SOCAN background music tariff (2012–2019)

Summary#

This item from the Copyright Board publishes the tariff called SOCAN Tariff 15.A – Background Music Performed in an Establishment (2012-2019). It sets the royalty rates and rules that apply to recorded background music played in covered places for the years 2012–2019.

What it does#

• Sets an annual royalty of $1.23 per square metre (or 11.46¢ per square foot) for playing recorded music in an establishment not covered by Tariff 16.
• Requires payment by January 31 of each tariff year.
• Allows a prorated charge if no music was played in January of the first year: fees are prorated by month and must be paid within 30 days of when music was first played.
• Says seasonal establishments that operate less than six months a year pay half the rate.
• Imposes a minimum annual charge of $94.51.
• Requires the payer to send a report showing the area of the establishment with the payment.
• Exempts music performed as part of events such as receptions, conventions, assemblies and fashion shows.
• Reiterates that no royalties are collectable for public performances made by a standard radio receiving set in most non-theatre places (a radio exemption under the Copyright Act).
• Gives SOCAN the right to audit an establishment’s books and records on reasonable notice during business hours to verify payments.
• States all amounts are exclusive of taxes and that late payments incur interest calculated daily at 1% above the Bank Rate (as published by the Bank of Canada); interest does not compound.

Who's affected#

• Businesses and other places that play recorded background music in their public space for customers or the public — for example, shops, cafés, restaurants, bars, gyms, and similar establishments — that are not already covered by Tariff 16.
• The tariff applies to activities that happened in the years 2012–2019, so operators with music during those years could be affected now.
• The notice also affects owners or users of radio receiving sets in public places, because the item restates the existing radio exemption rule.

Why it matters#

• This sets the specific amounts and rules for royalties that could be owed for background music played between 2012 and 2019. That can mean retroactive bills, reporting requirements, and possible audits for affected businesses.
• The minimum fee, seasonal half-rate, and prorating rules affect small and seasonal businesses differently than larger year-round venues.
• Late payments can attract daily interest, so businesses that owe money for those years may see added costs if payments are overdue.