Re:Sound Adult Entertainment Tariff 2024–2028

Summary#

This notice from the Copyright Board publishes the Re:Sound 6.C – Adult Entertainment Tariff (2024-2028). It sets the fees that establishments must pay for using recorded music to accompany adult entertainment in Canada for the years 2024 to 2028.

What it does#

• Sets a daily royalty per person of capacity:
  • 2024: 6.18¢ per day per person of capacity.
  • 2025–2028: 6.29¢ per day per person of capacity.
• Requires establishments to estimate and pay royalties in advance each year, with an annual reconciliation after the year ends.
  • Estimated payment due by January 31 each year.
  • If an establishment opens after January 31, the first payment is due within 30 days of opening.
• Requires basic reporting when paying, including name, address, operator contact, capacity (with proof), and days of operation.
• Requires establishments to keep records for 6 years and allows Re:Sound to audit those records on reasonable notice.
  • If an audit shows royalties were understated by more than 10%, the audited party must pay the audit’s reasonable costs and the shortfall.
• Sets rules on confidentiality and when information can be shared (for example, with service providers, SOCAN, the Copyright Board, or when required by law).
• Charges interest on late payments at a rate of 1% above the Bank Rate, calculated daily and not compounded.
• States that over- or underpayments are adjusted without interest.

Who's affected#

• Owners and operators of places where adult entertainment is performed in public and recorded music is used. That includes single locations such as adult entertainment clubs, nightclubs, dance clubs, bars, and hotels that offer adult entertainment.
• Music licensing organizations involved in collecting and distributing these royalties, notably Re:Sound and SOCAN.
• It is unclear whether some very small or atypical venues are covered; the tariff applies to any “establishment” as defined in the notice.

Why it matters#

• The tariff turns recorded-music use in adult-entertainment venues into a routine per-capacity fee. That changes how venue operators budget for music rights and may add a predictable daily cost.
• Example: a venue with capacity for 100 people would owe 100 × 6.29¢ = $6.29 per operating day in 2025–2028 (the example uses the 6.29¢ rate).
• The rules add administrative tasks: reporting, record-keeping for 6 years, and possible audits. Late payments also incur daily interest.
• For patrons the change is indirect, but operators may consider these costs when setting admission prices, staffing, or entertainment choices.