FAQ: Retail, Hospitality & Similar Establishments
- What is Re:Sound’s Background Music Tariff (T3)?
- What changes does Re:Sound seek in its proposed Background Music Tariff for 2012?
- What is the legal basis for the Tariff?
- Why do I owe amounts going back to 2003?
- How do I know that Re:Sound is legitimate?
- What is the difference between Re:Sound and SOCAN?
- What happens if I don't pay my Re:Sound licence fees?
- What forms of recorded music does Tariff 3 apply to?
- How is the payment calculated?
- What is a background music supplier?
- Doesn't my background music supplier pay my Re:Sound licence fees?
- When is music not background music?
- What about telephone music on hold?
- I already bought the CD so why do I need to pay Re:Sound licence fees for using it in my business?
- One section of my restaurant is rented out for special occasions. Does Tariff 3 apply to that area as well?
- What about using a Jukebox?
Q1: What is Re:Sound’s Background Music Tariff (T3)?
A: The Re:Sound (formerly NRCC) Background Music Tariff, 2003‐2009, 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. The Tariff is enforceable through the court process for establishments that owe royalties but refuse to obtain the necessary licence.
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Q2: What changes does Re:Sound seek in its proposed Background Music Tariff for 2012?
A: The proposed tariff seeks no change to the background music royalty rates proposed by Re:Sound for 2011. It includes some changes to make administration of the tariff more accurate and efficient.
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Q3: What is the legal basis for the Tariff?
A: The Tariff’s legal basis comes from the Copyright Act and the Copyright Board. The Copyright Board is a federal tribunal empowered to establish royalties to be paid for the use of copyrighted works. In 2006, a hearing was held before the Copyright Board following which the Tariff was certified for the period 2003‐2009.
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Q4: Why do I owe amounts going back to 2003?
A: 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.
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Q5: How do I know that Re:Sound is legitimate?
A: 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 (www.cb‐cda.gc.ca). 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.
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Q6: What is the difference between Re:Sound and SOCAN?
A: Re:Sound represents the performance rights of artists and record companies while SOCAN (Society of Composers, Authors and Music Publishers of Canada) does the same for composers and music publishers. Re:Sound and SOCAN are distinct organizations that represent different groups and both are required to be compensated.
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Q7: What happens if I don't pay my Re:Sound licence fees?
A: 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.
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Q8: What forms of recorded music does Tariff 3 apply to?
A: 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.).
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Q9: How is the payment calculated?
A: 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.
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Q10: What is a background music supplier?
A: 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.
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Q11: Doesn't my background music supplier pay my Re:Sound licence fees?
A: Most times, but not always. Contact us if you are unclear as to whether your supplier is paying on your behalf.
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Q12: When is music not background music?
A: Any use of recorded music that is covered by another Re:Sound tariff is not subject to the background music tariff. T3 does not include the use of music with a live event such as a sports event or fashion show and also does not include the use of music to accompany dancing, dance instruction, skating, and fitness activities. Tariffs covering these uses are in the process of being established.
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Q13: What about telephone music on hold?
A: 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, you’re 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.
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Q14: I already bought the CD so why do I need to pay Re:Sound licence fees for using it in my business?
A: 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.
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Q15: One section of my restaurant is rented out for special occasions. Does Tariff 3 apply to that area as well?
A: 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.
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Q16: What about using a Jukebox?
A: 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.
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