Re:Sound Tariff 6.B FAQ
Last July, Re:Sound Tariff 6.B Use of Recorded Music to Accompany Physical Activities (2008-2012) was certified by the Copyright Board of Canada. Tariff 6.B sets out when and how businesses are required to obtain a license from Re:Sound for the use of recorded music to accompany fitness classes, skating, dance instruction and other physical activities.
Answers to the following FAQs have been provided by Re:Sound to assist Canadian club operators.
What is Re:Sound? Re:Sound is the Canadian not-for-profit music licensing com- pany dedicated to obtaining fair compensation for artists and record companies for their performance rights. On behalf of its members, representing thousands of artists and record companies, Re:Sound licenses recorded music for public per- formance, broadcast and new media.
How do I know if I need a license? When you use recorded music in your business, a license is likely needed from Re:Sound. The rate that applies to your license is determined by how recorded music is used in your business.
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What rate applies to fitness centres? Tariff 6.B sets out the rates for music used to accompany fit- ness classes, dance instruction, skating and other physical ac- tivities. For the use of recorded music in a fitness class of any sort, a flat annual fee of $105.74 (plus applicable tax) applies, regardless of the number of classes held during the year. For dance instruction or other physical activity, a flat an-
nual rate of $23.42 (plus applicable tax) applies, again regard- less of the number of classes held during the year.
What about music outside of classes, such as in change rooms, weight rooms, cardio, etc.? Recorded music used in these areas is subject to Re:Sound Tariff 3 Background Music. These rates are calculated by the number of average admissions, or capacity, or total area, mul- tiplied by the number of days per year. A calculator to help determine these fees can be found at
www.resound.ca.
What if an AM/FM radio station is used in my facility? Establishments are not required to pay royalties when local radio is publically performed using a traditional AM/FM ra- dio receiving set.
What about using satellite radio? Satellite radio providers do not cover licensing fees owed under Tariff 6.B, so these must be remitted by the facility directly. Satellite radio providers do, however, often remit on be-
half of their commercial clients for Tariff 3 (Background Music). Please contact your provider if you have questions about this.
What if I use music from CDs, internet stream- ing, MP3 players, etc., for physical activities? Using music from any of the sources listed above for physical activities at your venue requires that you obtain a Re:Sound license under Tariff 3 or Tariff 6.B.
Why are invoices occasionally issued for past periods? Tariff 6.B was proposed in 2007 for the years 2008-2012. The process the Copyright Board of Canada uses to determine tariff rates and structures can take significant time. In this case, it took the Board almost the entire term of the tariff to decide its rates and structure. In the time between tariff proposal and tariff certification, however, recorded music was still used by fitness clubs and other businesses. Issuing licenses for years past is the only way to ensure recording artists and record labels receive compensation for the use of their recordings.
My facility opened after 2008. Do I still owe for use from that time forward? Re:Sound licenses the use of recorded music. If there is no re- corded music used in the course of a year, then no licensing fees apply. If your business opened after 2008, simply sub- mit proof of the date opened, and Re:Sound will adjust the li- cense fees accordingly.
I am unable to pay my license fees all at once. Does Re:Sound offer installment plans? If you would prefer to pay in installments, please contact Re:Sound to discuss your particular case. We will be happy to assist you.
What is the difference between SOCAN and Re:Sound? Re:Sound represents the rights of artists and record com- panies (the people who created the sound recordings) while SOCAN (Society of Composers, Authors and Music Publishers of Canada) does the same for composers and music publishers (the people who created the compositions that are embedded in those sound recordings). As Re:Sound and SOCAN are distinct organizations that represent dif- ferent groups and rights, licenses are required from both organizations.
More information can be found at
www.resound.ca. If you have ques- tions, please contact Re:Sound at 416-968-8870, 877-309-8870 or
licensing@resound.ca. For more information about SOCAN visit
www.socan.ca or call 1-866-944-6210.
March/April 2013 Fitness Business Canada 11
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