SOCAN Live Music Tariff for Venues

Summary#

The Copyright Board published the decision setting SOCAN Tariff 3.A – Cabarets, Cafes, Clubs, Cocktail Bars, Dining Rooms, Lounges, Restaurants, Roadhouses, Taverns, and Similar Establishments - Live Music (2018‑2024). It fixes the amount that venues must pay SOCAN to host live music for the period 2018–2024: a royalty equal to 3% of what the venue pays performers, with set minimum annual fees for certain years.

What it does#

• Sets a royalty of 3% of the venue’s “compensation for entertainment” when live performers play.
• Defines “compensation for entertainment” as the total amounts paid to musicians, singers and other performers for entertainment that includes live music. It does not include spending on stage props, lighting, set design, costumes, renovations, facility expansion, or furniture and equipment.
• Requires minimum annual fees:
  • $89.76 for the years 2018, 2019, 2022, 2023, and 2024.
  • $44.88 for the years 2020 and 2021.
• Sets payment and reporting timing:
  • Venues must pay an estimated fee and file a report no later than January 31 of the year the tariff applies.
  • By January 31 of the following year, venues must file a report of the actual compensation for the previous year and pay any adjustment.
• Gives SOCAN the right to audit a venue’s books on reasonable notice during normal business hours to check reports and fees.
• States all amounts are before taxes. Late payments carry interest calculated daily at 1% above the Bank of Canada Rate (effective on the last day of the previous month); interest does not compound.

Who's affected#

• Establishments that host live music, such as cabarets, cafes, clubs, cocktail bars, dining rooms, lounges, restaurants, roadhouses, taverns and similar venues.
• Musicians and other live performers, indirectly, because the fee is tied to what they are paid.
• SOCAN (the performing-rights organization collecting the fees) and the Copyright Board (which set the tariff).
• If it’s unclear whether a specific business fits these categories, the tariff language is the guide.

Why it matters#

• Venues that put on live music need to budget for a royalty equal to 3% of performers’ pay, or the stated minimums in certain years. That can increase operating costs for bars and restaurants that host live acts.
• The rules add administrative steps: annual estimates, year‑end reports, and possible audits.
• The tariff covers a multi-year period (2018–2024), so it affects past and future accounting for the years listed.