SOCAN Tariff 16 — Background Music Rates

Summary#

This notice from the Copyright Board publishes SOCAN Tariff 16 – Background Music Suppliers (2012-2019). It sets the royalties and reporting rules that background-music service suppliers must follow for the years 2012–2019. The item was published on November 8, 2025.

What it does#

• Sets royalty rates for suppliers who provide background music or authorize subscribers to play SOCAN repertoire:
  • Suppliers who communicate works by telecommunication pay 2.25% of subscriber revenues for the quarter, with a minimum of $1.50 per relevant premises.
  • Suppliers who authorize subscribers to perform works in public pay 7.5% of subscriber revenues for the quarter, with a minimum of $5 per relevant premises.
  • Royalties for a small cable transmission system are cut in half.
• Defines what the tariff covers and what it excludes:
  • Covers background music, including making works available on demand, telephone-on-hold music, and TV uses as background music.
  • Does not apply to performances at receptions, conventions, fashion shows, exercise/dance instruction, pay-audio services, or transmissions that create a durable copy (like downloads).
• Reporting and payment rules:
  • Payments and reports are due no later than 60 days after the end of each quarter.
  • Suppliers who transmit works must provide sequential lists of all musical works for the last 7 days of each month of the quarter, with details such as date/time, title, author/composer, performer, running time, album title, record label, UPC, and ISRC — but only if that information is available to the supplier.
  • Suppliers who authorize performances must provide the name of each subscriber and the address of each premises covered by the payment.
  • A small cable transmission system is not required to provide the detailed lists.
• Other rules:
  • SOCAN can audit supplier books with reasonable notice.
  • Amounts are exclusive of taxes.
  • Late payments accrue interest at 1% above the Bank Rate (calculated daily, non-compounding).
  • SOCAN must treat supplier information as confidential, with specific exceptions (e.g., sharing with the Copyright Board, other collective societies for distribution, or if required by law).

Who's affected#

• Primary: background-music service suppliers (the companies that provide background music to businesses).
• Secondary: subscribers and the premises that receive background music (for example, stores, restaurants, offices and other public venues that pay a supplier).
• Also affected: SOCAN (as the rights-collecting society implementing the tariff) and small cable transmission systems (which get reduced rates).
• The notice applies to activities and payments covering 2012–2019, so it mainly affects accounting, audits, or settlements for those past years.

Why it matters#

• It specifies how much suppliers owe for background music from 2012–2019, which can change past billing, settlement, or audit outcomes between suppliers, subscribers, and SOCAN.
• Suppliers must keep or obtain detailed play lists and subscriber information and meet reporting deadlines, which can add administrative work.
• Businesses that buy background-music services could see changes in how fees are charged or passed on, especially if suppliers adjust billing to cover the tariff.
• The confidentiality, tax, audit, and interest rules affect how disputes and collections are handled.