Last Thursday, the Supreme Court of Canada gave the final verdict on the value-for-signal system case between cable companies and television channels in favour of cable operators. As the Supreme Court declared that Canadian Radio-Television Telecommunications Commission (CRTC) does not have the authority to compel cable providers to pay TV channels or broadcasters for plucking their signals free of charge from the air and transmitting them to subscribers.
The verdict was a 5-4 decision that enabled justices to overturn the earlier decision made by the Federal Court of Appeal. Mentioning the reason for ruling this case in favour of cable operators, Justice Marshall Rothstein wrote in his decision that “First, a contextual reading of the provisions of the Broadcasting Act themselves reveals that they were not meant to authorize the CRTC to create exclusive rights for broadcasters to control the exploitation of their signals or works by retransmission.”
“Second, the proposed regime would conflict with specific provisions enacted by Parliament in the Copyright Act.”
This Supreme Court decision was warmly welcomed by the cable providers, as they were extremely delightful over this victory. Several analysts described this decision a win for consumers as well, with Crandall of MacDougall, saying, “It looks like a win for consumers right now because it’s not going to have an immediate impact.”
On the other hand broadcasters were not pleased with this decision as they expressed their grief over it by saying that this verdict will further amplify the problems for the survival of local television. The CRTC implemented these value-for-signal systems to help the local broadcasters, who are struggling to make revenue. Now these struggling broadcasters have to find other means to raise their profitability.
On the basis of these facts, broadcasters as well as some analysts are criticising this significant decision from Supreme Court because according to them it has put them in serious jeopardy.
Source: VS
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