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Music Canada applauds Supreme Court of Canada decision confirming that Internet intermediaries can be ordered to deindex illegal sites worldwide

June 28, 2017, Toronto:  Music Canada welcomes today’s landmark Supreme Court of Canada decision in Equustek Solutions v. Google upholding a ruling that Google can no longer provide search results anywhere in the world that point to a website that unlawfully sells the intellectual property of another company. Music Canada joined several other creative industry associations as interveners supporting Equustek in the case.

The case establishes principles that will guide the responsibilities of Internet intermediaries to reduce or eliminate harms amplified by their activities.  In the case, Google admitted that it employs a team of more than 40 employees to remove search results to material that offend its company policies, but resisted a court order compelling it to do the same with respect to sites trafficking in goods created from stolen trade secrets.

The Supreme Court ordered Google to stop directing people to the illegal sites.  It rejected Google’s approach of only de-listing individual pages within sites, which a lower court described as promoting a “Whack-A-Mole” approach to online infringement. It also rejected Google’s claim that, as a non-party, it was “immune” to court orders. It concluded that Google was “the determinative player in allowing the harm to occur” and suggested it had a “duty to assist the person wronged”.

Importantly, today’s decision also ensured that the order applies worldwide and across all of Google’s search engines, a crucial development given that the Internet has largely dissolved boundaries between countries and allowed virtual wrongdoers to move from jurisdiction to jurisdiction in search of the weakest enforcement setting.

In particular, the Supreme Court emphasized:

“The problem in this case is occurring online and globally. The Internet has no borders – its natural habitat is global. The only way to ensure the interlocutory injunction [order] attained its objective was to have it apply where Google operates – globally.”

The only way to protect the plaintiff was to prevent the search results from being displayed where they do the most harm: on Google’s global search results.

Last, the Supreme Court concluded that freedom of expression concerns raised by Google and its supportive interveners were at best theoretical. The speech contained on the sites did not engage any freedom of expression values, but rather violated multiple court orders. The Supreme Court found that “most countries will likely recognize… the selling of pirated products as a legal wrong” and that freedom of expression does not require Google to engage in “the facilitation of the unlawful sale of goods.”

Music Canada, together with the International Federation of the Phonographic Industry (IFPI), has been actively involved in this case since it was first appealed to the British Columbia Court of Appeal. Both the Supreme Court and the British Columbia Court of Appeal referred to their assistance in rendering their decisions.

“Today’s decision confirms that online service providers cannot turn a blind eye to illegal activity that they facilitate; on the contrary, they have an affirmative duty to take steps to prevent the Internet from becoming a black market,” said Graham Henderson, President and CEO of Music Canada. “This is welcome news for creators of all stripes who rely on the Internet as their primary market and for whom illegal online activity can instantly wipe out careers and destroy investment in new releases. Today’s decision provides a vital remedy to address illegal online activities and enforce the rights of creators.”

̶   Ends  ̶

 

For more information:

Corey Poole, Music Canada
cpoole@musiccanada.com
+1 (647) 808-7359

About Music Canada

Music Canada is a non-profit trade organization that represents the major record companies in Canada:  Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada.  Music Canada also works with some of the leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists in the promotion and development of the music cluster.

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Music Canada extends heartfelt congratulations to Prime Minister Trudeau and his new cabinet

Music Canada extends a heartfelt congratulations to Prime Minister Trudeau and his new cabinet.  The Honourable Mélanie Joly is Canada’s new Minister of Heritage.  She brings to the portfolio her legal background, a demonstrated interest in the arts, and a desire to improve and innovate wherever she goes.  The Honourable Navdeep Bains is Canada’s new Minister of Innovation, Science and Economic Development.  He brings to the portfolio his deep understanding of how businesses and the economy function.

We look forward to meeting Minister Joly and Minister Bains in Ottawa to discuss continued support and growth of Canada’s music businesses through the music and copyright files.

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Music Canada Welcomes New Federal Government

Yesterday Canadians voted for change and elected a new federal government. Music Canada congratulates Prime Minister-designate Justin Trudeau, and we look forward to working with him and the newly elected government to rebalance the copyright regime and ensure the business needs of the music sector are met.

We are pleased that the Liberal government has committed to taking a leadership role to initiate preliminary consultations for the 2017 Copyright Review. The Liberal government’s Copyright Review promises to give full consideration to the views of artists and creators. This is an opportunity to ensure that copyright legislation works for the 21st century.

Importantly, the Liberal government recognizes the significant challenges that creators face with the current Copyright Board structure. They have said that the current 2-3 year wait time for decisions is unacceptable due to its negative impact on people’s ability to earn a living. Music Canada has been a strong advocate for Copyright Board reform, and we look forward to partnering with our new government to find some real solutions to the problems that creators in Canada continue to face.

We look forward to speaking with the new government further on these issues, and about the recommendations of the Standing Committee on Canadian Heritage study of the Music Industry. You can read more about the Liberal government’s plan for Canadian arts & culture on their website.

Music Canada is a non-profit trade organization that represents the major record companies in Canada. We also partner with a diverse cross-section of the music industry to promote and develop the business framework for music right across Canada. These partners include some of Canada’s leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists. Music Canada has undertaken groundbreaking research on the music sector and is a trusted source, a passionate advocate and we provide a respected forum for discussion of issues relating to music.

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Music Canada on the 2015 Federal Election

As the federal parties have now released their platforms, we are reminded of the Standing Committee on Canadian Heritage study of the Music Industry. The Standing Committee held 14 meetings in the music study, hearing from 82 witnesses and received 15 briefs. This process allowed the Committee to hear from stakeholders in areas that they may normally have less opportunity to interact with, such as music education and music tourism. The report resulted in 10 good recommendations and had the support of all three main parties.

Those recommendations included efforts to strengthen support for the music industry through future investment in funding mechanisms, and notably – digital distribution and streaming, with a specific focus on copyright legislation.

As we move closer to the upcoming election, we are struck by the fact that none of these recommendations made their way into the economic or cultural party platforms. Given the broad support for these recommendations, we would like to take the opportunity to reiterate the importance of continuing to strengthen Canada’s music industry through legislative reform. As columnist Kate Taylor said earlier this year,

Musicians have faced the devaluation of their labour since at least 2000 – remember Napster? – and many now speak sadly of a society that takes a free soundtrack for granted. People refuse to understand not merely why they should pay any significant amount for streaming of downloading, but also why somebody should be paying the pianist who’s playing live in a bar or the composer whose melody can be heard over the sound system. If there is, perhaps, some growing outrage over this state of affairs, it is because musicians increasing have a lot of company.”

This “cult of free” as Kate describes it, continues to harm Canada’s digital economy and its creators. The latest iteration of this is Aurous, a new service that uses an interface similar to other paid streaming models such as Spotify or Rdio, but allows users to stream music using BitTorrent technology without paying artists. Piracy is still a problem, and not just for musicians. For publishers, and creators of all kinds who need a functioning online marketplace in which to conduct their business and make a living.

Our colleagues at the CMPA have put together an in-depth examination of three federal parties’ music platforms. It is interesting how much each party is talking about the need for further copyright reform.

It appears as though all parties agree that the decision-making process of the Copyright Board lacks deadlines and any procedural certainty. The industry may have disagreement about the details of the Board itself, but one thing we all agree on is: it’s cumbersome, and needs to be changed. The Conservatives, with their majority on the Heritage Committee, along with the three parties interviewed for this survey, all have a workable plan to change this, and we are looking forward to working with the next government on these critical issues.

The NDP told CMPA, “as things are moving in the digital world, we believe rights holders and the public are both losing in this situation.” Support for increased copyright protections are evident in this survey and across the industry – we look forward to bringing these, and other concerns to government in the 2017 Copyright Review. The digital revolution isn’t going to go away. In fact, it’s going to continue changing, and at even faster speeds than it is now. It’s time the government make changes to help protect and foster Canada’s creative businesses.

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Book Review – ‘How Music Got Free: The End of an Industry, the Turn of the Century, and the Patient Zero of Piracy’ by Stephen Witt

The book jacket says this book is, “the greatest story never told” about the music industry. Marketing aside, I have to agree. But How Music Got Free: The End of an Industry, the Turn of the Century, and the Patient Zero of Piracy isn’t just a book about the music industry, it is a book about creative industries in the digital world, about how disruptive technologies are created and interact with established modes of production. Despite that, it is not at all boring. It is a fun narrative read that takes the stories of three different groups of people and shows how their stories all intersect in the 1990s and early 21st century.

Stephen Witt meticulously tells this story by piecing together the different events that led to widespread music piracy, discussing its implications for the music industry. Using his investigative journalistic skills, he focuses on three key individuals: the creator of the mp3, a CD factory worker, and a music industry executive.

First he traces the evolution of mp3 technology, focusing on the German inventor Karlheinz Brandenburg. He describes the slow and challenging process of creating and distributing the technology, and its slow adoption within audio technology community. Along with the compression of music, Brandenburg and his team also developed several other complimentary inventions, which would allow users to encode mp3s and store them for limited use.

Next he follows Bennie Lydell Glover, the music smuggler. Witt describes Glover’s gradual introduction into music piracy, sneaking CDs from the plant he worked at during the day, and connecting with the Rabid Neurosis (RNS) internet crew to upload music online. Glover’s story is a fascinating one, Witt attributes 20 000 album leaks in 11 years to Glover. He leaked Madonna, Akon, Christina Aguilera, Elvis Costello, Taylor Swift, Toby Keith, the Foo Fighters, Hilary Duff and Jimmy Buffet, among others. Using Brandenburg’s technology, internet enthusiasts were able to create online sites full of compressed mp3 music, easily downloadable for free.

Lastly, Witt focuses on notable music executive Doug Morris, President of Warner, CEO of Universal and eventually Sony. Morris’s story overlaps with both Brandenburg and Glover, revealing how the industry reacted to these new developments. Witt describes the various lawsuits filled by music executives, both against Napster and against companies seeking to develop and market mp3 players. Not only does Witt capture the decisions that contributed to the decline of the industry, but Witt also describes how executives attempted to revive the music industry, endorsing iTunes and later creating Vevo for Youtube. Witt describes Morris’s judgments in the context of a declining industry, with CD sales decreasing to 50% in 2007 compared to their 2000 peak.

The hook in Witt’s book is what we all implicitly know: piracy and the digital revolution transformed the music industry. Witt takes the reader on a journey to understand how everything changed. What spurred this change? Who were the key players driving this change? How did the internet manage to cripple such a flourishing sector? Though most common answer to these questions is Napster, Witt shows readers that this is only one aspect of story.

Witt captures this difficult narrative without imposing his personal views on the stories he tells.   He admits that in the late 1990s he also pirated music, but he chooses not to discuss his own thoughts on the how the internet should be. Instead, he seems to recognize the extensive damage that he and thousands like him caused by chronicling the downfall of the music industry and its implications for thousands of former music industry employees. But, he does not let the industry off easily: he identifies with the internet generation, who found business practices implemented by major labels to be unfair and expensive for consumers

Today, as the music industry innovates, global revenues from physical sales and digital sales are about equal, just under $7B each. However, this combined revenue is still a fraction of what the industry used to generate- approximately $15 billion compared with the over $26 billion annually fifteen years ago.

The real challenge today is getting the generation of people that grew up in the Napster age to believe that they should pay for music. Witt encapsulates the feeling of the age accurately when he says, “music piracy became to the late ‘90s what drug experimentation was to the late ‘60s: a generation-wide flouting of both social norms and the existing body of law, with little thought of consequences.” As social norms are broken they are not easily repaired.

Today, according to the IFPI, one fifth of internet users continue to regularly access sites offering copyright infringing music. Though the heyday of piracy has undoubtedly passed, it remains a significant problem for all creative industries, including the music industry. As Witt repeats through the book Alan Greenspan knew that, “selling intellectual property mean[s] suppressing unauthorized products with the same vigor that you created legitimate goods.” Still today, this is elusive in many cultural industries.

A complete reading of Witt’s book will likely leave readers in awe of the complex interconnecting events that shaped the music industry. However, understanding what Witt knows about the ability of pirates to steal creative works, I have to wonder why he wrote this book. A quick search on Pirate Bay shows me that his book is already available for free download.

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Toronto Music Policy Survey – 2014 Mayoral Candidates

Music Canada is a passionate advocate for music and those who create it, identifying ways to strengthen Canada’s music sector.

Our research shows that Toronto has the potential to be the greatest music city in the world. It is the third biggest music market in North America, and is home to a vibrant music scene. This is why Music Canada has also led the 4479 Toronto Music City initiative, and why this survey has been created. Music Canada has surveyed Toronto’s mayoral candidates in order to raise awareness of music issues in Toronto, and to secure music friendly commitments.

We asked Olivia Chow, Doug Ford, and John Tory three questions on key music policies as identified by Music Canada. We have listed their responses alphabetically below, and encourage Torontonians to consider a candidate’s positions on music policy when casting their ballot. Voting day is Monday, October 27, 2014, and Advance Polls are open now through October 19th. For information on how or where to cast your vote, visit the City of Toronto’s Election Services site.

 

Toronto Music Policy Survey – 2014 Mayoral Candidates

Toronto’s live music venues, concert promoters, and studio owners have all revealed that regulations and red tape at City Hall are creating an impediment to business growth. Based on best practices from Austin, Texas, Music Canada has recommended that the City of Toronto create a Music Office within its Economic Development & Culture Division. With a modest budget, this office would assist Toronto’s music community in navigating city infrastructure and regulations, and in stimulating business development opportunities, all of which will lead to greater investment and employment in the music sector.
We asked: How will you support the creation of a Toronto Music Office?
Olivia ChowOlivia Chow “As an artist herself, Olivia has a history of championing the arts. Olivia will create the Toronto Music Office, which could be paid for with increased revenue from the billboard tax. Like the Film Office already does to support film in our city, the Music Office will create an even more attractive environment for music and culture in our city.Olivia supports making city services work for people, from small business tax cuts to ensuring that economic development agencies in the city streamline their processes. Austin, Texas is a leader on the music front and we can do the same here in Toronto with a much larger population and pool of artists. This will build on the incredible musical talent in our city, and the music festivals and awards shows that already attract so many to our city.”
Doug Ford
Doug Ford
“I believe in the power of the music industry to stimulate our economy, bring jobs to our city and create a vibrant cultural scene. In the past four years we have supported the arts and we have supported Toronto’s music industry. We increased arts funding by $22 million to support arts and culture in Toronto. I am also very proud of our work in partnership with Music Canada to help advance the music industry by travelling to Austin Texas on Toronto’s first music industry business mission. In Austin we signed the world’s first Music Cities Alliance between Toronto and Austin. We have also helped fund a new position at City Hall to liaise with the music industry to help them do business with the City of Toronto. We want to replicate the success we have seen with Toronto’s Film Office and apply that same approach to the Music Industry. I will work with stakeholders like Music Canada to make sure we expand on this and create fully functional Music Office at the City of Toronto.”
John Tory
John Tory
“John Tory’s “Music City” policy is an important part of his larger Arts and Culture policy which acknowledges the vital contribution the creative sector makes to the city. The creative sector creates the conditions for the city to thrive – it builds our international reputation, employs hundreds of thousands of people, and contributes billions to our GDP. It is important that the city creates the conditions for our creative sector to thrive.In May during Canadian Music Week, John announced his plan to support the growth of the music industry in Toronto. Included in his “Music City” program is the commitment to establish a new stand–‐alone Music Office which will act as a one stop shop for the music community.The City of Toronto can learn from its efficient and collaborative work with the film and television community. The city’s film office has succeeded in improving customer service has helped to increase the level of activity in Toronto in this important creative sector. Based on this success story, and a similar experience in Austin Texas in the music sector, the City of Toronto will benefit from the creation of a Music Office. The Music Office will be established within the Economic Development department and will open in 2015. The Music Office will be expected to accomplish two main goals: reduce red tape and stimulate greater economic activity in the music community. Both of these activities will help to reduce the impediments to business growth currently being faced by the music community in Toronto. Targets will be set and progress measured over a 5 year term. Expected results will include greater activity in the music sector, increased employment and private sector investment, and greater efficiency at City Hall.The Music Office will be supported in its work by the Toronto Music Advisory Council which was established in December 2013 and reports to the Economic Development Committee. John commits to extending the mandate of the Music Advisory Council.”

 

Tourism is an important part of Toronto’s economy, with almost ten million overnight visitors in 2010, generating over four million in city revenue. The specific impact of music tourism on Toronto’s economy has yet to be measured, though given the concentration of the music industry in the GTA, it could be significant. Working with the music community, the City of Toronto and Tourism Toronto could quantify existing music tourism revenues and develop targeted initiatives to further increase its impact.
We asked: How will you champion the development of a music tourism strategy for Toronto?
Olivia Chow
Olivia Chow
“Olivia has committed to seeing the city invest more in the arts, bringing our investment from $22.5 per capita to $25 per capita. With worldclass awards shows like Polaris Music Prize and the MMVAs, and festivals like Pride Toronto and the Scotiabank Caribbean Carnival, Toronto is a cultural capital unlike any other. Our commitment to investing in parks and green space in our city will reduce red tape surrounding large events and help support street festivals and open streets initiatives. Through strategies like this, we can continue to make our city a vibrant and dynamic cultural centre.”
Doug Ford
Doug Ford
“When we went down to Austin, Texas, last year I saw the power of the music industry first hand. Austin is a City one third the size of Toronto, yet they have created a thriving music industry that generates three times the economic activity of Toronto’s. I learned a lot in Austin, I learned the potential of the music industry to drive tourism and stimulate economic development. I will support Toronto’s music industry to help it thrive. A vibrant cultural scene makes a City more attractive to visitors, investors and businesses alike. I will drive a music tourism plan through the Economic Development Committee to ensure we are doing everything we can at the City of Toronto to attract more music tourism to our city.”
John Tory
John Tory
“John Tory believes our creative sector is one of our best tourism assets. Addressing the barriers to growth in music activity by establishing a Music Office will, in itself, help to further boost the opportunity to attract music tourists. Festivals, concerts and other music events, staged throughout the city, will position Toronto as a key destination for music tourists. John is also committed to facilitating greater connectivity for tourists to Toronto’s creative hotspots through the SmartTrack line. This will improve the overall tourist experience, as well as benefit Toronto residents who want to access music events. Increasing the audience, whether drawn from afar or here at home, will create greater demand for live performances and therefore, generating more opportunities for artists and musicians to perform.Toronto’s destination marketing organization, Tourism Toronto, should work with the music community in order to further incorporate Toronto’s music story into our tourism marketing.”

 

Toronto has an active and culturally vibrant live music scene, but red tape at City Hall has made it difficult for new and existing festivals and events to put on live music in Toronto’s parks and squares.
The application process is ambiguous and unclear, and can be overwhelming for people who are unfamiliar with it. If City Council were to place a higher priority on live music there would be a greater impetus to overcome these barriers.
We asked: How will you support the growth and development of live music in Toronto?
Olivia Chow
Olivia Chow
“At the beginning of this year the Fords went after Electronic Dance Music (EDM) in our city and tried to prevent any EDM on city property, especially on the Exhibition grounds. Olivia has been a long-time supporter of safe EDM events on public property. As a city councillor, she worked to reverse an ill-conceived ban on raves in public spaces and bring in protocols to ensure the events were safe and fun.The city has a vital role to play in facilitating great music in our city. The Toronto Music Office will lead this effort and we need to make sure that there are places, throughout our city, that can easily serve the needs of music artists. Fort York, for example, has become a musical and event destination in our city. Olivia has pledged to reduce the red tape and process in getting permits on public space.4479 is a great initiative that will help move our city’s cultural sector ever more forward. Olivia looks forward to working with 4479, Music Canada, other partners, and the new Toronto Music Office to make our city even better.”
Doug Ford
Doug Ford
“I will support the creation of a music office to make it easier for the music industry to operate in Toronto, especially the live music scene. Toronto already has an amazing live music scene, we have amazing festivals like NXNE. I believe what we need to make Toronto’s live music scene even better is more cohesion between the industry and the City and a concerted effort from the City of Toronto to make it easier to get permits for live music events. In Austin we attended the ACL music festival, a live music events that attracts thousands of visitors and generates over $100 million in economic activity each year. I want to bring a live music festival to match ACL to Toronto, while still supporting our existing music events and helping them grow. I am also committed to exploring the creation of a music industry incubator to support new music industry startups.”
John Tory
John Tory
“The importance of the music community and the broader creative sector cannot be understated. In addition to the direct economic benefits that result from a vibrant music sector, live music also serves as a magnet for tourism, investment and talent (both inside and outside the creative community). In order to ensure greater communication with the creative community, John will appoint a Creative Economic Advocate within the Mayor’s office who will act as a liaison to the Mayor. This measure will, along with other initiatives, ensure that the creative community and its benefits, including music, are better understood and appreciated by City Council and staff.In regards to presenting music in particular, the establishment of a Music Office will help to eliminate the barriers facing music presenters who wish to program Toronto’s underutilized spaces, and help to stimulate greater activity in the music community through business outreach efforts. A large international festival, for instance, is a missing critical component in Toronto’s music infrastructure. Whether growing an existing festival, or attracting the creation of a new festival, John will support efforts to fill this gap.”

For more information on Toronto’s municipal election, visit the City of Toronto’s Election Services page.

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Music Canada Proud to Support 43rd Annual JUNO Awards

Toronto, February 4, 2014: Music Canada is proud to return as sponsor of the Album of the Year Award at the 43rd Annual JUNO Awards.

“Canadian artists and bands create music that both shapes and reflects our cultural identity. As their music finds success in international markets, they act as de facto ambassadors of Canadian culture. What’s more, the economic benefits of their work touch communities across Canada through the recording process, the marketing and distribution of their music, and their live performances,” says Graham Henderson, President of Music Canada. “At Music Canada we are proud to work alongside talented artists like those nominated for the Album of the Year Award, as well as their partners at the labels and in the live music industry to further develop the music sector.”

The Album of the Year Award will be presented at the 2014 JUNO Awards broadcast at Winnipeg’s MTS Centre on Sunday, March 30th.

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For more information:

Amy Terrill – Vice President Public Affairs, Music Canada
aterrill@musiccanada.com 647-963-6044

Music Canada is a non-profit trade organization that represents the major record companies in Canada, namely Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Music Canada also works with some of the leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists in the promotion and development of the music cluster.

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Statement regarding the shutdown of isoHunt Web Technologies Inc.

Toronto, Oct 17, 2013: The closure of isoHunt’s worldwide operations announced today is a landmark victory for the creative community in Canada and around the globe. The members of Music Canada had united with other music companies in an amended pleading in the Canadian action against isoHunt Web Technologies Inc. and its owner Gary Fung. As one of the largest unauthorized BitTorrent sites in the world, isoHunt has been profiting from the work of creators by enabling millions of infringing acts and making a vast variety of unlicensed music, film and other creative content available for instant download. We welcome its closure.

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Report Identifies New Directions to Drive Growth and Job Creation in the Economy at Large and Canada’s Commercial Music Business in Particular

Report Identifies New Directions to Drive Growth and Job Creation in the Economy at Large and Canada’s Commercial Music Business in Particular

Music Education, Digital Innovation, Music Tourism, Export Expansion and Interconnected Tax Credits identified as critical areas for development

Toronto, March 21, 2013: Music Canada today tabled a new report identifying programs and public policies to stimulate the development of Canada’s commercial music sector. The Next Big Bang: A New Direction for Music in Canada proposes a renewed industrial strategy for music and pinpoints key recommendations in the following areas: music education, digital innovation, music tourism, export expansion and interconnected tax credits.

The report demonstrates that by addressing these areas, music can contribute more substantially to the broader economy. The commercial music industry employs thousands of people in a highly creative and dynamic field that has been reshaped by the digital revolution.

“The commercial music sector has the potential to support government efforts to improve economic performance and job growth at all levels. We want to get the message across that music can help in a multiplicity of ways,” says Graham Henderson, President of Music Canada. “Music’s potential can be fully realized, and Canada can secure its place on the global cultural map, by updating current policies and programs from the analog era in which they were created.”

The Next Big Bang: A New Direction for Music in Canada is intended to stimulate a broader conversation about how best to strengthen Canada’s music business. The report was developed after months of research, interviews and expert submissions. Contributors include the Information and Communications Technology Council (ICTC), Nordicity, digital expert Darlene Tonelli and Austin’s Titan Music Group.

The report’s recommendations are designed with the realities of today’s music industry in mind. Among these realities: (i) digital revenues have grown significantly but do not yet make up for the massive losses in physical sales; (ii) legitimate music services still must contend with unlicensed music sources that do not pay artists and music companies; (iii) in 2012, for the first time in over a decade, the global market for recorded music increased slightly over the previous year; (iv) music companies, despite the implosion of revenues, continue to invest in talent development; (v) music discovery has largely moved online; and, (vi) live performance constitutes an increasingly important part of an artist’s income.

The report contains 17 recommendations, including:

a) Given the strong evidence that music education prepares workers who are more creative, better problem-solvers, and possess soft skills that are critical in the digital economy, as well as the correlation between music scenes and tech clusters, governments should invest more in music education and should consider music scenes as a tool for economic development;

b) Music funding programs should reward innovation;

c) Efforts should be made to support the discovery of Canadian music online through partnerships with digital music services;

d) Cities and regions should develop a music tourism strategy in partnership with their local music community;

e) Canada should develop a national music export office to better assist music companies and artist entrepreneurs to expand their export markets;

f) A presence for the music industry should be established in Los Angeles to stimulate exports to the US market and attract more music recording activity to Canadian recording studios; and

g) Tax credits for music companies should be modernized and expanded, (replicating the best practices established in film and TV at the federal and provincial levels) resulting in jobs, economic activity and contributions to the tax base.

QUOTES:

“Ontario is home to a wealth of talent – from the artist to the industry. Our government is a proud partner of our music sector, working in concert with stakeholders like Music Canada to identify key priorities to further enhance the vitality and vibrancy of music in Ontario. Together, we are working in concert to develop a Live Music Strategy for Ontario that will firmly place our province on the map as a premier destination for live music on the international stage.”
Michael Chan, Minister of Tourism, Culture and Sport

“Music and technology are, in our view, inextricably linked. Tech jobs today require discipline and logical thinking, as well as creativity and an ability to innovate on the basis of strategic thinking. Music education, and lifelong involvement with music made possible in cities with strong scenes, could be Canada’s competitive advantage. Educators, parents, policy-makers and business leaders concerned with Canadian economic prosperity should consider the role music might play as a global competitive advantage.”
Jeff Leiper, Chief Policy Advisor, Information and Communications Technology Council

“Tax credits have been very effective as a creative industry stimulus. Properly enhanced, they could power even more growth in the music sector and its spin-offs in the economy at large. For instance, music could take a leaf from success in the film and TV business – and leverage foreign as well as domestic investment in Canada through tax credits.”
Peter Lyman, Senior Partner, Nordicity

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For more information:
Amy Terrill – Vice President Public Affairs, Music Canada
aterrill@musiccanada.com 647-963-6044

Music Canada is a non-profit trade organization that represents the major record labels in Canada, namely Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Music Canada also provides membership benefits to some of the leading independent record labels and distributors. Its members are engaged in all aspects of the recording industry, including the manufacture, production, promotion and distribution of music.

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Ontario Music Fund an important investment in job creation in Ontario’s music industry

FOR IMMEDIATE RELEASE: Ontario Music Fund an important investment in job creation in Ontario’s music industry

Toronto, May 1, 2013: On behalf of our members and partners, Music Canada commends the Government of Ontario for its commitment to accelerate the growth of the music industry in the province with the creation of the Ontario Music Fund announced today.

“Music is a superpower that’s primed and ready to perform for Ontario. It’s a smart investment given the globally competitive advantage we have in the recorded and live music sectors,” says Graham Henderson, President of Music Canada. “Research has shown that targeted support for music will pay off with enormous dividends including job growth, increased investment, tourism and the transformation of Ontario into one of the recording capitals of the world. As we in the music community like to say, music can help.”

The Ontario Music Fund is a $45 million dollar grant program to be distributed over three years beginning in 2013-14. According to a release by the Ministry of Finance, the fund is designed to support new digital and record production and distribution of Canadian music, to increase partnership opportunities and to promote Ontario’s music industry in Canada and around the world.

Ontario’s music industry is one of the most robust and diversified in North America. The recording sector alone generates more than $300 million in economic impact in Ontario which accounts for 81% of the total activity across Canada. It’s a cutting edge digital sector that predominantly attracts young workers. Live music is also of critical importance, both as a key aspect of Ontario’s competitive advantage, and as a source of income for artists and musicians.

The announcement was made today to a capacity crowd at Lee’s Palace in Toronto and with performances by Courage My Love from Kitchener and Royal Wood from Toronto.

QUOTES:

“On behalf of our 85 employees at Metalworks, I wish to congratulate the Government of Ontario for its commitment to maintaining a vibrant music industry. As a result of today’s announcement, the industry will get a much needed boost in the arm and the 220 students currently enrolled at Metalworks Institute of Sound and Music Production will be more likely to enjoy successful careers in an industry that I have been fortunate to call my own from the time I was a teenager. Today is a great day for music in Ontario.” Gil Moore, CEO, Metalworks Group

“The new Ontario Music Fund is a welcome investment in Ontario’s music industry and in our world class cast of talented artists and musicians. We look forward to learning more about the program and how we can work with the government to build on the entrepreneurial spirit in the music community.” Steve Jordan, founder and Executive Director, Polaris Music Prize

“Broader support for music production in Ontario will provide a strong incentive for Canadian artists to record in Ontario, while also helping us lure major American and international acts to record here. We congratulate the government for making a commitment towards the music industry in this province which is, by any measure, one of Ontario’s great assets.” Kim Cooke, Co-owner, Revolution Recording

“Returning to Toronto as NXNE’s new festival director, I’m inspired to see first-hand the extent of the Government of Ontario’s commitment to supporting the music industry in this province. I believe that we have the most passionate fans, the most visionary and experienced industry, and the most talented artists anywhere. This tremendous and timely support from our provincial government will be vital in helping our music sector rock the world. I couldn’t agree more – music creates jobs.” Christopher Roberts, NXNE Festival Director

“The Ontario Music Fund announced today creates a strong incentive for artists and their teams to produce more recordings in Ontario. In a competitive global environment, every edge makes a difference. Congratulations to the government for seeing the importance of the music industry.” Donny DaSilva, Manager, Noble Street Studios

“We applaud the Ontario government’s creation of the Ontario Music Fund, and their recognition that music not only plays a profound role in the cultural lives of Ontarians, but is also an important driver of the economy and a source of valued jobs. We hope this announcement will allow the already vibrant live music sector to amplify our successes through support for infrastructure, programming, and artist & audience development initiatives. We are part of one of the largest and most dynamic music communities in the world and this investment will help maximize its potential, paying dividends for the people of Ontario.” Jesse Kumagai, Director of Programming, The Corporation of Massey Hall and Roy Thomson Hall

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For more information:

Amy Terrill – Vice President Public Affairs, Music Canada
aterrill@musiccanada.com 647-963-6044

Music Canada is a non-profit trade organization that represents the major record companies in Canada, namely Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Music Canada also works with some of the leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists in the promotion and development of the music cluster.

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