No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveBusinesses Begin to Face The Music, and Pay for It

Businesses Begin to Face The Music, and Pay for It

According to Costa Rican copyright law, if a person or business obtains commercial benefit from the communication, performance or playing of recorded or live music, a corresponding fee must be paid.

Businesses that offer music, such as hotels, restaurants, bars and clubs, therefore have begun to pay a fee for their use of music to FONOTICA, the Costa Rican recording industry trade association.

The Costa Rican National Tourism Chamber (CANATUR) conducted a study that analyzed the fees that FONOTICA charges for use of copyrighted music. The fees are based on minimum wage, which is around $11 per day, and capacity of each location.

CANATUR, which has 213 members that offer lodging, found that if all of the businesses in the hospitality sector incurred this fee, they would pay a total of approximately ¢14.145 million ($24,590) per month. Alhough this fee is divided among individual hotels and businesses, the additional cost could cause particular worry for smaller businesses, which already are pinched financially with decreased tourism revenues reported this year.

“Calculating these numbers helps us to understand that smaller businesses will be the most affected,” said Gonzalo Vargas, president of CANATUR. “The added cost will make it increasingly difficult for them to operate, particularly because in the first quarter of this year there was a 12 percent decrease in tourists as compared to last year.”

When CANATUR included other tourism businesses, such as bars, restaurants, clubs, airlines, tour operators, transportation and other recreational organizations, CANATUR estimated that its affiliates would pay a total of ¢17.993 million ($31,281) per month for commercial use of music.

The fee is calculated using a formula based on capacity and minimum wage. For example, if a club has a capacity of fewer than 200 people, it pays a fee of five minimum wages per month. The rate of the fee increases according to capacity.

–Adam Williams

 

Trending Now

Panama Takes Custody of Flight 901 Bombing Attack Suspect

Panama took custody Monday of the main suspect in the 1994 bombing of Alas Chiricanas Flight 901, the deadliest terrorist attack in the country’s...

Air Transat to Start Direct Quebec City Flights to Costa Rica

Air Transat will add a new nonstop route between Quebec City and Costa Rica starting December 15, giving travelers a direct link from Jean...

Costa Rica Authorities Train to Better Handle Rescued and Seized Wildlife

Humane World for Animals Costa Rica has partnered with Costa Rica's National Environmental Security Commission to deliver a series of training workshops for government...

Costa Rica Suspends Tree Cutting and Construction Permits in Papagayo

Costa Rica's Constitutional Chamber has ordered the suspension of tree-felling permits, construction authorizations, and density modifications tied to a hotel development in the Papagayo...

Seba’s in Uvita Named One of Latin America’s Top 15 Pizzerias

Seba's, a small pizzeria in the South Pacific coastal town of Uvita, has catapulted into the top 15 of the 50 Top Pizza Latin...

Costa Rica Takes in Second Group of Deportees from the United States

Costa Rica received its second group of deportees from the United States on Friday confirming that a controversial third-country removal program is now operating...
Avatar

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel