If you operate a venue which holds fitness or dance classes or
other kinds of physical activities, or you operate an
indoor/outdoor skating venue, and sound recordings are played,
Re:Sound can collect royalties retroactively to 2008 – 2012,
based on the new tariff rates set out below:
(Fitness) In areas with weight training, cardiovascular
training, circuit training, and other similar
activities, other than fitness classes
- 3.2% of the amount paid to subscribe
to a third-party music supplier, or
- 0.0831 ¢ per admission
Fitness Classes and Dance
Classes During fitness classes
- 0.44% of the gross receipts from
admissions, subject to a minimum of $38.18
- flat fee of $38.18 per year per venue if no admission fee is
The only real change from the previously certified tariff is to
the tariffs for Fitness Classes and Dance Classes, which previously
were a flat fee of $105.74 per year per venue and $23.42 per year
Given the Board's comments (see below), it is likely that
your organization will owe more under these new rates, although it
may turn out that it is Re:Sound that owes you money.
Copyright Board's Decision
The Board was asked to determine rates under Tariff 6.B related
to fitness classes, dance instruction, and other physical
activity. Of interest, Re:Sound and Fitness Industry Council
of Canada ("FIC") and Goodlife Fitness Centres Inc.
reached a settlement agreement on the rates to be charged prior to
the Board's decision.2
The Board commented on the Settlement, noting that:
An agreement between the parties should have been proposed
prior to the Board's 2012 decision and prior to the
Rates regarding Background Music (Fitness) and Skating were not
being re-determined so it did not matter that the parties had
agreed to different rates in the Settlement.
The Settlement was "substantially" different from the
tariff originally proposed. The new rates and formulas
proposed would create administrative difficulties as retroactive
payments would have to be recalculated. The Board
[The] balance of convenience could lead Re:Sound to refrain
from retroactively collecting royalties from users who have already
paid under Tariff 6.B and who were not represented by the Parties
during the negotiations leading to the
Some users may end up owing less than
under the previously certified tariff.
The extent to which dance instruction venues was represented by
FIC was unknown, and the lack of evidence prevented the Board from
examining possible fairness issues in respect of dance instruction
The tariff will generally result in higher royalties
1. Re:Sound obtains fair compensation for performers and
makers (i.e. artists and record companies) for their performance
rights through Re:Sound 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.
2. Together, the Board noted that FIC and Goodlife
account for over 5,000 fitness venues with over 4,000,000 members
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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