SOCAN music tariff for circuses and shows

Summary#

The Copyright Board published SOCAN Tariff 11.A (2023–2025) on November 25, 2023. It sets the music-licence fee organisers must pay to use works from SOCAN’s repertoire at circuses, ice shows, fireworks displays, multimedia (sound and light) shows and similar events. The charge is 1.6% of gross ticket sales with a minimum of $78.70 per event. The publication refers to the Copyright Act.

What it does#

• Sets a royalty of 1.6% of gross receipts from ticket sales (sales and amusement taxes excluded) for each event held in 2023–2025.
• Requires a minimum fee of $78.70 per event, even if the percentage would be less.
• Covers performances of works in SOCAN’s repertoire whether played by live performers or by recorded music.
• Gives SOCAN the right to audit an organiser’s books and records, with reasonable notice during normal business hours, to check reported receipts and royalties.
• Imposes interest on late payments at 1% above the Bank Rate published by the Bank of Canada, calculated daily and not compounded.
• States that amounts payable do not include any federal, provincial or other government taxes or levies.

Who's affected#

• Organisers and promoters of ticketed circuses, ice shows, fireworks displays, multimedia (sound and light) shows and similar live events.
• Venue operators and producers who sell tickets for those events.
• Event organisers who use recorded music or hire live performers and therefore need a licence from SOCAN.
• Smaller community or seasonal events may be especially affected because of the $78.70 minimum per event.

Why it matters#

• Event organisers will need to budget for this fee when setting ticket prices. That can raise the cost of putting on shows, and might lead to higher ticket prices for audiences.
• The minimum fee means even small events must pay a base amount.
• The audit and interest terms increase the administrative and financial consequences for organisers who under-report or pay late.
• The tariff clarifies the licence cost for these types of events for 2023–2025, so organisers know the charge to expect.