royalties at this rate for the proposed length of time. Currently, there are tariffs that

cover a wide variety of music usage in Canada—from fitness classes to adult entertainment to magic shows and more.

Two fitness facility tariffs There are two tariffs that may ap- ply to fitness facilities in Canada: 1) Tariff 3.B (Background Music) and 2.) Tariff 6.B (Music to Accompany Fitness Activities). Tariff 3.B covers the use of recorded

music in the background of business- es, including retail stores, bars, restau- rants, hotel lobbies and in open work- out areas. For fitness facilities, this fee is calculated in one of two ways: 1) by average daily attendance multiplied by the number of days the facility is open; or 2) by total capacity of the establish- ment multiplied by the number of days the facility is open. (Currently, most fitness businesses report their daily average attendees.) This fee is due on January 31 of the year following use.

Tariff 6.B covers recorded music that

accompanies fitness and dance classes along with other fitness activities in- cluding barre, Pilates, yoga and gym- nastics. At Re:Sound, two core values are transparency and fairness. That’s why when this tariff was re-deter- mined in 2015 it moved from a flat rate, where all sizes of venues paid the same amount annually, to a usage model. Now, businesses pay based on the num- ber of classes they hold. This means that some businesses are paying a fee proportional to their use because it is reflective of their number of classes. This fee is due January 31 for the previ- ous year’s fitness and dance classes.

The certification process Re:Sound proposes tariffs to the Copyright Board of Canada for certi- fication. Once certified by the Board, the tariffs are legally enforceable. The Board occasionally takes years to cer- tify tariffs, which leads to tariffs ap- plying to years past. (For example, our current fitness tariff was put before the Board in 2007 for the 2008–2012

period and was only certified in 2012— with the ability to enforce the tariff back to 2008). Artists and record companies world-

wide trust organizations like Re:Sound to license fitness facilities and other businesses that use their recorded mu- sic and to collect fees on their behalf. This gives businesses and broadcast- ers a one-stop shop where they can be granted a license to play recorded music. If you’ve received an invoice from

Re:Sound, rest assured that you aren’t the only one. Re:Sound’s goal is to li- cense businesses of all kinds across Canada who use recorded music. Have a question about your fees?

Contact us any time, or visit us online at FBC

Martin Gangnier is the director of licensing at Re:Sound. He has been with Re:Sound for over a decade and is responsible for all licens- ing activities and results. For more information visit Re:Sound at or call our Licensing Team at 1-877-309-5770.

November/December 2017 Fitness Business Canada 19

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