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Copyright License Fees Drive Pandora Out of Canada

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Online streaming music services such as Pandora are abandoning plans to launch in Canada, claiming licensing fees are too high: 'These rates ... are astronomical,' Tim Westergren, founder of California-based Pandora, wrote in an email to The Canadian Press. The agency that collects music royalties in Canada on behalf of record companies and performing artists wants to charge web-based music sites that stream to mobile devices the greater of two figures: 45 per cent of the site's gross revenues in Canada or 7.5-tenths of a cent for every song streamed. Meanwhile, record labels are blaming the lack of online music services in Canada on piracy: 'Why would you spend a lot of money trying to build a service in Canada when Canadians take so much without paying for it?' said Graham Henderson, president of the Canadian Recording Industry Association, which represents major record labels.

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