SOCAN Karaoke Bar Royalties (2018–2022)

Summary#

The Copyright Board approved SOCAN TARIFF 20 – KARAOKE BARS AND SIMILAR ESTABLISHMENTS (2018-2022), which sets the royalties karaoke bars and similar venues must pay to SOCAN for the years 2018–2022. It lists fixed annual fees for most years, a special reduced rule for 2020 and 2021, deadlines for payment and reporting, and steps for claiming any overpayments by November 15, 2022.

What it does#

• Sets annual royalties for performing songs from SOCAN’s repertoire using karaoke machines.
  • For 2018, 2019 and 2022:
    • Establishments with karaoke no more than three days a week pay $205.20 per year.
    • Establishments with karaoke more than three days a week pay $295.68 per year.
  • For 2020 and 2021:
    • The annual royalty is fixed at 50% of whatever the user paid in 2019.
• Requires payment and a short report (how many days per week the venue runs karaoke) to be sent to SOCAN by no later than January 31 of the year covered by the tariff.
• Allows SOCAN to audit a user’s books on reasonable notice during normal business hours to check the reported information and royalties.
• Charges interest on late payments calculated daily at a rate of 1% above the Bank Rate published by the Bank of Canada (no compounding).
• Says all amounts are before any taxes or government levies.
• Provides a temporary process for venues that overpaid for 2020 and 2021:
  • Users must send a notice to SOCAN by November 15, 2022 with details of amounts paid in 2019, 2020, and 2021, and the calculated overpayment.
  • SOCAN can correct mistakes and will tell the user the exact overpayment.
  • The user can deduct the overpayment from the next amount due. Overpayments do not earn interest.

Who's affected#

• Owners and operators of karaoke bars and similar establishments that use karaoke machines to perform music from SOCAN’s repertoire.
• Managers or accountants responsible for reporting and paying performance royalties.
• SOCAN, as the collecting organization, and any venue facing an audit or an overpayment claim.

If it’s unclear whether a venue falls under “similar establishments,” the notice does not define that further.

Why it matters#

• It tells venues exactly how much they owe for hosting karaoke in each listed year, so owners can budget and file correct payments.
• The reduced rule for 2020 and 2021 changes fees retroactively for those years and lets venues recover overpayments by November 15, 2022.
• Late payments can add daily interest, and SOCAN may audit records, so accurate reporting matters for avoiding extra costs.