Message to Club Owners/Managers from Martin Gangnier, Director, Licensing NRCC
I would like to respond to recent statements made in the latest FitNet Newsletter with regard to the Neighbouring Rights Collective of Canada’s (NRCC) proposed Tariff 6 (Use of Music to Accompany Dance and Fitness), which is now before the Copyright Board of Canada.
NRCC is the Canadian not-for-profit music licensing company that is dedicated to obtaining fair compensation for artists and record companies for their performance rights. All amounts collected by NRCC are distributed to its members, representing thousands of artists and music creators, less costs.
For many years in Canada, fitness venues have been required to pay SOCAN royalties to compensate music composers, but there has never been compensation for the artists who perform the music. This must change. NRCC’s proposal is consistent not only with domestic practice but also with international practice. Fitness venues currently pay music royalties to artists in Australia, the U.K. and other countries.
Contrary to the FitNet article, there has been no attempt whatsoever by NRCC to remove FIC from the legal proceedings. In fact, NRCC welcomes FIC’s participation. When FIC filed a request with the Copyright Board to intervene after the deadline to do so had passed, NRCC proposed to the Copyright Board not only that it grant FIC’s application but also that FIC be permitted to participate with full “objector” rights.
NRCC requested that the Copyright Board order FIC to provide more information on its members’ business operations. The purpose was to help NRCC and ultimately the Board determine the parties’ ability to pay the proposed tariff. NRCC also asked the Copyright Board to prevent FIC from disputing its members’ ability to pay only if it does not provide evidence to support this assertion. As the Board ruled recently, “the objectors’ ability to address certain issues may be significantly curtailed if they cannot secure a higher rate of participation from their members.”
The Copyright Board’s process takes into account the financial realities of all involved parties, based on the evidence put forward, and provides them with opportunities to respond to tariff proposals. In this case, it includes open public hearings where the fitness industry will be fully represented by FIC, and separately by GoodLife Fitness. All interested parties will have the opportunity to present their arguments and supporting evidence during these hearings.
NRCC is pleased to know that FIC accepts its obligation to pay “reasonable” amounts for the use of music by fitness venues, as stated in FitNet. Ultimately, the determination of what is “reasonable” will be decided by the Copyright Board.
Going forward, it is our hope that all parties, including NRCC and FIC, can work cooperatively to facilitate a smooth, expeditious and fair resolution of the Tariff 6 proceedings.
Best regards,
Martin Gangnier
Director, Licensing
NRCC
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