Proposed music royalty increases have businesses threatening to turn it off

The Canadian Press ~ The News
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TORONTO - Canadian restaurants, bars and clubs say they may have to turn down the music if a proposed royalty increase becomes a reality.
The Neighbouring Rights Collective of Canada wants to increase its royalty fee for background music by more than 3.5 times over the current rate to properly compensate performers and engineers.
It also has a proposal before the Copyright Board of Canada that would change how venues pay for music that customers dance to.
But the Canadian Restaurant and Foodservices Association says the proposals would force many business owners to reconsider whether playing music is worth the cost.
In particular, the association is highlighting the implications of higher fees for venues where people dance.
It says many of its members would face a $6,000 annual increase and some venues could face a $30,000 bill.
Businesses pay similar fees to the Society of Composers Authors and Music Publishers of Canada, which generate about $1.4 million in royalties every year for background music.

Organizations: Neighbouring Rights Collective, Copyright Board of Canada, Canadian Restaurant and Foodservices Association Society of Composers Authors

Geographic location: Canada, TORONTO

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