Reference by Australasian Performing Right Association Limited, Re: Australian Broadcasting Corporation [1985] ACOPYT 2

CATCHWORD Copyright ‑ proposed licence scheme licensing the ABC to use music in APRA repertoire ‑ whether scheme should be confirmed, confirmed with variations or not confirmed ‑ nature of Tribunal's jurisdiction ‑ suggested methods of arriving at licence fee - cents per head of population ‑ annual lump sums ‑ percentage of revenue or expenditure ‑ relevance of past dealings between parties ‑ reference to earlier arbitration and Tribunal decisions in Australia and overseas ‑ significance of music in ABC programming ‑ selection of percentage of expenditure as indication of value of licence ‑ determination of base figures on which percentage to be charged. Copyright Act 1968, s 154 and also ss 31, 136, 148 to 152 and 157. Trades practices (restrictive) ‑ implementation of.1icence scheme: said to involve substantial lessening of competition and to restrict entry of other persons into market ‑ discussion of evidence. Trade Practices Act 1974, ss 45 and 46 REFERENCE BY AUSTRALASIAN PERFORMING RIGHT ASSOCIATION LIMITED RE AUSTRALIAN BROADCASTING CORPORATION

COPYRIGHT TRIBUNAL No. 2 of 1981 Coram: Sheppard J. President and Mr. Allan Horton, Member

Date: 6 December 1985 Place: Sydney

COMMONWEALTH OF AUSTRALIA COPYRIGHT ACT 1968

IN THE COPYRIGHT TRIBUNAL No. 2 of 19 81 REFERENCE BY AUSTRALASIAN PERFORMING RIGHT ASSOCIATION LIMITED RE AUSTRALIAN BROADCASTING CORPORATION Sheppard J. President and Mr. Allan Horton, Member 6 December 1985 REASONS FOR DECISION

ARRANGEMENT Introduction...................................................................................................................................................... 2 The Course of the Proceedings..................................................................................................................... 2 The Legislation................................................................................................................................................. 3 The Licence Scheme........................................................................................................................................ 6 The Parties and their Negotiations and Agreements down to the Formulation of the 1981 Licence Scheme................................................................................................................................ 7 APRA................................................................................................................................................................. 7 The Australian Broadcasting Corporation................................................................................................... 9 The History of Negotiations and Agreements between APRA and the ABC..................................... 13 The Case for APRA....................................................................................................................................... 17 The Case for the ABC................................................................................................................................... 20 Questions of Law........................................................................................................................................... 22 The Tribunal's Jurisdiction.......................................................................................................................... 22 Relevance of Provisions of s 152 of the Copyright Act 1968.................................................................. 25 The Lawfulness of a Licence Fee Assessed as a Percentage of Expenditure...................................... 28 The Analogy of Damages for Infringement of Copyright as a Guide to Reasonable Remuneration............................................................................................................................ 29 Submissions of Counsel for ABC based on Trade Practices Act 1974................................................. 30 Earlier Arbitration both in Australia and Overseas concerning the amount to be Paid for Public Performance or Broadcast Rights..................................................................................... 35 The Evidence.................................................................................................................................................. 54 The Extent and Significance of Music in Radio and Television Programmes...................................... 56 The Finances of the ABC............................................................................................................................. 59 Payments by the ABC to APRA.................................................................................................................. 61 Reach and Ratings......................................................................................................................................... 65 Some aspects of the evidence of Mr Freegard and Mr Sturman............................................................ 68 The Quest for a formula which will yield Reasonable Remuneration..................................................... 71 Conclusions.................................................................................................................................................... 80 Summary.......................................................................................................................................................... 86