Canadian Broadcasters To Appeal Royalty Rate Hike

At a private meeting of CANADA's commercial broadcasters on SUNDAY (11/6), the private radio companies agreed to appeal a ruling that raised music royalty rates for radio by 30%. 

The GLOBE AND MAIL reports that both CHUM LTD. and CORUS took C$2.6 million hits in their third quarter earnings due to increased royalty fees; the CANADIAN ASSOCIATION OF BROADCASTERS will appeal the decision and will seek a remand to the COPYRIGHT BOARD for review of the ruling, which raised the rate from a flat 3.2% of revenues to a progressive rate of 3.2% on the first C$1.25 million of revenue and 4.4% above that level, retroactive to 2003 and effective through 2007.

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