Federal Court overturns rise in copyright fees for music

The fitness industry has welcomed the decision by the Federal Court to overturn the Copyright Tribunal decision to increase copyright fees for the use of music in group exercise classes by 1,500%, on the basis of procedural fairness.

Fitness Australia Chief ExecutiveLauretta Stace, explained âthis decision will ensure that gyms, fitness and recreation centres remain viable and affordable for all Australians, helping them to maintain a healthy lifestyle."

If the Copyright Tribunal decision had been upheld, the claim made by the Phonographic Performance Company of Australia (PPCA), which represents the international record companies, would have resulted in a typical fitness centre with 1,500 members being forced to pay over $80,000 in fees per annum, a massive increase on the $2,000 they currently pay.

Stace added âwe are pleased that common sense has prevailed and that the Federal Court has seen fit to overturn the Copyright Tribunal decision which would, if successful, have had a detrimental affect on group exercise in the fitness industry."

The PPCA case was substantially built on the basis of an economic model that sought to place a value on the use of music in group exercise classes, on which Stace explained that âFitness Australia has always maintained that this economic modeling and valuation study was seriously flawed and that was the basis of our case in response.

"The decision validates the strong response by Fitness Australia against an unfair and unreasonable proposal.

"This issue has unified and strengthened the fitness industry and demonstrates how businesses and professionals can work together to take action to protect the industry from threats which potentially damage its commitment to helping Australians lead fitter and healthier lives. I would like to thank all those in the fitness industry who have made a contribution to our legal defence."

Fitness Australia applied for a judicial review of the decision of the Copyright Tribunal given on 17th May 2010 citing issues of procedural fairness in the Tribunal proceedings.

For more information go to www.operationmusic.org.au/news.html