RESTAURANTS CANADA FIGHTS INCREASED MUSIC ROYALTY COSTS

Published November 11, 2014

(Nov. 11/14) Restaurants Canada opposes a Re:Sound proposal that would significantly increase what members pay to play background music in restaurants.

Re:Sound states it is not seeking a rate increase for Tariff No. 3.B., which is the cost of royalties for background music. However, it wants an inflation adjustment and “minor administrative changes” that would hike costs for members.

Proposed changes include a minimum fee and an expanded definition of “establishment.” The new definition includes employees as members of the public, which would extend the tariff beyond the public dining space to back-of-house areas.

Restaurants Canada opposes this definition change, as well as other aspects of the proposal that would negatively impact our members. We are taking the lead to complete satisfactory negotiations by Dec. 10, with the co-operation of the Hotel Association of Canada and Retail Council of Canada.

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