4. Definitions
- Affiliated group
- A group of companies in which the same person, or group of persons, holds the majority of shares with full voting rights or has been shown to have control in fact of these companies.
- Audited financial statements
- Financial statements prepared according to Canadian generally accepted accounting principles (GAAP) and audited according to Canadian generally accepted auditing standards.
- Canadian
- Means:
- a citizen within the meaning of the Citizenship Act; or,
- a permanent resident within the meaning of the Immigration and Refugee Protection Act.
- Canadian-owned and controlled firm
- A firm
- that is a sole proprietorship, partnership, cooperative or corporation established under the laws of Canada or a province;
- whose principal place of business is Canada;
- whose chairperson or presiding officer and more than half of whose directors and other similar officers are Canadian;
- if a corporation with share capital, established under the laws of Canada or a province, which Canadians beneficially own or control, other than by way of shares held only as security, directly or indirectly, in the aggregate at least 50% plus 1 of all the issued and outstanding votes;
- if a corporation without share capital, established under the laws of Canada or a province which Canadians beneficially own of control, directly or indirectly, interests, representing in monetary value at least 50% plus 1 of the total value of the assets;
- if a partnership, trust or joint venture, which a Canadian or Canadian corporation or any combination of the two, beneficially own or control, directly or indirectly, interests representing in value at least 50% plus 1 of the total value of the assets of the partnership, trust or joint venture, as the case may be, and of which the Chairperson or other presiding officers and more than half of the directors or other similar officers are Canadian.
If at any time one or more persons that are not Canadian have any direct or indirect influence through a trust, an agreement, an arrangement or otherwise that, if exercised, would result in control in fact of the firm, the firm is deemed not to be Canadian-owned and-controlled.
- Canadian sound recording
- A Canadian sound recording means that:
- all tracks of the master must be performed by a Canadian artist;
- a minimum of 50% of the total number of tracks of the master must have music and lyrics (or an equivalent combination) written by a Canadian artist. (See exception for a tribute/compilation album; a classical music, world music and traditional jazz/blues music album);
- a minimum of 50% of the total number of tracks of the master must be produced and mixed in Canada.
Tribute/compilation album:
- a minimum of 75% of the tracks of the master must be performed by a Canadian artist;
- 100% of the total number of tracks of the master must have music and lyrics written by a Canadian artist;
- a minimum of 50% of the total number of tracks of the master must be recorded and mixed in Canada.
Classical music, world music and traditional jazz/blues music albums:
- all tracks of the master must be performed by a Canadian artist;
- a minimum of 50% of the total number of tracks must be recorded and mixed in Canada.
- Compilations and re-issues of previously released material (including greatest hits)
- A compilation is an album that is compiled from various pieces of music, all or most of which were previously released. The pieces may be from different artists or from previously released material from a same artist.
- Contribution Agreement
- It is a signed agreement between a qualified applicant and the Department of Canadian Heritage that describes the obligations of both parties. Among other provisions, the contribution agreement includes the purpose of the contribution and the expected results to be achieved from the contribution, the duration of the agreement, the reporting requirements expected of the recipient and the financial and/or non-financial conditions attached to the contribution and the consequences of failing to adhere to these conditions.
- Co-produced
- A co-production for which the applicant has at least a 50% share in the co-production agreement will count towards the production minimum (new releases) criteria.
- Demo
- A demonstration recording of music recorded by a musician or group to promote its material and display their talent to potential publishers, agents, labels, etc.
- DVD Audio
- Digital Versatile Disk Audio (DVD-A) is a high-density disc with extra capacity that is used to achieve a high-quality, multi-channel surround sound that is significantly better than current CDs, and may also be used to include features such as texts, graphics, video and interactivity. For a DVD-A to be eligible under MEC, it must have a minimum of 10 tracks, or at least 30 minutes of recorded music.
- DVD Video
- Digital Versatile Disk Video (DVD-V) is a high-density disk with extra capacity that is used to achieve high-quality video with multi-channel audio and can include picture elements such as captions and stills. In addition, it offers the user choices of languages, various navigation and interactive controls. For a DVD-V to be eligible under MEC, music must comprise at least 30 minutes of the length of the material on the DVD-V.
- Employee
- Full- and part-time paid staff working directly for the firm. Owners are considered employees unless they have no active role in the firm. Independent contractors are not considered employees.
- Free Goods
- Free goods are units of sound recordings that are sold at retail but reported as "free of charge" in distributor reports. Firms do not derive any revenue from the sale of these units.
- Full-length album
- A full-length album has a minimum of 10 tracks, or at least 30 minutes of recorded music.
- Legal deposit
- Legal deposit is the means by which a comprehensive national collection is gathered together as a record of the nation's published heritage and development. Applicants are required to send a copy of musical sound recordings they produce to Library and Archives Canada. Further information is available by consulting Library and Archives Canada.
- Live sound recording
- A live sound recording is a musical recording that contains a concert performance.
- Roster
- A roster is the sound recording firm's list of artists (solo, group or collective) under contract on the last day of the reference period.
- SACD
- Super Audio Compact Disk (SACD) is a high-density disc format that uses a proprietary audio system of very high quality. Like the DVD, SACD has extra capacity that is used to achieve a high-quality, multi-channel surround sound that is significantly better than current CDs, and also is used to include features such as text, graphics, video and interactivity. For a SACD to be eligible under MEC, it must have a minimum of 10 tracks, or at least 30 minutes of recorded music.
- Single
- A single is a recording medium (vinyl record, cassette, CD) that has only one or two (but in the case of a CD, no more than four) tracks of music on it.
- Traditional jazz/blues music
- Jazz and blues works that were copyrighted prior 1955.
- Total government assistance
- All federal, provincial, territorial and municipal assistance provided towards the same eligible costs.
- Unit
- A unit is a full-length-equivalent sound recording.
For comparative purposes (Format – Unit value):
- 1 full-length album – 1 unit
- 1 full-length download recording – 3 units
- 1 DVD-A – 2 units
- 1 DVD-V – 2 units
- 1 download track – 0.33 units
- 1 single – 0.2 units
Unit sales of albums produced by or licensed to the applicant will count for the full unit value.
Unit sales of albums sold under licence that have received funding after March 31, 2006, from the CMF's New Musical Works Component (administered by FACTOR & MUSICACTION) will count as 0.7 of the unit value.
