SOCAN Tariff for Game Sites (2007–2019)

Summary#

This notice from the Copyright Board sets the fees that must be paid to SOCAN for music used on game sites and game-streaming services for the years 2007 to 2019. It gives a formula for how royalties are calculated, sets minimums and reporting deadlines, and allows SOCAN to ask for usage details and to audit services.

What it does#

• Defines the scope: applies to services that stream or make music available on platforms used to play games, including web games, game-streaming platforms, virtual worlds, mobile and console apps, and gambling sites. It also specifically covers making works available on demand from November 7, 2012 onward.
• Sets the royalty formula. Royalties = A × B × [1 − (C × D)], where:
  • A = 0.8% of the service’s Internet-related revenues.
  • B = ratio of audio page impressions to all page impressions, or 1 if that ratio is not provided.
  • C = 0.95 for a Canadian service and 1 for non‑Canadian services.
  • D = ratio of non‑Canadian page impressions if provided; otherwise 0 for Canadian services and 0.9 for others.
• Requires a minimum fee of $15 per year.
• Payment and reporting:
  • Yearly calculations and payments unless yearly royalties exceed $350, in which case payments must be made quarterly.
  • Payments and reports are due 30 days after the end of the year (or quarter, if quarterly).
• Data and audits:
  • On request, a service must give SOCAN details about each musical work played on up to 14 days in a year, provided in electronic form if possible and within 14 days after the end of the month to which the data relate.
  • SOCAN may audit a service’s records on reasonable notice.
• Late payments incur interest at 1% above the Bank of Canada rate effective at the end of the previous month. Amounts are exclusive of taxes.

Who's affected#

• Operators of sites and platforms where people play games online, including:
  • Web-based game websites.
  • Game-streaming platforms, virtual worlds, and metaverse services.
  • Developers and publishers of game apps for mobile, TV, set-top boxes, and consoles that stream game content.
  • Game publishers who authorize others to host or distribute game content that includes music.
• Rights-holders in SOCAN’s repertoire (songwriters, composers, publishers) — they are the intended recipients of the royalties.
• It is unclear from the notice whether small hobby sites or certain niche services are expressly excluded; the tariff’s definitions determine who must pay.

Why it matters#

• Companies that run game sites or game-streaming services may owe royalties for music used between 2007 and 2019, which can affect their costs and record-keeping.
• The formula ties payments to a mix of revenue and how often audio is actually played, so sites with more music use or higher Internet-related revenues will pay more.
• There is a modest safety net for very small services (minimum $15 per year), but services that generate higher royalties face more frequent payments and reporting.
• The rules give SOCAN a way to check detailed play data and to audit records, which increases the compliance burden on service operators.