In a rare display of cultural policy solidarity, Canadian Heritage has stood behind a crtc decision that u.s. majors view as protectionist and unfair. The March 19 statement made by Heritage Minister Sheila Copps declared government support for a Dec. 20 crtc decision which angered the major u.s. studios and brought them before the cabinet and the Federal Court of Appeal in protest.

The crtc ruling in question requires newly licensed dth and ppv services to purchase broadcast rights for the Canadian market from Canadian distribution companies when buying feature films for which the distributor holds non-proprietary rights.

The Canadian Motion Pictures Distribution Association, which represents the major u.s. studios and continues to pursue the issue before the Court of Appeal, takes exception to distinguishing Canada as a distinct market in any distribution activity.

Dan Johnson, president of the Canadian Association of Film Distributors and Exporters, rallied around the decision, heralding March 19 as ‘a very big day.’

Johnson says the money to be gained by Canadian distributors – minimal – is not the issue since the ruling concerns only those films for which a foreign distributor has either paid more than 50% of the production costs or owns worldwide rights to.

What counts, says Johnson, is the precedent it sets. ‘There is something very significant going on. What we have is a stance by the Canadian government on behalf of cultural industries, and instead of just giving us lip service, they’ve actually taken a stepthat requires enough guts to stand up to the u.s. government.’

The minister, calling on a stipulation in the Broadcasting Act that allows the government to respond to a crtc decision, said in a statement: ‘The decision we have taken on the four sets of appeals reflects the Government’s commitment to keeping the Canadian broadcasting system strong and dynamic, fostering Canadian culture, innovation and job growth.’

The appeals include dth licences for Power Directv and ExpressVu and dth ppv service licences.

The issue before the Court – which addresses the technical and legal question of jurisdiction – has yet to be resolved. Johnson says he has heard it will be summer before a decision is reached. Until the second phase of what Johnson calls ‘a two-pronged attack by (ampa head Jack) Valenti’ is resolved, Johnson doesn’t want to talk about implications – if any – the issue may have for theatrical distribution. Currently, Canadian films garner 4% to 6% in box office.

In the meantime, more good news came March 19 from Heritage when the minister announced a new fund to help compensate some of the federal agency cuts announced in the March 7 budget. Details on the fund, its allocation and its mandate will be announced later in the spring. PC