Vol. 152, No. 2 — January 13, 2018

COPYRIGHT BOARD

Statement of Royalties to Be Collected by Re:Sound for the Performance in Public or the Communication to the Public by Telecommunication, in Canada, of Published Sound Recordings Embodying Musical Works and Performer’s Performances of Such Works

In accordance with subsection 68(4) of the Copyright Act, the Copyright Board has certified and hereby publishes the statement of royalties to be collected by Re:Sound Music Licensing Company (Re:Sound) for the performance in public or the communication to the public by telecommunication, in Canada, of published sound recordings embodying musical works and performer’s performances of such works for the use of recorded music to accompany fitness activities (Tariff 6.B) for the years 2013 to 2017.

Ottawa, January 13, 2018

Gilles McDougall
Secretary General
56 Sparks Street, Suite 800
Ottawa, Ontario
K1A 0C9
613-952-8624 (telephone)
613-952-8630 (fax)
gilles.mcdougall@cb-cda.gc.ca (email)

STATEMENT OF ROYALTIES TO BE COLLECTED BY RE:SOUND FOR THE PERFORMANCE IN PUBLIC OR THE COMMUNICATION TO THE PUBLIC BY TELECOMMUNICATION, IN CANADA, OF PUBLISHED SOUND RECORDINGS EMBODYING MUSICAL WORKS AND PERFORMER’S PERFORMANCES OF SUCH WORKS FOR THE YEARS 2013 TO 2017

Tariff No. 6.B

USE OF RECORDED MUSIC TO ACCOMPANY FITNESS ACTIVITIES

Short Title

1. This tariff may be cited as the Re:Sound Fitness Tariff, 2013-2017.

Definitions

2. In this tariff,

“background music supplier” means a person who provides a paid subscription service of supplying recorded music for performance in public by a fitness venue dealing at arm’s length; (« fournisseur de musique de fond »)

“dance class” means a lesson in dance instruction including, without limitation, ballet, jazz, tap and ballroom dance; (« cours de danse »)

“fitness activity” means any form of physical exercise, sport or dance, including, but not limited to, fitness classes, dance classes, gymnasium workouts, weight training, circuit training, cardio training, running, swimming, martial arts, gymnastics and rock climbing; (« activité de conditionnement physique »)

“fitness class” means a structured form of exercise, conducted in a class environment under the direction of an instructor, including, but not limited to, aerobics, circuit training, boot camp, aqua fitness, cardio, flexibility, stretching and abdominal exercises (including yoga, Pilates and tai chi), step, dance-exercise (including hip-hop and Zumba), group cycling and spinning, strength, toning and resistance exercise, boxing, combat and martial arts activities, age, lifestyle and specialty exercise classes, and swimming and skating lessons; (« cours de conditionnement physique »)

“fitness venue” means an indoor or outdoor venue where a fitness activity is undertaken including, without limitation, fitness centres, gymnasiums, health clubs, leisure and recreation centres, community centres, and aquatic centres; (« lieu de conditionnement physique »)

“member” means a person who is entitled to participate in a fitness activity at the fitness venue, whether or not for a fee, including daily, weekly, bi-weekly, monthly and annual memberships as well as persons who attend on a per visit or class basis or per package of visits or classes; (« membre »)

“skating venue” means an indoor or outdoor venue that provides roller or ice skating, excluding skating lessons which fall under the definition of fitness class, and excluding sporting events and ice shows which are subject to Re:Sound Tariff 5 (Use of Music to Accompany Live Events); (« lieu de patinage »)

“venue” means a single location and includes a venue operating within a multipurpose facility such as a hotel or campus; (« lieu »)

“year” means a calendar year. (« année »)

Application

3. (1) This tariff sets the royalties to be paid for the performance in public or the communication to the public by telecommunication, in Canada, for the years 2013 to 2017, of published sound recordings embodying musical works and performer’s performances of such works in the repertoire of Re:Sound (“recorded music”), in all areas within a fitness venue and skating venue and to accompany a fitness activity including fitness classes and dance classes.

(2) This tariff does not apply to a performance in public or a communication to the public by telecommunication of recorded music for which royalties are paid by a background music supplier under Re:Sound Tariff 3.A (Background Music Suppliers).

(3) This tariff does not apply to a performance in public or a communication to the public by telecommunication of recorded music that is subject to another Re:Sound tariff, including Tariff 3.B (Background Music), Tariff 5 (Use of Music to Accompany Live Events) and Tariff 6.A (Use of Recorded Music to Accompany Dance).

(4) This tariff is subject to the exception set out in subsection 69(2) of the Copyright Act, R.S.C., 1985, c. C-42, as modified.

Fitness Venues

4. (1) The royalties payable to Re:Sound for the use of recorded music in all areas within a fitness venue other than during a fitness class or dance class, including in connection with weight training, cardiovascular training, circuit training and other fitness activities, as well as in change rooms, hallways, offices and lobby areas, are determined as follows:

Number of Members

Annual Royalty

Less than 1 000

$50

Between 1 000 and 5 000

$250

More than 5 000

$500

(2) A subscriber making a payment pursuant to paragraph 4(1)(a) shall pay the royalty for that quarter no later than 60 days after the end of the quarter.

(3) For the purpose of calculating the royalties payable pursuant to paragraph 4(1)(b), the number of members of a fitness venue shall be calculated by adding the number of members on the last day of each month during the calendar year and dividing by 12. A fitness venue that does not track the number of members shall pay $250.

(4) The royalties payable pursuant to paragraph 4(1)(b) for any given year are due no later than January 31 of the following year and shall be accompanied with a report indicating

Fitness Classes and Dance Classes

5. (1) The royalty payable to Re:Sound for the use of recorded music during fitness classes and dance classes is determined as follows: for each fitness class and dance class in which recorded music is performed, provided at any time during the particular calendar year, an amount per class multiplied by the number of classes held during the year as follows:

Year

Amount per Class

2013

$0.359

2014

$0.369

2015

$0.380

2016

$0.392

2017

$0.404

(2) Royalties payable in respect of fitness classes and dance classes held within or under the administration of a fitness venue or skating venue are payable by the venue. All other fitness classes and dance classes are payable by the instructor or organization holding or organizing the class.

(3) Royalties payable pursuant to subsection (1) for any given year are due no later than January 31 of the following year and shall be accompanied with a report indicating

Skating Venues

6. (1) The royalty payable to Re:Sound for the use of recorded music in a skating venue, excluding skating lessons which are subject to royalties under subsection 5(1), and excluding ice shows and sporting events which are subject to Re:Sound Tariff 5 (Use of Recorded Music to Accompany Live Events), is as follows: (a) where an admission fee is charged, 0.44 per cent of the gross receipts from admissions, exclusive of sales and amusement taxes, subject to a minimum annual fee of $49.05; and (b) where no admission fee is charged, an annual fee of $49.05.

(2) Royalties payable pursuant to subsection (1) for any given year are due no later than January 31 of the following year. The payment shall be accompanied with a report indicating

Taxes

7. All royalties payable under this tariff are exclusive of any applicable federal, provincial or other governmental taxes or levies of any kind.

Accounts and Records

8. (1) A person subject to this tariff shall keep and preserve, for a period of six years after the end of the year to which they relate, records from which that person’s payment under this tariff can be readily ascertained.

(2) Re:Sound may audit these records at any time during the period set out in subsection (1), on reasonable notice and during normal business hours.

(3) Re:Sound shall, upon receipt, supply a copy of the report of the audit to the person who was the subject of the audit.

(4) If an audit discloses that the royalties owed to Re:Sound during any reporting period have been understated by more than 10 per cent, the subject of the audit shall pay the amount of the understatement and the reasonable costs of the audit within 30 days of the demand for such payment.

Confidentiality

9. (1) Subject to subsections (2) and (3), Re:Sound shall treat in confidence information received pursuant to this tariff, unless the person who supplied the information consents in writing to the information being treated otherwise.

(2) Re:Sound may share information referred to in subsection (1)

(3) Subsection (1) does not apply to information that is publicly available, to aggregated information, or to information obtained from someone other than a person subject to this tariff and who is not under an apparent duty of confidentiality to that person with respect to the supplied information.

Interest on Late Payments

10. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.

Addresses for Notices, etc.

11. (1) Anything addressed to Re:Sound shall be sent to 1235 Bay Street, Suite 900, Toronto, Ontario M5R 3K4, email: licensing@resound.ca, fax number: 416-962-7797 or to any other address, email address or fax number of which the sender has been notified in writing.

(2) Anything addressed to a person subject to this tariff shall be sent to the last address, email address or fax number provided by that person to Re:Sound in writing.

Delivery of Notices and Payments

12. (1) A notice may be delivered by hand, by postage-paid mail, by email, by fax or by file transfer protocol (FTP). A payment may be made by credit card or delivered by hand, by postage-paid mail, or by electronic bank transfer (EBT), provided the associated reporting is provided concurrently to Re:Sound by email.

(2) A document mailed in Canada shall be presumed to have been received four business days after the day it was mailed.

(3) A document sent by fax or email shall be presumed to have been received the day it was transmitted.

Transitional provision

13. Royalties owed on or before March 31, 2018, as a result of this tariff shall be due on June 30, 2018, and shall be increased by using the multiplying interest factor (based on the Bank Rate) set out in the following tables with respect to each period. Information pertaining to that same period shall be filed with the payment and shall be supplied only if it is available. If the number of fitness classes and dance classes is not known or cannot be reasonably determined, a reasonable estimate of the number of classes held will be provided.

Multiplying interest factors applicable to quarterly payments

 

Q1

Q2

Q3

Q4

2013

1.0721

1.0679

1.0638

1.0596

2014

1.0554

1.0513

1.0471

1.0429

2015

1.0388

1.0353

1.0319

1.0293

2016

1.0268

1.0243

1.0218

1.0193

2017

1.0168

1.0143

1.0118

1.0083

2018

1.0042

     

Multiplying interest factors applicable to yearly payments

2013

2014

2015

2016

2017

2018

1.0541

1.0416

1.0291

1.0201

1.0126

1.0031