‘Equates to an increase of 1,500% for the cost of a PPCA license in a typical fitness centre.’
From the music makers perspective
Australian recording artists and record labels have welcomed today’s decision of the Copyright Tribunal which will see improved rates paid for licensed music when it is used in fitness classes.
From the fitness industries perspective
“The fitness industry said it is extremely disappointed with the Copyright Tribunal decision to substantially increase copyright fees for the use of music in group exercise classes, following the outcome of a fierce battle with the Phonographic Performance Company of Australia (PPCA).
The current PPCA license fee is 96.8 cents per fitness class with a capped annual maximum of $2,654. The Copyright Tribunal has today increased this substantially, to either $15 per class or to $1 per participant, which equates to an increase of 1,500% for the cost of a PPCA license in a typical fitness centre.
During the judgment proceedings, the Tribunal stated that they had rejected the PPCA’s economic evidence on the basis of consumer ‘willingness to pay’ for music in classes when making this decision. “This means that Fitness Australia’s response against the PPCA claim was technically successful”, said Lauretta Stace, Fitness Australia Chief Executive Officer.
However, the Tribunal has turned to ‘other evidence’ and ‘judicial estimation’ to make this determination, which is now the subject of detailed review by Fitness Australia and its legal counsel. “We are astounded that the Tribunal could reject the economic evidence put before it by the PPCA and still award them such a substantial increase to the licence fee”, said Stace.”
