Re:Sound Background Music Tariff 2014-2018

Summary#

This Canada Gazette notice publishes the Re:Sound Background Music Suppliers Tariff, 2014-2018, a Copyright Board text that sets the royalties background-music services must pay to Re:Sound for music played in public. It sets rates, minimum fees, reporting and record-keeping rules, and was published on October 10, 2020.

What it does#

• Sets the basic royalty for background-music services at 0.97% of the supplier’s revenues for each quarter, with a minimum charge of $0.64 per subscriber per establishment per quarter.
• If the background-music supplier pays the public-performance royalties on behalf of subscribers, the rate is 3.2% of those subscribers’ revenues for the quarter, with a minimum of $2.15 per subscriber per establishment per quarter.
• Cuts royalties in half for a small cable transmission system (i.e., such systems pay 50% of the normal rate).
• Requires suppliers to send payment and supporting reports within 60 days after each quarter.
• Requires suppliers to keep records (subscription rates, subscriber lists, invoices) for six years and allows Re:Sound to audit those records.
• If an audit finds royalties were understated by more than 10%, the supplier must repay the shortfall and cover reasonable audit costs within 30 days.
• Establishes confidentiality rules for information suppliers send to Re:Sound, but allows sharing with agents, other collecting societies (including SOCAN for enforcement/collection), the Copyright Board, and where required by law.
• Sets interest on late payments at 1% above the Bank Rate (calculated daily, not compounded).
• Includes practical definitions (for example, each separate business location counts as a separate “establishment”).

Who's affected#

• Background-music service providers who supply recorded music to businesses (these companies are the main payers). Mentioned in the tariff as “background music suppliers.”
• Businesses that receive background-music services (retail stores, restaurants, hotels, bars, workplaces, clubs, schools, etc.), because fees may affect subscription pricing or who pays the public-performance portion.
• Small cable transmission systems, which are treated specially (pay half).
• Re:Sound and rights-holders (performers and makers) who receive the royalties.
• SOCAN and other collecting bodies may be involved when enforcement or distribution requires sharing information.
• If the supplier pays royalties for subscribers, those subscribers won’t have to pay under Re:Sound’s Tariff 3.B or Tariff 6.B for that use.

Why it matters#

• Cost and billing: the tariff fixes how much background-music suppliers owe for music used in businesses. That can change subscription prices or who ends up paying (supplier vs. customer).
• Record-keeping and privacy: suppliers must report subscriber names and addresses and keep detailed records for audits, which matters for business administration and for subscriber privacy.
• Retroactive period: the tariff covers the period 2014 to 2018, so it affects royalties for those past years and any settlements or audits tied to them.
• Enforcement risk: audits, interest on late payments, and rules about covering audit costs mean suppliers that under-report can face extra charges quickly.
• Small operators: small cable systems get a reduced rate, which could matter for local or niche providers.