Australia's health and fitness sector has been dealt a blow after the Copyright Tribunal decided to increase copyright fees for the use of music in group exercise classes.

The Phonographic Performance Company of Australia (PPCA), the body representing major record labels, applied to the tribunal for a 4,000 per cent increase in fees. Fitness Australia, the national health and fitness sector association, has criticised the move, which could see facilities paying more than AU$23,000 (£13,200, €15,400, US$19,100) a year

Lauretta Stace, chief executive officer at Fitness Australia, said that members clubs are now starting to use music that is not protected by PPCA copyright to avoid the increase. Stace said: "The international record companies, who are represented by the PPCA, have shot themselves in the foot by demanding outrageously high copyright licensing fees from the fitness industry, the majority of which go straight into record company coffers.

"Fitness Australia's evidence clearly demonstrated that a substantial increase to the tariff could not be justified under any circumstances, particularly as the fitness industry has access to high quality alternative music that gym goers are perfectly happy with and that is not part of the PPCA repertoire."