Re: Application under s. 152 of the Copyright Act 1968 by WEA Records Pty Limited, Astor Records Pty Ltd, RCA Limited, Polygram Records Pty Ltd, CBS Records Australia Limited, Festival Records Pty Limited, EMI (Australia) Limited v Stereo FM Pty Limited
[1983] ACopyT 1
•17 May 1983
APPLICATION UNDER S . 152 OF
THE COPYRIGHT ACT 1968 BY
THE TRIBUFIAL:
LOCSHART
J .
Deputy P r e s i d e n t
R . V . J .
PUWIS Esq., Q.C.
A p p l i c a n t s
D .K.
?IALCOL?,I Esq. , Q. C.
STEREO F.M. PTY. LIMITED
Respondent
1 7
1 9 8 3
REASONS
FOR
DECISION
WEA
Records
P t y .
L imi t ed ,
EM1
( A u s t r a l i a )
L imi t ed ,
F e s t i v a l
Records
P t y .
~ i m i t e d , CES
Records
A u s t r a l i a
L imi ted ,
Polygram Records P t y .
L imi t ed ,
RCA
Limited
and As to r Records P t y .
Limited
( " t h e r e c o r d companies") and Phonographic Performance Co.,
o f
A u s t r a l i a
L imi ted
("PPCA")
have
a p p l i e d
t o t h i s T r i b u n a l
under
S .
152
of
t h e
Copyr igh t
Act
1968
( " t h e A c t " )
f o r
o r d e r s
determining
t h e amounts payab le t o each o f them a s t h e owners o f
c o p y r i g h t s
i n published sound r e c o r d i n g s b y t h e h o l d e r s o f
l i c e n c e s
f o r
commercial
FM
b r o a d c a s t i n g
s t a t i o n s
i n
A u s t r a l i a
( " t h e b r o a d c a s t e r s " ) .
The
b r o a d c a s t e r s
a r e
S t e r e o
FM
p t y .
-2 -
Limited ( "2MMM" ) , Sydney FM Limited ( "2DAY" ) , Broadcast FM
Pty .
Limited
( "3FOX") , Adelaide S t e r e o FM
P ty . Limited
( "5SSA" ) , New
l
I
B r o a d c a s t i n g
P t y .
L imi t ed
( NOW" ) ,
Melbourne
FM
Radio
P r y .
l
Limited ("3EOM") and S t e r e o FM
Brisbane Limited ("4MMM"). Each o f
t h e b roadcas t e r s
is
t h e ho lde r
of
a
commercial
r a d i o b roadcas t i ng
L icence
unde r
t h e
B r o a d c a s t i n g
and
T e l e v i s i o n
Act
1942 which
e n t i t l e s
t h e h o l d e r t o b roadcas t
by
means
of
FM
r a t h e r
t han
t h e
+ convent iona l AM.
FM
b roadcas t i ng by
commercial
r a d i o commenced
i n 1980 wi th t h e g r a n t i n g of
Licenses
on
22
August
1980 by
t h e
A u s t r a l i a n
Broadcast ing
T r ibuna l .
PPCA was
i nco rpo ra t ed i n New
South Wales i n March 1969.
Each
o f
t h e r e c o r d
companies
i s a member
o f
PPCA.
P P C A
a l s o
r e p r e s e n t s
t e n
o t h e r
r eco rd
manufacturing
companies
whose
bus ines s
a c t i v i t i e s a r e
smal le r
i n s c a l e t han
t h o s e of
any
of
t h e
record companies.
We
s h a l l r e f e r l a t e r i n more d e t a i l t o PPCA
and
i t s a c t i v i t i e s , t h a t t h e primary o b j e c t f o r which
b u t
it
i s
s u f f i c i e n t
f o r p r e s e n t
purposes
t o
s a y
PPCA was
formed was
t o p rov ide
a c e n t r a l t o b roadcas t o r perform
a d m i n i s t r a t i v e
o r g a n i s a t i o n
f o r
t h e
i s s u e
of
l i c e n c e s
i n p u b l i c
sound
record ings
i n which
solund
record ing
copyr igh t
i s
owned
by
t h e respec t iave
members.
PPCA
a l s o a r ranges
f o r t h e payment
t o it on
beha l f
of
i t s members
of
'
f e e s
o r
r o y a l t i e s
f o r
t h e
use
of
copy r igh t m a t e r i a l
and , f o r
t h e
m a i n t e n a n c e
and
p r o c e s s i n g
o f
Log
r e p o r t s
which
r e c o r d
t h e
b roadcas t ing
of
records
i n which
sound
record ing
copyr igh t
s u b s i s t s .
The
same
counsel
and
s o l i c i t o r s
r e p r e s e n t
t h e
record
companies and PPCA.
A c t o r s '
and
Announcers '
E q u i t y
A s s o c i a t i o n
o f
A u s t r a l i a
and
t h e M u s i c i a n s '
Union
a r e p a r t i e s
t o t h e a p p l i c a t i o n s b u t have
p l a y e d
no
r o l e
i n
t h e
h e a r i n g
o£
them.
A t
t h e i r
r e q u e s t
t h e y
were g i v e n
l e a v e
t o wi thdraw
from
t h e h e a r i n g when
i t commenced.
The
p e r i o d
s p e c i f i e d
i n
e a c h
a p p l i c a t i o n
a s
t h e
p e r i o d
t o which
t h e o r d e r s
s o u g h t
s h o u l d
a p p l y
i s
from
1 October
1 9 8 0 t o
t h e
30
June
n e x t
s u c c e e d i n g
any
o r d e r made
by
t h e T r i b u n a l .
The
p a r t i e s
r e q u e s t e d
t h e
Triblunal
t o
d e t e r m i n e
a
p r e l i m i n a r y
q u e s t i o n
o f
law
b e f o r e
embarking
on t h e
s u b s t a n t i v e
h e a r i n g
o f
t h e
a p p l i c a t i o n s
t h e m s e l v e s .
Counsel
in formed
t h e
T r i b u n a l
t h a t
t h e
d e t e r m i n a t i o n
o f
t h i s
q u e s t i o n
would
c o n s i d e r a b l y
f a c i l i t a t e
t h e
p r e p a r a t i o n
b y
t h e
p a r t i e s
o f
t h e i r
r e s p e c t i v e
c a s e s
f o r
h e a r i n g ,
p r o b a b l y
e n a b l e
agreement
t o
be
r eached
a s t o f a c t s and
documents
and
t h u s
s u b s t a n t i a l l y s h o r t e n
t h e
l e n g t h
o f
t h e . u l t i m a t e
h e a r i n g .
The
T r i b l ~ n a l
acceded
t o t h i s
r e q u e s t
and
h e a r d
by
c o n s e n t
argument
on
a
q u e s t i o n
f o r m u l a t e d
by
t h e
p a r t i e s
i n
t h e s e
t e r m s : -
"Whether i n f i x i n g . any amo'lnc plursllant
t o :he
powers
c o n f e r r e d
by
S .
1 5 2 ,
$ a r t i c t ; L a r i y
sub-S.
7 ,
t h e T r i b l ~ n a l ,
i n t a k i n g
i n t c
a c c o m t
t h e
e x t e n t o f
)use of
r e c o r d s
a s
p r e s c r i b e d
i n
t h a t
s u b - s e c t i o n ,
s h o ~ ~ l d
have
r e q a r d
o n l y
ts
t h e
u s e
b y
a
b r o a d c a s t e r
o f
r e c o r d s
it:-.
r e s p e c t
t o
which
=he
a p p l i c a n t ' s
so':r,c
r e c o r d i n g
copyrigh-c
rnc l:-des
:he
axc l;:s:.;e
,
.
b r o a d c a s t i n g
r i g h t
r e l e r r s d
:o
i n S . 35
; z , zf
t h e A c t .
Gr
shol:ld
she Triblina;
kave r e q a r d
t o t h e ' ~ s e
5 y
a
S r o a d c a s c s r
2f
eli
r ecc r j , s
:n
which
t h e i r
s l lbsis- ,s
:.n
ravcllr
2 f
:ne
c o p y r i g h t owner
any o f
z5.e
5y;ecies sf ~0t:r.d
recording
copyr igh t
de f ined
i n
S .
85,
o t h e r
t h a n
c o p y r i g h t
a r i s i n g
s o l e l y b y
v i r t u e
o f
f i r s t p u b l i c a t i o n
o f
a
sound
r e c o r d i n g
i n
A u s t r a l i a " .
On
20
November
1981 t h e Tr ibuna l gave
i t s d e c i s i o n
(Re
-
WEA
Records
P t y .
L i r n ~ t e d &
O r s .
( 1 9 8 1 ) 4 0
A . L . R .
111) and
expressed
i t s conclusion
( a t p .
124) a s fo l lows : -
" I n
t h e
r e s u l t ,
our
conc1u.sion
on
t h e
p re l imina ry
p o i n t s
which
have
been
argued
i s
t h a t : -
( a )
The amount payable under S . 152 ( 2 ) i s i n r e s p e c t o f t h e b roadcas t i ng by
b r o a d c a s t e r s
o f
publ i shed
sound
record ings
l n
r e s p e c t
of
which
t h e
copyr igh t
i nc ludes
t h e
exc lus ive
r l g h t
t o
b roadcas t under S . 85
( c ) which would b e
i n f r i n g e d
by
t h e
b r o a d c a s t e r ,
u n l e s s
an
o r d e r
i s
made
under
S .
152
o r
an
under taking given
i n accordance w l th
S .
109
( l ) .
(b)
The amount so payable is to be- determined
by
t h e
Tr ibuna l
t a k i n g
i n t o account
a l l
r e l e v a n t
m a t t e r s
i n
accordance
w i th
S .
152
( 7 ) :
b u t
t h a t
sub-sec t ion ,
w h i l s t
excluding
therefrom
t h e
e x t e n t
t o which
t h e -
broadcas t e r
uses
r eco rd ings
i n
r e l a t j o n
t o which
S .
105
a p p l i e s
and
inc lud ing . t h e r e i n
t h e
e x t e n t
t o which
t h e
b roadcas t e r
uses
sound
r eco rd ings
i n
which
copyr igh t
s u b s i s t s ,
does . n o t
l i m i t
t h e
c l a s s
of
r e l e v a n t
ma t t e r s
t o
t h e
use
mad.e of r i g h t t o b roadcas t under
record ings
i n r e s p e c t
of
which
t h e
copyr igh t
incLudes
. the
e x c l u s i v e
S.
85
( c ) and
which
a t t r a c t s
t h e
amount
payable
under
S . 152
( 2 ) .
A t t h e
r e q u e s t
o f
t h e p a r t i e s we
make
no
d e t e r m i n a t i o n o r o r d e r
a t t h i s
s t a g e : .
b u t
w i l l ad journ
t h e
f u r t h e r hear ing
of
t h e ma t t e r
t o a
d a t e t o be
f i x e d ,
s c t h a t t h e p a r t i e s
nay
cons ider what we
have said. and then b r ing i n
s h o r t
minutes
of
t h e
a p p r o p r i a t e
de te rmina t ion
o r
o r d e r . "
-5-
A f t e r
we
gave
t h i s
d e c i s i o n
t h e
p a r t i e s
r e q u e s t e d
t h a t
we
make
no
c o n s e q u e n t i a l
o r d e r s
o t h e r
t h a n
d i r e c t i o n s
f o r
t h e
h e a r i n g
o f
t h e
a p p l i c a t i o n .
Fo l lowing
ollr
d e c i s i o n
on
t h e
p r e l i m i n a r y
q u e s t i o n
o f
law
t h e
p a r t i e s
r e q u e s t e d
t h e
T r i b u n a l
t o h e a r
o n l y
t h e
f i r s t
a p p l i c a t i o n
(lA o f
1 9 8 0 )
i n ' which
t h e
r e s p o n d e n t
i s
2MMM
and
t o
s t a n d
t h e
o t h e r
a p p l i c a t i o n s o v e r
s o t h a t
t h e y may
b e
r e s t o r e d
t o
t h e
l i s t and
h e a r d
i n
t h e
l i g h t o f
o u r
f i n d i n g s
i n
1 A .
We
took
t h i s c o u r s e .
Hence
i t
i s o n l y
a p p l i c a t i o n
1A
which
h a s
s o
f a r
been
h e a r d by
u s .
I n
o u r
d e c i s i o n
on
t h e
p r e l i m i n a r y
q u e s t i o n
we
c o n s i d e r e d
v a r i o u s
m a t t e r s
i n c l u d i n g
q u e s t i o n s
o f
law
which
a r e
r e l e v a n t t o t h e
r s s u e s now
b e f o r e
u s .
We
d o
n o t
p r o p o s e
t o
r e p e a t what
we
s a i d t h e r e
e x c e p t where
r e p e t i t i o n
i s n e c e s s a r y
t o
d e a l
w i t h
t h e
i s s u e s
c u r r e n t l y
b e f o r e
u s .
To
t h a t
e x t e n t
r e p e t i t i o n
i s
inevitable.
A
p r o p e r
u n d e r s t a n d i n g
o f
o u r
d e c i s i o n
h e r e ,
h o w e v e r ,
d o e s
r e q u i r e
r e a d i n g
o u r
e a r l i e r
r e a s o n s
f o r
d e c i s i o n .
A p p l i c a t i o n
may
b e
made
t o t h e
Trib1:n.a:
p ~ l r s l ~ a n t
t o
sub-S.
152
(1) o f
t h e
Act
f o r
an
o r d e r
d e t s r m i n i n c
t h e
smount
p a y a b l e
by
a
b r o a d c a s t e r
t o t h e
owners
o f
z o p y r i g h t s
i n
p l lb l i shed
sound
r e c o r d i n g s
i n
r e s p e c t
o f
=he
S r o a d c a s c i n g
3
r h o s e
r e c o r d i n g s b y
t h a t broadcaster.
The
T r i b ~ ~ n a l
zacno:
n a k e
a n
o r d e r
r e q u i r i n g
a
commerciai
b r o a c c a s t = r
=o
?ay
an
amollnt
exceeding 1% of
t h e amount determined by
t h e T r ibuna l t o be
t h e
g ros s
ea rn ings
of
t h e
b roadcas t e r
d u r i n g
t h e
r e l e v a n t
p e r i o d
i n
I
which
t h e o r d e r
a p p l i e s
( s u b - S .
152
( 8 ) .
The
A u s t r a l d a n
B r o a d c a s t i n g
Commission
c a n n o t
b e
r e q u i r e d
t o p a y
a n
amount ,
excee.ding
an amount
a s se s sed on
a popula t ion b a s i s
(kub-S.
152
Sound
r eco rd ings
a r e
themselves
t h e
s u b j e c t
m a t t e r
o f
c o p y r i g h t
under
t h e Act
and
t h i s s p e c i e s o f
c o p y r i g h t
e x i s t s
independent ly
of
any
copyr igh t
s u b s i s t i n g
i n
t h e
l i t e r a r y ,
d r a m a t i c ,
m u s i c a l
o r a r t i s t i c works
embodied
i n t h e
r e c o r d s .
I n f r i n g e m e n t
o f
t h e
c o p y r i g h t
i n
a
sound
r e c o r d i n g
may
a l s o
c o n s i t i t u t e
in f r ingement
o f ,
f o r
example,
t h e copyr igh t
i n m u s i c
embodied
i n
a
record
b u t
t h i s w i l l no t
n e c e s s a r i l y be
t h e
c a s e .
Each copyr igh t each ca se depend
i s
independent
and
q u e s t i o n s
of
in f r ingement
i n
upon
t h e p rov i s ions
of
t h e A c t r e l a t i n g
t o each
s e p a r a t e
s u b j e c t
m a t t e r
of
copy r igh t .
For
t h e purposes
of
t h e Act ,
copyr igh t
i n r e l a t i o n
t o a
sound
record ing
i s t h e
exc lus ive
r i g h t t o do
a l l o r any of
t h e
(a)
t o make
a record embodyrng t h e recordlng:
(b)
t o cause
t h e record ing
t o be
heard
l n p u b l i c ;
( C )
t o b roadcas t t h e record lng
:
( S . 8 5 ) .
m e r e
a r e
i m p o r t a n t
l i m i t a t i o n s
on
t h e
e x c l u s i v e
r i g h t s
o f
t h e
owner
o f
c o p y r i g h t
i n
a
s o u n d
r e c o r d i n g ,
t h e
m o s t
i m p o r t a n t
o f
which
a r e
t h e
compulsory
l i c e n s i n g
p r o v i s i o n s
f o r
t h e
p u b l i c
per formance
and
b r o a d c a s t i n g
o f
r e c o r d s .
These
s t r i k e
. a b a l a n c e
b e t w e e n
t h e
c l a i m s 'o f
t h e
r e c o r d
p r o d l ~ c e r s f o r
a n
a d e q u a t e
r e t u r n
f o r
t h e i r
s k i l l and
e f f o r t
i n making
r e c o r d s
and
t h e
c l a i m s
o f
t h e
b r o a d c a s t e r s
a n d
t h o s e
i n t e r e s t e d
i n
t h e
p e r forming
r i g h t s .
Compulsory
l i c e n c e s
f o r
t h e
b r o a d c a s t i n g
o f
sound
r e c o r d i n g s
a r e
d e a l t
w i t h
by
S .
1 0 9 .
The
e s s e n c e
o f
t h e
scheme
i s
t h a t
i t
i s n o r
a n
i n f r i n g e m e n t
o f
c o p y r i g h t
i n
a
p u b l i s h e d
sound
r e c o r d i n g
t o b r o a d c a s t
i t
w i t h o u t . t h e
c o n s e n t
o f
t h e
owner
o f
t h e
c o p y r i g h t
i n
t h e
r e c o r d i n g
i f
t h e
r e c o r d i n g
h a s
been
r e l e a s e d
i n
A u s t r a l i a
o r
t h e
p r e s c r i b e d
p e r i o d
h a s
e l a p s e d
s i n c e
f i r s t r e l e a s e
o v e r s e a s
and
r o y a l t i e s
a r e p a i d
i n
a c c o r d a n c e
w i t h
t h e
r e q u i r e m e n t s
o f
t h e
Ac t .
S u b - s e c t i o n s
..
109
(l), ( 2 ) and
( 3 ) p r o v l d e a s f o l l o w s : -
" ( l )
S u b j e c t
t o
t h i s
s e c t i o n ,
t h e
c o p y r i g h t
i n
a
p u b l i s h e d
sound.
r e c o r d i n g
i s
n o t
i n f r i n g e d by
t h e making
o f
a
b r o a d c a s t
o f
t h a c
r e c o r d i n g
i f
-
.
( a )
where
t h e r e
i s no
o r d e r
o f
t h e
Tr ibl lna1
i n
f o r c e
!under'
s e c t i o n
1 5 2
a p p l y i n g
co
t h e
maker
o f
t h a t
b r o a d c a s t
i.n
r e i a t i o r .
t o t h e
t i m e
when
t h a t
b r o a d c a s t
was
nade
- t h e maker who i s t h e owner 3 f :he
o f
t h a t b r o a d c a s t h a s
~
i
v
~
n
an
)under tak ing
i n
,wr i t i ng
t o
t h e
s e r s o n
copyri :ht
i n :hat
r e c o r d i n g
t o pay
c c h i m sluch
amo'x.cs
i if
, -
a n y )
a s
ay
5 e
s p e c i f i s c
-..,
2 r
de t e rmined
i n
a c c s r d a n c e
;.,irh,
=n
s r s e r
o f
t h e
T r i 5 ~ i n a 1 ?ace
,:ncer
:ht
t 2 c : ~ c n
i n
r e s p e c t
o f
:he
b r o a c c a s z i n g
5 y
zle
maker,
dur ing a
per iod
w i th in
which
t h a t
b roadcas t
was
made,
o f
pub l i shed
sound
r eco rd ings
i n
which
t h e
copyr igh t s
a r e
owned
by
t h a t person
and
which
i n c l u d e
'
t h a t recording:
o r
( b )
where
t h e r e
i s
an
o r d e r
of
t h e
Tr ibuna l
i n
f o r c e
under
t h a t
s e c t i o n
app ly ing
t o
t h e maker t o t h e t ime when
of
t h a t
b roadcas t t h a t b roadcas t was
i n r e l a t i o n
made-
( i )
t h e copyr igh t
i n t h a t r eco rd ing
i s
owned
by
a person who
i s s p e c i f i e d
i n t h e o r d e r
a s one
of
t h e persons
among
whom
t h e amount
s p e c i f i e d
i n ,
o r
d e t e r m i n e d
i n
a c c o r d a n c e
w i t h ,
t h e
o r d e r
i s
t o
be
d iv rded
and
t h e maker
o f
t h e b r o a d c a s t
makes
payments
t o t h e p e r s o n
i n
accordance wi th t h e o r d e r ;
o r
(ii)
t h e copyr igh t
in
t h a t record ing
i s
owned by
a
p e r d o n who
i s n o t
s o
s p e c i f i e d
i n
t h e
o r d e r .
( 2 )
The l a s t preceding sub-sect ion
does n o t
apply
i n r e l a t i o n
t o a
b roadcas t
o f
a
sound
record ing i f t h e b roadcas t w a s made i n accordance wl th an agreement between t h e maker of t h e b roadcas t and t h e owner o f t h e
copyr igh t
i n
t h e
record ing .
( 3 )
Sub-section
( l ) does
n o t
app ly
i n
r e l a t i o n -to
a
b roadcas t
of
a
sound
record ing
t h a t
has .not
been
publ i shed
l n
A u s t r a l i a
i f
t h e
b roadcas t
was
made
be fo re
t h e
e x p i r a t i o n
of
t h e
p re sc r ibed
per iod
a f t e r t h e d a t e of
t h e
f i r s t
p u b l i c a t i o n
of
t h e
record ing : "
The p re sc r ibed per iod 1s seven weeks
( s e e Reg.
1 9 o f th'e
Copyright
Regula t ions
1969) .
The
genera1
e f f e c t
o f
t h i s
p rov i s ion
i s
t h a t
a f t e r
a
record
has
been
r e l e a s e d
i n A u s t r a l i a ,
s u b j e c t
t o complying
wi th
t h e
r e q u i r e m e n t s
o f
t h e
Act
i t
may
be
b r o a d c a s t
s u b j e c t
t o
payment
of
a p p r o p r i a t e
r o y a l t i e s
and
o therwise
complying
wi th
t h e
A c t .
I f
t h e
r e c o r d i n g
h a s
n o t
been
p u b l i s h e d
i n
A u s t r a l i a ,
a
p r e s c r i b e d
p e r i o d
o f
s even
weeks
must
e l a p s e
a f t e r
t h e
d a t e
o f
f i r s t p u b l i c a t i o n
b e f o r e
t h e
Licence
p r o v i s i o n s
can
b e
i n v o k e d
S e c t i o n
152 ,
which
i s t h e key
s e c t i o n i n r e l a t i o n tO
t h e
q u e s t i o n s
which
we
have
t o
c o n s i d e r ,
p r o v i d e s : -
"152 .
(1)
I n
t h i s
s e c t i o n ,
u n l e s s
t h e
c o n t r a r y
i n t e n t i o n
a p p e a r s
-
" A u s t r a l i a "
d o e s
n o t
i n c l u d e
t h e
e x t e r n a l
T . e r r i t o r i e s ;
" b r o a d c a s t e r " means
-
( a )
t h e
A u s t r a l L a n
B r o a d c a s t i n g
Commission;
( a a ) t h e
S p e c i a l
B r o a d c a s t i n g
S e r v i c e :
( b )
t h e
h o l d e r
o f
a
l i c e n c e
f o r
a
b r o a d c a s t i n g
s t a t i o n :
( C )
t h e h o l d e r o f
a
L icence
f o r
a
t e l e v i s i o n
s t a t i o n :
o r
( d )
a
p e r s o n s u b - p a r a g r a p h
p r e s c r i b e d
f o r
t h e
p u r p o s e s
o f
91
( a )
( i i i ) o r
9 1
( b )
(iii)..
( 2 )
S u b j e c t
t o
t h i s
s e c t i o n ,
an
a p p l i c a t i o n
may
b e
made
t o t h e
T r i b u n a l
f o r a n
o r d e r
d e t e r m i n i n g ,
o r
making
p r o v i s i o n
for
d e t e r m i n i n g ,
t h e
amount
p a y a b l e
by
a
b r o a d c a s t e r
t o
c h e
o w n e r s
o f
c o p y r i g h r s
i n
p u b l i s h e d
sound
r e c o r d i n g s
i n
respec:
s f
:he
b r o a d c a s t i n g ,
d u r i n g
a
p e r i o d
s p e c i f l e d
i n
t h e
a p p l i c a t i o n ,
o f
t h o s e
r e c o r d i n g s
by
:hat
b r o a d c a s t e r .
( 3 )
An
a p p l i c a t i o n
m d e r
t h e
Las t
p r e c e d i n s
s u b - s e c t i o n
may
be
made
b y
c5.e
b r c a d c a s c e r
3r
by t h e owner o f
a c o p y r i g h t ~n
i
~ ~ l b i i s h e d
sound
r e c o r d i n g .
( 4 )
The
p a r t i e s
=n
i p p ' L ~ c 3 ~ 1 c n
i a d ~ r
s u b - s e c t i o n
i 2
a r e -
( a )
t h e person making
t h e a p p l i c a t i o n ;
and
( b )
such o r g a n l z a t l o n s
o r persons
a s app ly
t o
t h e
Tr lbuna l
t o be
made
p a r t i e s
t o
t h e
a p p l i c a t l o n
and,
i n
accordance
wi th
t h e
n e x t
succeeding
sub-Sect ion,
a r e
made
p a r t i e s
t o t h e
a p p l i c a t i o n .
4
( 5 )
Where
an
o r g a n i z a t i o n
(whether c la lming
t o
be
r e p r e s e n t a t l v e
of
b r o a d c a s t e r s
o r
of
t h e owners
of
copy r igh t s
i n published
sound
r e c o r d i n g s
o r
n o t )
o r
a
p e r s o n
(whether a b roadcas t e r
o r t h e owner
o f
a
copy r igh t
i n a pub l i shed
sound
recording
o r n o t )
a p p l i e s
t o t h e
T r i b u n a l
t o be
made
a p a r t y t o an
a p p l i c a t l o n
under
t h l s
s e c t l o n ,
and
t h e
Tr ibuna l
i s
s a t i s f i e d
t h a t
t h e
o r g a n i z a t i o n
o r p e r s o n
h a s
a
s u b s t a n t i a l
i n t e r e s t
I n
t h e
m a t t e r
t h a t
i s t h e Tr ibuna l may,
s u b j e c t
of i f it t h i n k s
t h e
a p p l i c a t i o n , f i t , make
t h e
t h a t
o r g a n i z a t i o n
o r p e r s o n
a
p a r t y
t o t h e
a p p l i c a t i o n .
(6)
The a p p l i c a t i o n
Tr ibuna l
s h a l l
cons ide r
an
under
sub-sect ion
( 2
)
and,
a f t e r
g i v i n g
t h e
p a r t i e s
t o
t h e
a p p l i c a t i o n
an
oppor tun i ty
of
p r e s e n t i n g
t h e i r c a s e s ,
s h a l l make
an
o r d e r -
( a )
determining,'
o r
maklng
p r o v i s i o n
f o r
determining,
t h e amount payable by
t h e
b roadcas t e r
t o t h e owners
of
copyrights
i n publ ished
sound
record ings
i n r e s p e c t
of
t h e b roadcas t i ng ,
du r lng
t h e per iod
t o
which
t h e
o r d e r
a p p l l e s ,
by
t h e
b roadcas t e r
of
t hose
r eco rd ings ;
( b )
s p e c i f y i n g a s
t h e persons
among
whom
t h a t
amount
i s t o b e
d i v i d e d
s ~ c h
o f
t h e
persons who
were, o r were represen ted by ,
p a r t i e s
'
t o
t h e
a p p l i c a t i o n
a s
t h e
Tr ibuna l
i s
s a t i s f i e d
a r e
t h e
owners
of
copy r igh t s
i n publ ished
sound
r eco rd ings ;
and
( C )
s pec i fy ing
a s
t h e
r e s p e c t i v e
s h a r e s
i n
t h a t amount
o f
t h e p e r s o n s
among
whom
t h a t amount
i s
t o be
d iv ided
and
a s t h e
t i m e s
a t which
t h o s e
s h a r e s
a r e
t o be
paid
such
s h a r e s
and
t imes
a s
those
persons
agree
o r ,
i n
d e f a a l t
of
agreement,
a s
t h e
Tr ib lmal
t h i n k s
e q u i t a b l e .
( 7 ) I n s o mak ing
a n o r d e r
i n r e l a t i o n t o a
b r o a d c a s t e r ,
t h e
T r i b u n a l
s h a l l
t a k e
i n t o
ac'count
a l l
r e l e v a n t
m a t t e r s ,
i n c l ~ d i n g t h e
e x t e n t
t o which
t h e b r o a d c a s t e r
u s e s ,
f o r
t h e
p u r p o s e s
o f
b r o a d c a s t i n g ,
r e c o r d s
embodying
s o u n d
r e c o r d i n g s
( o t h e r t h a n
r e c o r d i n g s
i n
r e l a t i o n
t o
w h i c h
s e c t i o n
105
a p p l i e s )
i n
which
c o p y r i g h t s
s u b s i s t ,
. b e i n g
c o p y r i g h t s
owned
by
p e r s o n s
who
a r e ,
o r
a r e
r e p r e s e n t e d
by ,
p a r t i e s
t o t h e
a p p l i c a t i o n .
( 8 )
The
T r i b u n a l
s h a l l n o t make
an o r d e r
t h a t
would
r e q u i r e
a
b r o a d c a s t e r
b e i n g
t h e
h o l d e r
o f
a
l i c e n c e
f o r
a
b r o a d c a s t i n g
s t a t i o n t o
pay ,
i n
r e s p e c t
o f
t h e
b r o a d c a s t i n g
o f
p u b l i s h e d
sound
r e c o r d i n g s
d u r i n g
t h e
p e r i o d
i n r e l a t i o n
t o w h i c h
t h e o r d e r
a p p l i e s ,
a n
amount
e x c e e d i n g
1% o f
t h e
amount
d e t e r m i n e d
by
t h e
T r i b u n a l
t o b e
t h e
g r o s s
e a r n i n g s
o f
t h e
b r o a d c a s t e r
d u r i n g
t h e
p e r i o d
e q u a l
t o
t h e
p e r i o d
i n r e l a t i o n
t o which
t h e
o r d e r
a p p l i e s
t h a t ended
on
30
J u n e
l a s t p r e c e d i n g
t h e
d a t e
o f
commencement
o f
t h e p e r i o d
i n r e l a t i o n
t o
which
t h e
o r d e r
a p p l i e s .
( 1 0 )
S u b - s e c t i o n
( 8 )
d o e s
n o t
a p p l y
t o
an
o r d e r
i n r e l a t i o n
t o a
b r o a d c a s t e r
u n l e s s
-
( a )
t h e
b r o a d c a s t e r
e s t a b l i s h e s
t o
t h e
s a t i s f a c t i o n
o f
t h e
T r i b u n a l
t h e
amount
o f
t h e
g r o s s
e a r n i n g s
o f
t h e
b r o a d c a s t e r
d u r i n g
t h e p e r i o d
i n r e s p e c t
o f
w h i c h
t h o s e - e a r n i n g s a r e
t o be
d e t e r m i n e d ;
and
( b )
t h e
b r o a d c a s t e r
c a r r i e d
on
t h e
t r a n s m i s s i o n
o f
programmes
by
way
of
'
sound
b r o a d c a s t i n g
t h r o u g h o u t
t h e
whoLe
o f
t h a t
p e r i o d .
( 1 1 )
Where
a n a p p l i c a t i o n i s made
t o t h e
T r i b u n a l
under
s u b - s e c t i o n
1 2 )
i n
r e l a t i c n
t o
t h e
A u s t r a l i a n
Broadcas t ing
Commission,
t h e
T r i b u n a l
-
( a )
s h a l l make
s e p a r a r e
o r d e r s
:n
r e s c e c t
:f
s o u n d
b r o a d c a s t s
b y
= h e
2ommiss ion
of
p u b l i s h e d
sound
r e c o r d i n g s
anC
~c
r e s p e c z
o f
t e l e v i s i o n
b r o a d c a s t s
3 y
::?E
Commission
o f
s l ~ c ? .
recorc i ings ;
3nd
( b )
s h a l l
n o t
make
a n
o r d e r
t h a t
would
r e q u i r e
t h e
Commission
t o pay,
i n r e s p e c t
of
sound
b roadcas t s
of
p u b l ~ s h e d sound
recordings
dur lng
t h e
per lod
I n
r e l a t l o n
t o whlch
t h e o r d e r
a p p l l e s ,
a n
amount
exceeding t h e sum o f -
( i)
i n r e s p e c t
of
each
complete
yea r
~ n c l u d e d I n
t h a t
pe r iod
-
t h e
amount
a s c e r t a i n e d
by
m u l t l p l y l n g
one-half
of One c e n t by t h e number
.
e q u a l
t o t h e
number
o f
p e r s o n s
comprised
l n
t h e
e s t ima ted
p o p u l a t i o n
o f
A u s t r a l i a a s
l a s t
s e t o u t
i n s t a t i s t i c s publ ished
by
t h e
Commonwealth
S t a t i s t i c i a n
b e f o r e
t h e making
o f
t h e
o r d e r ;
and
( i i)
i n r e s p e c t of
each p a r t of
a
year
inc luded
i n
t h a t
p e r i o d
-
t h e
amount
t h a t b e a r s
t o t h e amount
a s c e r t a i n e d
I n
accordance
wi th
t h e
Eas t
p reced ing
sub-paragraph
i n
r e l a t i o n
t o a
c o m p l e t e
y e a r
t h e
same
p ropor t i on
a s
t h a t p a r t of
a
yea r
b e a r s
t o a
complete
y e a r .
( 1 2 )
A
p e r s o n
who
i s
n o t
s p e c i f i e d
i n
an
o r d e r
i n f o r c e under
sub-sec t ion
(6) a s one o f
t h e persons among whom
t h e amount specified
i n ,
o r
d e t e r m i n e d
i n
a c c o r d a n c e
w i t h ,
t h e
~ r d e r i s
t o
be
d iv ided
may,
be fo re
t h e
e x p i r a t i o n
o f
t h e
pe r iod
t o
which
t h e
o r d e r
a p p l i e s ,
- a p p l y
t o
t h e
Tr ibuna l
f o r
an
amendment-of
t h e o r d e r
so
a s t o s p e c i f y him
a s
one of
t hose persons .
( 1 4 )
The
Tr ibuna l
s h a l l
r o n s l d e r
an
a p p l i c a t i o n
' under
' sub-sec t ion
( 1 2 )
f o r
an
amendment
o f
an
o r d e r
i n
f o r c e
$under
sub-sect ion
( 6 )
( i n t h i s
sub-sect ion
r e f e r r e d
t o a s
" t h e
p r i n c i p a l
o r d e r " )
and,
a f t e r
g i v i n g
t h e
p a r t i e s
t o
t h e
a p p l i c a t i o n
an
o p p o r t u n i t y
o f
p r e s e n t i n g
t h e i r
c a s e s ,
s h a l l ,
if
it
i s
s a t i s f i e d
t h a t
t h e
a p p l i c a n t
i s
t h e
owner
of
t h e
c o p y r i g h t
o r
c o p y r i g h t s
i n
one
o r more
pub l i shed
sound
r eco rd ings ,
make
an
o r d e r
amending
t h e
p r i n c i p a l
o rder
so a s
t o -
( a )
s p e c i f y
t h e
a p p l i c a n t
a s
one
o f
t h e
p e r s o n s
among
whom
t h e
amount
s p e c i f i e d
i n ,
o r de t e rmined
i n a c c o r d a n c e
w i t h ,
t h e
p r i n c i p a l o r d e r
is
t o be
d i v i d e d ;
and
( b )
s p e c i f y a s t h e
s h a r e
o f
t h e
a p p l i c a n t
i n
t h a t amount
a n d
a s
t h e
t i m e s
a t w h i c h
t h a t
s h a r e
i s
t o b e
p a i d
such
s h a r e
and
t i m e s
a s
t h e
a p p l i c a n t
a n d
t h e
o t h e r
p e r s o n s
among
whom
t h a t amount
i s t o b e
d i v i d e d
a g r e e
o r ,
i n
d e f a u l t
o f
ag reemen t ,
a s
t h e
T r i b u n a l
t h i n k s
e q u i t a b l e
and
make
any
conse .quen t i a1
a l t e r a t i o n s
i n
r e s p e c t
o f
t h e
s h a r e s
o f
t h o s e
o t h e r
p e r s o n s .
( 1 5 )
An
o r d e r o f
t h e
T r i b u n a l
made
u n d e r
s u b - s e c t i o n
( 6 )
i n
r e l a t i o n
t o
a
b r o a d c a s t e r
a p p l i e s
i n
r e l a t i o n
t o
t h e
p e r i o d
commencing
on
t h e
d a t e
s p e c i f i e d
i n
t h e
o r d e r
and
e n d i n g
on
30
J u n e
n e x t
s u c c e e d i n g
t h e
d a t e
o f
making
o f
t h e
o r d e r .
( 1 8 )
Where
a n
o r d e r o f
t h e T r i b u n a l
i s i n
f o r c e
m d e r
t h i s
s e c t i o n ,
t h e
b r o a d c a s t e r
i n
r e l a t i o n
t o whom
t h e
o r d e r
a p p l i e s
i s
l i a b l e
t o pay
t o e a c h o f
t h e p e r s o n s
s p e c i f i e d
i n t h e
o r d e r a s t h e p e r s o n s
among
whom
t h e amount
s p e c i f i e d
i n ,
o r
d e t e r m i n e d
i n
a c c o r d a n c e
w i t h ,
the_ o r d e r
i s
t o be
d i v i d e d
t h e
s h a r e
s o
s p e c i f i e d i n r e l a t i o n
t o t h a t p e r s o n
and
i s s o
l i a b l e
t o
p a y
t h a t
s h a r e a t t h e
t i m e s
s o
s p e c i f i e d
a n d
t h a t
p e r s o n
may
r e c o v e r
a n y
amount
t h a t
i s n o t
p a i d
i n acco rdance
w i t h
t h e
o r d e r
i n
a
c o u r t
o f
c o m p e t e n t
j u r i s d i c t i o n
f rom
t h e
b r o a d c a s t e r
a s a
d e b t
e
t o
t h e
p e r s o n .
( 1 9 )
For
t h e
pu rposes
o f
t h i s
s e c t i o n ,
:he
g r o s s
e a r n i n g s
o f
a
b r o a d c a s t e r
i n
r e s p e c t
o f
a p e r i o d b r o a d c a s t e r
a r e
t h e
g r o s s
e a r n i n g s
o f
t h e
d u r i n g
t h a t
p e r i o d
i n
r e s p e c t
o f
t h e
b r o a d c a s t i n g
b y
him
of
a d v e r t i s e m e n t s
o r
o t h e r
m a t t e r ,
i n c l b ~ d i n q :he
g r o s s
s a r n i n g s
o f
t h e
b r o a d c a s t e r
i u r i n g
~ h a z
; e r iod
i n
r o s p e c z
o f
t h e p r o v i s i o n by h l rn o f , o r o
e
r
s
i n
r e s p e c t
o f , n a t t e r
S r o a d c a s ~
b y :-.in.
( 2 0 )
Where,
i n connexion wl th a transaction,
any
c o n s i d e r a t i o n
i s
pa id
o r
g iven
o therwise
t han
i n
c a s h ,
t h e
money
v a l u e
o f
t h a t
c o n s i d e r a t i o n
s h a l l ,
f o r
t h e
purposes
of
t h e
l a s t preceding
s u b - s e c t ~ o n , be
deemed
t o have
been
pdid
o r g iven . "
Although S . 152 may be invoked wi thou t any under tak ing
having been g iven under sub-S.
109
( L ) , once a n o r d e r i s made
under S . 152 it fol lows t h a t sub-S. 109 ( l ) i s brought i n t o p l a y . The remuneration t o be f i x e d under S . 152 i s an amount payable b y t h e b r o a d c a s t e r t o t h e owner o f t h e c o p y r i g h t i n a sound
record ing
who
has
t h e
e x c l l ~ s i v e
r i g h t
t o b roadcas t
t h a t
r eco rd ing
by v i r t u e of
S . 85
( c ) .
The
de te rmina t ion
o f
t h i s
a p p l i c a t i o n
n e c e s s a r i l y
invo lves
dec id ing
c e r t a i n
q u e s t i o n s
r e l a t i n g
t o
t h e
c o n s t r u c t i o n
and
ope ra t i on of
s .152 .
I t i s t o t h e s e t h a t we
now
t u r n .
COPYRIGHT OWNERS AND REPRESENTATIVES INCLUDING PPCA
-
I t was
conceded
by
2MMM
t h a t
each
o f
t h e
r eco rd
companies was
t h e owner of
t h e copyr igh t
i n a t l e a s t one
s'ound
r e c o r d i n g .
. I t f o l l o w s
t h a t
e a c h
o f
them
had
t h e
s t a n d i n g
r equ i r ed by sub-S.
152
( 3
)
of
t h e Act
t o make
t h e
appLica t ion .
The
s u b j e c t ma t t e r
o f ' t h e
a p p l i c a t i o n
contemplated
by
sub-S.
L52
( 2 ) and
t h e na tu re of
t h e o rde r requ i red t o be made
by
sub-S.
152
-
( 6 ) i s an
order: . -
-. ..
" ( a ) d e t e r m i n i n g ,
o r
making
p r o v i s i o n
f o r
d e t e r m i n i n g ,
t h e
amount
p a y a b l e
b y
t h e
b r o a d c a s t e r
t o
t h e
owners
o f
c o p y r i g h t s
i n p u b l i s h e d
sound
r e c o r d i n g s
i n
r e s p e c t
o f
t h e
b r o a d c a s t i n g ,
d u r i n g
t h e
p e r i o d
t o
which
t h e
o r d e r
a p p l i e s ,
by
t h e
b r o a d c a s t e r
o f
t h o s e
r e c o r d i n g s ;
( b ) s p e c i f y i n g
a s
t h e
p e r s o n
among
whom
t h a t
amount
i s
t o b e
d i v i d e d
s u c h
o f
t h e
p e r s o n s
who
were ,
o r were
r e p r e s e n t e d
b y ,
p a r t i e s
t o
t h e
a p p l i c a t i o n
a s
t h e
T r i b u n a l
i s
s a t i s f i e d
a r e
t h e
owners
o f
c o p y r i g h t s
i n p u b l i s h e d
sound
r e c o r d i n g s ;
and
( C )
s p e c i f y i n g
a s
t h e
r e s p e c t i v e
s h a r e s
i n
t h a t amount
o f
t h e p e r s o n s
among
whom
t h a t amount
i s
t o be
d i v i d e d and
a s
t h e
t i m e s
a t w h i c h
t h o s e
s h a r e s
a r e
t o b e
p a i d
such
s h a r e s
and
t i m e s
a s
t h o s e
p e r s o n s
a g r e e
o r ,
i n
d e f a u l t
o f
ag reemen t ,
a s
t h e
T r i b u n a l
t h i n k s
e q u i t a b l e . "
I t
i s
common
ground
t h a t
on
t h e
p r o p e r
c o n s t r u c t i o n
o f
sub-S.
152
( 6 ) t h e T r i b u n a l
was
r e q u i r e d : -
( a )
t o
d e t e r m i n e
o r
make
p r o v i s i o n
f o r
t h e
d e t e r m i n a t i o n
o f
a
g l o b a l
amount
p a y a b l e
by
t h e
b r o a d c a s t e r
t o
t h e
c o p y r i g h t
owners
( t h i s amount
was
r e f e r r e d
t o i n t h e
p r o c e e d i n g s
a s
" t h e c a k e " ) ;
( b )
t o s p e c ~ f y
t h e p e r s o n s among
whom
?he
cake 1s t o
b e d i v i d e d :
and
( c )
t o
spec l fy
t h e
r e s p e c t i v e
sha res
of
such
persons
r n
t h a t amount
and
t h e t i m e
o f
payment.
The
Tribunal must. be
s a t i s f i e d t h a t
such persons
were
"owners
of
copyr igh ts
i n
publ ished
sound
r e c o r d l n g s "
and
were
p a r t i e s
o r
r e p r e s e n t e d
by
p a r t i e s
t o
t h e
a p p l i c a t i o n .
On
i t s
f ace
sub-S.
152
( 6 )
p o s t u l a t e s
t h a t
a l l
i n t e r e s t e d
copyr igh t
owners
w i l l
be
before
t h e
Tr ibuna l .
Sub-sectlon
( 1 2 ) , however,
recognises
t h a t t h i s may
n o t be
the
case and makes
provis ion
f o r an application t o be made
t o t h e
Tribunal. by
a person
not s p e c i f i e d i n an o rde r under
sub-S.
( 6 )
f o r a n amendment o f
t h e o r d e r so a s t o s p e c i f y him
a s one
o f
t h o s e
p e r s o n s .
Sub- sec t ion
( 1 4 )
p r o v i d e s
t h a t
t h e
T r i b u n a l
s h a l l ,
~ f
i t
i s s a t i s f i e d t h a t t h e a p p l i c a n t
i s t h e owner
o f
copyright
o r
copyrights
i n
one
o r
more
publ ished
sound
record ings ,
make
a>
o r d e r
amending
i t s o r i g i n a l
o r d e r
s o
a s
t o
enable the previously determined,
app l i can t
t o p a r t i c i p a t e
i n
the
d i v i s i o n of
t h e
amount
and
"make any consequent ia l
a l t e r a t i o n s i n
r e s p e c t o f
t h e
s h a r e s "
of
t h e
o t h e r p e r s o n s
e n t i t l e d .
I t
i s
a p p a r e n t
t h a t
a
q u e s t r o n
of
refunding
c o u l d
a r i s e - o n
such
a n
a p p l i c a t i o n
i f
sub-S.
( 1 4 )
1s
read
i n
isolation
from
t h e
remainder of s .152 . These d r f f l c u l t r e s were cLear ly recognised by the draftsman of S . 152 and s t eps were taken t o meet them t o ensure t h a t any amendment had only a prospective ope ra t lon . By
sub-S.
152
( 2 ) a perlod f o r the opera t lon of t he order may be
- 1 7 -
s p e c i f i e d
i n
t h e
o r i g i n a l
a p p l i c a t i o n .
By
sub -S .
( 1 5 )
an
o r d e r
llnder
sub -S .
( 6 ) a p p l i e s
i n r e l a t i o n t o t h e p e r i o d
commencing
on
a
d a t e
s p e c i f i e d
i n t h e
o r d e r
and
e n d i n g
on
t h e
3 0 t h
Jllne
i e x t
s u c c e e d i n g
t h e
d a t e
o f
making
t h e
o r d e r
whi'ch,
i t
i s a n t i c i p a t e d ,
w i l l b e 30 June 1 9 8 3 .
I t was
n o t d i s p u t e d by
2MMM
t h a t i t was
a p p r o p r i a t e
f o r t h e
p e r i o d
t o commence
o n
1 O c t o b e r
1 9 8 0 ,
a s
s p e c i f i e d
i n t h e a p p l i c a t i o n .
The
T r i b u n a l
a c c e p t s
t h a t
a n y
o r d e r
it makes
shou ld
a p p l y
t o a
d a t e commencing
on
1 Oc tobe r
1 9 8 0 , b e a r i n g
i n mind
t h a t
t h e
i n i t i a l a p p l i c a t i o n was
made
on
15
September
1980 ,
f o l l o w i n g
t h e
commencement
o f
b r o a d c a s t i n g
on
22
August
1980 by
2MMM.
I n t h e
e v e n t
o f
an
a p p l i c a t i o n b e i n g
made
under
sub-S .
( 1 2 ) a f t e r
t h e
T r i b u n a l
h a s
made
i t s
o r d e r ,
sub -S .
( 1 7 )
p r o v i d e s
t h a t
any
s u b s e q u e n t
o r d e r
made
under
sub-S .
( 1 4 )
amending
t h e
p r i n c i p a l
o r d e r w i l l a p p l y
i n r e l a t i o n
t o t h e p e r i o d
"commencing
o n
t h e d a t e o f
mak ing
o f
t h e
a m e n d i n g
o r d e r
a n d
ending
on
t h e
d a t e
o f
e x p i r a t i o n
o f
t h e
p e r i o d
i n
r e l a t i o n
t o
which
t h e
o r d e r
t h a t
i s b e i n g
amended
a p p l i e s " .
Thus,
a t l e a s t
so
f a r
a s
t h e
Act
i s conce rned ,
no
q u e s t i o n
o f
r e f u n d i n g
w i l L
a r i s e .
So
f a r
a s
2 M M M
i s
c o n c e r n e d
-,he r e s l l l t s
o f
t h e
l o g
a n a i y s e s
and
t h e
p l a y
List
a n a l y s e s
c a r r i e d o u t
on
b e h a l f
o f
t h e
r e c o r d
companies
show
t h a t
t h e
v a s t
bu lk
af
a l l p r o t e c t e d
s o l ~ n d
r e c o r d i n g s
b r o a d c a s t
b y
2 M M M
d ' l r i n g
t h e
r e i s v a n t
p e r i o d
w e r e
r e c o r d i n g s
i n
r e s p e c t
o f
which
t h e
. \ u s r r a i . i a n
b r c a d c a s t i n g
c o p y r i g h t
i s owned
o r c o n t r o l l e d
by
one
r
1
o f
=he r e c o r d
companies .
The
r e c o r d
companies
ha'ie
in
z , l rn ; r=n==d
= x c ? , ~ s i v e
-18-
a u t h o r i t y
t o PPCA
t o a c t a s
c o l l e c t i n g
a g e n t
and
t o g r a n t
l i c e n c e s
t o
t h i r d
p a r t i e s
i n
r e s p e c t
o f
t h e
b roadcas t i ng
1
copyr igh t s owned
o r c o n t r o l l e d
by
them.
On
9 October
1980 PPCA
a p p l i e d
t o t h e
T r ibuna l
t o be
made
a
p a r t y
t o t h e
r eco rd
companies '
a p p l i c a t i o n
pursuan t
t o
sub-S.
1 5 2 ( 5 ) of
t h e Act which provides : -
"Where
an
o r g a n i z a t i o n
(whether c la iming
t o be
a
r e p r e s e n t a t l v e
o f
b r o a d c a s t e r s
o r
o f
t h e
owners
o f
copyrbghts
i n
pub l i shed
sound
r e c o r d i n g s
o r
n o t )
o r
a
p e r s o n
( w h e t h e r
a
b roadcas t e r
o r t h e owner
of
a
copy r igh t
i n a
pub l i shed
sound
r eco rd ing
o r n o t )
a p p l i e s
t o
t h e
Tr ibuna l
t o b e
made
a
p a r t y
t o
an
a p p l i c a t i o n
under
t h i s
s e c t i o n ,
and
t h e
Tr ibunal
i s
s a t i s f i e d t h a t
t h e o r g a n i z a t i o n
o r
person
has
a
s u b s t a n t i a l
i n t e r e s t
i n
t h e
ma t t e r
t h a t
i s
t h e
s u b j e c t
of
t h e
a p p l r c a t i o n ,
t h e Tr ibuna l may,
i f
it
t h i n k s
f i t , make
t h a t
o r g a n i z a t i o n
o r
person
a
p a r t y
t o
t h e
a p p l i c a t i o n . "
On
14
0 c t a b e r
1980
t h e
then
P r e s i d e n t
o f
t h e
T r ibuna l
(Bowen
C . J . ) ,
be ing
s a t i s f i e d
t h a t
PPCA
had
a
s u b s t a n t i a l
i n t e r e s t
i n
t h e
ma t t e r
t h a t ' w a s
t h e
s r lb jec t
o f
t h e
a p p l i c a t i o n ,
o rdered t h a t
i t be made
a p a r t y
t o t h e
a p p l i c a t i o n .
I t does
n o t
f o l l o w t h a t PPCA
i s
e n t i t l e d
t o be
s p e c i f i e d a s
a
p e r s o n
t o
r e c e i v e a
sha re of
t h e cake on
beha l f
of
t h e copyr igh t owners
it
r e p r e s e n t s .
PPCA
could
on ly be
s o
s p e c i f i e d
m d e r
sub-S.
1 5 2
( 6 )
i f t h e Tr ibunal were
s a t i s f i e d t h a t i t was
t h e owner
of
copy r igh t
i n
a t
l e a s t
one
p l ~ b l l s h e d s o l ~ n d recording.
I t
r s ,
however ,
i m p l i c i t
from
p a r a .
132
( 6 ) ( b i t h a t
P P C A ,
a s a
p a r t y
t o t h e
a p p l i c a t i o n ,
may
r e p r e s e n t a s s ignmen t
owners agreement
of
copyr igh t l i c e n c e
i n publ ished
sound
??CA
was
i n c o r p o r a t e d
i n New
South
w a l e s
on
2 7
March
1969
f o r
t h e
p u r p o s e ,
among
o t h e r s ,
o f
e x e r c i s i n g
t h e
copyright
i n
s o u n d
r e c o r d i n g s
u n d e r
p a r a .
85
( b ) and
( c ) o f
t h e A c t
o n
b e h a l f
o f
t h e
owners
o f
t h o s e
r i g h t s .
PPCA
now
r e p r e s e n t s
t h e
o w n e r s
o f
c o p y r i g h t s
i n
a
l a r g e
number
o f
p u b l i s h e d
s o u n d
r e c o r d i n g s .
The
s p e c i f i c o b j e c t s
f o r which
PPCA
was
e s t a b l i s h e d
inc l l l de
t h e
f o l l o w i n g : -
To
be
o r
become
by
g r a n t o r o t h e r w i s e
t r a n s f e r
t h e
owners
o f
o r
o t h e r w i s e
e n t i t l e d
t o
t h e
b e n e f i t
o f
o r
i n t e r e s t
i n
t h e
c o p y r i g h t s
i n
any
sound
r e c o r d i n g
( h e r e i n a f t e r
c a l l e d
' r e c o r d i h g s ' )
and
t o
e x e r c i s e
pe r fo rm
and
e n f o r c e
a l l
r i g h t s
and
r emed ie s
by
v i r t u e
o f
t h e
c o p y r i g h t
Act
1968 o f
t h e Commonwealth
o f A u s t r a l i a
o r any re -enac tment
s t a t u t o r y
m o d i f i c a t i o n
amendment
o r
c o n s o l i d a t i o n
t h e r e o f
o r
any
enac tment
r e p l a c i n g
t h e
same
f o r t h e
t i m e
b e i n g
i n
f o r c e
( a l l o f
w h i c h
a r e
h e r e i n a f t e r
i n c l u d e d
i n
t h e
e x p r e s s i o n
' t h e
Copyr igh t
A c t ' )
i n
r e s p e c t
o f
t h e
b r o a d c a s t i n g
o f
r e c o r d i n g s
o r
o f
c a b s i n g
t h e
r e c o r d i n g s
t o
b e
h e a r d
i n
p u b l i c
( h e r e i n a f t e r
j o i n t l y
c a l l e d
t h e
and
t o r e s t r a i n o r
p r e v e n t
by
l e g a l
p r o c e s s
o r
o t h e r w i s e
any
u n a u t h o r i s e d
per formance .
( 2 ) To
e x e r c i s e
pe r fo rm
and
e n f o r c e
a n b e h a l f
o f
t he ,
o w n e r s
o f
o r
p e r s o n s
o t h e r w i s e
e n t i t l e d
. t o
t h e
b e n e f i t
o r
i n t e r e s t
i n
t h e
c o p y r i g h t s
i n
r e c o r d i n g s
(ail
s ~ l c h
owners
and
p e r s o n s
b e i n g
h e r e i n a f t e r
c a l l e d t h e
' p r o p r i e t o r s ' :
a i i
r ~ g h t s
and
remedies
o f
t h e
p r o p r i e t o r s
by
v i r t ) l e o f
t h e
Copyr igh t
Act
i n
r e s p e c t
o f
che
per formance
and
t o r e s t r a l n o r p reven r
b y
l e g a l
~ r o c e s s
3 r
? t h e r . ~ i s e
3nv
l l nau tho r i s ed
pe r formance .
( 3 )
I n
t h e
e x e r c i s e
performance
o r
enforcement
o f
any
such
r i g h t s
and
remedies
a s
aforesaid
t o
g r a n t
l i c e n c e s
and
t o e n t e r
l n t o
any
l i c e n s i n g
schemes
agreements
o r
o t h e r
arrangements
o r
t o
o b t a i n o r seek
t o o b t a i n any
Order
from
t h e
Copyright
Tr lbuna l
w l th
r e s p e c t
t o
t h e performance
o r t o t h e amount
agreed
o r determined
t o be payable
i n r e s p e c t of
t h e performance and
from t ime t o t ime t o
r e s c i n d
a l t e r
o r
v a r y
any
such
l i c e n c e s
l i c e n s i n g
schemes
agreements
o r
a r r a n g e m e n t s
o r
t o
o b t a i n
o r
s e e k
t o
o b t a i n any v a r i a t i o n
o f
any
Order
of
t h e
C o p y r i g h t
T r l b u n a l
and
t o
c o l l e c t
and
r e c e i v e
and
g i v e
e f f e c t u a l
d i s cha rges
f o r
a l l
r o y a l t i e s ,
f e e s
and
o t h e r
monies
payable under any such l i c e n c e s l i c e n s i n g schemes agreements arrangements o r Orders o r o therwise i n r e s p e c t o f any
performance
by
a l l necessa ry
a c t i o n s
o r
o t h e r
p r o c e e d i n g s
and
t o
r e c o v e r
s u c h
r o y a l t i e s
f e e s
and
o t h e r
monies
and
t o
r e s t r a i n and recover damages f o r t h e in f r ingement by means o f any performance o f the copyr igh t s i n r eco rd ings o r of any
o t h e r r i g h t s o f
t h e
Company
o r o f
t h e
p r o p r i e t o r s
o r
o f
t h e
Company
on
t h e i r
beha l f
i n
r e s p e c t
of
such
r eco rd ings
and
t o
r e l e a s e
compromise
o r
r e f e r
t o
a r b i t r a t i o n
any
such
a c t i o n s
o r
proceedings
o r
any
o t h e r
d i s p u t e s
o r
d i f f e r e n c e s
i n
r e l a t i o n
t o t h e
p remises .
( 4 ) To
a a q u i r e
from
any
p e r s o n
owning
o r
having
t h e
r l g h t
o r
power
t o g r a n t
t h e
same
r i g h t s
i n r e s p e c t
o f
t h e performance
o f
r ecord ings
whether
o r
not
any
copyrighks
s h a l l
s u b s i s t
i n r e l a t i o n
t h e r e t o
and
t o e x e r c i s e
and
perform
those
r i g h t s and by way
of
l i c e n c e agreement o r
o t h e r
means
permlt
t h e
performance
t h e r e o f
and
t o
e n f o r c e
by
a l l
l a w f u l
means any such licence o r agreement."
In
fu r the rance
o f
i t s
o b j e c t s
PPCA
has
e n t e r e d
i n t o
a
number
of
agreements
de sc r ibed
a s
" Inpu t .\greementsU wi th
t h e
record
companies
and
c e r t a l n
o t h e r
companies.
The
Inpu t
Agreements a r e exempl i f ied by
an agreement da t ed 3 1 Aug1lst
1970
between
PPCA and Warner
Bros .
Records
P t y .
L imi t ed
(now c a l l e d
W E A
Records
P t y .
L imi t ed
and
t o which
we
s h a l l
r e f e r
a s
" % E . ? " ) .
I n p u t
Agreements
l n t h e
same
t e r n s
have
been
e n t e r e d
i n t o
w l t h
t h e
f o l lowing :
APOLLO SOUND
ASTOR RECORDS PTY. LTD.
AVAN-GUARD MUSIC PTY . LIMITED
C A R I N I A
COMPANY
PTY-LTD.
CBS RECORDS AUSTRALIA LTD.
CBS RECORD & CASSETTE CLUB PTY. LTD.
EM1 (AUSTRALIA) LTD.
FESTIVAL RECORDS PTY. LTD.
MOVE RECORDS
POLYGRAM RECORDS PTY. LTD.
RCA LIMITED
SUMMIT RECORDS AUSTRALIA
UNIVERSAL RECORD CLUB PTY. LTD.
WORLD RECORD CLUB PTY. LTD.
WEA
i s r e f e r r e d
t o i n t h e I n p u t
A g r e e m e n t
a s
" t h e
Company".
The
agreement r e c i t e s t h a t : -
" . . . T h e
Company
c l a i m s
and
r e p r e s e n t s
t h a t
i t
i s
t h e
owner
o f
a n d / o r
c o n t r o l s
or
i s
o t h e r w i s e
e n t i t l e d
t o a n
i n t e r e s t
i n
o r
t h e
b e n e f i t
o f
t h e
pe r fo rming
r i g h t
( a s
h e r e i n a f t e r . d e f i n e d )
i n
sound
r e c o r d i n g s . . . "
The
pe r fo rming
r i g h t
i nc l l l de s
t h e
b r o a d c a s t
c o p y r i g h t
l n
r e s p e c t
o f
a
p r o t e c t e d
r e c o r d i n g
i n
r e s p e c t
o f
whlch
r e m u n e r a t i o n
' i s payabLe
f o r
t h e
b r o a d c a s t
o f
t h e
r e c o r d i n g
i n
A u s t r a l i a ,
i n c l u d i n g
a n y
amount
p a y a b l e
b y
t h e
T r i b l ~ n a l ' l n d e r
s .
1 5 2 .
C l a u s e
I1
p a r a .
1 o f
t h e
I n p u t
Agreement
p r o v i d e s : -
"The p u r p o s e s
o f
t h i s
.Xgreement
a r e
zo
e n a b l e
PPCA,
f o r t h e p e r i o d
o f
t h i s Agreemen:,
z o
e x e r c i s e
che
exc1~ls i : i e r l , - h t
and
a1:thori~;i
:c
d o
i n
A u s t r a l i a
f c r
and
3n
a
o f
= h e
Company
a l l o r
any
o f
= h e
f c l l c w l n g
3 c z s
c r
t h i n g s
i n
r e l a t i o n
t o
t h e
r e c o r d i n g s
3 f
-he
Company,
t h a t i s :o
s a y . . . "
Various
t h i n g s
a r e then
s e t o u t
i nc lud ing
t h e
Licensing
of
b roadcas t i ng by
t h i r d p a r t i e s ;
t h e making
of
a p p l i c a t i o n s . t o
t h e
Tr ibuna l
i n
r e s p e c t
o f
t h e
b roadcas t i ng
o f
p r o t e c t e d
record ings
o f
WEA
and
o t h e r s ;
t h e
c o l l e c t i o n
and
recovery
o f
amounts
payable
by
any
t h i r d
p a r t y
o r
p a r t i e s ' p u r s u a n t
t o
any
o r d e r
o f
t h e
T r i b u n a l ;
and
t h e
i n s t i t u t i o n
and
c o n d u c t
o f
enforcement
p roceed ings .
The
express ion
" t h e
r eco rd ings
of
t h e
Company"
i s de f ined by
Clause
I
p a r a .
3
i n terms which
i n c l u d e
a l l r ecord ings
t h e performing
r i g h t s
of
which
a r e
from
t u n e
t o
t ime owned o r controLled by WEA
o r t o t h e b e n e f i t of which it i s
e n t i t l e d .
Clause I
pa ra .
2
( a ) p rov ides
t h a t a
person
s h a l l be
deemed
t o c o n t r o l t h e r e l e v a n t
r i g h t where
t h a t p e r s o n
i s a n
"exc lus ive
l i c e n s e e "
f o r
t h e
purposes
o f
t h e
Act .
Clause
I - - p r a .
2
(b) prov ides
t h a t a person
s h a l l be
deemed
t o be
e n t i t l e d
t o t h e b e n e f i t
of
t h e
r e l e v a n t
r i g h t
where
t h a t person
( n o t being
t h e owner
of
o r t h e person con t roLl ing
t h e
copyr igh t
i n t h e
r eco rd ing )
i s
e n t z t l e d ,
pursuan t
t o t h e
terms
of
an
agreement wi th o r i n s t r m e n t of
t h e owner
o r o f
t h e person
c o n t r o l l i n g
t h e
copyr igh t
i n
t h a t
record ing ,
t o
con fe r
on
??CA
power
and
a u t h o r i t y
t o do
i n r e l a t i o n
t o t h e
record ings
of
t h a t
person
t h e
t h i n g s
s e t o u t
i n Clause
11 p a r a .
1
o f
t h e Agreement.
By
Clause
I1 p a r a .
2
p r o v i s i o n
i s made
f o r
PPCA
t o b e
c o n s t i t u t e d
t h e
a t t o r n e y
o f
W E A
f o r
t h e
p u r p o s e s
s p e c i f i e d
i n
Clause I1 p a r a .
1.
By
p a r a .
4
o f
t h e same c l a u s e WE?.
a g r e e s , a t
t h e
r e q u e s t
o f
PPCA,
t o a s s i g n
t h e
p e r f o r m a n c e
a n d
b r o a d c a s t
c o p y r i g h t
i n any o f
t h e recordings
o f WEA
where WXA
i s t h e owner
and
t o p r o c u r e
such an
a s s ignmen t
from
t h e owner
where WEA
m e r e l y
c o n t r o l s
t h a t
c o p y r i g h t .
There
was
no
e v i d e n c e
b e f o r e
t h e
T r i b r ~ n a l
t h a t
e i t h e r W E A o r any o f
t h e o t h e r
r e c o r d
companies
had
a s s i g n e d
o r
p r o c u r e d
t h e
a s s i g n m e n t
o f
t h e
p e r f o r m a n c e
a n d
b r o a d c a s t
c o p y r i g h t
t o
PPCA.
C lause
111
p a r a .
3
makes
p r o v i s i o n
f o r
WE?+
t o p r o v i d e
PPCA w i t h a l l r e c o r d i n g s o f
l i s t s
and
o t h e r
i n f o r m a t i o n
c o n c e r n i n g
t h e
t i t l e s
o f
WEA
and
d e t a i l s o f
ownersh ip
and
c o n t r o l
o f
t h e
c o p y r i g h t
i n
them,
t o g e t h e r
w i t h
o t h e r
i n f o r m a t i o n
which
w i l l
e n a b l e
PPCA
t o d e t e r m i n e
whether
a
r e c o r d i n g
i s p r o t e c t e d .
Clause
I V p a r a .
1 c o n t a i n s
a
covenan t
by
PPCA
t h a t
i t
w i l l n o t : -
" ( i )
e n t e r
i n t o any agreement
w i t h any
c h i r d
p a r t y
r e l a t i n g t o t h e use
by
chac
t h i r d
P a r t y
o f
r e c o r d i n g s
i n c l l l d l n g
r e c o r d i n g s
o f
t h e
Company
f o r
t h e
pu rpose
o f
per formance :
o r
( i i )
g r a n t any
Licence
c o
3ny
= h i r e ? a r t y
f o r
t h e
pe r formacce
3 f
3
r e c s r c l n g s
i n c l u d i n g
r e c o r e i n g s
3 f
the
3mpar.y
( w h e t h e r
pu r s ' l anc
t o
any
: ~ c s n c e s.c>.eme
o r
o t h e r w l S e )
u n l e s s
t h a t
ag reemen t
o r
l i c e n c e
s h a l l
b e
t e rminab le by
PPCA a t any
t ime wi th in
a p e r i o d
n o t
more
t h a n
t w e l v e
( 1 2 ) months
a f t e r t h e
d a t e upon which from t ime t o t ime t h i s Agreement may be t e rmina ted i n accordance wi th paragraph 1. of Clduse V I . hereof . "
Paragraph
3 of
Clause I V p rov ides t h a t PPCA may m i x
t h e
funds
r e p r e s e n t i n g
i t s
c o l l e c t i o n s
on
beha l f
of
WEA
with
c o l l e c t i o n s
on
b e h a l f
o f
any
o t h e r
company
o r person
and
lists
t h e expendi tu res which may be made from such payments.
Paragraph
4
of
Clause
I V p rov ides
f o r t h e p r e p a r a t i o n o f
an
account
showing
t h e
n e t
r e c e i p t s
a v a i l a b l e
f o r
d i v i s i o n
among
t h e
persons
who
have
en t e r ed
i n t o
I n p u t
Agreements
w i th
PPCA.
Paragraph
6
o f
Clause
I V p rov ides
t h a t t h e n e t
r e c e i p t s
s h a l l be
d iv ided
among
t h e
p a r t i e s
e n t i t l e d : -
" . . . w h e r e v e r
p o s s i b l e ,
on
t h e
b a s i s
o f
t h e
e x t e n t
o f
t h e
use
made
o f
p r o t e c t e d
r eco rd ings
o f t h e performance
r e s p e c t i v e
g r a n t o r s
f o r
t h e
purpose
o f
o r ,
where
t h e e x t e n t
o f
such
use
cannot
b c r e a s o n a b l y
a s c e r t a i n e d ,
on
t h e
b a s i s
o f a formula which s h a l l be determined from
t ime
t o
t ime
by
a
r e s o l u t i o n
of
t h e
D i r e c t o r s
of PPCA. . .
"
The
d i s t r i b u t i o n
i s
i n
f a c t ,made
on
a
b a s i s
o f .
s t a t i s t i c a l m a t e r i a l
r e l a t i n g
t o
e x t e n t
of
use
provided
t~ PPCA
on
a
c o n f i d e n t i a l
b a s i s
by
Aus t r a l a s i an
Performing
Right
Assoc ia t ion Ltd.
( "APRA" ) .
.
By
a
power
o f
a t t o r n e y d a t e d
3 1 s t
A u g u s t
1 9 7 0 WEA
I
a p p o i n t e d
PPCA
i t s
a t t o r n e y
t o a c t
on
i t s
b e h a l f
e i t h e r
i n ' t h e
name
o f W E ? j
o r i n t h e name
o f
PPCA
i n r e l a t i o n t o t h e pe r fo rmance
and
b r o a d c a s t i n g
c o p y r i g h t
i n
r e s p e c t
o f
r e c o r d i n g s
o f
WEA
a s
d e f i n e d .
These
powers
i n c l u d e
t h e
l i c e n s i n g
o f
a n y
t h i r d
p a r t y ,
whether
p u r s u a n t
t o a
l i c e n c e
scheme
o r o t h e r w i s e ;
t h e making
o f
an
a p p l i c a t i o n
t o
t h e
T r i b u n a l :
and
t h e
p r o h i b i t i o n
o r
t a k i n g
s u c h
s t e p s
as
may
b e
a v a i l a b l e
t o p r e v e n t
t h e
u n a u t h o r i s e d
per formance
o r
b r o a d c a t i n g
o f
r e c o r d i n g s .
PPCA
i s
a l s o
a u t h o r i s e d
t o c o l l e c t
and
r e c o v e r
any
moneys
due
i n
r e s p e c t
o f
t h e
b r o a d c a s t i n g
o r
per formance
o f
r e c o r d i n g s
o f
WEA
and
o t h e r
i n c i d e n t a l
m a t t e r s .
The
power
o f
a t t o r n e y
s p e c i f i c a l l y
e x t e n d s
t h e
d e l e g a t i o n
t o
t h e
p e r s o n
f o r
the
t i m e
b e i n g
a p p o i n t e d
by
t h e
d i r e c t o r s
o f
PPCA
t o b e
i t s g e n e r a l
m a n a g e r
t h e
power
t o
" e x e r c i s e and
pe r fo rm
i n t h e
name
o f
and
on
b e h a l f
o f
PPCA
any
'power
o r a u t h o r i t y h e r e b y
c o n f e r r e d
llpon
PPCA".
The
e f f e c t o f
t h e s e doc lmen t s
i s t h a t PPCA
i s
t h e
a g e n t
and
a t t o r n e y o f
WEA
f o r
t h e p u r p o s e s
o f ,
i n t e r a l i a ,
t h e
e x e r c i s e
o f t h e t o c e r t a i n
r i g h t s
i n c i d e n t a l
t o
t h e
b r o a d c a s t
c o p y r i g h t
i n
r e l a t i o n
sound
r e c o r d i n g s .
PPCA
i s n o t
i t s e l f
v e s t e d
w l r h
any
ownersh ip
r i g h t s
w i t h
r e g a r d 2MMM'S UNDERTAKING
t o
sllch
c o p y r i g h t .
A t a
ve ry
e a r l y
s t a g e
i n
t h e
hea r ing
of
t h e
a p p l i c a t i o n ,
counsel f o i 2MMM o u t l i n e d t h e correspondence between 2MMM and
P,PCA between 16 May 1980 and 1 October 1980 concerning t h e g r a n t
o f a l i c e n c e by PPCA o f a l i c e n c e t o b roadcas t sound r e c o r d i n g s .
By
l e t t e r da ted 15 August
1980
PPCA informed 2MMM t h a t it w a s
prepared t o l i c e n s e it
t o b roadcas t
sound
r eco rd ings
on
payment
of
an
annual I n i t s r e p l y d a t e d 25
f e e
r e p r e s e n t i n g
1%
of
t h e
s t a t i o n ' s g r o s s
ea rn ings .
September
1980
2MMM
s a i d t h a t
i t cons idered
i t s e l f e n t i t l e d t o an arrangement i n r e s p e c t of b roadcas t
-
copyr igh t on t h e same terms a s t h e agreements which had been made w i t h t h e AM s t a t i o n s . 2MMM d i d , however , g i v e t o PPCA t h e
fo l lowing
undertaking:-
"Pursuant
t o
s e c t i o n
109
('1) ( a )
of
t h e
c o p y r i g h t < ~ c t , t h i s
Company
g i v e s
t o PPCA,
on
b e h a l f
of.
t h e
owners
o f
t h e
c o p y r i g h t
i n
c e r t a i n r eco rd ings ,
an
under taking
( l i m i t e d a s
- h e r e i n s t a t e d ) t o pay t o PPCA ( o r t o s u c h owners) such amounts ( i f any) a s may be s p e c i f i e d i n , o r determined i n accordance
w i th ,
an o r d e r
of
t h e
Cbpyright
Tr ibuna l made
under
s e c t i o n
152
o ' f t h e C o p y r i g h t
Act
i n
r e s p e c t
o f
t h e b roadcas t i ng
by
t h i s
Company,
( d u r i n g a per iod wi th in which any broadcas t i s made by i t ) of publ ished record ings i n which t h e copyr igh t s a r e owned by t hose owners and
which
i nc ludes
t h o s e
f i r s t -ment ioned
r eco rd ings .
COPYRIGHT OWNERS
Drawing
on
t h e
t e rms
o f
t h e
I n p u t
Agreements
and
t h e
q u a l i f i c a t i o n s
c o n t a i n e d
i n
t h e
u n d e r t a k i n g ,
c o u n s e l
f o r
2MMM
s u b m ~ t t e d
t h a t t h e
u n d e r t a k i n g was
g i v e n t o PPCA
o n l y i n i t s
c a p a c i t y
a s
a g e n t
f o r
c o p y r i g h t
owners .
F u r t h e r ,
i t
was
s u b m i t t e d
t h a t
o n l y
t h o s e
r e c o r d i n g s
i n r e s p e c t
o f
w h i c h
t h e
c o p y r i g h t
o w n e r s
w e r e
p a r t i e s
o r r e p r e s e n t e d
b y
p a r t i e s
w e r e
r e l e v a n t
f o r t h e
pu rposes
o f
s . 152.
I f
and
t o t h e
e x t e n t t h a t
PPCA
w a s
t h e
a g e n t
f o r c o p y r i g h t
owners
t h e r e
was
no
d i f f i c u l t y
i n t h e " r e p r e s e n t e d by"
way
o f
s u c h
o w n e r s
b e i n g
r e g a r d e d
a s
" p a r t i e s "
o r ,
a
p a r t y
f o r
t h e p u r p o s e s
o f
p a r a .
152
( 6 )
( b ) .
I t was
c o n t e n d e d ,
h o w e v e r ,
t h a t a
d i s t i n c t i o n h a d
t o b e
made
b e t w e e n
t h e
o w n e r s
o f
t h e b r o a d c a s t i n g
c o p y r i g h t ,
o n
t h e
o n e
h a n d ,
and
p e r s o n s
who
m e r e l y
c o n t r o l l e d
t h a t
r i g h t
o r
w e r e
e n t i t l e d t o t h e b e n e f i t o f
i t , on
t h e o t h e r .
The
d i s t i n c t i o n was
made
i n t h e
te rms
o f
t h e
I n p u t Agreements .
A
s i m i l a r c o n t e n t i o n
was
made
w i t h
r e s p e c t
t o t h e
r e c o r d
companies .
2MMM's
c o n t e n t i o n
was
t h a t
t h e
r e c o r d
companies
-#e re
t h e owners o f
c o p y r i g h t i n some
sound
recordings
b l ~ t
were
m e r e l y
t h e
l i c e n s e e s
o f
t h e
c o p y r i g h t
o f
o c h e r s
u n d e r
t h e
c e r m s
o f
L icences
which
were
b o t h
e x c ? ~ l s i ' i e and
non-exc l , l s l ' i e .
T r
x a s
o n l y
l n
t h e
former
c a p a c l t y
chat
:hey
co~~ ic ' .
be
r e g a r d e d
2s
t h e
. - -
owners
o f
c o p y r i g h t s
f o r
=he ? ' ~ r z o s e s
o f
S . - > L
A
d i s t i n c t i o n i s made
i n s . 1 1 9
be tween
a n
e x c l u s i v e
l i c e n s e e
and
t h e
owner
of
t h e c o p y r i g h t .
Sec t ion
119 prov ides : -
1
"Subjec t
t o
t h e
succeeding
s e c t i o n s
o f
t h i s
Div i s ion
-
( a )
except
a g a i n s t
t h e
owner
o f
t h e
copyr igh t ,
t h e
e x c l u s i v e
Licensee
has
t h e
same
r i g h t s o f
a c t i o n a s he
would
have,
and
i s e n t i t l e d t o t h e
same
remedies
a s
h e would
be
e n t i t l e d t o ,
by
v i r t u e o f
s e c t i o n
115
i f
t h e
l i c e n c e
had
been
an
ass ignment ,
and
t hose r i g h t s and
remedies
a r e
concu r r en t
w i th
t h e
r i g h t s
and
remedies
of
t h e
owner
of
t h e
copyr igh t
under
t h a t s e c t i o n ;
b )
excep t
a g a i n s t
t h e
owner
o f
t h e
copyr igh t ,
t h e
e x c l u s i v e . l i c e n s e e has
t h e
same
r i g h t s o f
a c t i o n
a s he
would
have,
and
is e n t i t l e d t o t h e
same
remedies
a s
h e would
be
e n t i t l e d t o ,
by
v i r t u e o f
s e c t i o n
116
i f t h e
l i c e n c e
had
been
an
assignment;
and
( C )
t h e owner
of
t h e copyr igh t does n o t have
any
r i g h t s
of
a c t i o n
t h a t he
would
n o t
have,
and
i s no t e n t i t l e d t o any remedies
t h a t h e
would
n o t
b e
e n t i t l e d
t o ,
b y
v i r t u e o f
s e c t i o n
116
i f
t h e
l i c e n c e
had
been.-an
assignment. "
By
S .
1 1 7
t h e
express ion
" i f t h e
l i c e n c e had
been
a n
assignment" means:-
" . . . i f ,
i n s t e a d
of
t h e
l i c e n c e ,
t h e r e had
been
gran ted
( s u b j e c t
t o
c o n d i t i o n s
corresponding
a s
n e a r l y
a s
p r a c t i c a b l e
wi th
t hose
s u b j e c t
t o
which
t h e
l i c e n c e was
g r a n t e d )
an
assigninent
of t h e a u t h o r i s e d by
capy r igh t
i n
r e s p e c t
of
i t s
a p p l i c a t i o n
t o
t h e
do ing ,
a t
t h e
p l aces
and,
t imes
t h e
l i c e n c e ,
o f
t h e
a c t s
s o
~ a u t h o r i s e d ;
"
I t
i s made
c l e a r
by
sub-S.
196
( 1 ) t h a t
c o p y r i g h t
i s
. ,
, .
p e r s o n a l
p r o p e r t y
and
l s ,
i n t e r
a l i a ,
t r a n s m i s s i b l e
b y
an
a s s i g n m e n t .
ay
p a r a .
196
( 2 ) ' ( a ) an
a s s ignmen t
o f
c o p y r i g h t
may
be
Limited
i n any way
i n c l l l d i n g
a
l i m i t a t i o n t o one
o r more
o f
t h e
c l a s s e s o f
a c t s wh ich ,
by
v i r t u e
o f
t h e A c t ,
t h e owner
o f
t h e
c o p y r i g h t
h a s
t h e
e x c l u s i v e
r i g h t
t o d o .
T h u s ,
a
b r o a d c a s t
c o p y r i g h t
r e c o g n i s e d
by
p a r a .
85
( c )
i s
c a p a b l e
o f
a s s i g n m e n t
e i t h e r
w i t h
o r
w i t h o u t
t h e
pe r fo rmance
c o p y r i g h t
r e c o g n i s e d
b y
p a r a .
85
( 0 ) .
J n
o u r
o p i n i o n ,
!upon
t h e
p r o p e r
c o t ? s t r u c t i o n
o f
t h e s e
v a r i o u s
p r o v i s i o n s ,
a n
a s s i g n e e
o f
t h e
b r o a d c a s t
c o p y r i g h t
would
f a l l w i t h i n
t h e
d e s c r i p t i o n o f
"owner"
o f
t h a t
c o p y r i g h t
f o r
t h e
p u r p o s e s
o f
t h e
Act.
The
e f f e c t o f
S .
119
i s
t h a t
an
e x c l u s i v e
l i c e n s e e
o f
t h e
b r o a d c a s t
c o p y r i g h t
i n
a
s o u n d
r e c o r d i n g
i s
e n t i t l e d t o t h e
same
r i g h t s o f
a c t i o n and
remedies
a s i f h e w a s
an
a s s i g n e e
o f
t h a t
.
~
c o p y r i g h t .
Thus ,
t h e
Act
c o n f e r s
upon
t h e
e x c l u s i v e
l i c e n s e e t h e same
r i g h t s and
remedies
h e
would
have
i f
he
were
t h e
owner
o f
t h e
c o p y r i g h t ,
e x c e p t
a s
a g a i n s t
t h e
act.ua1
owner .
S e c t i o n s
115 ,
1 1 7
and
119
appea r
1n
P a r t
o f
t h e
Act
which
i s concerned
w i t h
remedies
f o r
i n f r i n g e n e n t s
o f
ccpyr i g h t .
By sub -S . p r o c e e d i n g
114
( 1 ) t h e :,qorc
" a c t l o n " a s
; s ec
ln
?art V
means
" a
o f
a
c i v i l
n a ~ . : r s Se t .deen
y a r : l e s ,
c
i n c l : d s s
a
c o ~ ~ n t e r c l a i m " .
I t
1s
n e c e s s a r y
:c
j e t e r m l n e ,
: h e r s f o r e ,
. "hether
-30-
a p r o c e e d i n g p r o c e e d i n g
by
way
o f
a n
a p p l i c a t i o n
unde r
S .
152
i s
" a
o f
a
c l v i l n a t u r e be tween
p a r t i e s " .
I f
l t
l s ,
i t
would
appear
t o have
t h e
e f f e c t t h a t
an
e x c l u s i v e
l ~ c e n s e e
o f
a
copyr igh t would
be regarded a s t h e owner bo th
f o r t h e purposes of
S .
109
and
f o r
t h e
p u r p o s e s
o f
S .
1 5 2 .
I f
i t
i s n o t ,
a n
e x c l u s i v e
l i c e n s e e
could
no t
be
t r e a t e d
a s
a
copy r igh t
owner
f o r
t h o s e purposes .
Sec t ion
109
p rov ides
a
de fence
t o an
a c t i o n
f o r
an
infr ingement
under
c e r t a i n
c i rcumstances ,
i n c l u d i n g
t h e
g i v i n g
o f
an
under taking
t o t h e owner
o f
t h e r e l e v a n t copy r igh t
t o pay
an amount c i rcumstance
d e t e r m i n e d
b y
t h e
T r i b u n a l .
I t
would
b e
a n
odd
i f
t h i s
defence
were
a v a i l a b l e
a g a l n s t
t h e
owner
p rope r ly
so
c a l l e d
b u t
n o t
a g a i n s t
an
e x c l u s i v e
l i c e n s e e .
S e c t i o n
L21
s p e c i f i c a l l y p r o v i d e s
t h a t any
d e f e n c e
a v a i l a b l e
a g a i n s t
a n
owner
i s
l i k e w i s e
a v a i l a b l e
a g a i n s t
a n
e x c l u s i v e
l i c e n s e e .
I n
t h e
l i g h t of
t h a t
p rov i s ion
and
t h e
i n t e n t i o n
of
s .109,
we
a r e of
t h e
op in ion
t h a t
i n t h e
a p p l i c a t i o n
o f
ss .
109
and
1 5 2 t h e p h r a s e
"owner
o f
t h e c o p y r i g h t " may
b e
t a k e n
t o
i nc lude
an
exc lus~ .ve l i c e n s e e
of
t h e
owner
o f
t h e
c o p y r i g h t .
An
a p p l i c a t i o n
t o t h e
Tr ibuna l
under
s .152
i s
" a proceeding
o f
a
c i v i l n a t u r e
between
p a r t i e s "
f o r
t h e
purposes
of
P a r t
V
o f
t h e
Act.
If
and
t o t h e
e x t e n t t h a t a l l of
t h e owners
o f
t h e
b roadcas t ing
copyr igh t
i n p ro t ec t ed
record ings
a r e
no t
be fo re
t h e
-
T r i b u n a l ,
t h a t
d o e s
n o t
p r e v e n t
t h e
T r i b u n a l
from
making
a
de te rmina t ion i n favour of
such of
t hose persons
a s a r e owners
of
copyr igh t
i n sound
record ings b roadcas t by
2MMM
a s a r e be fo re
t h e
-31-
T r i b u n a l .
I t
i s o n l y
n e c e s s a r y
f o r
t h e
T r i b u n a l
t o b e
s a t i s f i e d
t h a t
t h e
p e r s o n s
s p e c i f i e d
under
p a r a .
152
( 6 )
( b )
a r e
p e r s o n s
who
own
a
c o p y r i g h t
i n a
sound
r e c o r d i n g which
was
b r o a d c a s t by
.
2 M M M .
,
PPCA
produced
an
upda ted
l i s t o f
l a b e l s o f
r e c o r d s
t h e
s u b j e c t o f
I n p u t
Agreements
a s a t 4
November
1982 showing
t h e
company
t o which
PPCA
r e g a r d e d
each
l a b e l a s a t t a c h e d .
The re a r e
a p p r o x i m a t e l y
630
such
l a b e l s .
The
e v i d e n c e
b e f o r e
t h e
T r i b u n a l
d e a l t w i t h
t h e
owner sh ip
and
l i c e n s i n g
a r r angemen t s
w i t h
r e s p e c t
t o 457
o f
such
l a b e l s .
Each
o f
t h e r e c o r d
companies p roduced
t o
t h e
T r i b u n a l
a s
a
c o n f i d e n t i a l
e x h i b i t
c o p i e s
o f
a l l
r e l e v a n t
l i c e n c e
a g r e e m e n t s
i n
i t s
p o s s e s s i o n .
W h i l e
e a c h
o f
t h e s e
agreements
c o n t a i n
i n d i v i d u a l
v a r i a t i o n s ,
t h e
v a s t
m a j o r i t y
o f
them
c o n f e r
a n
e x c l u s i v e
l i c e n c e
w i t h
r e s p e c t
t o
t h e
b r o a d c a s t
c o p y r i g h t .
Of
t h e s e
457
l a b e l s ,
162 were
owned
d i r e c t l y by
one
o r o t h e r o f
t h e r e c o r d
c o m p a n i e s ;
254
w e r e
t h e s u b j e c t o f
a n
e x c l l ~ s i v e
l i c e n c e o f
t h e
b r o a d c a s t i n g
c o p y r i g h t
t o
one
o r
o t h e r
o f
t h e
r e c o r d
companies :
and
41
were
t h e
s u b j e c t
o f
a
non -exc lus ive
l i c e n c e
o f
t h e
b r o a d c a s t i n g .
c o p y r i g h t
t o
one
o r
o t h e r
o f
t h e
r e c o r d ' c o m p a n i e s .
?lone
w e r e
t h e
s l i b j e c t
o f
a n
a s s i g n m e n t
o f
t h e
b r o a d c a s t i n g
c o p y r i g h t .
I n
some
c a s e s
t h e
l i c e n s o r
i s t h e c o p y r i g h t
owner
i n r e s p e c t
o f
311 o r
some
o f
t h e
r e l e v a n t
r e c o r d i n g s
and ,
where
i t
i s n o t
t h e
owner,
t h e
l i c e n s o r
c l a i m s
t o be
e n t i t l e d
t o c o n t r o l
t h a t
c o p y r i q h t
3y
' ~ i z t ' l e 3 f
an
- -
a g r e e m e n t
w i t h
some
f l l r t :?er
p e r s o n
entitled.
A -
- N . C ) I ~ . ~ ,
b e
a n
i m p o s s i b l e
t a s k
f o r
t h e r e c o r d
csmpanies
co comple te
che
:hain
cf
t i t l e i n
e v e r y
c a s e .
During
t h e
course
of
t h e
p roceed ings ,
t h e
r eco rd
companies
t o o k
s t e p s t o o b t a i n f rom
c e r t a l n o f
t h e
l i c e n s o r s
under
t h e va r ious
agreements
conf i rmat ion
i n t h e
form
of
t e l e x e s
of
t h e
fo l lowing:-
( a )
That
t h e
a p p l i c a n t
was
t h e
e x c l u s i v e
l i c e n s e e
i n
A u s t r a l i a
o f
t h e
l i c e n s o r .
( b )
The
a p p l i c a n t
was
l i c e n s e d
e x c l u s i v e l y
t o r e p r e s e n t
t h e
l i c e n s o r
i n t h e
l i c e n s i n g
o f
t h e
b r o a d c a s t
o f
t h e
l i c e n s o r ' s
sound
r eco rd ings
i n A u s t r a l i a .
( C )
R a t i f i c a t i o n
of
t h e
appointment
of
PPCA
a s
t h e
r e p r e s e n t a t i v e
of
t h e
l i c e n s o r
" f o r
a l l
purposes
a s s o c i a t e d
wi th
t h e
b roadcas t
copy r igh t
i n
sound
re&rd ings
owned
by
us
i nc lud ing
t h e
c u r r e n t and
any
r e l a t e d
p r o c e e d i n g s
p u r s u a n t
t o
s e c t ~ o n
1 5 2 o f
t h e
Copyrlght Act be fo re t h e Copyrlght Tribunal" .
( d ) ,
~ g r e e m e n t
b y t h e l i censor . t h a t any moneys
o rdered
t o b e
pa id
by
t h e b roadcas t e r s
pursuan t
t o
t h e
Copyright
Act
be pa id
t o PPCA on
beha l f
of
t h e
l i c e n s o r .
None
o f
t h e
e v i d e n c e
c o n t a i n e d
i n
t h e s e
v a r i c ' l s
doc1ments
w a s
c o n t e s t e d
by
2MMM
a l t h o u g h
i t
e x p r e s s e d
a
d e s i r e t h a t
t e l e x e s o f
t h i s
k ind
shou ld
be
conf i rmed
by
w r i t i n g
m d e r
t h e hand
o f
t h e
o f f i c e r o f
t h e
company
named
i n
t h e
c o n c l u d i n g
p a r a g r a p h
of
e a c h
o f
t h e
r e l e v a n t
t e l e x e s .
I n
t h e
o p i n i o n
o'f
t h e
T r i b u n a l
such
c o n f i r m a t i o n
i s
n o t
n e c e s s a r y .
I n
a l l t h e
c i r c ~ m s t a n c e s ,
h a v i n g
r e g a r d
t o
t h e
p r o v i s i o n s
o f
S .
164 o f
t h e
Ac t ,
t h e
T r i b u n a l
i s p r e p a r e d
t o a c c e p t
t h a t
t h e e f f e c t
o f
t h e
t e l e x e s
i s
t o c o n f i r m
t h e
e x c l u s i v i t y o f
t h e
Licence
g r a n t e d
by
t h e
s a i d
l i c e n s o r s
t o t h e
companies
concerned. ,
t h e
r e p r e s e n t a t i o n
o f
t h e
l i c e n s o r
by
t h e
a p p l i c a n t
and
t h e
r a t i f i c a t i o n
o f
t h e
a p p o i n t m e n t
o f
PPCA
a s
t h e
r e p r e s e n t a t i v e
o f
t h e
l i c e n s o r
f o r
t h e
p u r p o s e s
o f
S .
1 5 2 .
I n
o u r
o p i n i o n ,
t h e r e
i s
s u f f i c i e n t
e v i d e n c e
b e f o r e
t h e
T r i b u n a l
o f
t h e
ownersh ip
b y
t h e
r e c o r d
companies
o f
c o p y r i g h t s
i n
s o u n d
r e c o r d i n g s
owned
b y
them
o r
b y . p e r s o n s
f r o m
whom
t h e y h o l d
l i c e n c e s
"Countdown"
o r t h e
c h a r t s .
H i s s
H o l l e r ' s
e v i d e n c e
was
- p e r s u a s i v e w i t h
r e f e r e n c e
t o
t h e
s i g n i f i c a n c e
o f
a i r p l a y
t o ' t h e
manufac tu re
and
s a l e
o f
sound
r e c o r d i n g s .
I n
o u r
view
a i r p l a y
i s i m p o r t a n t
t o
t h e
r e c o r d
companies
i n
p r o m o t i n g
t h e
s a l e o f
t h e i r p r o d u c t s .
i t
1 s a l s o
i s p o r t a n t
t o
b r o a d c a s t e r s ,
i n c l u d i n g
2MMM,
who
r e i y
c n
t h e
r eady
a v a i l a b i l i t y o f
r e c o r d s ,
b o t h
p r o t e c t e d
and
l l n p r o t e c t e d ,
t o
conduc t
t h e l r
b u s i n e s s .
2MMM i s an FM
s t a t l o n w h ~ c h
p l a c e s
some
emphasis on music
and
r e q u i r e s
a s u p p l y o f m a t e r i a l .
r e c o r d s
and
i n particular
new
r e l e a s e s
a s
i t s raw
J
The
record
companies
manl~fac ture r e c o r d s
f o r
s a l e .
The
a b l l i t y of
2MMM
t o s e l l a d v e r t i s z n g
t ime
i s r e l a t e d
t o t h e
listening
audlence
a t t r a c t e d by
t h e music
it
b roadcas t s
a s p a r t o f
i t s program
package.
The
two
a c t a v i t i e s a r e
i n t e rdependen t .
I n determining t h e amount which
it i s f a i r and
r ea sonab le
t h a t
2MMM
should
pay
t o t h e r eco rd
companies
f o r
t h e r e l e v a n t
r i g h t
unde r
S .
1 5 2 i t would
be
wrong
i n o u r
v iew t o i g n o r e t h e b e n e f i t
a c c r j ~ i n g t o
r eco rd
companies
by
i nc rea sed
s a l e s
o f
t h e
sound
r e c o r d i n g s .
To
d o
sd
would
c o n f e r a n
a d d i t i o n a l
b e n e f i t
on
the
r e l e v a n t r eco rd
company
( t h e copyr igh t owner)
above
t h a t t o which
i t
is
e n t i t l e d
from
t h e
s t a t u t o r y !use o f
i t s
p r o p e r t y .
I t
would
o b t a i n
i n
e f f e c t
a
d o u b l e
b e n e f i t
namely ,
w h a t e v e r
r o y a l t y
i s
p a y a b l e
t oge the r
wi th
t h e
s a l e s de r ived
from
t h e
use
o f
i t s p roduc t .
On
t h e
o t h e r
hand
it
i s
p l a i n
t o us
t h a t
t h e
b r o a d c a s t e r s ,
i n c l u d i n g
2MMM,
r e l y p r i m a r i l y
upon
t h e
p lay ing
o f
r eco rds
f o r
t h e
success
o f
t h e i r
- ,
b u s i n e s s
and,
i n p a r t i c u l a r ,
t h e
s a l e o f
a d v e r t i s i n g
t i n e .
Ove ra l l , , we
a r e
s a t ' i s f i e d . t h a t
t h e
amount
t o which
t h e
r eco rd
companies would o therwise be e n t i t l e d . under S . 1 5 2 niust be reduced
on
. .
account of
t h e b e n e f i t acc ru ing
t o them
from
t h e pLaying
by
2MMM
o f
p ro t ec t ed
sound
r eco rd ings .
I t 'is,
of
cou r se ,
imposs ible
t o q u a n t i f y
t h e
e x t e n t
of
t h i s
r educ t ion
wi th
any
p r e c i s i o n ,
b l ~ t we
t ake
i t
i n t o
-
account
a s p a r t of
t h e
o v e r a l l
complex
of
r e l e v a n t
v a t t e r s
i n a r r i v i n g
a t t h e proper
amount
payable
l~nde r S .
1 5 2 .
Although
it was
a c c e p t e d by
t h e r e c o r d
companies
t h a t a i r p l a y
promotes
o r enhances
t h e
s a l e o f
r e c o r d s and
t h e r e b y c o n f e r s
a
b e n e f i t
llpon
. t h e m , i t was
con tended
t h a t
a i r p l a y can
have
an
a d v e r s e
a f f e c t o n
s a l e s .
A
sound
r e c o r d i n g
c a n
be
p l a y e d
s o o f t e n b y
a
b r o a d c a s t e r
and
i n s u c h t h e r e c o r d w i l l n o t d o so,
c i r c u m s t a n c e s
t h a t
a
p e r s o n
who
o t h e r w i s e
migh t
h a v e
p u r c h a s e d
b e c a u s e h e knows
t h a t h e c a n h e a r
i t on
t h e
r a d i o
o r p e r h a p s
h e a r s
it
s o o f t e n
t h a t
f i n a l l y h e
d e c i d e s h e
d o e s
n o t
w a n t t h e . c o n t e n t i o n r a i s e d
r e c o r d ,
t h a t
i s
t o s a y h e
i s o v e r - e x p o s e d
t o i t .
T h i s
t h e
q u e s t i o n t o w h a t
e x t e n t ,
i f a n y ,
h a s
r a d i o
become
a
s u b s t i t u t e
f o r t h e p u r c h a s e
o f
r e c o r d s
a n d
p r e - r e c o r d e d
t a p e s ?
The
r e c o r d
companies
s u b m i t t e d
t h a t
t h e y need
p r o t e c t i o n
from
a i r p l a y
t o p r e v e n t
ove r - exposu re
o r
t h e
s u b s t i t u t i o n
o f
l i s t e n i n g
t o
r a d i o
f o r t h e
p u r c h a s e
o f
r e c o r d s .
There
w a s a
d e a l
o f
e v i d e n c e
t o u c h i n g
t h i s q u e s t i o n
i n c l u d i n g
e v i d e n c e
o f .
M r .
J amieson
who
s a i d
t h a t
r a d i o
can
become
" s u b s t i t u t i o n a l "
f o r
r e c o r d s .
He
s a i d
i f
t h e r e
w e r e
no
r a d i o
" . . . p e o p l e
- would
b e queuing
ilp, o u t s i d e r e c o r d
shops
from morning
t o
n i g h t
t r y i n g
t o a c q u i r e
m u s i c " .
W e
a r e
s a t i s f i e d
on
t h e
e v i d e n c e
t h a t
t h e
s u b s t i t u t i o n
o f
a i r p l a y
f o r
t h e
p a ~ r c h a s e o f
r e c o r d s
a n d
p r e - r e c o r d e d
t a p e s
i s a
r e a l i s t i c
consequence
o f HOME TAPING AND ASSOCIATED PRACTICES -
t h e
?rowing
a c c e p t a n c e
i n
t h e
community
o f
r a d i o
a i r p l a y .
Although GROWTH AND EFFECT UPON BROADCASTING
we
p ropose
t o
t a k e
i n t o a c c o u n t
t h e
b e n e f i t
gained by
record companies
from t h e p l ay ing of
sound r eco rd ings
ove r
t h e r a d i o ,
i n d iminut ion o f
what
o the rwi se would
be
payable
t o them
under
S .
152,
we
a l s o t a k e i n t o account
t h e r e a l r i s k o f reduced
s a l e s
.of sound t h e purchase, of
r eco rd ings
due r e c o r d s and
t o t h e
s u b s t i t u t i o n o f
l i s t e n i n g
t o r a d i o
f o r
t h e
over-exposure
on
t h e
r a d i o
o f
some
sound
r eco rd ings .
It
is
l i kewi se
imposs ible
t o
q u a n t i f y
t h e
s i g n i f i c a n c e
o f
t h i s r i s k
i n
any p r e c i s e
terms.
Some
evidence
was
g iven
about
c e r t a i n
" a d v e r t i s i n g
d e a l s "
whereby
a
r a d i o
s t a t i o n would
r e c e i v e
a
p e r c e n t a g e
o f
s a l e s
o f
r e c o r d s .
I n
t h e c o n t e x t o f
t h e
s i g n i f i c a n c e o f
a i r p l ay
t h i s
evidence
appears
t o c u t bo th ways.
--
,
Home
t ap ing has been and
s t i l l is a problem
t o t h e r eco rd
i n d u s t r y .
I t
i s a
widespread
p r a c t i c e .
I t i s n o t
ea sy t o a s s e s s t h e
e x t e n t
t o which
t h e
s a l e of
r eco rds
and
pre-recorded
t a p e s
h a s
been
' reduced by home t a p i n g .
Concerted e f f o r t s have .been taken by FARB and
PPCA
t o
l i m i t what
w a s desc r ibed
a s
t h e
" p i r a t i n g " of
music
recorded
on records and
t a p e s .
According
t o M r .
Jamleson,
home
t a p l n g 1s a
growing
p rob l em,
and
n o t
o n l y
r e d u c e s
t h e
s a l e s
o f
r e c o r d s
and
pre-recorded
t a p e s ,
b u t
r e s u l t s
i n
increased
p r l c e s
o f
pre-recorded
t a p e s
and
r e c o r d s .
To
what
e x t e n t
a r e t h e
i n c i d e n c e
and
e f f e c t o f
home
t a p i n g
r e l e v a n t
t o t h e d e c i s i o n o f
t h e T r i b u n a l
under
S . l 5 2 o f
t h e Act?
I n t h e
f i r s t week
o f
Oc tobe r
1 9 8 2 ,
ARIA,
i n a
n e w s
r e l e a s e
headed :
"HOME TAPING COSTS GOVERNMENT $100 MILLION P . A .
HOME TAPING COSTS RECORD INDUSTRY $ 4 4 0 MILLION
P.A."
" .
. . t h e r e i s no
way
a n y Governmen t
o r t h e
C o p y r i g h t
Owners
c o u l d
hope
t o
p o l i c e
t h e
c o p y r i g h t
i n f r i n g e m e n t
i n v o l v e d
e v e r y
t i m e
someone
u s e s
a
b l a n k
t a p e
t o r e c o r d
mus ic .
. . . most
A u s t r a l i a n s
a r e
n o t
even
aware
t h e y a r e b r e a k i n g
t h e
Law.
Half
o f
a l l home
t a p i n g
i s d i r e c t
from
t h e
r a d i o . "
A c c o r d i n g
t o t h e
same
news
r e l e a s e ,
M r .
T s r n e r ,
Manag ing
D i r e c t o r o f
WEA
was
o f
t h e op indon
t h a t most
A u s t r a l i a n s
a r e n o t
even
" a w a r e t h e y a r e b r , e a k i n g
t h e
Law",
a n d
t h a t o n e - h a l f
o f
a l l home
t a p i n g
i s d i r e c t
from
r a d i o .
"The
s i t u a t i o n
i s
t h a t
f o r
e v e r y
,ore-recorded
d i s c
o r
t a p e
s o l d
i n
A u s t r a l i a ,
a n o t h e r
two
a r e
home.
t a p e d . . . T h i s
i s .
hav ing
a
v e r y
s e r i o u s
e f f e c t
on
employment,
s a . l e s and
p r o f i t s
i n t h e
r e c o r d
i n d ' l s t r y i n
A u s t r a l i a .
One
p l a n t h a s
c l o s e d
down
i n
Sydney
and
one
i n Melbourne
and
employment
i s f a l l i n g o f f
g e n e r a l l y i n
o t h e r
r e c o r d
companies .
Each
t i m e
a home
t a p e
i s n a d e
o l l r own
A r h s t s a n d
Composers
Lose
a
l e g i t m a t e r o y a l r y .
Another
e f f e c t
i s
t h a t
t h e
r e c o r d
companies
have
Less
r i s k
c a p i t a l
t o
i n v e s c
i n
np-and-coming
. \ l ~ s t r a l i a n
Artists and
Composers,
and
t h e y w i l l t end
t o s t i c k w i t h
t h e
e s t a b l i s h e d
b i g
names . "
I n h i s evidence b e f o r e
t h e Tr ibuna l
M r .
Turner
s a i d t h a t a s a
consequence o f
a change
i n consumer p a t t e r n s over t h e p reced ing decade
o r so ,
many
people who
p rev ious ly bought
t h e i r own
r e c o r d s
f o r
t h e i r
own
p l e a s u r e ,
now
enjoyed
t h e i r p a r t i c u l a r t y p e o f
muslc
by
selecting
a rtidio t r e a t e d a s a
s t a t l o n s u b s t i t u t i o n f o r
which
f e a t u r e d
t h a t m u s i c .
Radlo,
he
s a i d ,
w a s
now
t h e
p l a y i n g
a t home
o f
r e c o r d s
a n d
t a p e s .
The
record
industry,
he cont inued,
ha s world
wide
been
v e r y
s e r r o u s l y
harmed
by
t h e
p r a c t i c e
o f
home
t a p i n g
"whether
i t
b e
by
t ap ing
d i r e c t
from
r a d i o
b roadcas t s
( w h ~ c h
i s facilitated by some
s t a t i o n s wi th
adver t i sement - f ree
cont inuous
music)
o r by
]unauthorized
copying
from
o t h e r r e c o r d s
and
t a p e s " .
M r .
Turner
s t a t e d t h a t i t w a s
on ly by means
of
a
su rvey t h a t a
reasonab ly
a c c u r a t e
assessment
cou ld
be made
of
t h e
e x t e n t of
t h e
adverse
e f f e c t of
home
t a p i n g
on
r e c o r d
s a l e s .
I n January 1982,
ARIA
' caused a
" t a p i n g survey"
t o be c a r r i e d
o u t by
Reark
Rese-arch
P ty .
Limited .
The
survey sought t h e views o f
members
of
t h e g e n e r a l p u b l i c
13 y e a r s of
age and
o v e r ,
who
had
taped
e i t h e r
sound
o r v ideo
f o r p r i v a t e
a s d i s t i n c t from
commercial
u s e ,
on
a
n u m b e r ' o f
q u e s t i o n s
r e l a t i n g
t o
t a p i n g .
.The s u r v e y
s o u g h t
t o
measure
t h e
inc idence
o f
home
t a p i n g ,
bo th
aud io
and
v ideo .
2,172
i n t e r v i e w s
were
conduc t ed
i n
1 5
m e t r o p o l i t a n
and
c o u n t r y
c e n t r e s
throughout
A u s t r a l i a .
The
survey was
des igned
and
s l lpervised by
M r .
Adrian
F e t h e r s ,
a
P r o j e c t
D i r e c t o r o f
Reark
Research
P ty .
Limited ,
t h e
e v e n t u a l
a n a l y s i s
b e i n g
checked
by
a
H r .
A .
K h i t f i e i d
o f
M e s s r s .
D e l o i t t e
Haskins
&
SeLls ,
Chartered
Acc,ounTants.
The
L a t t e r
f i r m
c a r r i e d
o u t
an
a u d i t of
t h e
su rvey .
The
f i r s t o b j e c t i v e
o f
t h e
s l l rvey w a s
t o
e s t i m a t e
t h e
t o t a l
1 1
nlmber
o f
L. P .
eq" iva1en t s
b e i n g
t a p e d
from
r e c o r d s ,
p r e - r e c o r d e d
t a p e s ,
r a d i o
and
t e l e v i s i o n ,
and
t o e s t i m a t e
t h e marke t
v a l l ~ e
o f
t h o s e
e q u i v a l e n t s .
S u b s e q u e n t l y ,
t h e
u s e
a n d
s a l e s
o f
b l a n k
t a p e s
b y
p e o p l e
t a p i n g ,
r e a s o n s
f o r
t a p i n g ,
and
t a p i n g
t r e n d s ,
were
a s s e s s e d .
A s
d e t a i l e d
i n t h e
r e p o r t
o n
t h e
s u r v e y ,
t h e
p r o c e d u r e
a d o p t e d
t o p roduce
t h e
t a p l n g
e s t i m a t e s w a s
t o -
1.
A s c e r t a i n
t h e
p r o p o r t i o n
o f
d w e l l i n g s
i n
t h e
sample
a r e a
c o n t a i n i n g
a
p e r s o n
o r p e r s o n s
who
had
t a p e d
sound
a n d j o r
v i d e o m a t e r i a l
w i t h i n
t h e
t h r e e months
p r e c e d i n g
tAe
d a t e o f
t h e
i n t e r v i e w :
2 .
A s c e r t a i n
t h e
number. o f
sound
a n d / o r
v i d e o
t a p e r s
i n
e a c h
t a p e r
dwel l i n g ;
3 .
Gross
)up t h e number
o f
sound only. t a p e r s i n t h e sample
t o r e p r e s e n t
t h e njmber
o f
t a p e r s
i n t h e
p o p u l a t i o n
o f
t h e
sampled
a r e a ;
4 .
A s c e r t a i n
t h e
sound
t a p e s made
by
one
randomly
s e l e c t e d
t a p e r
l n
e a c h
t a p e r
d w e l l i n g ;
5 .
Gross up t h e number of L . P .
equivalents taped from a l l
s o u r c e s ,
r e c o r d s ,
p r e - r e c o r d e d
t a p e s
and
r a d ~ o
and
t e l e v i s i o n ,
t o
r e p r e s e n t
t h e
t ap ing
of
a l l
t a p e r s
i n
a l l dwel l ings
wi th
t a p e r s
wi th in
t h e def ined
a r e a ;
6 .
Est imate
t h e
r e t a i l market
value
by
multiplying
t h e
t o t a l equ iva l en t s
of
L . P . s
taped
by
t h e ' a v e r a g e
r e t a i l
p r i c e of
an L . P . ,
t h a t i s $ 8 . 0 0 ;
and
7 .
Estimate
t h e
d i r e c t
Loss
i n
record
s a l e s
by
a s c e r t a i n i n g
t h e
Likelihood
of
purchase
of
taped
music
i f t h e t a p e r had
been
unable
t o t a p e ,
and
mul t ip lyi r ig
t h e
number
o f
L . P .
equ iva l en t s
by
t h e
average
r e t a i l
p r i c e of
an
L . P .
The
r e s u l t s of
t h e
survey showed,
i n t e r a l i a ,
t h a t : -
( a )
D u f d g
a per iod
of
twelve
months,
74% of
A u s t r a l i a ' s
populat ion
was
tap ing
t h e
equ iva l en t
o f
5 5 . 1
m i l l i o n
L.P.s ,
e i t h e r from
reco rds ,
pre-recorded
t a p e s ,
o r t h e
r a d i o
and
t e l e v i s ~ o n ;
( b )
Aus t ra l ians
taped
t h e
equivaLent
of
6 . 3
m i l l i o n
L. P . s
from
records
i n the
t h r e e months'
per iod
t h e
s u b j e c t o f
t h e
survey:
-91-
( C )
T h e r e
were
some
637 ,000
p re - r eco rded
t a p e s
t a p e d
d u r i n g
t h e
s u r v e y
p e r i o d
from
o t h e r
p r e - r e c o r d e d
t a p e s ;
( d )
By
d i v i d i n g
t h e
t o t a l
number
o f
h o u r s
t h a t
t a p e r s h a d
t a p e d
from r a d i o and
t e l e v i s i o n by
a
f a c t o r o f
1 . 5 t o 1
o r
t h e
e q u i v a l e n t
o f
1
l / 2
L . P . s
t o
e v e r y
h o u r
t a p e d ,
on
t h e b a s i s
t h a t most
L.P.s
r e q u i r e
a b o u t
40
m i n u t e s
t o p l a y ,
t h e r e was
found
t o '3e
a
t o t a l o f
4 . 6
m i l l i o n
h o u r s
t a p e d
from
r a d i o
and
t e l e v i s i o n
d u r i n g
t h e
t h r e e
m o n t h s
s u r v e y
p e r i o d .
T h i s
i s
t h e
e q u i v a l e n t
o f
6 , 8 7 8 , 0 0 0
L . P . s :
( e )
T h e r e
i s
t h e
same
amoun t
o f
t a p i n g
f r o m
r a d i o
a n d
t e l e v i s i o n
a s
t h e r e
i s
from
r e c o r d s
and
p r e - r e c o r d e d
t a p e s
combined;
( f )
Blank
t a p e
p u r c h a s e s
f o r
p r i v a t e
p u r p o s e s ,
a c c o r d i n g
t o
t h e
s u r v e y ,
were
s u f f i c i e n t
d u r i n g
t h e
t h r e e
mon ths '
. ~
p e r i o d
t o
t a p e
6 4 . 8
m i l l i o n
L . P . s
w i t h o u t
t a k i n g
m u l t i p l e
t a p i n g
i n t o
a c c o u n t ;
. .
( g )
S a l e s i n t h e
t h r e e months
sur.vey p e r i o d
were
s l ~ f
f i c i e n t
t o t a p e
1 9 . 2 rniLLion
L.P. e q u i v a l e n t s ;
( h )
The
m u i t i p l e
> l se o f
b l a n k
t a p e s
i s
w i d e s p r e a d ,
and
h a s
t h e
e f f e c t o f
i n c r e a s i n g
t h e
potential
f o r
llse
o f
a n y
one
t a p e .
Some
e s t i m a t e
i s aeeded
co
a c c o l m t
f o r
t h i s
m u l t i p l e
u s e ;
( i )
Mul t ip le
use
of
b lank
t a p e
would
i n c r e a s e
t a p i n g
p o t e n t i a l
be tween
1 5 % a n d
20% i n t h e
t h r e e
months
survey
p e r i o d ,
b u t
could
i n c r e a s e
t a p i n g
p o t e n t i a l
by
11p
t o 50% i n a
f u l l y e a r .
Blank
t a p e p u r c h a s e s
b y
t a p e r s
were
s u f f i c i e n t
t o t a p e
6 4 . 8
m i l l i o n
L . P . s
i n
a
f u l l
yea r
wi thout
t ak ing
m u l t i p l e
use
i n t o
accoun t .
The
e s t i m a t e o f
E . P . s
t aped
by
p r i v a t e
i n d i v i d u a l s
i n a
f u l l year
was
55 .1 m i l l i o n ,
o r 85% o f
t h e
b lank
t a p e
purchased;
(1)
Whilst
no
e s t i m a t e was
made
i n t h e s u r v e y o f
t h e
l i k e l i h o o d
o f
purchase
o f
music
t aped
from
t h e
r a d i o
and /or
t e l e v i s i o n ,
c a l c u l a t i o n s
were
made
i n
an
endeavour t o e s t i m a t e how many r e c o r d s and pre-recorded t a p e s home taped rnlght have been bought i f lt had n o t
b e e n
. p o s s i b l e
t o
t a p e
them.
The
c a l c u l a t i o n s
demonstrated
t h a t
t h e
l o s s would
be
some
6 . 5
m l l l i o n
rec?c&ds
and 492,000 pre-recorded
t a p e s i n a f u l l yea r ;
(k)
On
most
t ap ing
occas ions t h e t a p e r
t a p e s
a
complete
L . P .
r a t h e r
t h a n
e x c e r p t s .
O f
t h e
t a p e s
owned
by
people o t h e r than t h e t a p e r ,
50% would
have been bought
i f t h e t a p e r had
been
anable
t o t a p e them:
(1 )
The
s u r v e y
found
a
t o t a l
o f
4 . 6
m i l l i o n
h o u r s
t a p e d
from
r a d i o
and
t e l e v i s i o n
i n
t h e
s u r v e y
p e r i o d .
This
was
t h e e q u i v a l e n t o f
2 7 . 5 m i l l i o n L.P.s
i n a
f u l l
y e a r ,
a n d
e q u a l l e d
t h e
amount
t a p e d
f r o m
L . P . s
a n d
p re - r eco rded
t a p e s :
( m )
42-f
h o u r s
t a p e d
came
from
AM
commercia l
s t a t i o n s
compared w i t h 2 4 % from FM
commercia l
s t a t i o n s :
and
( n )
Rad io ,
a t l e a s t among
t a p e r s ,
was
t h e
most
i m p o r t a n t
i n f l u e n c e on
r e c o r d
and
p re - r eco rded
t a p e
s a l e s .
A p a r t
f r o m
r a d i o ,
t h e
more
i m p o r t a n t
f a c t o r s
i n f l u e n c i n g
p u r c h a s e
b e h a v i o u r
i n c l u d e d
t e l e v i s i o n
a d v e r t i s i n g ,
music
p rograms ,
and
recommendat ions .
I n
summary
M r .
W h i t f i e l d
conc luded
t h a t
t h e m a r k e t
va l l l e
o f
e q u i v a l e n t
L.P.s
t a p e d
p e r
annum
from
r e c o r d s ,
p r e - r e c o r d e d
t a p e s ,
r a d l o
and
t e l e v l s l o n on
t h e b a s l s
o f
t h e
1976
Australian
population
c e n s u s . w a s
$595 .7
m r l l l o n .
The
t o t a l
L . P .
e q l l l v a l e n t s
t a p e d
p e r
annum
whlch
had
been
t a p e d
from
r a d z o
w a s
2 4 . 3
m l l l l o n .
The
e s t l m a t e
o f
l o s t
s a l e s
p e r
a n n q due
t o
t a p i n g s
from
r e c o r d s
and
p re - r eco rded
t a p e s
o n l y
w a s Informat ion
on
t h e
A u s t r a l i a n
p o p u l a t i o n
b a s i s
$ 7 5 , 8 0 0 , 0 0 0
o r
9 . 5
m i l l i o n
L.P.
e q u i v a l e n t s .
was
ob ta ined
by
M r .
Wh i t f i e ld
from
v a r i o u s
members
of
A R I A o f
s a l e s o f
r eco rds
and
pre-recorded
tapes . . f o r
t h e
1979,
1980, and
1981
ca lendar
y e a r s .
The
in format ion
i n d i c a t e d
t h a t ,
w h i l s t
s a l e s by
v a l u e
i n c r e a s e d
1 6 . 8 % be tween
1979-1980,
a n d
5 %
between
1980-1981,
t h e number
o f
u n i t s
s o l d o n l y
i n c r e a s e d b y
1%
I
' b e tween
1979-1980
and
d e c r e a s e d
b y
4 . 5 % be tween
1980-1981.
M r .
~
Whit f ie ld
compared
t h e market
va lue
o f
t h e
e q u i v a l e n t L . P . s
t aped
p e r
/
l
.
annum
from
r e c o r d s ,
p r e - r e c o r d e d
t a p e s ,
r a d i o
and
t e l e v i s i o n ,
t o
l
i
r e t a i l va lue
of
s a l e s by
ARIA members,
and
t h e
e s t i m a t e o f
l o s t s a l e s
I
p e r
annum
due
t o t a p i n g
from
r e c o r d s
and
p r e - r e c o r d e d
t a p e s
o n l y
I
compared
t o
r e t a i l
va lues
o f
s a l e s by
ARIA
members
( n o t i n c l u d i n g
l
t a p i n g
from
r a d i o and
t e l e v i s i o n ) .
He
concluded
t h a t t h e i nc idence o f
~
home
t ap ing
i n
r e s p e c t
of
r a d i o
sound
i s
s i g n i f i c a n t i n r e l a t i o n
to
s a l e s of
r eco rds
and
pre-recorded
t a p e s
by
r eco rd manufac ture rs .
The
Reark
Research
Report
o f
January
1982
provided
informat ion
from
which
M r .
Whi t f i e ld
concluded
t h a t
t h e r e t a i l v a l u e
- .
equ iva l en t o f hours' taped from FM
commercial r a d i o i n New
South Wales
f o r a twelve month
per iod was
$17.8 m i l l i o n of
which
$11.9 m i l l i o n was
. a t t r i b u t a b l e
t o
2 M M M .
It w a s conceded by M r .
F e the r s t h a t t h e January
1982
sllrvey
had
no t been
designed
t o a s s e s s
t h e
e f f e c t of
t ap ing
from
r a d i o
o f
sound
record ings
on
t h e
s a l e s of
r e c o r d s .
Addi t iona l
ques t i ons
would
need
t o be p u t ,
some
of
which
would
be h y p o t h e t i c a l .
-95-
I n
September
1982 ,
a
f u r t h e r
t a p e
s u r v e y
w a s
conduc ted
b y
R e a r c k
R e s e a r c h
d i r e c t e d
t o o b t a i n i n g
a n
e s t i m a t e
o f
r e c o r d
a n d
p re - r eco rded
t a p e
s a l e s t h a t were
l o s t by
r e a s o n
o f
home
t a p i n g
f rom
t h e
r a d i o .
The
r e p o r t
on
t h e
September
1982
s u r v e y
s o u g h t
a l s o
t o
examine
t h e
r e l e v a n c e
o f
t h e
q u e s t i o n s
t h e n
a sked
i n
r e l a t i o n
t o
the
e a r l i e r J a n u a r y
1982
s 'urvey.
T h e
September
1982
s u r v e y
was
Limi ted
t o
t h e
Sydney ,
Melbourne,
B r i s b a n e ,
Ade la ide
and
P e r t h
m e t r o p o l i t a n
a r e a s ,
and
d i d
n o t
e x t e n d ,
l ~ n l i k e
t h e
J a n u a r y
1982
s u r v e y ,
t o
c o u n t r y
a r e a s .
I t
r e p r e s e n t e d
59% of
t h e
t o t a l
A u s t r a l i a n
p o p u l a t i o n
aged
1 3 y e a r s
and
o v e r ,
whereas
t h e
J a n u a r y
1982
s u r v e y
had
r e p r e s e n t e d
7 4 % o f
t h a t
p o p u l a t i o n .
I n
o r d e r
t o
e s t i m a t e
t h e
l o s s
o f
s a l e s
o f
L . ? . s
and
p re - r eco rded
t a p e s
mor'e
d i r e c t l y
a t t r i b u t e d
t o home
t a p i n g
f r o ?
t h e
r a d i o ,
t h e
s u r v e y
a sked
r a d i o
t a p e r s : -
-
t o t h i n k
a b o u t
t h e
L a s t
( i . e . n o s t
r e c e n t ) o c c a s i o n
on
which
t h e y had
t aped
m a t e r i a l .from
t h e
r a d i o :
-
how
Like ly . t h e y woilkd
have been
t o blly
any
of
t h a t m u s i c ,
e i t h e r
a s
a n
L . P .
o r
a s
a
p re - r eco rded
t a p e ,
i n
t h e
e v e n t
t h a t t h e y were n o t a b l e t o tape
i t :
and
-
how
any
L . ? . s
a n d l o r
p r e - r e c o r d e d
t a p e s
,*iollld t h e y h a v e
bought
The
c o n c l u s i o n s
r eached
a s a
consequence o f
t h ~ s
s u r v e y
included
t h e
fol lowing: -
( a )
o f
t h e approximately
people
i d e n t i f i e d
a s
r a d i o
t a p e r s ,
being
42% of
t h e o r l g l n a l
sample,
1 6 % c e r t a i n l y
would have bought, 40% probably would have bought, 26%
probably would
not have bought,
and 14% c e r t a i n l y would
not have bought,
a t l e a s t some o f
t h e muslc
t hey
l a s t
t aped ;
(b)
People
i n t h e c a p i t a l
c i t i e s who
t ape music
from
t h e
r a d i o
would
have
bought
5 .8
m i l l i o n
L . P . s
o r
pre-recorded
t apes over a twelve month per iod had
t h e y
been unable t o t ape t h a t music
f o r some r eason ; and
( C )
Assuming
o n l y
one
tAping
p e r
t a p e r
d u r i n g
t h e
s i x
months'
pe r iod ,
t h i s admit tedly
being
c o n s e r v a t i v e ,
t h e
survey
i n d i c a t e d
t h a t among
people
aged
13 y e a r s
and
ove r ,
l i v i n g
i n t h e mainland
c a p i t a l c i t i e s ,
a
t o t a l o f
1 . 7 m i l l i o n
L . P . S
and/or
pre-recorded.
t apes
d e f i n i t e l y
would
have been
bought,
and
a
f u r t h e r 4 . 1 m i l l i o n L. P . s
and ' /or
p re - r eco rded
t a p e s
p r o b a b l y
would
have
been
bought .
An
amendment
was
s u g g e s t e d
t o
t h e
S e p t e m b e r
1 9 8 2
R e a r k
Research
r e s u l t s by
M r .
W h i t f i e l d
i n t h a t t h e September
1982 a n a l y s i s ,
u s e d
t h e
t o t a l p o p u l a t i o n
a g e d
1 3
y e a r s
a n d
o v e r ,
l i v i n g
i n
t h e
su rveyed
c i t i e s ,
a s t h e b a s i s
f o r g r o s s i n g
up ,
whereas
" a
f a i r e r o r
more r e a s o n a b l e number o f househo lds
app roach" i n t h e su rveyed c i t i e s .
would
b e
t o g r o s s
up
r e s u l t s
t o
t h e
t o t a l
Consequen t ly
t h e
various
e s t i m a t e s
f l o w i n g
from
t h e
s u r v e y
c a l c u l a t i o n s were
rev iewed
and
an
e s t i m a t e made
o f
a
t o t a l s a l e s
l o s s
i n
t w e l v e
months
o f
2 . 4
m i l l i o n L . P . S
a n d / o r
p re - r eco rded
t a p e s
v a l u e d
a t $1 9 . 5
m i l l i o n on
t h e household. a p p r o a c h .
M r .
W h i t f i e l d
c o n c e d e d
a
p o s s i b l e m a r g i n
o f
e r r o r
i n t h e
r e s u l t s
o f
a b o u t
p l u s
o r minus
1 0 % .
Mr.
F e t h e r s
w a s
t h e
f i r s t t o
a g r e e
t h a t
one
shoi l ld
n o t
a p p l y
t h e
r e s u l t s
o f
s u r v e y s
s u c h
a s
t h o s e
abovementioned
a s
i f
t h e y
r e s u l t e d
i n m a t h e m a t i c a l
c e r t a i n t i e s .
The
e m p i r i c a l
r e s u l t s were ,
o f
c o u r s e ;
n o t
a b l e t o b e
t e s t e d
i n
t h e
a c t u a l
m a r k e t
p l a c e .
Whilst
t h e
i n c i d e n c e 0.f
home
t a p i n g
i s
a t L e a s t
i l l ~ l s t r a t e d
i n t h e above
s u r v e y s ,
we
a r e mindf l l l
o f
t h e
f a c t t h a t b l a n k
t a p e s
were
u n t i l
r e c e n t l y
m a n u f a c t l l r e d
b y
some
o f
t h e
r e c o r d
n a n l l f a c t u r e r s
t h e m s e l v e s .
Indeed
a t t h e
t ime
o f
t h e
h e a r i n g
r e c o r d
companies
s o l d
t a p e s ,
one
s i d e b e i n g
p re - r eco rded
-
cne
o t h e r
b l a n k ,
and
known
a s
"one p l ~ ~ s
o n e " .
The
p r i c e was
t h e same
f o r t h e "one ?i'ls o n e " a s f o r
a
t a p e
f u l l y r e c o r d e d .
1
Al though t h e numbers o f recordings
made
and
t h e v a l u e o f
1
s a l e s
foregone
may
be
difficult
t o ' a s se s s ,
we
g e n e r a l l y
a c c e p t
t h e
r e s u l t s o f t h e two
surveys .
The
problem of home
t a p i n g from r a d i o and
~
I
o t h e r
sources
i s obvious ly one
o f
s i g n i f i c a n t dimensions.
I t
i s
no t
ea sy
t o
a s s e s s
t h e
r e l evance
o f
t h e s e
c o n s i d e r a t i o n s
t o o u r
t a s k .
I t
i s
t r u e
t h a t
t h e
b r o a d c a s t e r s
o b t a i n
b e n e f i t
from
home
t ap ing
from
t h e
r a d i o
because
home
t a p e r s ,
w h i l s t
t a p i n g ,
a r e L i s t e n i n g
t o o r t u n e d
i n t o t h e
r a d i o
and
t h e r e
i s
a
.
.
d e f i n i t e
r e l a t i o n s h i p be tween
p o p u l a r i t y
o f
a
r a d i o
s t a t i o n ,
i t s
r a t i n g s and i t s revenue
from
a d v e r t i s i n g
income.
I t i s a l s o t r u e t h a t
home. t ap ing has
a
s e r i o u s e f f e c t on
t h e
s a l e s o f
sound
r eco rd ings
and
t h e r e f o r e on
t h e income o f
r eco rd manufac ture rs .
Although w e see
some
f o r c e
i n t h e
argument
t h a t
t h e
ques t i on
o f
home
t a p i n g
is
i r r e l e v a n t
t o o u r t a s k ,
w e t h i n k on balance
t h a t i t i s o f
some
r e l evance and
t h a t
i t should be
t aken
t o account t o some
e x t e n t
i n favour
o f
t h e r e c o r d
companies
i n a s s e s s i n g t h e a m o u n t
payable
by
2MMM.
The
q u a n t i f i c a t i o n
o f
t h e
s i g n i f i c a n ' c e
o f
home
t a p i n g
i s o f
necessity
a
m a t t e r
o f
judgment.
I t i s imposs ible
t o d e f i n e
lt
a r i t h m e t i c a l l y
o r
p r e c i s e l y .
We
do not cons ider it should be taken i n t o account t o any s i g n ~ f i c a n t
e x t e n t
because
o f
t h e
. , con jec tu ra l
no t ions
t h a t
a r e
n e c e s s a r i l y
involved
i n any
assessment
of
t h e
e f f e c t o f
home
t ap ing
r e l e v a n t
t o '
t h e s e
a p p l i c a t i o n s .
There
i s ,
however,
an
i n d i c a t i o n
i n
t h e
evidence
t h a t
2MMM
has
a
s u b s t a n t i a l
impact
i n
t h e
c o n t e x t o f
home
t ap ing
i n
New South Wales.
GROSS EARNINGS O F A BROADCASTER AND SUB-S . 1 5 2 ( 8 )
The
p r o h i b i t i o n
imposed
by
s u b - $ .
152
(11) a g a i n s t
t h e
Tr ibunal
r e q u i r i n g
a cogne rc i a l b roadcas t e r
t o pay
an
amount
exceeding
1%
of
t h e
g ros s
e a r n i n g s o f
t h e
b roadcas t e r
du r ing
t h e
r e l e v a n t
p e r i o d
t o which
t h e
o r d e r
a p p l i e s
f i x e s
a
c e i l i n g
which
t h e
Tr ibuna l
cannot
exceed.
The
sub-sect ion
does not r e q u i r e t h e Tr ibuna l t o approach t h e
t a s k
o f
determining
t h e
r e l e v a n t
amount
payable
by
r e f e r e n c e
t o
a
formula
expressed
a s
a
percen tage
of
t h e
b r o a d c a s t e r ' s
g r o s s
e a r n i n g s
no t
exceeaing l%, b u t
t h e r e
a r e obvious
sound
p r a c t i c a l
r easons
why
t h e
assessment
of
t h e
r e l e v a n t
amount
i s
b e s t
expressed
a s
a
pe rcen tage
of
g r o s s
ea rn ings .
What
a r e
t h e
g ros s
ea rn ings
o f
a
b roadcas t e r ?
Sub-sect ions
152
(19 ) and
(20) of
t h e
Act
provide
t h a t t h e g r o s s
ea rn ings
o f
a
b roadcas te r
i n
r e s p e c t
o f
a
pe r iod
a r e h i s
g ros s
ea rn ings
du r ing
t h a t
per iod
of
t h e b roadcas t ing
by
him
of
adver t i sements
o r
o t h e r
m a t t e r ,
i nc lud ing
h i s
g ros s
ea rn ings
dur ing
t h a t
pe r iod
i n
r e s p e c t
o f
t h e
p rov i s ion
by
him
of
o r o therwise
i n r e s p e c t
o f ,
ma t t e r
b roadcas t
by
him. Where or given o therwise than
i n
connection
wi th i n c a s h ,
a
t r a n s a c t i o n
any
c o n s i d e r a t i o n
i s pa id
t h e money
v a l ~ l e
of
t h a t
c o n s i d e r a t i o n
i s , f o r t h e purposes of
sub-S,
15.2
(19), t o be deemed
t o have been
paid
o r g iven .
I t i s t h e aoney
v a l l l e of
-he
g r o s s ea rn ings
i n r e s p e c t
of
t h e m a t t e r b roadcas t
by DETERMINATION OF AMOUNT PAYABLE
2MMM
t h a t
i s r e l e v a n t
t o o12r
de t e rmina t ion .
The
g r o s s
income
of
2MMM
a s
d i s c l o s e d
i n
i t s
s t a t e m e n t s
o f
p r o f i t
and
l o s s
f o r
t h e
r e l e v a n t
yea r s
comprised
i tems
d e s c r i b e d
a s
i
l
" a d v e r t i s i n g
revenue" ,
" c o n t r a
income"
and
" o t h e r
income"
o r
"miscel laneous
revenue " .
The
i tem "o the r income" o r "miscel laneous revenue"
inc luded
1
l
i n t e r e s t
and
e a r n i n g s
o f
a
l i k e
n a t u r e
n o t
r ece ived
i n
r e s p e c t
o f
~ ~
broadcas t i ng .
We
l eave them o u t o f account .
The
i t em
"con t r a income" was
t h e s u b j e c t o f
some
d e b a t e .
The
Ltem r e l a t e d r a d i o give-aways,
t o such m a t t e r s t i c k e t s t o c o n c e r t s ,
a s morning
t r a f f l c r e p o r t s ,
s u r f
r e p o r t s ,
a
four-wheel
d r i v e v e h i c l e
used
on Sydney beaches , a give-away
2MMM
advertising
s l g n s on b i k e s ,
a
s t a f f p a r t y and
ho l iday .
The
assignment
o f
vallles
t o
t r a n s a c t i o n s
i nvo lv ing
t h e
exchange of
goods
o r s e r v i c e s i s obviously d i f f i c u l t and
o f t e n becomes
s u b j e c t i v e and
a r b i t r a r y .
2MMM
p laced
va lues
\upon t h e s e
i tems
and
i t s
f i n a n c i a l
c o n t r o l l e r
s t a t e d
t h a t
he
had
used
h i s
b e s t
judgment
i n
a r r i v i n g a t t h e
f i g u r e s
i n t h e
accounts .
The
accounts were
a l ld l ted by
2MMM's
a u d i t o r s ,
Messrs.
Arthur
Rnderson
&
Co.
I n
o u r
op in ion
t h e
va lues p laced on t h e
" c o n t r a income"
i tems by
2MMM
shojlld be accep t ed .
The
o t h e r
i t e m
o f
c o n t e n t i o n ,
l lnder
t h e
h e a d i n g
" c o n t r a
income" ,
r e l a t e d
t o amounts
r e c e l v e d
by
2MMM
from
a d v e r t i s e r s on
beha l f
of
t e l e v i s i o n
s t a t l o n s
i n
r e s p e c t
of
simulcasts.
The
amounts
rece ived
i n t o t a l were
l e s s
than
t h e proablctlon
c o s t s .
In
our
view,
-101-
t h e
moneys
r e c e i v e d
and
s u b s e q u e n t l y
p a i d
t o t h e
t e l e v i s i o n
s t a t i o n s
a r e more
i n t h e
n a t u r e
o f
r e c o v e r y
o f
a n
e x p e n s e
a n d w e
d o
n o t
c o n s i d e r
t h a t
t h e y
a r e
" g r o s s
e a r n i n g s "
i n r e s p e c t
o f
t h e b ~ o a d c a s t i n g
o f
a d v e r t i s e m e n t s w i t h i n
t h e
meaning
o f
sub-S .
152
( 1 9 ) .
2MMM's
" g r o s s e a r n i n g s "
f o r
t h e p u r p o s e s
o f
sub-S.
152
(19)
o v e r
t h e
r e l e v a n t
p e r i o d
c o m p r i s i n g
a d v e r t i s i n g
r e v e n u e ,
" c o n t r a "
and
o t h e r
income
were
made
a v a i l a b l e
t o 11s
i n
a
c o n f i d e n t i a l
e x h i b i t .
Hence
we
do
n o t
t h i n k
it
a p p r o p r i a t e
t o men t ion
t h e
f i g u r e s
i n o u r
r e a s o n s .
I n
o u r
o p i n i o n
t h e
amount
p a y a b l e
b y
2MMM
t o t h e
owners
o f
c o p y r i g h t
i n sound
r e c o r d i n g s
i n r e s p e c t
o f
t h e
p e r i o d
commencing
1
O c t o b e r
1 9 8 0
a n d
e n d i n g
o n
30
J u n e
1 9 8 3
i s
b e s t
e x p r e s s e d
a s
a
p e r c e n t a g e
o f
g r&
e a r n i n g s
a t t r i b u t a b l e
t o
t h e
u s e
o f
p r o t e c t e d
r e c o r d i n g s .
.
We
have
c o n s i d e r e d
a l l
r e l e v a n t
n a t t e r s
f o r , t h e
pu rpose
o f
sub-S.
152 ( 7 ) and
have
come. t o t h e c o n c l ' l s i o n t h a t t h e
amount
p a y a b l e
s h o u l d
be
0 . 4 5 % o f
t h e
g r o s s
e a r n i n g s o f
2MMM.
We
d o n o t p r o p o s e
t o make
o r d e r s . a t t h i s s t a g e , b u t w i l L
s t a n d
t h e
a p p l i c a t i o n
o v e r
t o
a
d a t e
t o
b e
f i x e d .
The
p a r t i e s
may
1
i
c o n s i d e r
o u r
r e a s o n s
f o r
d e c i s i o n
i n
t h e meantime
and
b r i n g
' i n
s h o r t
l
i
m i n u t e s
of
o r d e r
t o g i v e
e f f e c t
t o
t h e s e
r e a s o n s .
l
3
0
0