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PPCA Advance Artists Cause in Music Licensing Battle

PPCA Advance Artists Cause in Music Licensing Battle
May 26, 2008

The Phonographic Performance Company of Australia (PPCA) has hit back on fitness industry claims about proposed rises in fees for copyright protected music played in fitness centres.

PPCA have explained that it is proposing a new rate of $4.54 per member per month for recorded music played in fitness centres, and stated that claims that fees would be increased to higher levels are incorrect.

PPCA back their claims by stating âprofit-driven fitness centres are being asked to pay more for recorded music played in fitness classes to give artists and labels a fairer deal, highlighting that "Australia's $1 billion dollar a year fitness industry currently pays a recorded music tariff of just 96.8 cents per class."

PPCA states that its proposal for a new licence scheme for fitness centres to the independent Copyright Tribunal "will reflect the contribution that music delivers to the profitability of fitness centres and is based on a comprehensive economic study which concluded music that is vital to fitness classes is currently grossly undervalued."

PPCA adds that it "believes the fitness industry can absorb, rather than pass on to members, an increase of this level in the cost of recorded music", Chief Executive Stephen Peach saying "there is overwhelming evidence that music in fitness classes provides crucial motivation, improves people's workouts, creates structure for classes and adds atmosphere.

"All of this means that music plays a key part in attracting regular fee paying members to fitness centres and adds significantly to their bottom line. We are simply seeking a fair return for labels and artists who create the music. That return should be in line with the value that music delivers to this booming sector."

The new rate will be determined after a full and open hearing of evidence from all parties conducted by the Copyright Tribunal which is headed by a Federal Court judge. It is expected the hearing will be concluded later this year and that a decision will follow some time in 2009.


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