SOCAN Tariff 16: Background Music Suppliers

Summary#

SOCAN Tariff 16 – Background Music Suppliers (2012-2019) is a tariff published by the Copyright Board on November 8, 2025 that sets the royalties and reporting rules for companies that supply background music for the years 2012–2019. It fixes percentage rates, minimum per‑premises fees, deadlines for quarterly payments and detailed reporting, and explains who and what is excluded.

What it does#

• Sets royalty rates for suppliers who either stream music to the public or authorize subscribers to play music in public:
  • 2.25% of subscriber revenues for communications by telecommunication, with a minimum of $1.50 per relevant premises.
  • 7.5% of subscriber revenues when a supplier authorizes a subscriber to perform in public, with a minimum of $5 per relevant premises.
• Cuts royalties for a small cable transmission system to half the above rates.
• Excludes certain uses from the tariff, including:
  • music at receptions, conventions, assemblies and fashion shows;
  • music used with physical exercise or dance instruction;
  • music delivered as part of a pay audio service;
  • transmissions that create a durable copy (for example, downloads).
• Requires suppliers to pay royalties and file supporting reports no later than 60 days after the end of each quarter.
• Requires suppliers who transmit music to provide detailed sequential lists for the last seven days of each month of the quarter, including date/time, title, author/composer, performer, running time, album title, label, UPC, and ISRC — but only if that information is available to them or to a third party they can use.
• Requires suppliers who authorize public performance to provide the name and address of each subscriber and premises covered by the payment.
• Gives SOCAN the right to audit a supplier’s books and records on reasonable notice.
• States that amounts are exclusive of taxes and that late payments bear interest at 1% above the Bank Rate (calculated daily, not compounded).
• Limits confidentiality of information supplied to SOCAN by permitting sharing with the Copyright Board, other collective societies for distribution of royalties, in Board proceedings, or when required by law.

Who's affected#

• Background music service suppliers (companies that stream or otherwise provide background music to businesses and other subscribers).
• Businesses and other subscribers that receive background music at a premises (for example, shops, restaurants, offices and waiting rooms) because royalties are calculated from subscriber revenues.
• Small cable transmission systems, which are treated separately and pay half the rates.
• SOCAN, as the collecting society that receives the royalties and enforces reporting and audit rules.

If it is unclear who is affected in a specific case (for example, hybrid services or bundled offerings), the tariff text defines terms like “revenues” and “quarter” but further clarification may be needed.

Why it matters#

• It fixes what background‑music suppliers owed (or may owe) for the years 2012–2019, so suppliers could face retroactive payments and reporting obligations for those years.
• The detailed reporting rules require accurate track‑level metadata. That can be operationally heavy for suppliers or their tech partners.
• Businesses that pay for background music could see the cost reflected in subscriber fees, since royalties are set as a share of subscriber revenues and include minimum per‑premises amounts.
• The tariff balances privacy (confidentiality clauses) with the need to audit and distribute royalties, so suppliers should expect some sharing of information in specific circumstances.