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 (now Connect) and La société de gestion collective des droits des producteurs de phonogrammes et de vidéogrammes du Québec (SOPROQ).
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.
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”.
Artists and Record Labels are eligible to receive royalties for the broadcast or public performance of their published sound recordings only if the following conditions are met:
The sound recording was first published less than 70 years ago or was first recorded less than 100 years ago, whichever period is shorter; and
(a) the maker of the sound recording (i.e. the record label) was, at the date of recording, a citizen, permanent resident of, or headquartered in:
(b) The sound recording was entirely recorded in Canada, a Rome Convention country or a WPPT country, to the extent that the Minister of Industry has not limited the right of that country in Canada.
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.
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: email@example.com.
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.
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 register with Re:Sound directly.
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.
Yes. Re:Sound collects and distributes royalties for both Canadian and international artists and record companies.
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).
The Copyright Act of Canada grants Re:Sound the authority to continue to collect royalties under certified tariffs until the new proposed tariff is approved.
When you buy a CD or album 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.
The use of music provides significant value to businesses, broadcasters and other organisations. Music helps businesses attract and retain advertisers, listeners and customers. 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.
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 firstname.lastname@example.org or phone at 416-968-8870.
Tariff 6.B (Use of Recorded Music to Accompany Physical Activities) is a tariff certified by the Copyright Board to compensate artists and record labels for the use of their recorded music to accompany physical fitness activities in venues such as gyms, dance studios, skating rinks and other similar venues (“fitness venues”).
Royalties under T6.B for the period 2008-2012 are due October 1, 2012.
It is only fair that artists and record labels – the people and companies that create recorded music – are fairly compensated for the public performance of their music and the value that it provides.
Prior to certification of Tariff 6.B, fitness venues paid nothing to artists and labels for the performance of their recorded music, even though the use of music provides significant value to these businesses.
This tariff is consistent with international practice. Fitness venues in the vast majority of developed countries already pay royalties to artists and labels for the performance of their recorded music.
The Copyright Board is charged with setting the rates for various rights set out in Canada’s Copyright Act. Collectives representing rightsholders must file tariff applications to the Copyright Board by March 31 of the year preceding the commencement of the tariff period. The tariff proposal is then published in theCanada Gazette.
Any interested parties may file objections and seek to participate in the Copyright Board hearing, which is an open process. The entire process can be a lengthy one – in the case of Re:Sound’s Tariff 6.B, the process commenced with Re:Sound’s tariff application in March 2007, and went to a hearing in April/May 2010, with a decision from the Copyright Board in July 2012.
Re:Sound spends significant resources reaching out to and educating businesses as soon as a tariff is proposed and well before payment is due. Our responsibility is to make sure artists and record companies are fairly compensated for the use of their works. T6.B is ultimately legally enforceable by the courts for establishments that owe royalties but refuse to pay.
This tariff compensates performers (featured artists, background musicians, session musicians, etc.) and record labels for the use of their recordings by fitness venues.
Licensing fees for Tariff 6.A are based on the number of days per week and months per year that dancing takes place, as well as the capacity of the venue. For a venue with a capacity of no more than 100 patrons, the annual rates are as follows:
|Days of Operation|
|Months of Operation||3 or less days per week||4 or more days per week|
|Six months or less||$151.19||$302.38|
|More than six months||$302.38||$604.76|
For venues with a capacity greater than 100, a 10% increase on the applicable fee above for each increase of up to 20 patrons (e.g. up to 120 is 10% higher, up to 140 is 20% higher, up to 160 is 30% higher, and so on).
The DJ may indeed have a licence in order to play recorded music, however that licensing covers the DJs use of copies that they have made of the sound recordings for their work. That licence does not cover the public performance of these recordings at a specific venue. Tariff 6.A applies to the operator of the venue where the dancing is taking place.
Re:Sound licenses the use of recorded music for public performance. Live music is not subject to any Re:Sound tariff, but may require a licence from other music licensing companies. Please note that the use of any recorded music accompanying the live performance or occurring before, in-between, or after the performance is subject to Re:Sound licensing requirements. If you have any questions whether a specific event requires a Re:Sound licence, please contact our Licensing Department at 1.877.309.5770 or email@example.com.
Re:Sound Tariff 5 (Music to Accompany Live events) establishes the rates to be paid for the public performance of recorded music during a live event, such as receptions, conventions, karaoke, fairs and exhibitions, parades, ice shows, and fireworks displays.
Tariff 8 applies to Non-Interactive and Semi-Interactive Webcasters.
Tariff 8 does not apply to podcasts, fully interactive services such as downloads or on-demand streaming, or simulcasts by Canadian commercial radio stations, CBC, pay audio or satellite radio services. Any other simulcasters, such as international radio stations streaming into Canada and non-commercial radio stations, are subject to the applicable webcasting royalties under Tariff 8.
The Copyright Board of Canada is an independent, quasi-judicial tribunal that establishes royalties to be paid for the use of works, sound recordings or other matters protected by copyright, when the administration of these rights is entrusted to a collective society, such as Re:Sound.
Re:Sound sought to have Tariff 8 royalty rates based on a “greater of” formula i.e. a music streaming service pays royalties based on either a percentage of its revenue or a “per play” fee for every sound recording played, whichever amount is higher. A “greater of” formula ensures that artists and record companies are compensated in direct proportion to the use of their sound recordings while also linking royalties to the retail value of the service. The per play rate serves as a floor to ensure that rights holders receive a minimum level of compensation for the use of their recordings, regardless of the service’s choice of business model.
The Copyright Board, in its decision stated that in choosing between the two, a per-play tariff was preferable to a percentage of revenue tariff for streaming services for a number of reasons including the fact that a revenue-based tariff can be “gamed”, while a per play rate cannot. Another disadvantage of a revenue-based tariff noted by the Copyright Board is that music streaming services are often not offered as a separate product. The Copyright Board decided that a per play structure is preferable because it better correlates with music usage, the usage is more readily and reliably measurable and it is not dependent on a service’s business model, source of income or success.
In its tariff proposals for 2013-2016, Re:Sound has maintained its proposal for a “greater of” formula and remains opposed to a tariff based only on a percentage of revenue, for the reasons stated above.
The rates set by the Copyright Board for Canada are less than 10% of both Canadian market rates and the rates payable for the same rights (the performance of sound recordings) internationally. In the United States (U.S.), for example, the rate that non-subscription music streaming services pay to play sound recordings in 2016 is $0.0017 (U.S.) per play. Subscription music streaming services pay a rate of $0.0022 (U.S.) per play. These are the rates that SoundExchange (the U.S. non-profit performance rights organization that collects royalties on the behalf of sound recording copyright owners), collects from Pandora for example. In the U.K., the current rate for non-interactive streaming services is £0.000764 ($0.00120 CDN) per play. The Copyright Board of Canada decision set a rate of $0.000102 per play in Canada for the same music streaming services. The decision also rejected freely negotiated agreements reached between music streaming services and Re:Sound, that had set market-based rates for the streaming of sound recordings.
Under the tariff, the venue is the party responsible for obtaining a licence. This is because the information used to calculate the licence fees for this tariff is based upon factors that are available primarily to the venue itself (such as capacity or number of events in a given period).
The Copyright Board of Canada used previously established royalty rates for commercial radio as a benchmark to establish the royalty rates for music streaming services. However, commercial radio and music streaming services are very different. Unlike commercial radio stations, music streaming services are typically accessible anywhere and anytime on mobile devices. Additionally, they can offer the listener the ability to pause, skip, rewind and fast-forward. They provide a wide range of musical genres not available on commercial radio stations and some services also offer channels customized to the individual listener. This makes music streaming services a real alternative to music downloads and the purchasing of CDs, a fact reflected by Neilsen’s 2015 Mid-Year Report, which showed U.S. and international sales of CDs and downloads falling, while streaming increased.
Tariff 8 only covers the performance rights of artists and record companies for streaming of their sound recordings and is directly comparable to the SoundExchange rates in the U.S. and rates for sound recordings in Canada and internationally.
The Satellite Radio Tariff, also referred to as Re:Sound Tariff 4, sets out when and how multichannel subscription satellite radio services (such as Sirius) in Canada are required to obtain a licence from Re:Sound for the communication to the public by telecommunication, in Canada, of published sound recordings embodying musical works and artists’ performances of such works for the years 2007-2010. It also sets out licensing requirements from the Society of Composers, Authors and Music Publishers of Canada (SOCAN) for the communication to the public by telecommunication, in Canada, of musical or dramatico-musical works for the years 2005-2009, and from CMRRA/SODRAC Inc. (CSI) for the reproduction, in Canada, of musical works for the years 2006-2009.
Unfortunately, even with the implementation of the the World Intellectual Property Organization’s Performances and Phonograms Treaty (WPPT) by Canada, any increase in the Tariff 8 rates would not be certified until a new hearing before the Copyright Board of Canada and until the Board renders its decision for 2014 and subsequent years. With the implementation of WPPT, sound recordings from WPPT territories (including Oman, Qatar and the U.S.), are eligible to receive royalties from music streaming services. Even with the full implementation of WPPT, the rates certified by the Copyright Board of Canada would likely still be less than 20% of the rates paid in the U.S. and other territories.
On June 16th 2014, Re:Sound filed an application for judicial review of the Copyright Board of Canada’s Tariff 8 decision. The Judicial Review hearing took place in February, 2016 and the Federal Court of Appeal’s decision is currently pending.
The proposed tariff seeks no change to the royalty rates originally proposed by Re:Sound for the 2007-2010 tariff. It includes some changes to the tariff’s administrative provisions, based on Re:Sound’s experience administering the current tariff.
The royalties certified by the Copyright Board are:
|Non-Interactive & Semi-Interactive Webcasters||$0.000102 per file (each sound recoding played to a single person), subject to a minimum fee of $100 per year|
|CBC Webcasts||$0.000131 per file, subject to a minimum fee of $100 per year|
|Non-Commercial Webcasters||$25 per year|
A Non-Commercial Webcaster is a webcaster (other than the CBC) that is owned and operated by a not-for-profit organization including any campus webcaster and community webcaster, whether or not any part of the webcaster’s operating costs is funded by advertising revenues.
Royalties and reporting for the years 2009 to 2014 are due no later than December 31, 2014. Although the term of Tariff 8 expired at the end of 2012, it will continue to be effective until it is replaced by a new certified tariff for the years 2013-2014 and future terms.
Commercial Webcasters & the CBC
Starting in January, 2015, for commercial webcasters and the CBC, royalties and reporting are due on a monthly basis, to be provided no later than 45 days after the end of each month. For example, royalties and reporting for the month of November, 2014 will be due 45 days after the end of November – on January 14, 2015.
Starting in 2015, the annual fee of $25 payable by Non-Commercial Webcasters is due by February 14th of each year for the previous year. For example, the royalties for 2014 are due by February 14, 2015.
All webcasters must provide Re:Sound with the following information within 45 days of their first month of operation:
Commercial Webcasters & the CBC
Monthly royalty payments are calculated by multiplying the total number of plays of all sound recordings streamed to all individual listeners in the month by the applicable rate ($0.000102 for all commercial webcasters). As the rates have already been discounted by the Copyright Board to reflect Re:Sound’s repertoire, royalties are payable on all sound recordings streamed by a service, regardless of whether they are within Re:Sound’s repertoire, eligible under the Copyright Act, within the public domain or published. Royalties are payable regardless of whether the recording is played in full or skipped within seconds. There is no minimum duration requirement to constitute a play.
A service is required to report each month:
Reporting forms and a royalty calculator will be available from Re:Sound shortly.
Non-Commercial Webcasters are not required to report music use information or the number of plays of sound recordings, but shall provide a description of the webcast services they offer or intend to offer.
Certified in a decision by the Copyright Board of Canada in May, 2014, Tariff 8 sets the royalty rates that music streaming services must pay to Re:Sound to play sound recordings for the period 2009-2012. The 2009-2012 certified rates remain in effect until rates for the years 2013, 2014 and subsequent periods are certified by the Board. Tariff 8 does not apply to the use of musical compositions, which are subject to separate tariffs administered by the Society of Composers, Authors and Music Publishers of Canada (SOCAN) and CMRRA/SODRAC (CSI).
If a webcaster has not implemented technology to track plays for any month during the term of the tariff, they shall calculate and report their royalties based on the aggregate tuning hours (ATH) for that month together with the total number of programming hours, total number of listeners, and if available, the required music use reporting information.
Monthly royalties are calculated by multiplying the ATH for that month by the applicable rate ($0.000102 for commercial webcasters) and then multiplying by either:
Royalties may only be calculated using the ATH until the earlier of:
Yes, Tariff 8 continues to be effective while Re:Sound’s application for judicial review is pending.
Yes, the royalties payable under Re:Sound Tariff 8 are only with respect to the right of equitable remuneration of performers and makers with respect to the communication and public performance of their sound recordings. SOCAN collects royalties under its tariffs on behalf of authors, composers and music publishers for their communication and public performance rights. CSI also collects royalties under its tariffs on behalf of authors, composers and music publishers, but for the reproduction right. The reproduction rights of record labels are administered either directly by each label or collectively, by Connect Music Licensing (formerly AVLA) and SOPROQ. Interactive services such as download and on-demand streaming, are licensing directly by the record labels.
Re:Sound Tariff 6.A (Use of Recorded Music to Accompany Dance) is a tariff that sets the rates to be paid to artists and record labels for the use of their recorded music to accompany dancing.
The Copyright Board of Canada certifies Re:Sound’s tariffs; it can verify Re:Sound’s legitimacy. Feel free to confirm this through the Copyright Board of Canada’s website. Re:Sound is also registered with the Better Business Bureau as an accredited business. You can see our BBB online report by following the link from our website.
There are currently seven different parts to Re:Sound Tariff 5. Different sections may affect hotels, restaurants, bars, nightclubs, banquet halls, golf and country clubs, festivals, fairs, and municipalities. Due to the wide range of uses licensed under Tariff 5, there are many types of organizations that may require a licence. If you have any questions about whether Tariff 5 applies to your business, please contact Re:Sound’s Licensing Department at at 1.877.309.5770, or firstname.lastname@example.org.
Our responsibility is to make sure artists and record companies are fairly compensated for the use of their works. The Tariff is enforceable through a court process for establishments that owe royalties but refuse to obtain the required licence.
Tariff 3 applies to the use of all recorded music used as background music regardless of the media upon which it has been recorded (MP3, vinyl, CD, DVD, cassette, etc.).
In general terms, a background music supplier is a person or company who provides a service of supplying recorded music to other businesses for performance in public.
When you buy a CD, track or album online, you have paid for your personal use of it and the right to use it in public is not included. The Copyright Act recognises that music creators have a separate right in the public performance of their music. This right is compensated by tariffs set by the Copyright Board, who are charged with establishing the fair commercial value of the music use.
The value of music to fitness venues is supported by economic analysis and consumer choice modelling that was presented by Re:Sound at the Copyright Board hearing. It is also validated by international research, including a UK study showing that using music can generate positive results for businesses and their employees. The study found that 92 percent of gym users like to hear music at the gym. Eighty percent of respondents agreed that music makes them more motivated while 77 percent agreed that a gym with music was more appealing to them than a gym without.
Details of this study can be found at www.musicworksforyou.com.
Tariff 6.A applies when recorded music is used to accompany dancing in any indoor or outdoor venue. Typical licensees under Tariff 6.A include nightclubs, bars, restaurants, hotels, university and college campuses, and adult entertainment establishments. If you have questions as to whether Tariff 6.A applies to your business, please contact the Re:Sound Licensing Department at 1.877.309.5770, or email@example.com.
Each section of Tariff 5 has a different rate certified by the Copyright Board of Canada.
|Room Capacity||Fee per Event Without Dancing||Fee per Event With Dancing|
|Up to 75,000 attendees:||Over 75,000 attendees:|
In most cases, reporting and payment are due within 30 days of the closing of an event; or in the case of a recurring event, within 31 days of the end of the year. For Tariff 5.B however, reporting and payment are to be submitted within 30 days of the end of each calendar quarter.
Re:Sound worked closely with a number of trade associations to design the rates and structure of these tariffs. We have also reached out to a number of other associations since the tariff was certified. To determine whether Re:Sound has a relationship with your particular association, you can contact them directly or contact our Licensing Department at 1.877.309.5770, or firstname.lastname@example.org.
The Re:Sound Background Music Tariff, also referred to as Tariff No.3, sets out when and how businesses are required to obtain a licence from Re:Sound for the public performance of music used as background music in establishments. Re:Sound licences are required from all establishments that use background music. Therefore, if your establishment uses background music, including music with telephone on hold, you are required to obtain a licence for that use.
In 2006, following a hearing before the Copyright Board of Canada, the tariff was certified for the years 2003-2009.
Re:Sound is entitled to collect royalties set in a final tariff from the date on which the tariff takes effect. That date is determined by the time at which the proposed tariff is filed, not by when the final tariff is certified. Re:Sound filed the proposed Tariff 3 (for the period 2003‐2009) on April 2, 2002., and the publication of proposed Tariff 3 in the May 11, 2002 edition of the Canada Gazette put all potential users of background music on notice that, at some point, they would be required to comply with a tariff going back to January 1, 2003.
If your establishment uses a background music supplier your supplier may be paying the required licence fee on your behalf, depending on the terms of your subscription agreement.
If your establishment uses music that is not provided by a background music supplier(s) the licence fee is based on one of the following factors (as it applies to your business): the number of admissions, if it can be reasonably estimated; or the capacity, if it can be verified; or the area, in square feet/metres.
You can also consult our on‐line form and resources page or e‐mail us for help calculating your licence fees.
Most times, but not always. Contact us if you are unclear as to whether your supplier is paying on your behalf.
Any use of recorded music that is covered by another Re:Sound tariff is not subject to the background music tariff, for example, fashion shows or music to accompany physical activity. If you have any questions about whether T3 applies to your business, please contact Re:Sound at email@example.com.
If a background music supplier provides your music on hold, then the supplier is likely required to pay for you. If you use music from a CD, tape, or radio, your business is required to pay Re:Sound directly. Contact us if you are unclear as to whether your supplier is paying on your behalf. We can assist you in determining this.
Yes. If the capacity for that part of the establishment has been determined separately from the main dining area, Re:Sound will consider that that room may be billed separately from the rest of the restaurant, provided the owner can prove the number of days of operation during which this room was in use. If this section is part of the main restaurant, i.e. it is in the same audible area, it must be included in the general capacity calculation.
Using a jukebox in an establishment qualifies as a use of background music. Generally, the establishment using the jukebox is responsible for the paying the licence fee, although there may be some occasions were the jukebox music supplier will pay the licence fees directly.
The Satellite Radio Tariff, also referred to as Re:Sound Tariff 4, sets out when and how multichannel subscription satellite radio services (such as Sirius) in Canada are required to obtain a licence from Re:Sound for the communication to the public by telecommunication, in Canada, of published sound recordings embodying musical works and artists’ performances of such works by satellite radio signal, for the years 2007-2010. It also sets out licensing requirements from the Society of Composers, Authors and Music Publishers of Canada (SOCAN) for the communication to the public by telecommunication, in Canada, of musical or dramatico-musical works for the years 2005-2009, and from CMRRA/SODRAC Inc. (CSI) for the reproduction, in Canada, of musical works for the years 2006-2009.
Certification of the renewal of the Satellite Radio Tariff for the years 2011-2018 is currently pending by the Copyright Board.
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.
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.