SOCAN Tariff 16 — Background Music Suppliers

Summary#

This notice publishes SOCAN Tariff 16 – Background Music Suppliers (2012–2019). It sets the royalties, reporting rules and related terms that background-music suppliers must follow for the years 2012–2019, and was issued by the Copyright Board under the Copyright Act.

What it does#

• Defines the scope: applies to suppliers who communicate music in SOCAN’s repertoire as background music or who authorize subscribers to perform such works for the public during 2012–2019.
• Lists exclusions: does not cover music performed at receptions, conventions, fashion shows, exercise or dance instruction, pay audio services, or transmissions that create a durable copy (downloads).
• Sets royalty rates:
  • Communicating works by telecommunication: 2.25% of subscriber revenues, with a minimum of $1.50 per relevant premises.
  • Authorizing a subscriber to perform in public: 7.5% of subscriber revenues, with a minimum of $5 per relevant premises.
  • If a subscriber already complies with SOCAN Tariff 15, the supplier’s obligation for the authorization royalty is reduced to the extent covered by Tariff 15.
  • Small cable transmission systems pay royalties at half the rates above.
• Payment and reporting:
  • Suppliers must pay and report within 60 days after each quarter.
  • Suppliers who transmit must provide sequential lists of all musical works played on the last 7 days of each month in the quarter, with detailed metadata (title, author/composer, performer, running time, album title, label, UPC, ISRC, date/time).
  • Suppliers who authorize public performance must provide the name and address of each subscriber premises.
  • Small cable systems are exempt from some reporting requirements.
• Records and audits: SOCAN may audit supplier books and records on reasonable notice to check royalty statements.
• Taxes and late payments: amounts exclude taxes; late payments accrue interest daily at 1% above the Bank Rate, not compounded.
• Confidentiality: SOCAN must keep supplier information confidential but may share it with the Copyright Board, other collective societies, courts, or as needed to distribute royalties.

Who's affected#

• Background-music service suppliers who streamed or made music available to subscribers during 2012–2019.
• Subscribers and the premises that received background music (the tariff requires supplier reporting of subscriber names/addresses).
• SOCAN (the rights-collecting society whose repertoire is covered).
• Small cable transmission systems, which have special (reduced) treatment.
• It’s unclear from the notice whether this publication follows a Board decision, settles a dispute, or is part of ongoing proceedings; that affects how and when the rules became legally binding.

Why it matters#

• Financial impact: suppliers may owe royalties for past quarters in 2012–2019, including minimum per-premises fees, and could face interest on late payments.
• Operational burden: suppliers must keep and supply detailed play lists and subscriber data for reporting and possible audits.
• Cost may flow to businesses: suppliers could raise subscription prices to cover royalties, affecting places that rely on background music (stores, restaurants, call-hold services, etc.).
• Transparency and privacy: supplier data will be treated as confidential but can be shared with the Board, other societies or courts in certain situations.