. the minimum fee lhould be abolilbed, '
and with f9ld to the moderate 111m of mlllic, ~ minimum fee lhould be a,
nominal .fee of 15.00 or 110.00, 1Uch u oJ>taiaa in Gnat.. Britain. . _
By impoeing a minimum fee of '30.00 on t.lae amall mer of itl repertoire,
which ii.in IO .many CUM unfair and beyond the eap.cit.y Of the 11111' to pq;
by inlilting on applicanil for licmoee paying ''but f-" bf way of penalty
. for alleged infringement. of ite righte .. a eondition precedent. to the ~t Of
a licence; by requiring the licemee to covenant to make returns of -a11 muaic
performed on his licemed pnmilee in the form in- which they are d~ded,.
the Canadian .Performing Right. 8oci- ii unduly withholding the - . or-
grant of itl licencee. . ,...
Th~ tarie u bed by the Perfonillng Right. Sociny JAmite4, of London,
and the American Society of Cempa1111, Authuti IDd PUbUiliiil, bU alwa71.
been iegarded by th. . Societiel .. tbeii.muimum wur from which they may
depart; and it ii strongly eugelted that. ~ ~ from 'time to time adopted
by the Caoadiu PerformiDg RiclK Soci-, Limited, lhoakl ahra71 be npnled
u the ~uimum tariff from which clilcoant. may in cert.in ea1111 be made.. .
The evidence Of Mr. A. P.B~ Author, Draina~ LibreWlt, Journal-
ist and Barrister-at-La,,, giftn Won t1ae Seleet Committee of the Brit.ieb
BOUl8 of Commom, lhon how, u an individual .and not .u a member of any
Performing Bight Society, he would deal 1'ith tile q1llltjcm of an application
for a licence to perform his compolitiOne. Be Mid:- .
. . ~ Wlla~ I do la .to temper the wind ~ the lhoria lmrb u4 to k prlOea :
according to the pri they can ,., (which bl more than 1DOlt l8llen of
oommodities do.) , But if heel priee _moat be oompalwily ltated, t.hen
nat~ it will ~ a . . _ priDI, ucl if a priee to 111it tile 'l'loolldelo "
i_ flxed; then the Village Iutitute will be friahten.t away; per .eoatra, if
a pri~ be bed to suit the V"illap lnltitate, then the Trocadero will be
pttinc tt. mulio for far leil than it oan daftl to P.1~" '
" What. happem in practice,. apin, ii,what JI NlllDDable. The author
and 00,IDpGlel' tab IUCh tenu u are ~le. to thl OODditionl; a..,will
take ~ 1elle of _royalti from Drury ~; allother ltom New York,
~ from the 8t.ock EzcW. ()peratle BocWy, and ,..Aapt a 1mall lf..
lump_MUD from the 1mall-town amateun." -. .
 Strong protest.

wm JDlde during t.be laquiry apinet the iDlil&ence of t.be
Boe~ upon r.um. of Pl"Ol'W beilic fumilbed at the ~ of caneeJlaU.
of licence for failure to make tbm. Thit Commiteion ii ofopiniOD that lalDe
at of return ebould be made bJ ~ larPr mumc ownen eo that an equitable
dilt.ribution of tbe Soeiet,'1 funda amonpt ita authon and ccim.... CKlU1d
.bemide. TbMe ftiUrili, llOimif, coulcf"b l ftr'/ much aimplilect - tbelefore
le11 oaeroua OD the lieeueea. For iuta-., u reprde broadeut.ina ltationl,
W~ theee Mtionl relay progra1119 from originat.i~I ltatiODI,: the Society
iteelf could obtain from t~e oriaiilat.inl -atationa their propame, uclfrom-the -
reljlying utiom the periodl of time during which the program froin the oricin
atiq atationa w.-e performed by them. Al reprda mueie originaU. at the
various broadcuf.inl atationa, the ltatioal could .&ive the titlea of~ the 1DUlie
. played 'by tliem, and the Society with it.a greater f~ of information, could
re~dily det.mine the authon and publilben of the lallle.
. Hotels~ where " live muaio " ii played, could without much trouble make
returns to the Society of the ~uaic played by it. performen, .. and where
. mechanical music only ii played, the lieemee eould without mu!'b troUble furnilh
to the Society the namea of the reeorda.
In other._words, it is augested that the licellleel ~y be required to give
suftleient inf0rmation in their retUl'lll that would enable1 the Society to deter-
mine who is the author and ~mposer. .
It wu sugieated during the Inquiry that the Canadian Performing Right
Society Limited, be required to put up security for eoeta in litiption, but u
the Society ii, u bu alte..~y been atated, a Canadian national, this CnmD\illlion
does not see fit to make any recommendation in regard to that matter.
The recommendations that have been made are based upon the fact tliat
the Canadian Performing Right Society Limited is the only Soci~y operating
in Canada. If another Society having a subitantial reperklire .were to ent.. ..
into competition 1'i~ . the Canadian Performinl Ript Society there would of
necessity have to be some revision of itl tarUr1.
It ii strongly recommended that the Canadian autbon and ~ be
recogoiled by the Can~ Perfo.rming Right Society Limited ia eome wa7 .IO
that it would be pollibte for them to have their repertoire included in the
repertoire of the Society, and to derive the benefit. that the Copyright Aet
intended to confer -jt\ ther!l. .
The Commiufon recommends that legielatiion be introduoed having the
following objectl:- .. '
(1} nat there be included in the CanMtiu Copj'nght Aet a elme .timilar
to 8ea&ion 40 of the PatAllt Act (R.8.C., 1"7, e. 110), to prevent vaatioua and
unwarranted legal prooeedinp;
(2) That Section 17 of tlieCopyrigbt Aet be further unended to mab the
aocietiea mentioned in Suhlection (i), (vii), (Yili) full7 .aampt frmn infrinp-
ment and from the paJ1D9nt of performiq ri&ht ft111; ~ tM fad
that they pay a fee to the individual perfoa1nen;. provlclina they do Id lend
the1D1elves to promoten;
 (I) That tbe CoPJrilht An be

uDendecl .,. 11 to pnnide for thetRablilla-
meat of u A,.,..i Tribaul, to determine dilputel ariaiDc out of perfow
in pablle ~ to appNn .of the t.ri6 of the Culdiu.PerformiJI& Riiht SoeietJ
Limited from time to time before the)' become eltetift. .
'l1ae pOlition now ii that tbe 8ooiftt, hayig a monopoly of the perfonnN
riabtl in .oopJrigbt muaic, hU allo ilae.ri&ht t.O impo11 what.nw fw it.. _
Where other moaopoli have~. it hll beea found .,_ary to ha:ve 101D1
., - iDdepeDdent boclJ analy and p111 on the tar16 of f ~ may be chuied,
e... freilbt rat., apre11 rat., Wipboae rat.e9, $. .If the Society eu oontinue
to dictate it. own teriDI, and panae a poliq of peatly inereuing . _ term.:.
then finally the communit)" will b.e prevented from lilt.eniDc to it. mulie.
The Commion ia altogether in accord with. the JeCIOIDIDeDclatioa of the
Honom:able Mr. Juatice <>wen.in hil report ftlalw1 from the Inquiry ii'Am-
tralia, with the recommendation and ~ nport of the 8e1eet Committee of. tbe
Home of ~DI in tiao, and with the NCODllDllldation eon~ in tbe
report oi the Honourable Mr. Juatice Ewinc in 1m, tllM there llioald be u
amendmen~.to the Co~t Act to the .::feet that either .the vlrioua tari6 11
&led.by iie Cwcliu PidorDiiq Right .~; Limited, tbould &id reeem tbi
approval of IOIDlindependent board, or to the effect that if_.., wn felt. tlaat
they .were beinc cbarpd Unfair and aorbitut fee1 they would have a right of
appeal to .. ind~nt body. Some doubt'ailtl .. to whether this eouid be
done witb0ut offending .,.U..t ~~ terma of ~ RolD9 Convention, but tbia
Commlllicm ii of the 0pinion .t hat u long u the repreeentatlon of the Bri ud
foreign ~- remain ~ the Canadian PerforiniJll .Rigbt Society, Limited,
. which mUit be considered .. Canldan national, that Parliamant HD iegutate Ult
Society at. leut to this extent. .
Thia Cnmmi-ion ia indebted to the report.I of the H0nourable Mr-. JUltice
Ewing, the Honourable Mr. Juatice Owen, and the ieport of. the Seleet Com-
mittee of the Home of Commons. The .repreaentativea of the Canadian Per-
forming Right Soeiety Lil(lited~ and the American Society of Compoeen,
Authnra and Publiabera, gave everr poeible help to uaitt in helping thia Com-
million &0lve a moet di8lcult problem. Any doeumenta that were asked for wue
readily fUrnilhed. Counsel for the Soeietiee and CoUDlel for all parti~ repre-
lented co-operated with thil Commiuion to the. full.t atent.. The 1Ubjen
matter of this Inquiry beiDg 10 new, and the bllil.ofarmina at fair fee1 being ID
. di8itult to determine, if tmy benelt l'llUlta.from this tePori all these parii ban
contributed to it.
. . All of ~bich it reepectfully mbmitted.

. .
Dated at To19nto, tbia 2lt.h Day ~f Oetober, A.D. 1-.
'j