SOCAN tariff for adult entertainment clubs

Summary#

This Canada Gazette notice publishes SOCAN Tariff 3.C – Adult Entertainment Clubs (2026-2028). It sets the music‑licence fee that adult entertainment clubs must pay to play recorded music during the years 2026 to 2028. The notice was published on October 11, 2025.

What it does#

• Sets the royalty fee for recorded music played in adult entertainment clubs at 6.71¢ per day multiplied by the club’s authorized capacity (seating plus standing).
• Defines a "day" as the period from 6:00 a.m. to 6:00 a.m. the next day during which the club operates.
• Requires clubs to file an estimated report and pay an estimated royalty no later than January 31 of each year.
• Requires a final report of actual days operated and authorized capacity, and an adjustment of royalties, no later than January 31 of the following year.
• States that amounts are exclusive of any taxes.
• Charges interest on late payments at a rate equal to 1% above the Bank Rate (as published by the Bank of Canada), calculated daily and not compounded.
• Gives SOCAN the right to audit a club’s books and records on reasonable notice.
• Sets confidentiality rules for information received, but allows sharing with service providers, Re:Sound, the Copyright Board, for royalty distribution, legal reasons, or under a confidentiality order.

Who's affected#

• Owners and operators of adult entertainment clubs in Canada that play recorded music.
• Establishments whose capacity is set by a liquor licence or another document from a competent authority (that capacity is used to calculate fees).
• SOCAN (the music licensing organization) as the collector of these royalties.
• Re:Sound and other named parties may be involved when collecting or enforcing the tariff.

Why it matters#

• Clubs that play recorded music will have a predictable per‑day licensing cost tied to their authorized capacity.
• The rule creates yearly reporting and payment obligations that clubs must meet by January 31 deadlines.
• Failure to file or pay can trigger interest charges and possible audits.
• The fee changes affect operating costs for these clubs and may influence decisions about music use, pricing, or bookkeeping.