Re:Sound Background Music Tariff 2016–2020

Summary#

This Canada Gazette entry publishes the Re:Sound Tariff 3.B – Background Music (2016–2020). It sets the fees and basic rules that businesses must follow when they play recorded music in public (including music on hold) for the years 2016–2020, and it includes reporting, record-keeping and audit provisions. The notice was published on October 9, 2021.

What it does#

• Sets specific royalty amounts for playing recorded music in a public place or sending it to the public by telecom (including telephone on hold) for 2016–2020.
• Telephone on-hold (per trunk line):
  • 2016–2019: $49.85 for the first trunk line and $1.11 for each additional trunk line.
  • 2020: $52.45 for the first trunk line and $1.17 for each additional trunk line.
• Royalties for music played in an establishment can be calculated in one of several ways (the payer uses whichever method applies):
  • By area: square metres × days × 0.2910¢ (metric) and the parenthesized imperial figure 0.0268¢ (imperial) for 2016–2019; 0.3062¢ (metric) / 0.0282¢ (imperial) for 2020.
  • By capacity: number of people × days × 0.1745¢ for 2016–2019; 0.1836¢ for 2020.
  • By admissions/tickets: number of admissions × 0.0931¢ for 2016–2019; 0.0980¢ for 2020.
  • If none of the above apply, a flat yearly fee of $49.85 (2016–2019) or $52.45 (2020) applies.
• Minimum annual royalty per establishment:
  • $25.00 for 2016–2019.
  • $35.00 for 2020.
• Reporting, payment and reconciliation:
  • Estimated payment for the year must be paid by January 31 each year (or within 30 days of opening if opened after January 31).
  • A follow-up report and any balance owing are due by January 31 of the following year.
  • Transitional adjustments for differences covering January 1, 2020 to December 31, 2020 are due January 31, 2022.
• Records and audits:
  • Establishments must keep records for 6 years.
  • Re:Sound may audit records on reasonable notice. If an audit shows underpayment by more than 10%, the establishment pays the audit costs.
• Confidentiality:
  • Information supplied is treated as confidential but may be shared with agents, SOCAN, the Copyright Board, other collecting bodies, or when required by law.
• Late payments: interest charged daily at Bank Rate + 1%, not compounded.
• All royalties are shown before taxes (taxes extra).

Who's affected#

• Places open to the public that play recorded music, for example: retail stores, restaurants, hotels, bars, workplaces, parks, clubs, schools, and public transportation. (Each separate location is treated as a separate establishment.)
• Businesses that put callers on hold with recorded music (charges apply per telephone trunk line).
• Background music suppliers who already pay under Tariff 3.A are excluded from this tariff.
• Performers and makers whose recordings are in Re:Sound’s repertoire; they are the beneficiaries of the collected royalties.
• If unclear: the notice applies to establishments that publicly play recorded music; specific businesses should check whether their current supplier or licence already covers these uses.

Why it matters#

• Cost: Businesses that play recorded music face measurable licence costs based on space, capacity, admissions or a flat fee. Small venues may be hit by the minimum yearly charges ($25.00 or $35.00) or the flat fee for establishments that can’t use other calculations.
• Compliance: Businesses must submit estimates, keep records for 6 years, and be ready for audits. Missing payments can trigger interest and audit-cost penalties.
• Retroactive reconciliation: Differences for 2020 must be reconciled by January 31, 2022, so businesses may owe additional money for past use.
• Funding creators: The fees collected are paid to performers and makers through Re:Sound, so the tariff directly affects how recorded-music creators are compensated.