A discussion paper – requesting submissions on whether the 1% cap on licence fees, paid by radio broadcasters for playing sound recordings, should be repealed – has been initiated by Attorney-General, Philip Ruddock.

Ruddock says the review is part of the Government’s commitment to ensuring copyright laws encourage creativity and innovation, while maintaining reasonable public access to copyright material.

“We are committed to balancing the legitimate interests of copyright owners and radio broadcasters, and I invite all interested parties to make a submission in response to the discussion paper.”

Under the Copyright Act 1968, a radio station that broadcasts a published recording must pay a copyright royalty to the owner of the copyright in that recording, which is done through the copyright collection societies such as APRA, AMCOSS and PPCA.

The amount payable by radio broadcasters is determined by negotiation with broadcasting industry associations such as CRA and the CBAA. If agreement cannot be reached, the independent Copyright Tribunal has authority to set the amount.

Section 152(8) of the Copyright Act currently prohibits the Copyright Tribunal from ordering a radio broadcaster to pay a licence fee that is more than 1% of their gross income.

Submissions will close on 18 March and should address the merits of retaining or repealing the 1% cap.

Information on how to make a submission, along with a discussion paper on the 1% cap, is available at the Attorney General’s website (click below).