Re:Sound Commercial Radio Tariff (2009–2025)

Summary#

This notice from the Copyright Board publishes the Re:Sound Commercial Radio Tariff (2009-2025). It sets monthly royalty rates and reporting rules for commercial radio stations in Canada that play recorded music and that simulcast their broadcasts online, covering years up to 2025.

What it does#

• Sets who pays and for what: commercial radio stations must pay royalties to Re:Sound for over‑the‑air broadcasts of published sound recordings and for simulcasts (online streams that are materially identical to the over‑the‑air signal).
• Defines a “low‑use” station as one that broadcasts published recordings for less than 20% of its total broadcast time during a reference month and that keeps recordings of its last 90 days.
• Special flat minimum: stations pay $100 on the first $1.25 million of annual advertising revenue (special rule under the tariff).
• Royalty rates for over‑the‑air broadcasts:
  • Low‑use stations: 0.75% for January 1, 2015 to June 30, 2020, and 1.2% for July 1, 2020 to December 31, 2025 (applied to gross income for the reference month).
  • Other stations: for January 1, 2015 to June 30, 2020 — 1.44% on the first $1.25 million of gross income in a year, and 2.1% on the rest; for July 1, 2020 to December 31, 2025 — 2.7% on the first $1.25 million, and 3.7% on the rest.
• Royalty rates for simulcasts follow the same percentage structure, but the earlier period for some simulcast rates begins in 2009 and shifts on August 13, 2014 (low‑use simulcast rates: 0.75% to 1.2%; others follow the two‑tier structure above).
• Reporting and payment rules:
  • Stations must pay royalties no later than the first day of each month and report gross income and simulcasting income for the “reference month” (the month two months earlier).
  • Stations must provide full daily, sequential music‑use lists within 14 days after the month ends.
  • Stations must keep short‑term records for six months and longer financial records for six years.
• Audits and corrections:
  • Re:Sound may audit records during the retention periods.
  • If an audit finds royalties understated by more than 10%, the station must pay the audit costs and the shortfall within 30 days.
  • Late payments incur interest calculated daily at a rate equal to 1% above the Bank Rate (published by the Bank of Canada); interest does not compound.
• Transitional rules:
  • Amounts owing because of the tariff’s rate increases must be paid no later than August 31, 2025.
  • If historic simulcast records are missing, the tariff prescribes a sliding scale (for example, 2017–2025: 100% of the most recent year; 2016: 75%; down to 2009: 10%) to estimate past simulcast income for royalty calculations.

Who's affected#

• Mainly commercial radio stations in Canada that broadcast published recorded music and that simulcast those broadcasts online.
• Re:Sound and the rights holders it represents will receive the royalties.
• Smaller “low‑use” stations may pay lower percentage rates but must keep and provide detailed logs.
• The tariff does not apply to pay audio services, satellite radio, or webcasts that are non‑interactive or semi‑interactive; those services are excluded by the tariff’s terms.

Why it matters#

• Stations will have predictable royalty rates and clear reporting rules through 2025, which affects their operating costs and record‑keeping work.
• The increases after 2020 mean higher royalty bills for many stations; stations may need to adjust budgets or ad pricing.
• The requirement for daily, detailed music logs and multi‑year records increases administrative work and the risk of audits and back payments.
• Listeners aren’t directly charged by the tariff, but changes in station costs can influence programming choices, station stability, or advertising rates.