Federal Court reverses gym music decision
- From: AAP
- December 13, 2010
Gyms have won a reprieve from a ruling that would have forced them to pay musicians more money for playing their songs in fitness classes, with the Federal Court overturning a Copyright Tribunal decision.
The court has set aside the tribunal's ruling made last May, which said gyms had not been paying enough money for the use of original music.
The Phonographic Performance Company of Australia (PPCA), a leading recording industry group, won its bid to replace the previous copyright fee of 94.6 cents per fitness class, after the Copyright Tribunal ruled gyms should pay $15 per class to pay for the use of original music.
Fitness Australia, the industry group representing most fitness centres, applied for a judicial review of the decision.
It argued there was a breach of the rules of "natural justice" in connection with the making of the decision.
On examining the ruling, the Federal Court found the Copyright Tribunal conducted itself in a way which was "procedurally unfair to Fitness Australia", the judgment said.
It overturned the ruling and ordered the PPCA to pay costs.
Fitness Australia welcomed the decision and said the previous ruling would have had a detrimental effect on group exercise in the industry.
"If it had been upheld, the claim made by PPCA would have resulted in a typical fitness centre with 1500 members being forced to pay over $80,000 in fees per annum, a massive increase on the $2,000 they currently pay," Fitness Australia chief executive Lauretta Stace said today.
"This decision will ensure that gyms, fitness and recreation centres remain viable and affordable for all Australians, helping them to maintain a healthy lifestyle."
