Re:Sound Fitness Tariff 2018–2022

Summary#

This is the published tariff called the Re:Sound Fitness Tariff, 2018-2022. It sets the royalties that gyms, fitness classes, skating rinks and instructors must pay to Re:Sound when they play recorded music during fitness activities between 2018 and 2022.

What it does#

• Sets fees for background music played in fitness venues:
  • If music is supplied by a background music company and that company does not pay on the venue’s behalf, the venue pays 3.2% of what it paid the supplier that quarter, with a minimum of $2.15 per venue per quarter.
  • If no background supplier is used, the venue pays an annual fee based on membership: less than 1,000 members $50.00, 1,000–5,000 members $250.00, more than 5,000 members $500.00.
• Sets per-class royalties for fitness and dance classes. The per-class amounts rise slightly each year:
  • 2018: $0.416 per class
  • 2019: $0.428 per class
  • 2020: $0.441 per class
  • 2021: $0.454 per class
  • 2022: $0.467 per class
  • Venues pay for classes they run; independent instructors or organizations pay for classes they organize.
• Sets fees for skating venues (not lessons):
  • If admission is charged: 0.44% of gross admission receipts, with a minimum annual fee of $49.05.
  • If no admission is charged: annual fee $49.05.
• Reporting, payment timing and interest:
  • Annual royalties are due by January 31 of the following year.
  • Quarterly royalty payments must be made no later than 60 days after the quarter ends.
  • Late payments bear interest at 1% above the Bank Rate (as published by the Bank of Canada) calculated daily.
• Record-keeping and audits:
  • People and organizations subject to the tariff must keep records for 6 years.
  • Re:Sound may audit those records. If royalties were understated by more than 10%, the audited party must pay the understatement and reasonable audit costs within 30 days.
• Confidentiality and information sharing:
  • Information provided to Re:Sound is treated as confidential, but may be shared in limited situations (for example with SOCAN, the Copyright Board, agents, or when required by law).
• Transitional rule:
  • Royalties owed on or before September 11, 2020 were made due on December 11, 2020, subject to multiplying interest factors (ranging roughly from 1.00142 to 1.04227) to account for late payment.

Who's affected#

• Fitness centres, gyms, health clubs, community and recreation centres that play recorded music.
• Instructors and organizations who run fitness or dance classes (for pay or free).
• Skating venues that play recorded music (excluding lessons and events covered by other tariffs).
• Background music suppliers and their subscribers (depending on who is responsible for paying).
• Rights organizations mentioned in the tariff, such as Re:Sound, SOCAN, and the Copyright Board (for administration and enforcement).

If the source is unclear about whether a specific activity is covered (for example some types of group lessons or special events), the tariff text itself should be consulted.

Why it matters#

• It tells gyms, studios and instructors how much they must pay to legally play recorded music during classes and in facilities. Small per-class fees can add up across many sessions.
• Where music is included with a paid background-music service, the tariff links the royalty to what the venue pays that service. That can affect decisions about subscribing to a music service versus using playlists or DJs.
• There is a record-keeping and audit requirement. Venues and instructors need to track attendance and payments to calculate fees and be ready for possible audits.
• A transitional payment deadline (the December 11, 2020 date) meant some venues had to make catch-up payments for past years.