A Terms of Trade Primer - Part 5 (Rights)


This is the fifth installment in our series about the new Terms of Trade applicable to the English-language Canadian private broadcasting industry (Part 1, Part 2, Part 3, Part 4). This installment focuses on Section 6 (Rights Allocation) of the Terms of Trade Agreement. This is the fifth of an anticipated nine posts which will be posted over the course of the next week and which will cover the Terms of Trade in detail. Once all nine posts have been published, the archived posts will be available at this link.

What do the Terms of Trade say about... the rights granted to broadcasters and retained by producers?

Well... they say quite a lot, actually. Section 6 of the Terms of Trade Agreement starts with a paragraph which might be termed a "statement of intent" (or, less charitably, "throat clearing") which is presumably intended to guide interpretations of the language of the remainder of the Section. The paragraph states that broadcasters should "enjoy the full use of a program" on broadcast and "new digital platforms" and that "appropriate and reasonable holdbacks ... encourage maximum promotion and ... secure the value of the rights" obtained by a broadcaster. On the other hand, "certain exclusive rights ... must be retained by the Independent Producer ... to ensure the maximum exploitation of the value of the Program".

The Terms of Trade Agreement breaks the universe of rights in a program into the following categories:

• rights which broadcasters are entitled to in exchange for a license fee

• rights which broadcasters can negotiate for, subject to a 50/50 revenue split and subject to modification if the broadcaster pays a "super-license fee"

Please see full article below for more information.

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Published In: Administrative Agency Updates, Art, Entertainment & Sports Updates, Communications & Media Updates, Intellectual Property Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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