October 19, 2012
This update:
- explains the Re:Sound licensing issue
- provides information on Re:Sound; and
- suggests recommended action on the part of members affected by the licensing initiative.
The Issue
Re:Sound recently issued letters to performing arts venues to collect royalties for a new range of uses of recorded music. Some CCI presenting members have received letters requesting retroactive payments to be made by October 1. Understandably, CCI presenting members who have received demands for payment are concerned and confused.
About Re:Sound
Re:Sound, is a copyright collective that collects royalties for use of recordings under the “neighbouring rights” provisions of Canada’s Copyright Act. These “secondary” uses are complementary to Grand Rights and are in addition to SOCAN licenses. As such, these may have a financial impact if your venue has and continues to use recorded music in the manner defined by the tariff in question. At this time, it is not clear whether arts presenting organizations that hold non-profit and charitable status are subject to these tariffs as defined.
The focus of this current licensing push is Tariff No. 5: Use of Music to Accompany Live Events (Parts A to G) for the period 2008 to 2012. This tariff applies to a variety of ways in which recorded music may be used by performing arts venues. For example, tariff 5A is for the use of recorded music in cafes; 5B is for use during receptions such as weddings and fashion shows. It is possible that you have received letters citing other tariffs such as Tariff No. 3: Use and Supply of Background Music or Tariff No. 6.A: Use of Recorded Music to Accompany Dance. A PDF of the proposed Tariff no. 5 may be downloaded at: http://www.cb-cda.gc.ca/tariffs-tarifs/certified-homologues/2012/supplement-May26.pdf.
For more information about the various tariffs on which Re:sound is licensed to collect royalties, visit: http://www.resound.ca/en/resources/tariffs.htm
What You Can Do About This
Lucy White and Erin Benjamin met yesterday (October 18, 2012) with senior management at Re:Sound to discuss both certified tariffs (approved) and proposed tariffs currently before the Copyright Board of Canada on behalf of PACT and CAPACOA members.
With regard to payment requests for certified tariffs, RE:Sound asks that you call them IF you have received a letter.
Re:Sound has said:
- It is willing to assess both the retroactivity and whether or not your organization is actually licensable for the tariff they are billing you for. Please indicate you are either a member of CAPACOA or CCI-Ontario Presenting Network which is a network member of CAPACOA;
- It acknowledges that you may have received an invoice for activity you do not engage in;
- It agrees that the wording of the tariffs are difficult to understand and that communication and education efforts on their part have been lacking;
- It would like to resolve and avoid issues with potential licensees and build a solid foundation upon which to have stronger relationship with CAPACOA and its membership;
- It has agreed to work with CAPACOA and PACT to attempt to negotiate a fair and equitable arrangement for our members regarding the tariffs currently before the Copyright Board.
If Certified Tariffs (approved 2008-2012) Apply to You
If you have received a letter from Re:Sound, you should call them and indicate whether you have/have not used recorded music in the past and and whether you have/don’t have access to retro-active evidence of these uses. If you are required to pay, PACT and CAPACOA suggest that you negotiate a simple proxy fee for the certified tariffs that seem reasonable to you and to Re:Sound.
Proposed Tariffs (see Copyright Board web site for a list of these)
Regarding the proposed tariffs, CAPACOA and PACT have begun the negotiation process to help ensure both memberships receive fair and equitable treatment. It is their goal at this time to work directly with Re:Sound so that they will have agreement prior to the required hearing with the Copyright Board. PACT/CAPACOA remain optimistic that this will be possible. This negotiation will take some time and we will keep you advised when further information is available.
Questions?
Log onto CCI Members Discussion Forum / Re:Sound at https://ccio.on.ca/user/login
Feedback
CAPACOA would appreciate knowing the outcome of any conversations and/or interactions you have with Re:Sound. Please copy or email Erin Benjamin erin.benjamin@capacoa.ca with your correspondence.