New royalty hits recorded music

(Jun. 11/12) The Copyright Board of Canada has approved a new music royalty that applies to recorded music accompanying a live event and karaoke. To be collected by Re:Sound, the royalty’s structure is similar to existing SOCAN royalties for music accompanying live events.

What this means for you
Restaurants and bars with live shows using recorded music instead of a back-up singer or band, and/or karaoke will now have to pay 50% more in music royalties for these live events. (The existing SOCAN tariffs are double the new Re:Sound tariffs.) Additionally, royalty fees are retroactive to 2008 and interest is payable on the fees owed for previous years.

Tariff Description Fees
5a Recorded music accompanying live entertainment The annual fee payable under this tariff shall be 0.9% of the compensation for entertainment paid in the year, subject to a minimum annual fee of $37.64.
5b Receptions, conventions, assemblies and fashion shows $9.25 – $78.66 depending on size of event and if there is dancing or not
5c Karaoke bars For establishments operating with karaoke no more than
3 days a week: $86.06; more than 3 days a week: $124.00.

CRFA action
CRFA has fought this royalty since 2007, when Re:Sound (then NRCC) originally requested 5% of gross revenues for a live event, with a minimum of $100/event. Our action has brought this royalty down to 0.9% of compensation paid to performing artists.

CRFA has also held the line on SOCAN rates – SOCAN is not planning to increase music royalty tariffs for the foodservice sector in 2013.

Questions? Ideas?
CRFA’s Director of Member Services, Justin Taylor, is available to discuss strategies on how to further minimize costs for affected members. Click here to contact us.