|
Re:Sound, formerly the Neighbouring Rights Collective of Canada, represents performing artists and record companies. It collects licensing fees for the performance rights of its members’ sound recordings and performances. Like SOCAN, it pays royalties to its members in Canada; it also has reciprocal agreements with many other countries to collect and distribute royalties.
The cost of music
There are various tariffs payable, depending on how music is used in your establishment. The table below shows how these tariffs apply to foodservice operations. Neither Re:Sound nor Socan collect music royalties from restaurants if you play broadcast radio such as AM or FM radio stations in your restaurant. If you subscribe to a background music service or to satellite radio for your restaurant, check with your provider to see if music royalties are already covered by the provider.
SOCAN
| Tariff |
Description |
2010 Fees |
| No. 3a |
Live Music |
Annual fee: 3% of compensation for entertainment (minimum annual fee of $83.65). |
| No. 3b |
Recorded Music Accompanying Live Entertainment |
Annual fee: 2% of compensation for entertainment (minimum annual fee of $62.74). |
| No. 15a |
Background Music |
Annual fee: $1.23 per square meter or 11.46¢ per square foot; half the annual rate for establishments operating less than six months per year. (In all cases, minimum fee of $94.51.) |
| No. 18 |
Recorded Music for Dancing |
Annual fee, based on the capacity, days per week and months per year of operation: ranging from $267.33 to $1,069.32 per 100 persons, plus 10% for each additional 20 persons. |
| No. 20 |
Karaoke Bars And Similar Establishments |
Annual fee:
a) $191.24 for establishments operating with karaoke no more than three days per week.
b) $275.56 for establishments operating with karaoke more than three days per week. |
Re:Sound
| Tariff |
Description |
2010 Fees |
| No. 3 |
Background Music |
Annual fee of 0.0239 cents per square foot of guest space. |
| No. 6.a |
Use of Recorded Music to Accompany Dancing |
Annual fee, based on the capacity, days per week and months per year of operation: ranging from $151.19 to $604.76 per 100 persons, plus 10% for each additional 20 persons. |
Re:Sound has negotiated another music royalty for recorded music in a live performance and for karaoke bars, but it has yet to be approved by the Copyright Board. CRFA will post more information on www.restaurantcentral.ca once the Board sanctions this tariff.
Royalties are payable on background music, live music and any accompanying recorded music, recorded music for dancing and karaoke music. Depending on your type of operation, you may be subject to one or more of the tariffs collected by SOCAN and Re:Sound.
Managing your costs
Here are a few tips for managing your costs:
- Check to see if there is an AM or FM radio station that you could use for background music. No royalties are payable for broadcast radio.
- Restaurant background music fees for Re:Sound are charged based on your guest space. Do not include your kitchen, restrooms or the area behind the bar when you make your calculations.
- While tariffs can be charged retroactively, make sure you are not being billed for a period before your restaurant was open.
Music can add ambiance to your restaurant, but it doesn’t come for free. By understanding how music royalties work, you can make the best investment choices for your operation.
What CRFA is doing
CRFA fights to keep music royalties reasonable. In past years, CRFA has opposed tariff increases proposed by both SOCAN and Re:Sound, and we’ve negotiated on behalf of the restaurant industry for more affordable tariff rates. Currently, Re:Sound has proposed a 354 per cent increase on the licensing fee for background music. CRFA has registered with the Copyright Board to oppose the increase and we will continue fighting to keep these costs under control.
About the Author
Justin Taylor is CRFA’s Vice President Labour and Supply. He can be reached at jtaylor@crfa.ca.
|
|