Why Ottawa wanted songwriters to earn more than 2 cents a song
Copyright law written in 1924 was due for an overhaul in 1987
Canadian songwriters were singing a happy tune when the Canadian government proposed a change to copyright law that would mean they earned more.
On May 27, 1987, CBC's The National brought viewers a report on an update that was being proposed by the Brian Mulroney-led PC government.
"After more than 60 years, Canadian songwriters are going to get a bigger break on their royalties," said Sheldon Turcott, who was hosting the news broadcast that night.
When the law had come into effect in 1924, songwriters and music publishers split the proceeds of each copy of a song sold. Those proceeds had remained stuck at two cents per copy ever since.
A welcome raise
Songwriter Fergus Hambleton stood to gain from the overhaul to copyright law.
"My life was full and enjoyable, but not necessarily rich," said Hambleton. He had been writing songs for 20 years, according to reporter Allen Garr.
Hambleton and his band had a new album coming out, and the new legislation "should make quite a difference to us," he said.
For each copy of a song that sold under the existing law, Hambleton and his publisher each took a penny.
Lowest royalty anywhere
Canada's royalty rate of two cents a song was the lowest in the world; according to the Globe and Mail at the time, the rate was five cents in the United States.
"There has been a lot of pressure to redress that kind of circumstance," said Canada's minister of communications, Flora MacDonald, when announcing the pending legislation at a news conference.
Some of that pressure came in the form of a lapel button with the slogan "2¢ Too Long," worn by a music industry representative.
With the two-cent royalty scrapped, fees "will be negotiated with record companies," explained Garr.
The musicians present said the change would be welcomed by songwriters.
"We really want to develop a strong cultural, artistic community [of] musicians who don't have to leave," said classical guitarist Liona Boyd.
Songwriter Eddie Schwartz said the change would motivate Canadian songwriters to write songs for Canadians rather than seek success in other markets.
"Right now, if you say 'I'm going to write for my fellow Canadians,' you're in serious trouble financially," he said.
In March 1989, the Globe and Mail reported that songwriters and publishers had successfully negotiated with record companies to receive a rate of five and one-quarter cents per song sold.
