Canadian music tax
The Fitness Industry Council of Canada recently sent a notice to dance and fitness studios alerting them to a royalty fee threatening to be imposed on all fitness and dance studios across the country. The royalty was proposed a year ago by the Neighbouring Rights Collective of Canada (NRCC) with the Copyright Board of Canada.
The proposal called for the collection of fees for publicly played music. The fees are pretty outrageous: $5 per month per person for dance venues, $3 per class for fitness classes, and 5% of gross revenues for fitness studios. If a dance venue can't determine an exact capacity, it would pay an annual fee of $250 and fitness studios would pay $100 if their gross revenues can't be calculated.
What's interesting is that the Copyright board received no written objections. Because this hasn't yet become law, the FICDN has stepped in and is objecting to this proposal in the hopes of averting problems. They are asking dance and fitness studios to get involved in fighting back.
Fitness Australia also struggled with music fees that increased to an absurd level -- some as much as 3,000 percent.
Once a tax like this is in place, it will never be repealed, and the amounts would only increase.
The music industry has long been aggressively trying to find what amounts to tax revenues. A few years ago, Canadian retailers were required to add a costly levy on the sale of all blank CD-R and DVD discs on the assumption that they were going to be used to "illegally" duplicate music. It didn't matter if you never use it for such purposes, you pay the levy anyway. In a complete reversal of standard precedence of Canadian rights and freedoms, you can't even avoid the fees if you prove that they don't apply.
The proposal called for the collection of fees for publicly played music. The fees are pretty outrageous: $5 per month per person for dance venues, $3 per class for fitness classes, and 5% of gross revenues for fitness studios. If a dance venue can't determine an exact capacity, it would pay an annual fee of $250 and fitness studios would pay $100 if their gross revenues can't be calculated.
What's interesting is that the Copyright board received no written objections. Because this hasn't yet become law, the FICDN has stepped in and is objecting to this proposal in the hopes of averting problems. They are asking dance and fitness studios to get involved in fighting back.
Fitness Australia also struggled with music fees that increased to an absurd level -- some as much as 3,000 percent.
Once a tax like this is in place, it will never be repealed, and the amounts would only increase.
The music industry has long been aggressively trying to find what amounts to tax revenues. A few years ago, Canadian retailers were required to add a costly levy on the sale of all blank CD-R and DVD discs on the assumption that they were going to be used to "illegally" duplicate music. It didn't matter if you never use it for such purposes, you pay the levy anyway. In a complete reversal of standard precedence of Canadian rights and freedoms, you can't even avoid the fees if you prove that they don't apply.
