If you unexpectedly receive a bill or information package on licensing fees, it’s likely that SOCAN or Re:Sound agents visited your restaurant or hotel and took note of the type of music that was playing during their visit.
Music tariffs are not applicable to your business if you are playing broadcast radio such as AM or FM radio stations. However, if you choose to broadcast other forms of background music or provide music for other purposes like dancing, you are required by Canadian Copyright law to remit royalty fees to one or both of two entities in Canada.
SOCAN and Re:Sound are legally empowered by the Copyright Board of Canada to charge and collect music royalty fees from restaurant and hotel owners. Both entities have agents that travel across Canada investigating restaurants and bars to ensure they pay the proper licensing fees.
Re:Sound, formerly the Neighbouring Rights Collective of Canada (NRCC), represents the performance rights of artists and record companies and it pays royalties to its members in Canada. Re:Sound also has reciprocal agreements with many other countries to collect and distribute royalties.
SOCAN (Society of Composers, Authors and Music Publishers of Canada) does the same for composers and music publishers. It also remits royalties to international organizations for performances in Canada of foreign copyright-protected works, and pays Canadian music creators and publishers when their music is performed abroad.
Re:Sound and SOCAN are distinct organizations that represent different groups and as such, both are required to be compensated.
How ORHMA Can Help
Through the Hotel Association of Canada, ORHMA members are represented at the federal level. One of HACs initiatives is to fight to keep music royalties reasonable.
Recently, Re:Sound has applied for a proposed 354 per cent increase in royalty fees for background music in Tariff 3 for 2010-2011. HAC has formerly objected to this increase and a decision by the Copyright Board is still pending. More information can be found on the Copyright Board of Canada website.
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