Thank you to the Standing Committee on Finance; the chair, Mr. Rajotte; and members for inviting me here today.

I'm Graham Henderson and I'm the president of Music Canada, a trade association that represents Sony Music Entertainment, Universal Music, and Warner Music Canada.

I'm here today specifically to thank the government and the members of the opposition who have publicly supported this amendment that extends copyright in recorded music from 50 years to 70 years. Prime Minister Harper and the Government of Canada have demonstrated a real understanding of music's importance to the Canadian economy. Thank you.

The legislation that is the subject of this committee implements term extension for sound recordings in a manner that adequately addresses the needs of the music industry. A term of copyright for sound recordings of 70 years or more has become the global standard. Over 60 countries worldwide protect copyright in sound recordings for a term of 70 years or longer from the time of recording, and there is no reason whatsoever that Canadian artists should be limited compared to artists in other countries.

Currently an artist records and releases a song. Without this amendment, 50 years later anyone in Canada can use that recording for any purpose without compensating the recording artist. Unlike the songwriter, who is protected until 50 years after his or her death, the recording artist can see others profit off their recording by selling it or using it in a commercial without compensation or seeking the permission of the artist. A recording that is made in the early years of a long life means that 50 years later those same artists could still be actively working and trying to make a living off their recordings. This is the situation many recording artists find themselves in today, and this is why this amendment is so important to us.

You have my brief in front of you. Therefore, you have the examples of Leonard Cohen and Buffy Sainte-Marie. Another artist, Paul Anka, born here in Ottawa, has iconic works like Put Your Head on My Shoulder, produced in 1964, which have already fallen out of copyright protection and into the public domain. This is not in the public interest. It does not benefit the creators or their investors and will have an adverse impact on the Canadian economy.

Other iconic Canadian recordings by artists such as Gordon Lightfoot, The Guess Who, Anne Murray, and April Wine, to name just a few, would soon fall into the public domain if this amendment to the Copyright Act is not passed. This would mean that artists would not have exclusive control over their recordings made during their lifetime. They wouldn't control who copies their recordings, who uses them, who distributes them, or who gets paid for them.

A term of copyright protection of 70 years will allow older artists to continue to receive revenue into their mature years. For younger artists, additional profits derived by rights holders from older recordings will be reinvested in developing artists, and they too can look forward to a time in their lives when protection will extend to them.

The music industry is second to none in terms of reinvesting in new talent, with over 28% of the revenue reinvested in 2014. As IFPI's latest “Investing in Music” report illustrates, this is a greater percentage of revenue than pharmaceutical, biotech, computer software, or high-tech hardware industries each invest in R and D.

This measure may be a small part of the Copyright Act, but it is a big deal for artists and the music industry. We have quotes from 24 artists on the Music Canada website that speak to how much they need and appreciate this small piece of legislation and what a big impact it will have on their lives. I'd like to share a couple of them.

The Arkells, who are a young rock band from Hamilton, have said this: As a Canadian band, we appreciate that our government recognizes the cultural and economic value in musical recordings, and has protected that value by extending the copyright term of those involved in producing these records.

Anne Murray has said:

I applaud the efforts of our Government to extend the copyright protection term for our recording artists. It is only fair that they continue to reap the rewards of their creative works well into their dotage, when they need it most.

I won't read all of them.

We are extraordinarily grateful for this amendment. The music industry has had many challenges over the last 15 years. Global recorded music industry revenues have decreased by 70% when you take into account factors such as inflation, but we are vigorously embracing the new digital realities and we are determined to thrive in this environment.

Term extension for sound recordings is one thing that will help make a difference and I hope I can answer any questions the committee may have on this aspect of the budget implementation bill.

Thank you.

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