(Pexels)

Four out of five small Canadian businesses broadcast music illegally: survey

Some were surprised by the level of non-compliance found in the survey

You enter a small store with a cozy atmosphere and are drawn in by the music playing in the background, bringing back memories of days long past.

The only problem is, in four out of five cases — acording to a recent survey — the music is being broadcast illegally, depriving composers, producers, editors and musicians of the royalties they’re entitled to earn.

The Leger poll found that while 77 per cent of small businesses with 10 employees or less played background music, only 11 per cent paid the fees to broadcast publicly. When only those who play music are counted, 12 per cent pay the fee while 81 per cent don’t — in violation of Canadian law.

“Canadian law states that if you use music in a business and if the public, your customers, hear that music, you must obtain authorization, a licence from the rights holders,” said Eric Baptiste, the CEO of Canadian rights management organization SOCAN, which represents songwriters, composers and publishers.

SOCAN and RE:SOUND, which works with singers, musicians and producers, together are responsible for managing rights and collecting and distributing royalties across Canada.

The Leger poll found that non-compliance with the law was overwhelmingly due to ignorance: 82 per cent of the businesses surveyed said they had no idea they had to pay rights for public broadcast.

“We have to educate people who visit businesses, who find themselves in veterinarian and dentists’ offices, and educate entrepreneurs and business owners that there are rights to pay,” said Mathieu Peloquin of Stingray, which sells music rights and commissioned the survey.

While he didn’t go so far as to question the poll, Baptiste said he was surprised by the level of non-compliance found in the survey.

“Our own numbers, our own research found that the proportion of (those who pay) is higher than that because, for example, SOCAN has 100,000 licensed institutions that pay rights directly to songwriters.”

But Peloquin said the Leger survey showed higher levels of non-compliance precisely because it targeted small stores, such as doctors’ or vets’ offices, small restaurants and bars, and independent businesses.

“Of course, the big players make sure to pay the performance fees for the background music they play, but when you look at businesses with between one and 10 employees, that’s where the problem is found,” he said.

Examples of illegal broadcasting include playing the radio in one’s store or even making a playlist of music from the owner’s personal collection of tunes downloaded via iTunes or another platform.

Almost two-thirds of the businesses included in Leger’s survey said they played the radio in their public spaces, perhaps believing the station would have paid whatever’s needed to obtain the broadcast rights.

But in fact, the store owner must also pay the rights. Similarly, even music that has been legally purchased, or streamed on a service such as Spotify, cannot be broadcast without paying an additional fee.

Only one in 10 of the businesses surveyed by Leger said they used a distributor such as SiriusXM or Stingray, which can be legally played because the broadcaster covers the rights.

Ask a person if they’d be willing to pay for something already available for free online or over the air, and most will respond with a no.

Business owners are no exception, according to the survey, which found that 80 per cent of small business owners would not pay for background music, and of the 18 per cent that said they would, the majority (13 per cent) specified that they’d only pay “a small amount.”

“Many say music is important for their activities, for their business prosperity, but they have a certain reluctance to accept the price,” Baptiste said.

That price, Peloquin points out, isn’t very expensive. Prices are set according to a commerce’s square footage and number of clients, meaning that many small businesses would pay $100 or less per year.

The Leger survey was conducted between Jan. 4 and 19, 2019, and questioned 510 small businesses with 10 employees or less across Canada through phone interviews with owners and managers of small stores, restaurants, service or entertainment-based businesses, and veterinary clinics.

The margin of error is about 4.3 per cent, with an accuracy of 95 per cent.

Pierre Saint-Arnaud, The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19 cases identified in Kelowna, after public gatherings

Those who were downtown or at the waterfront from June 25 to July 6 maybe have been exposed to COVID-19.

UPDATE: YouTubers claim to be Kelowna display toilet ‘poopers’

RCMP can not speak to legitimacy of video, will be investigating

Couple shaken up after homophobic encounter at Kelowna mall

‘We’re not in the States; we’re not in some little hick town; we’re in Kelowna, British Columbia, Canada. And it still happens’

Rollover on Highway 97 in West Kelowna

Traffic on Highway 97 is backed up in the southbound lanes

Dog locks out Kelowna couple on 4th floor patio

Kelowna firefighters were called in to rescue the two people

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

VIDEO: Vancouver Island cat missing 18 months reunited with family

Blue the cat found at Victoria museum 17 kilometres from home

VIDEO: Alberta man rescues baby eagle believed to be drowning in East Kootenay lake

Brett Bacon was boating on a lake in Windermere when he spotted the baby eagle struggling in the water

Summerland Blossom Youth Ambassador Program to hold coronation

Event will be held by video as a result of COVID-19 precautions

Vernon shutterbugs capture rainbow

A rain event July 9 made way for a glorious sight

Pooch abandoned at Penticton doggy daycare suffered from oral disease

A fundraiser for Okie held by the BC SPCA surpassed its goal of $1,700

Summerland to allow in-person attendance at July 13 council meetings

Two meetings will be held at Summerland Arena Banquet Room to accommodate public

Fundraiser kicks off for Lake Country families displaced by house fire

A GoFundMe campaign has been launched to raise $5K for those who lost everything in early morning blaze

Rescued hawk returned to Lumby skies

A rehabilitated Swainson’s hawk was returned to its Rawlings Lake habitat

Most Read