In Canada, there are two main performing rights organizations (PROs) that have the authority to collect tariffs on behalf of the people who hold a copyright to the music played. Music that is no longer subject to any copyright restraints due to copyright expiring is considered to be in the public domain, so you can play it freely. If you do not follow these rules, you could leave your business open to legal action, and that could be catastrophic to your life as a business owner. Gym music licensing in Canada. Licensees have to purchase their own music, such as CDs, digital downloads, Internet-based radio, or TV. Legally Playing Music At Your Business. This is a model that is followed all over the world, with different companies administering rights per the laws of that country. Before you register. But your Soundtrack subscription includes the licenses needed to play music in your business. We give a thumbs-up to the songs we love, and we skip those we don't. As the U.S. Supreme Court reminded us in the recent Aereo case, just because it's free to watch a TV broadcast, that doesn't mean you can make money by letting others watch it.. How to Legally Play Music at Your Business. The simple answer is that to play music legally in your bar, restaurant, gift shop, etc., each song you play must be licensed. If you would like to do something innovative with music, such as contracting with a live band to play music in your store for a special event, you might be subject to other tariffs, according to SOCAN. Filling your shop with music can make the shopping experience so much better for your customers. In a piece published in Electric City, authors suggest that SOCAN has a similar model, but SOCAN does announce visits in advance, to spur companies to comply. There are a few other options you can consider, although they both come with a few risks. The next step is figuring out which licensing option is right for you. No Credit Card Required. Canada's Fee System. In order to have true protection, you will need a relationship with both companies. Tariff 15A is an annual blanket license that allows you to play background music for the public in your establishment. Can I play more than one stream at the same time in my business? ; They let you play more than 300 music channels, guaranteed to fit any type of business. If you choose to play radio in your shop through a traditional radio receiver (not the internet), you could avoid paying fees. You need multiple zones to play music at different addresses or to play different playlists in a single location at the same time. Who do I pay to play? You can use an app like this to help you create the perfect soundtrack for your store that reflects your brand, pleases your customers, and increases your profits. You will not get access to music with this tariff (you'll still need to buy the music you want to play), but you will be paying the fees that go back to support the people who created the sounds that fill your shop. If you play music in a business that does any of the following, you should contact the local collecting societies for a public performance license: Conducts physical activity to music, such as a dance studio or fitness class. Since most shops are open to the public (that's how one gets business, after all), it is nearly impossible to prevent an inspection. As points out, these two companies serve Connect Music Licensing different copyright stakeholders. Each business address needs at least one zone—where the music will play. If they walk into your shop and notice that you are playing protected music, and they look at their notes and see you have no license, you are in violation. Track stats and store submissions. Other creative tasks like finding new places of use for your work and franchising can be potential opportunities for your business to explore. Small business waiting rooms and dining areas may be a perfect place for a TV, but even free over-the-air broadcasts may legally cost you. Those two companies are SOCANand Re:Sound. See our Customer Agreement for Business Establishment Services for complete terms. Obviously, the paid options give you more control when it comes to fitting the music to your brand. Registering your business with the government. However, keep in mind that the performance of music … This is especially true for those in the hospitality industry. Contact us to find out more. Cloud Cover Music is a trademark of Cloud Cover Media, Inc., Terms, conditions, features, availability, pricing, fees, services and support options subject to change without notice. That means you will need to follow a few extra, but crucial, steps to ensure that your business is in compliance. Most of the license fees are based on how the music is played and the square footage of the area where the music can be heard. In the end, it is up to the court to determine what fee is just for the violation you commit. In other words, copyright expires on December 31st of the 50th year after the artist dies. Music plays an important role in setting the mood for many small businesses. SOCAN, CML, RESOUND, CSI, SOPROQ and other licenses may all be required if you want to play background music in your business. If you receive an invoice from Re:Sound or SOCAN it’s important to double-check the information they have to ensure you are paying the correct fee. When you sample a song, you are using portions of prior recordings to create a new piece of music. One-click web hosting. Contracts: What's Hidden in the Fine Print? Copyright lasts for the lifetime of the artist, the remainder of the calendar year in which they die, and for a further 50 years. They don't even communicate with one another. But making sure that your business is fully licensed to play music is not something business owners always have at the top of their minds. © 2021 Canadian Federation of Independent Business. Playing music at your business requires a different set of licenses than music for personal enjoyment. What should your customers hear when they walk into your shop? Thankfully, there are legal options out there for playing music at your business, both free and paid. Fines & Lawsuits for Streaming Without a License. So, should you play music in your establishment? You can obtain licenses by going to ASCAP, BMI, SESAC and GMR directly at these links. No one wants to go to court and get slapped with a fine for damages. We're here to help your business navigate the novel coronavirus crisis. Every year, more Canadians buy and enjoy music online and on mobile devices. Repeat this with all of the PROs and you should have pretty much blanket coverage for playing music in your business. Most modern consumers are accustomed to controlling music through apps. Easy File Storage Read more about it here. Infringement of Copyright and Moral Rights and Exceptions to Infringement (Continued). There are two licensing bodies SOCAN and Re:Sound and as a business owner, you have to pay both to play music legally at your gym.You can use the calculator on the SOCAN website to calculate the licensing costs with information for all types. However, keep in mind that the performance of music can be subject to the payment of license fees. There are fees for violation built right into Canadian copyright law, but they can be complex and hard to understand. Topics in this Article: Running Your BusinessProtecting Your Business. Music that falls within the public domain is no longer protected by any kind of copyright law, and that music can be used by anyone without paying any kind of fee. However, you would still need to be careful about where you stream music from as many services, such as Spotify, are solely for non-commercial use. But the wrong music can actually have negative effects in the same order of magnitude. That means you won't have much wiggle room. When you, as the business owner, acquire a license for a certain PRO, you can legally play the music from only that PRO's catalog in your business. Unfortunately, a relationship with one entity will not protect you from violating the rights of the other entity. All these organizations are active in visiting stores, bars, hotels, spas and restaurants and if they discover you have been playing music without paying for the appropriate licenses, you may be slammed with heavy fines. You will not get access to music with this tariff (you'll still need to buy the music you want to play), but you will be paying the fees that go back to … When the fees are in the process of being set, however, you may have an opportunity to make your voice heard. It is important to note that these companies collect fees in accordance with the law, not their own opinions. Try for Free. According to the National Federation of Independent Business, clear radio exceptions only apply to businesses that are smaller than 2,000 square feet (or 3,750 square feet for eating or drinking establishments). That leaves you at the mercy of the court. 2. The more we use these apps, the more we become like disc jockeys for our own lives. But the music you play here is considered a public performance if that music originates from a record, tape, CD, or standard streaming service . Plays music from another source other than your Soundtrack product such as a DJ, karaoke, or live music. But those same tunes could bring your shop to the attention of an entirely different audience. There are exceptions involving radio, according to the Retail Council of Canada. Some unscrupulous B2B service providers use tricks to avoid paying rights holders and music creators. It's easy to add more zones when logged in to your Soundtrack account. Public performance of music for most businesses consists of background music that is playing over speakers in the workplace, hold music on a telephone system, and music in elevators. You have two main options: Pay the PROs directly. Those fees, according to SOCAN, are certified by Canadian officials. Re:Sound represents the people who play on recorded music as well as the record companies that produce the recordings you play. This is something distinctly different than setting the mood in a business though. But if you are only interested in background music, 15A is the major tariff you must adhere to. Legal music, comprehensive library and affordable solutions for small to enterprise businesses. They provide their service in all countries around the world. It seems like having music in the background of your business is essential, especially a customer focused business like a coffee shop or clothing store. An experienced IP lawyer can help you understand the legal aspects of managing your music company better. Even if you have a Spotify premium account, have legally purchased music through Amazon or Google Play, or you play a CD with songs from your own collection—playing them in your place of business is illegal.¹ If you use music in any way to support your business, you need a SOCAN licence. Unless you have a business-specific plan, songs on streaming platforms are generally licensed for single use. Choices to license music. A cozy home for your websites. ; They have an easy-to-use dashboard to control all your locations and schedule your sound. The ambience created by music is part of attracting people to your business – so it’s worth it for most businesses to bite the bullet and pay fees. As a small business owner, you would probably like them to hear the sounds of excited chatter and cash registers completing sales. But if you follow this route, you will have no control over: Imagine that you're playing a radio program in your store and a commercial for your competitor comes over the loudspeaker. So, if you're planning to push Michael Bublé singing classics through your loudspeakers, you could run into trouble. Drive sales with overhead audio promotions. and of the fee you have to pay them, you also need to make sure that you use a music service which is also licensed for commercial use. Regardless of your registration to the PRS-PPL, GEMA, SACEM, KONA, BUMRA, STIM, etc. If you plan to use music in your store, the most important tariff for you to understand is Tariff 15A. The fees that the companies expect are those you will be asked to pay. Simple control of all your business locations. It’s easy to add more zones when logged in to your Soundtrack account. As a small business owner, you could look for information, their notes and see you have no license, you are in violation, Canadian Musical Reproduction Rights Agency, SOCAN Background Music Licensing: What You Need to Know, SOCAN, Re:Sound and CONNECT: Different Rights and Different Collectives, Music Played at Public Events to be Subject to New Copyright Fees. In other words: You need a license from the … All Rights Reserved. If your building is this size, you can play radio without a license as long as you don't charge admission of any kind. Customers are more attracted to your business if music is playing in the background than if they are greeted by silence. But you may not want to form relationships with two big companies in order to play music in your shop. We use cookies to improve functions and performance for an optimal site experience. They have the same amount of power, but they serve different audiences. According to Small Business BC, this tariff provides you with a blanket license to play background music throughout your business. Both of these companies follow the tariff-setting procedure outlined above, and both are empowered by Canadian authorities to collect tariffs and distribute them to the people who hold copyright. Create a blog about your business, your bowling league, or for your church meet-ups. There are several companies, including ours, that offer this same technology to small businesses. If you partner with a reputable company like ours, your tariff issue will be covered. Music Canada has developed a guide for businesses seeking to start a digital music service in Canada containing information on market opportunities, Canadian consumer preferences, music licensing, and more. There may be other licensing agencies involved; check out the Connect Music Licensing website for more information, and to ensure you are covering all necessary payments. Introducing Zones. To legally play music in your business you must pay a fee to ASCAP, BMI, SESAC and or Global Music Rights. Most music professionals understand these laws very well, and they work hard to support the companies that provide them with the fees that support the work they do. Really perfect for anyone! Under the Copyright Act, businesses with small footprints (stores under 2,000 square feet, restaurants or bars under 3,750 square feet—excluding parking lots) are allowed to play music from traditional radio broadcasts without a license provided that customers are not charged for the service. To cancel you must contact your Reseller. No Contracts. If you want to use someone else’s music in a film, video, presentation or other public context, you need to buy music rights to do so, if the music isn’t currently in the public domain. In an article published in The Globe and Mail, reporters suggest that Re:Sound has inspectors on the payroll, and their job is to conduct outreach and explain the law. But consumers might like to hear something completely different. Book an appointment with our law firm today to effectively start your own music company. Web Form Hosting. In many cases, you may be faced with paying a licensing fee to comply when playing music; however, there are some exemptions: If the music comes from TV, radio or cable/satellite and you are not charging to hear the music, then no licensing is required. You could speak up for other businesses like yours and ensure that the fees aren't unreasonable. They are not involved with composition as much as execution. 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