SOCAN Tariff 1.B: Non-Commercial Radio Royalties

Summary#

This item publishes SOCAN Tariff 1.B – Radio – Non-Commercial Radio other than the Canadian Broadcasting Corporation (2018-2021). It sets a royalty rule that non-commercial AM, FM and Internet-only radio stations (except the Canadian Broadcasting Corporation) must pay 1.9% of their gross operating costs for the years 2018, 2019, 2020 and 2021. The notice appeared in the Canada Gazette on August 8, 2020.

What it does#

• Sets the fee for a licence to play SOCAN‑repertoire music over the air or on the Internet at 1.9% of a station’s gross operating costs for each year 2018–2021.
• Defines “non-commercial” stations to include any station that is non‑profit or not‑for‑profit, even if it gets some advertising money.
• Clarifies that “gross operating costs” include a station’s gross Internet operating costs.
• Requires an estimated payment and filing no later than January 31 of the licence year, with a report of the station’s actual gross operating costs for the previous year.
• Allows adjustment of the fee after the station reports its actual costs for the licence year.
• Gives Society of Composers, Authors and Music Publishers of Canada (SOCAN) the right to audit a licensee’s books on reasonable notice and during normal business hours to verify fees.
• Charges interest on late payments at a rate equal to 1% above the Bank Rate (calculated daily, non‑compounding).
• Gives SOCAN the right to terminate a licence for breach with 30 days’ written notice.

Who's affected#

• Non‑commercial AM, FM and Internet‑only radio stations in Canada, other than stations of the Canadian Broadcasting Corporation.
• This includes stations that are run as non‑profit or not‑for‑profit operations. The notice does not clearly list specific types (for example, campus or community radio), but those are the kinds of stations typically non‑commercial.

Why it matters#

• It creates a predictable, percentage‑based royalty cost tied to a station’s budget. That directly affects small community and campus broadcasters’ finances.
• Stations will need to plan for the 1.9% charge, make estimated payments by January 31, and keep records that could be audited.
• Late payments can add interest, increasing costs. For stations with tight budgets, this could influence programming, fundraising, or staffing decisions.
• It ensures creators and rights holders represented by SOCAN are paid when music is broadcast or streamed by non‑commercial radio.