As noted in a
previous blog post on Re:Sound tariffs, Re:Sound Tariff No. 6.B
(Use of Recorded Music to Accompany Physical Activities), sets the
royalties to be paid for the performance in public or communication
to the public of published sound recordings in any indoor or
outdoor venue for the purposes of fitness, training, skating, dance
instruction or any other physical activity. (To recap,
Re:Sound obtains compensation for performers and makers (i.e.
artists and record companies) through licenses and the collection
of royalties, while SOCAN represents the performance rights of
composers, authors, and music publishers – SOCAN covers the
compositions while Re:Sound covers the recordings.) When this
Tariff was certified in July 2012 by the Copyright Board of Canada,
it was retroactive for the years 2008 to 2012.
However, on February 24, 2014 the Federal Court of Appeal set
aside the Tariff as it concerned fitness classes, dance
instruction, and other physical activities. The only part of
the Tariff left untouched was the tariffs related to
This does not mean the Tariff is now dead. In March 2014,
Re:Sound informed the Copyright Board it was working on the terms
of a new Tariff 6.B that would replace the one certified by the
Copyright Board in 2012. Re:Sound also asked the Copyright
Board to issue an interim decision allowing the tariff to continue
until the new wording could be certified.
The Copyright Board granted Re:Sound's application and
reinstated Tariff No. 6.B (backdated to January 1, 2008) until the
Copyright Board issues a further interim or final decision on this
What does this mean for you? Tariff No. 6.B will continue
to "B" for the time being. If you operate an
indoor/outdoor skating venue where sound recordings are played then
Re:Sound will continue to be owed royalties under this Tariff,
regardless of whether or not an admission fee is charged. If
you operate a venue which holds fitness or dance classes or other
kinds of physical activities, and sound recordings are played,
Re:Sound can collect royalties as the Tariff has been reinstated on
an interim basis. In the event the Copyright Board renders a
final decision nullifying Tariff No. 6.B, Re:Sound may be required
to refund royalties collected to date.
It is likely that once the new wording of the tariff is agreed
upon, the Copyright Board will certify new Re:Sound Tariff No. 6.B
and tariffs will continue to be due to Re:Sound for the use of
recorded music accompanying physical activities.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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A recent Saskatchewan Court of Queen's Bench decision allowed a court-appointed receiver to sell and transfer intellectual property rights free and clear of encumbrances, finding that a license to use improvements of an invention was a contractual interest and not a property interest.
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