SOCAN Tariff for Audio-Only Websites

Summary#

This item from the Copyright Board, published October 28, 2023, sets the royalty rules called SOCAN Tariff 22.C – Other Audio Websites (2007–2018). It explains how much online, audio‑only sites owe for using music in SOCAN’s repertoire for the years 2007 to 2018, and it sets reporting, record‑keeping and interest rules for those amounts.

What it does#

• Defines key terms for how the tariff works (for example: what counts as a “site”, a “file”, an “audio page impression”, and what information must be provided for each musical work).
• Sets a formula for monthly royalties on Internet‑related revenues: royalties = A × B × [1 – (C × D)], where:
  • A is based on how much of the site’s transmission time uses SOCAN works: 1.5%, 4.2% or 5.3% of Internet‑related revenues depending on whether SOCAN repertoire use is up to 20%, between 20% and 80%, or 80% or more.
  • B is the ratio of audio page impressions to all page impressions, or 0.5 if that ratio isn’t available.
  • C is 0.95 for a Canadian site and 1 for other sites.
  • D is the ratio of non‑Canadian page impressions to all page impressions, or default values of 0 for Canadian sites and 0.9 for other sites when that ratio isn’t available.
• Sets minimum annual fees: $33.48, $94.45, or $119.56 per year depending on the SOCAN repertoire use band.
• Requires site operators to provide identification details within 20 days of starting to offer music under this tariff.
• Requires monthly reporting (within 20 days after each month) of Internet revenues, play counts for each file, the audio‑to‑page impression ratio, non‑Canadian page impression ratio, and detailed metadata for each file when available.
• Requires monthly payment of royalties no later than 20 days after the end of each month.
• Requires site operators to keep records for 6 years and allows SOCAN to audit those records; if royalties were understated by more than 10%, the operator may have to pay the audit costs.
• Sets confidentiality rules for the information exchanged, and limits on sharing.
• Requires interest on late payments calculated daily at a rate equal to 1% above the Bank of Canada Rate (interest does not compound).
• Gives a transitional rule: amounts owed under the tariff for the period 2007–2018 are due January 28, 2024, and must be increased using the tariff’s published interest factors for each year.

Who's affected#

• SOCAN (the copyright collective whose repertoire the tariff covers) and the Copyright Board are central to administering and enforcing the tariff.
• Websites and services that are “ordinarily accessed to listen to audio‑only content” — for example internet radio, web‑only audio streaming services and some audio sites — if they use music in SOCAN’s repertoire and are not already covered by another SOCAN tariff.
• Authorized distributors, royalty claimants (songwriters, publishers, performers) and any service operators that have the required data or must supply it.
• It is unclear from the notice which specific platforms (especially modern streaming/podcast platforms) are excluded because they may be covered by other SOCAN tariffs; operators need to check whether another SOCAN tariff already applies to them.

Why it matters#

• The tariff gives a clear, numeric way to calculate what audio‑only web services owe for music from SOCAN’s repertoire, including thresholds and minimums. That can affect a site’s costs and accounting.
• Monthly reporting and detailed metadata requirements mean operators must collect and keep more detailed play and file information. That can be a technical and administrative burden.
• The tariff applies retrospectively to 2007–2018, and the notice requires any amounts owed for that period to be paid by January 28, 2024 with interest. That can create immediate, potentially substantial payments for sites that have not been paying under this tariff.
• For creators and rights holders, the tariff clarifies how royalties will be calculated and what data is needed to distribute them. For listeners or customers, higher operating costs for services could influence subscription or ad rates.