We often receive calls from gym owners or managers, at least once a week, inquiring whether they can utilize commercial streaming solutions like ours in their gyms and if it will fulfill their licensing obligations. This concern often arises when they receive invoices from SOCAN, Re:Sound (now together known as Entandem), demanding payment for music usage in their fitness rooms. So the answer unfortunately to their question is no and maybe yes, as playing music in a gym is subject to special rules. It is important to understand that when music is played in a fitness room, it is considered a separate tariff category.
According to the Copyright Board of Canada, when people are actively engaging with music while working out in a gym, the nature of music usage shifts from being classified as background music (Tariff 3.b) to a different category known as Tariff 19.
Tariff 19 specifically applies to situations where music is actively used to accompany or facilitate activities such as exercising, bodybuilding or dancing. The Copyright Board of Canada recognizes that in these instances, music plays a more integral role in creating an interactive and immersive experience for individuals participating in fitness activities.
As a result, gym owners need to understand the distinction between Tariff 3.b (background music) and Tariff 19 (music for active use during workouts).
To adhere to Tariff 19, gym owners need to obtain the necessary licenses specific to music usage during active fitness sessions. SOCAN and Re:Sound (Entandem) issue separate Performance Rights invoices for gym music usage for this distinct tariff (19) associated with them. This tariff takes into account factors such as the annual average number of participants in each activity room over a full calendar year divided by the number of weeks in operation. The annual fee is $2.14 times the average number of participants per week per room with a $64 minimum.
Example: A gym has 3 rooms in which exercise classes are held. Room 1 has an average of 200 users/week, Room 2 has an average of 150 users/week, and room 3 has an average of 70 users/week. Fee for Room 1 ($428 min fee) + Room 2 ($321) + Room 3 ($149.80) = $898.80 + taxes.
Gyms can still use a commercial streaming service like Soundtrack Your Brand but must pay this Tariff 19 separately. The commercial streaming service will cover your copyright obligations and the music license for areas like bathrooms, locker rooms, lobbies and waiting areas.
In conclusion, understanding the intricacies of background music licensing in gyms is crucial for gym owners and managers to avoid potential legal issues. While commercial streaming solutions may be utilized for certain areas within the gym, playing music during active fitness sessions falls under a separate tariff category known as Tariff 19. To comply with Tariff 19, gym owners must obtain specific licenses directly from organizations such as SOCAN and Re:Sound (now Entandem) and pay directly. By understanding and fulfilling their licensing obligations, gym owners can ensure a legally compliant and enjoyable music experience for their patrons while engaging in fitness activities.
