On June 20, 2015, the Copyright Board published in the Canada Gazette the most recent tariff proposals filed by Re:Sound.
Eight specific tariffs were proposed by Re:Sound: (1) the Re:Sound Commercial Radio Simulcasting Tariff, 2016-2017, (2) the Re:Sound CBC Radio Simulcasting Tariff, 2016, (3) the Re;Sound Pay Audio Services Simulcasting Tariff, 2016, (4) the Re:Sound Satellite Radio Services Simulcasting Tariff, 2016-2018, (5) the Re:Sound Live Events Tariff, 2016-2020, (6) the Re:Sound Dance Tariff, 2016-2018, (7) the Re:Sound Adult Entertainment Tariff, 2016-2018, and (8) the Re:Sound Non-Interactive and Semi-Interactive Webcasts Tariff, 2016.
Re:Sound is the collective society that manages the license of performing artists and record companies. It licenses recorded music for public performance and broadcast—and for these users in new media—for thousands of performing artists and record companies in Canada. Before March 1, 2010 Re:Sound was known as the Neighbouring Rights Collective of Canada ("NRCC").
The Objection Period
Now that Re:Sound's proposed tariffs have been published in the Canada Gazette, in accordance with section 70.14 of the Copyright Act, any person who wishes to object to them has 60 days in which to file written objections with the Copyright Board. This means that any objections must be received by the Board by no later than August 19, 2015
Tariff No. 1.A.2: Re:Sound Commercial Radio Simulcasting Tariff, 2016-2017
This proposed tariff allows Re:Sound to obtain royalties from commercial radio stations for the telecommunication of published works containing music or performances via simulcast in Canada. This tariff does not apply to communication falling under the Re:Sound Commercial Radio Tariff (Tariff 1.A), the Re:Sound Tariff 8--Non-Interactive and Semi-Interactive Webcasts Tariff, the SOCAN-Re:Sound Pay Audio Services Tariff, or the SOCAN-Re:Sound Satellite Radio Tariff.
The rates proposed by Re:Sound depend on whether a station is considered "low-use" or not. A station is considered "low-use" if published works (from the repertoire) are broadcast for less than 20 percent of the broadcast time. A station is not "low-use" if it broadcasts works for a longer period.
The rates proposed by Re:Sound are as follows:
|
Commercial Radio Stations | |
|
Low Use |
Non-Low Use |
|
GREATER OF: 2.6 percent of simulcasting income for the reference month OR $0.00098 for each play of a file in Canada, subject to a minimum of $500 per station. |
GREATER OF: 6.5 percent of simulcasting income for the reference month OR $0.00098 for each play of a file in Canada, subject to a minimum of $500 per station. |
The rate is based on monthly "simulcasting income", which includes both direct and indirect revenues. A commercial radio station must pay the royalties by the first of each month. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 1.C.2: Re:Sound CBC Radio Simulcasting Tariff, 2016
This proposed tariff allows Re:Sound to obtain royalties from the Canadian Broadcasting Corporation (CBC) for the telecommunication of published works containing music or performances via simulcast in Canada. This tariff does not apply to communication falling under Re:Sound Tariffs 1.C, 3, or 8, the SOCAN-Re:Sound Pay Audio Services Tariff, or the Satellite Radio Services Tariff. This proposed tariff only applies to the Canadian Broadcasting Corporation. The proposed royalty is either $37,500 or $0.00098 per play[1], whichever is greater.
Tariff No. 2.B: Re:Sound Pay Audio Services Simulcasting Tariff, 2016
This proposed tariff allows Re:Sound to obtain royalties from the telecommunication of published works containing music or performances in connection with transmission by a distribution undertaking. This tariff applies private-use simulcast, regardless of whether a fee is charged or not. It does not, however, apply to communication falling under the Re:Sound Pay Audio Services Tariff (Tariff 2) or Re:Sound Tariffs 3 or 8.
There are two royalty rates: those outlined in section 4(1) and those outlined in section 4(2). The royalties outlined in section 4(2) apply where the distribution undertaking is (i) a small cable transmission company, (ii) an unscrambled Very Low/Low Power Television Station, or (iii) a system similar to a cable transmission system that uses Hertzian waves to transmit signals. The royalties outlined in section 4(1) apply to all other distribution undertakings.
The rates proposed by Re:Sound are as follows:
|
Section 4(1) Royalties |
Section 4(2) Royalties[2] |
|
GREATER OF:[3] 15 percent of simulcasting income OR $0.00098 for each play of a file in Canada, subject to a minimum of $500 per station. |
GREATER OF:[4] 7.5 percent of simulcasting income OR $0.00049 for each play of a file in Canada, subject to a minimum of $500 per station. |
Section 4(1) royalties are calculated on a monthly basis. Section 4(1) royalties must be paid before the last day of the subsequent month. Section 4(2) royalties are calculated on an annual basis. Section 4(2) royalties must be paid before January 31st of the subsequent year. Late payments for both section 4(1) and 4(2) royalties are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff 4.B: Re:Sound Satellite Radio Services Simulcasting Tariff, 2016-2018
This proposed tariff allows Re:Sound to obtain royalties from satellite radio services for the telecommunication of published works containing music or performances via simulcast in Canada.. This tariff does not apply to the use of sound recordings by commercial subscribers. This tariff also does not apply to communication falling under the Re:Sound Satellite Radio Services Tariff, the SOCAN-Re:Sound Pay Audio Services Tariff, or Re:Sound Tairffs 1.A, 1.C, 3, or 8.
The proposed royalty is 3.71 percent of simulcasting income or $0.00098 per play[5], whichever is greater. The rate is based on net simulcasting income[6] from a "reference month". The proposed royalty is subject to a minimum annual fee of $500 and a maximum annual fee of $50,000. A station must pay the royalties by the first of the month. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.A: Re:Sound Live Events Tariff, 2016-2020 (Recorded Music Accompanying Live Entertainment)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances in connection with live entertainment. Live entertainment includes theatre, dance, acrobatic acts, integrated acts and contemporary circus acts. This proposed tariff does not apply to events covered by other Re:Sound tariffs, including the playing of background music.
There are two royalty rates: those outlined in section 3(1)(a) and those outlined in section 3(1)(b). The royalties outlined in section 3(1)(a) apply where the playing of music is "incidental"[7]. The royalties outlined in section 3(1)(b) apply to all other events.
The rates proposed by Re:Sound are as follows:
|
Recorded Music Accompanying Live Entertainment[8] | |
|
Section 3(1)(a) Royalties |
Section 3(1)(b) Royalties |
|
1.7¢ per admission subject to a minimum fee of $32.00 per event or a minimum fee of $105.00 for multiple events. |
6.7¢ per admission subject to a minimum fee of $63.00 per event or a minimum fee of $105.00 for multiple events. |
Single events and multiple events are subject to different minimum fees. The rate is based on total admissions, which includes all individuals who are "entitled to attend". The royalty is due within thirty days of the event (for single events) or by January 31st of the subsequent year (for multiple events). Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.B: Re:Sound Live Events Tariff, 2016-2020 (Receptions, Conventions, Assemblies, and Fashion Shows)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances at receptions, weddings, conventions, video game events, assemblies and fashion shows.
The rates proposed by Re:Sound are as follows:
|
B. Receptions, Conventions, Assemblies and Fashion Shows | ||
|
Room Capacity |
Event without Dancing |
Event with Dancing |
|
1-100 101-300 301-500 Over 500 |
$30.84 $44.34 $92.54 $131.10 |
$61.70 $88.76 $185.07 $262.19
|
Royalties are calculated on a per event basis. The rate is based on room capacity (both seating and standing). The royalty is due within thirty days of the event. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.C: Re:Sound Live Events Tariff, 2016-2020 (Karaoke Bars)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances at karaoke bars.
The rates proposed by Re:Sound are as follows:
|
C. Karaoke Bars | |
|
Establishments with Karaoke no more than three days a week |
Establishments with Karaoke more than three days a week |
|
Annual fee of $286.86 |
Annual fee of $413.34 |
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.D: Re:Sound Live Events Tariff, 2016-2020 (Festivals, Exhibitions, and Fairs)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances at festivals, exhibitions or fairs. An event subject to this tariff is not subject to any other Re:Sound tariff.
The rates proposed by Re:Sound are as follows:
|
D. Festivals, Exhibitions and Fairs | |
|
Total Attendance |
Fee (per day) |
|
Up to 5,000 5,001 to 10,000 10,001 to 20,000 20,001 to 30,000 30,001 to 50,000 50,001 to 75,000 75,001 to 100,000 100,001 to 150,000 150,001 to 200,000 Over 200,000 |
$17.00 $38.00 $76.00 $126.00 $202.00 $315.00 $441.00 $630.00 $882.00 $1,260.00 |
Annual events and one-time events are subject to different rules. The rate for annual events is based on actual attendance figures (from a previous event). The rate for one-time events is based on total attendance. The royalty for annual events is due on January 31st; the royalty for one-time events is due within 30 days of the event. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.E: Re:Sound Live Events Tariff, 2016-2020 (Circuses, Ice Shows, Fireworks Displays, Sound and Light Shows, and Similar Events)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances at circuses, ice shows, firework displays, sound shows and light shows. This tariff does not apply if only background music is played at any of the aforementioned events.[9]
The rate proposed by Re:Sound is: 1.9 percent of gross receipts from ticket sales, exclusive of sales and amusement taxes, subject to a minimum fee of $92.87 per event or $93.87 per event where there are no ticket sales. The tariff is due within thirty days of the event, unless it is an annual event (in which case the tariff is due on January 31st of each year). If there are multiple events within one year (and the royalty is over $500), the tariff becomes due on a quarterly basis. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.F: Re:Sound Live Events Tariff, 2016-2020 (Parades)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances by floats participating in a parade. This tariff does not apply to communication subject to another Re:Sound tariff.
The rate proposed by Re:Sound is: $13.17 for each float with recorded music, subject to a minimum fee of $48.83 per day. The tariff is due within thirty days of the event, unless it is an annual event (in which case the tariff is due on January 31st of each year). If there are multiple events within one year (and the royalty is over $500), the tariff becomes due on a quarterly basis. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.G: Re:Sound Live Events Tariff, 2016-2020 (Parks, Streets and Other Public Places)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances in parks, streets, and other public areas. If the event takes place in multiple locations, the tariff applies to each location.
The rate proposed by Re:Sound is: $48.83 for each day on which the sound recordings are played, subject to a minimum fee of $334.40 in any three month period. The tariff is due within thirty days of the event, unless it is an annual event (in which case the tariff is due on January 31st of each year). If there are multiple events within one year (and the royalty is over $500), the tariff becomes due on a quarterly basis. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.H: Re:Sound Live Events Tariff, 2016-2020 (Sports Events)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances at sporting events. Sporting events include: basketball, baseball, football, hockey, skating competitions, races, and track meets.
The rates proposed by Re:Sound are as follows:
|
H. Sports Events:[10] | |
|
Period |
Percentage of Gross Receipts from Ticket Sales |
|
2016 2017 2018 2019 2020 |
0.25% 0.26% 0.27% 0.28% 0.29% |
Single events and multiple events are subject to different rules. The rate is based on total admission, which includes complimentary tickets[11]. The tariff is due within thirty days of the event (for single events) or by January 31st of the subsequent year (for multiple events). ). If there are multiple events within one year (and the royalty is over $500), the tariff becomes due on a quarterly basis. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.I: Re:Sound Live Events Tariff, 2016-2020 (Comedy and Magic Shows)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances at comedy shows or magic shows. The primary focus of the event must be comedy or magic, with the sound recordings playing an incidental role. This tariff applies to all sound recordings at the event, including: prior to the performance, during the intermission, and after the performance.
The rate proposed by Re:Sound is: $54.90 per event. The tariff is due within thirty days of the event, unless there are multiple events within a given year (in which case the tariff is due on January 31st of each year). In the case of multiple events, where the royalty is over $500.00 the rate becomes due on a quarterly basis. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 5.J: Re:Sound Live Events Tariff, 2016-2020 (Concerts)
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances at concerts. The tariff applies to sound recordings played prior to a concert, during the intermission at a concert, and after the concert. It does not apply to any use of sound recordings as part of a live performance.
The rate proposed by Re:Sound is: the capacity[12] of the concert multiplied by 0.4640¢, subject to a minimum fee of $30.00 per event. The tariff is due within thirty days of the event, unless there are multiple events within a given year (in which case the tariff is due on January 31st of each year). In the case of multiple events, where the royalty is over $500.00 the rate becomes due on a quarterly basis. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff No. 6.A: Re:Sound Dance Tariff, 2016-2018
This proposed tariff allows Re:Sound to obtain royalties from nightclubs, dance clubs, bars, restaurants, hotels, halls, clubs, schools, and campuses for the telecommunication of musical works for the purpose of dancing. This tariff does not apply to educational institutions or religious institutions that are not-for-profit in nature. It also does not apply to communication covered by Tariffs 6.C and 6.B.
The rate proposed by Re:Sound increases as the number of patrons[13] increases. There is a base rate for venues with 100 patrons or less. The rate increases by 10 percent for every increase in 20 patrons thereafter. The proposed rate for venues with less than 100 people is as follows:
|
Venue (100 people or less) | ||
|
Months of Operation |
Days of Operation | |
|
1-3 days |
4-7 days | |
|
Six Months or Less |
$954.00 |
$2,623.00 |
|
More than Six Months |
$2,862.00 |
$7,870.00 |
The tariff is due on January 31st of each year for the preceding year. Late payments are subject to interest charges. The proposal also includes a provision allowing for rate adjustments in accordance with Consumer Price Index fluctuations.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff 6.C: Re:Sound Adult Entertainment Tariff, 2016-2018
This proposed tariff allows Re:Sound to obtain royalties for (i) the performance in public or (ii) the telecommunication to the public of sound recordings containing music or performances accompanying adult entertainment. This tariff does not apply where a different tariff applies.
The rates proposed by Re:Sound is 6.6 cents per day multiplied by the establishment's capacity.
The tariff is due on January 31st of each year for the preceding year. The tariff is calculated using the establishment's records on (a) capacity and (b) days of operation from the previous year. Late payments are subject to interest charges. The proposal also includes a provision allowing for rate adjustments in accordance with Consumer Price Index fluctuations.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
Tariff 8: Re:Sound Non-Interactive and Semi-Interactive Webcasts Tariff, 2016
This proposed tariff allows Re:Sound to obtain royalties for the telecommunication to the public of sound recordings containing music or performances by webcasters. This tariff does not apply to interactive webcasts, transmissions of programs for playback, or interactive downloads. It also does not apply to simulcasting or communication covered by other tariffs.
The rate proposed for simulcast by a non-commercial webcaster is $500 per year. The rate proposed for webcasts (excluding simulcasts) by a non-commercial webcaster is $500 per year. This annual royalty is due on January 14th. Late payments are subject to interest charges.
The rate proposed for non-interactive and semi-interactive webcasts by all webcasters (excluding non-commercial webcasters) is the greater of (i) 21.75 percent of gross revenues for a month or (ii) $0.00122 for each play[14] of a file in Canada. The non-interactive and semi-interactive tariff is subject to a minimum fee of $500.00 per year and a maximum fee of $50,000.00 per year. The royalty for each month is due within 45 days of the end of the month. Late payments are subject to interest charges.
The tariff proposal outlines specific requirements related to retention and production of certain records, documents, and information. Re:Sound has the ability to compel records and audit records in accordance with the tariff proposal. Re:Sound is entitled to a monetary adjustment if royalties are incorrectly calculated.
[1] Of a file by simulcast in Canada.
[2] Applies to small cable transmission systems, unscrambled low power television stations, very low power television stations, and systems that perform a function similar to a cable transmission system using Hertzian waves to transmit signals.
[3] Subject to a minimum annual fee of $500 and a maximum fee of $50,000.
[4] Subject to a minimum annual fee of $250 per channel and a maximum fee of $25,000.
[5] Of a file in Canada by simulcast.
[6] Includes both direct and indirect revenues.
[7] The tariff proposal defines "incidental" as: "the use of sound recordings at an event for either less than ten (10) per cent of the length of the event or for less than ten (10) minutes in total duration for the event, excluding intermissions and the entrance and exit of audiences before and after the event."
[8] The rate is calculated on a per event basis.
[9] If only background music is played, the event is subject to Re:Sound Tariff 3 (Background Music) as opposed to Tariff No. 5.E: Re:Sound Live Events Tariff, 2016-2020.
[10] Only applies to sporting events where an admission fee is charged. If there is no admission fee, the rate is $15.00 per sporting event.
[11] Section 2(2) notes: "A complimentary ticket is valued at half the lowest price pad for a sold tick from the same ticket category in the same event."
[12] Capacity is defined as: "the maximum number of persons who can attend an event (seating and standing) based on the number of tickets that can be issue for an event (both free and paid) as report in the event's ticket manifest or other relevant document."
[13] The number of "patrons" is the number of persons allowed under a liquor license or, in the case of a non-licensed venue, the number of persons permitted by any document issued by a competent authority.
[14] Only applies to non-interactive webcasts, semi-interactive webcasts, and simulcasts. Some simulcasts are excluded under paragraph 3(1)(a) of the tariff proposal.
