FAQ: General
- What is Re:Sound?
- Why did we change our name?
- What is equitable remuneration?
- Who is eligible to receive equitable remuneration payments?
- What is the Rome Convention?
- How are Re:Sound tariffs and rates established?
- Does Re:Sound consult with music users about its tariffs?
- How does Re:Sound collect revenues?
- How does Re:Sound distribute revenues?
- What is Re:Sound’s role with regards to the private copying levy?
- How does an artist or record company sign up to receive royalties from Re:Sound?
- What happens with the revenues collected by Re:Sound?
- Does Re:Sound collect on behalf of international artists and record companies as well as Canadians?
- If I bought a CD, why do I have to pay for the public performance of the tracks of that CD?
- How does music add value to the organisations that are licenced by Re:Sound tariffs?
- What is the difference between Re:Sound and SOCAN?
- Where can one obtain additional information about Re:Sound?
Q1: What is Re:Sound?
A: Re:Sound is the Canadian not-for-profit music licensing company 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 performance, broadcast and new media.
Created in 1997 (originally as NRCC), our member organisations are the Musicians’ Rights Organization Canada (MROC), ACTRA Recording Artists' Collecting Society (ACTRA RACS), La société de gestion collective de l’Union des artistes (ArtistI), the Audio-Visual Licensing Agency (AVLA) and La société de gestion collective des droits des producteurs de phonogrammes et vidéogrammes du Québec (SOPROQ).
Top
Q2: Why did we change our name?
A: We changed our name to Re:Sound Music Licensing Company on March 1, 2010. Previously, the company was called NRCC (Neighbouring Rights Collective of Canada). Our new name more aptly and simply describes what we do and what we’re about. It reflects the overall transformation the organisation went through to be more music creator and music user focussed, more efficient and more transparent.
Top
Q3: What is equitable remuneration?
A: For many years Canadian composers and authors have received royalties from the broadcast or public performance of their songs. These royalties are collected by SOCAN. In 1997 the Copyright Act of Canada was amended to acknowledge the essential contribution of artists and record companies in the creation of recorded music and to add a right to equitable remuneration for artists and record companies, which is in line with similar rights in the rest of the world. This right to equitable remuneration is sometimes also called a “neighbouring right”.
The rights to equitable remuneration are the rights of artists (including feature performers, background musicians etc) and record companies to be paid fairly for the broadcast and public performance of their works.
Top
Q4: Who is eligible to receive equitable remuneration payments?
A: The Copyright Act details the conditions of eligibility for equitable remuneration. Essentially, a sound recording is eligible if the maker is a citizen or permanent resident of Canada or a Rome Convention country, or is a corporation headquartered in Canada or a Rome Convention country, or if the sound recording was made in Canada or a Rome Convention country. Artists who performed on an eligible sound recording are eligible for equitable remuneration, as is the record company who made the recording.
Top
Q5: What is the Rome Convention?
A: The 1961 Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations secures protection in performances for artists and record companies. Artists and record companies are protected against certain acts they have not consented to such as the broadcast and communication to the public of their recorded works. Canada is a signatory of the Rome Convention along with 88 other countries.
Top
Q6: How are Re:Sound tariffs and rates established?
A: The process begins with Re:Sound proposing tariffs to the Copyright Board of Canada, on behalf of artists and record companies. For each proposed tariff, the Copyright Board is charged with determining a fair and equitable royalty rate after considering the evidence presented by Re:Sound and any other parties to the proceeding.
The Copyright Board is a federal tribunal empowered to establish royalties to be paid for the use of copyrighted works. The Copyright Board hearings are open and public hearings; objectors and other interested parties are provided with an opportunity to file written responses and, to present arguments and evidence. The Copyright Board’s rate and tariff determinations take into account all relevant factors, including the financial realities of the involved parties.
Top
Q7: Does Re:Sound consult with music users about its tariffs?
A: Re:Sound welcomes direct input on tariffs from music users, within and outside of the formal rate-setting process. We engage in outreach activities to music user industry groups. We constantly strive to obtain the simplest, fairest and most efficient tariffs possible. Please feel free to contact us for all comment, concerns or questions: info@resound.ca.
Top
Q8: How does Re:Sound collect revenues?
A: Re:Sound collects revenues directly from music users and broadcasters. Re:Sound has a dedicated team of professionals that contact music users throughout Canada to inform and educate them on Re:Sound payment requirements and obligations as set by the Copyright Board. Tariffs are legally enforceable through the courts for establishments that owe royalties but refuse to pay.
Top
Q9: How does Re:Sound distribute revenues?
A: Revenues are allocated and distributed less only actual costs. The process of distributing income requires millions of micro-transactions annually. We receive raw usage data from various sources, then need to clean, match, research, correct and summarize it before being able to distribute monies accurately to our members.
Top
Q10: What is Re:Sound’s role with regards to the private copying levy?
A: Re:Sound is a member of the Canadian Private Copying Collective, created to receive and redistribute private copying tariff revenues. Manufacturers and importers of blank audio recording media are responsible for paying the private copying levy. Re:Sound receives revenue from CPCC for those artists and record companies it represents and distributes those revenues to eligible artists and record companies through its member organisations.
Top
Q11: How does an artist or record company sign up to receive royalties from Re:Sound?
A: Re:Sound has five member organisations, three of which represent artists and two of which represent record companies. Artists and record companies are free to sign up with the Re:Sound member organisation that will represent them. Artists and record companies authorize a member organisation to represent them through an assignment, license or agency agreement. If an artist or record company is not registered with one of Re:Sound’s member organisations, they may also contact Re:Sound directly.
Top
Q12: What happens with the revenues collected by Re:Sound?
A: As a not-for-profit organisation, all revenues collected by Re:Sound are distributed less only our actual costs of collection and distribution. Revenues are also distributed to international music licensing organisations similar to Re:Sound, which in turn distribute the funds to their members. All equitable remuneration revenues collected by Re:Sound are split equally between artists and record companies, as set out in section 19 of the Copyright Act.
Top
Q13: Does Re:Sound collect on behalf of international artists and record companies as well as Canadians?
A: Yes. Re:Sound collects and distributes royalties for both Canadian and international artists and record companies.
Top
Q14: If I bought a CD, why do I have to pay for the public performance of the tracks of that CD?
A: When you buy a CD or purchase a track or album online, you have paid for your personal use of it and the right to perform it publicly is not included.
Where a business or other music user publicly performs or broadcasts music, they are making an additional use of the music that is subject to a separate compensation. Music adds real value to a variety of businesses. It forms the core content of commercial radio, and provides the soundtrack for retailers and restaurateurs. Under section 19 of the Copyright Act, artists and record companies are entitled to fair compensation for the value of their work.
Top
Q15: How does music add value to the organisations that are licenced by Re:Sound tariffs?
A: The use of music provides significant value to businesses, broadcasters and other organisations. This has been validated by detailed third-party economic analyses conducted on behalf of Re:Sound in support of its tariff proposals, and by research in other countries. For example, independent research in the UK commissioned by Music Works has found that music boosts both profits and staff productivity in a wide variety of industries, including retail, leisure and fitness. Among other findings, the research estimates that more than a third of customers would be willing to pay 5 percent more for products and services from businesses that play music. Two-thirds of UK employees say background music makes them feel better and more motivated at work.
The value of music to business is high. For example, the Music Works study found that 94 percent of UK bar-goers say background music is either a very important or important factor in giving bars a great atmosphere. For fitness clubs, 77 percent of respondents agreed that a gym with music was more appealing to them than a gym without. Details of the study and many other statistics on the value of music to business can be found at www.musicworksforyou.com.
Top
Q16: What is the difference between Re:Sound and SOCAN?
A: Re:Sound represents the rights of artists and record companies (the people who created 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).
Top
Q17: Where can one obtain additional information about Re:Sound?
A: Additional information about Re:Sound can be found on this website and on the Copyright Board of Canada’s website at www.cb-cda.gc.ca. Enquiries can also be made to Re:Sound by email at info@resound.ca or phone at 416-968-8870.
Top |
