Case commentary

CBC's temporary copies of music needed a licence, but the Copyright Board had to reconsider its price

The Supreme Court held that broadcast-incidental copies engage reproduction rights, while sending the Copyright Board's valuation back for a technologically neutral assessment.

A television program contains only a few seconds of music, but getting it to air can produce several copies of that music along the way. One copy may be made when the soundtrack is assembled. Others may be created when the finished program moves through a broadcaster's digital equipment. Whether those additional files are merely technical necessities or separately protected reproductions was the central dispute in Canadian Broadcasting Corp. v. SODRAC 2003 Inc., 2015 SCC 57. The Supreme Court concluded that the copies engaged the copyright owner's reproduction right, but it also found serious problems with the way their price had been calculated.

CBC produces some programs and acquires others, then stores and handles final programs through digital systems before transmitting them. SODRAC administered reproduction rights in musical works contained in those programs. It distinguished the synchronization of music into audiovisual productions from the additional copies generated for broadcasting. When the parties couldn't agree on new licensing terms, the Copyright Board set a tariff-style licence covering the period from 2008 to 2012 and then an interim licence. CBC challenged both the need for the second licence and the Board's valuation of that licence.

The Court's majority rejected the argument that temporary broadcast copies fell outside the reproduction right. The fact that a copy exists only to enable broadcasting doesn't prevent it from being a reproduction under the Copyright Act. The majority also rejected the idea that a synchronization licence necessarily included the right to make further broadcast-incidental copies. Licences govern the rights actually granted, not every downstream operation a broadcaster may find convenient. But that wasn't the end of the matter, because the Board's decision about the price of using those rights still had to respect the law's approach to technological change.

On valuation, the majority took a different position. Technological neutrality means that using newer equipment should not, without legislative reason, make the same underlying enjoyment of a work systematically more expensive merely because a digital workflow creates additional intermediate files. The Board had to evaluate what the additional reproduction contributed and consider both the value of the music and the value arising from the broadcaster's own systems. Rather than determine the correct amount itself, the Supreme Court sent the licence and interim decisions back for reconsideration. Justices Abella and Karakatsanis dissented, so the ruling needs to be described as a majority decision, not the Court speaking unanimously on every question.

The practical consequences extend beyond a dispute between one broadcaster and one collective. A film producer may clear music for inclusion in a scene, while a broadcaster or streaming service uses different systems to prepare the program for distribution. These entities should understand which reproduction rights are actually covered by their agreements. A label such as production licence or broadcast licence won't necessarily tell the complete story, and a copyright holder's valid interest in licensing one act doesn't mean a board can avoid explaining how its valuation accounts for technological redundancy.

Consider a hypothetical Canadian documentary company licensing a musical composition for a final edit. It delivers the completed program to a broadcaster that stores several encoding versions and backup copies. The parties need to understand the permissions that follow the program into those workflows. If a collective proposes additional compensation, the relevant discussion involves both the legally protected activity and the real economic contribution of the copies. Simply counting digital files may obscure what the music is worth in the transmission process. Conversely, treating all incidental copies as irrelevant because they are automated could leave separately protected acts unlicensed.

One reason this judgment matters for Humanities is that the technological mechanics and the creative value are inseparable. Music isn't made more expressive because a server copies it five times. Yet composers retain enforceable rights in reproductions of their music. A sustainable system has to recognize those propositions together. The majority didn't cancel the reproduction right or create a general exemption for digital broadcasting. It required the Board to perform its valuation analysis with an understanding of how modern broadcasting actually works.

The judgment illustrates the difference between deciding whether a right exists and deciding what exercising that right should cost. Its outcome was a remittal for reconsideration, not judicial approval of the original rates and not a universal price for broadcast copies. For creators, producers and collective managers, that distinction is much more useful than a headline saying merely that CBC won or lost.

Source reviewed: Supreme Court of Canada, Canadian Broadcasting Corp. v. SODRAC 2003 Inc., 2015 SCC 57. Full official majority and dissenting reasons reviewed October 10, 2026.

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