SOCAN Tariff 22.B — Online Radio Royalties

Summary#

This is a tariff published by the Copyright Board on October 28, 2023 that sets royalty rules for online uses of music by commercial radio broadcasters and satellite radio services for the years 2007–2018. It describes how royalties are calculated, what monthly data service providers must report, and when any amounts for that period are due (see key date below).

Key facts

• Tariff: SOCAN TARIFF 22.B – COMMERCIAL RADIO AND SATELLITE RADIO (2007-2018)
• Publication date: October 28, 2023
• Amounts due (retroactive): January 28, 2024

What it does#

• Explains how royalties are calculated for online audio use by commercial radio broadcasters and satellite radio services:
  • For broadcasters subject to Tariff 1.A (Commercial Radio Tariff) the royalty is a formula that multiplies the broadcaster’s radio rate by its Internet-related revenues and by the share of audio page impressions (or 0.5 if that share isn’t available).
  • For satellite radio services subject to Tariff 25 (Satellite Radio Services Tariff) a similar formula applies, with an extra factor that reduces the fee for Canadian listening; if the non‑Canadian share isn’t provided, the default non‑Canadian factor is 0.9.
• Requires service providers to register basic identification information within 20 days of first offering files that need SOCAN permission.
• Requires monthly reporting (no later than 20 days after each month) of:
  • Internet-related revenues and audio page impression ratios.
  • Per-file play counts and total plays.
  • Detailed metadata for each sound file (title, author, performer, release info, ISRC, ISWC, running time, etc.).
  • Subscriber numbers and subscription payments where applicable.
• Sets payment and accounting rules:
  • Royalties are due monthly and must be paid no later than 20 days after the month ends.
  • Late payments accrue interest daily at a rate equal to 1% above the Bank of Canada’s published Bank Rate; interest does not compound.
  • Records supporting reports must be kept for 6 years and are subject to audit; if an audit shows royalties were understated by more than 10%, the provider may have to pay the audit costs within 30 days.
• Provides transitional rules and a table of monthly interest factors for the years 2007–2018 to calculate retroactive amounts.

Who's affected#

• Mainly commercial radio broadcasters that stream online and are subject to Tariff 1.A.
• Satellite radio service providers that stream online and are subject to Tariff 25.
• Any online service or distributor that makes sound recordings available to the public in ways covered by the tariff (for example, on-demand or semi‑interactive streams).
• Rights holders and SOCAN, who will receive the reported data and the royalties.
• It is not always clear from the text whether every type of online audio service is covered; the tariff applies specifically to the services described above.

Why it matters#

• This creates clear rules for how online uses by commercial and satellite radio from 2007–2018 are to be paid and reported. That can mean significant retroactive payments and administrative work for affected broadcasters and services.
• The reporting rules require detailed metadata and play counts. That increases record-keeping and technical reporting needs for service operators.
• For rights holders, the tariff aims to ensure they are paid for online uses from this period and gives them audited data to support distributions.
• For the general public and listeners there is no direct change to how services operate day to day, but the financial and reporting effects could influence how broadcasters manage online streaming and subscriptions.