Supreme Court rejects 'fee for carriage' broadcast plan

Written By Unknown on Kamis, 13 Desember 2012 | 22.39

Canada's highest court has decided that the CRTC can't implement a fee for carriage system on cable companies that would have required they pay TV stations for their signals, a cost that could have been passed on to consumers.

On Thursday morning, the Supreme Court of Canada weighed in on a long-running dispute between cable companies and private televisions networks

Under the current system, cable companies are allowed to pick up private channels' broadcast signals and retransmit them on their networks without having to pay for them.

The networks have argued for years that the current system is unfair, and that they deserve compensation if the cable companies retransmit their signals. In 2010, they went to the CRTC and asked the broadcast regulator to implement a fee for carriage system.

Canada's broadcast regulator agreed, but first asked the Federal Court of Appeal if it had the right to do so. That court said it did, but the cable companies appealed that.

In Thursday's decision, Canada's highest court overturned that decision.

"The value for signal regime would rewrite the balance between the owners' and users' interests as set out by Parliament in the Copyright Act.," the court said in its decision. "Because the CRTC's value for signal regime is inconsistent with the purpose of the Copyright Act, it falls outside of the scope of the CRTC's licensing and regulatory jurisdiction under the Broadcasting Act."

For their part, the cable companies say the proposed system amounts to a "TV tax," and that consumers should expect a fee hike of a few dollars per month on their cable bills if they're obligated to comply.


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