Flat Music Royalty for Community Facilities

Summary#

The Copyright Board published SOCAN Tariff 21 – Recreational Facilities Operated by a Municipality, School, College, University, Agricultural Society or Similar Community Organizations (2023–2025) on November 25, 2023 under the Copyright Act. It sets a simple annual fee for certain community recreational facilities and explains payment, reporting and audit rules.

What it does#

• Sets an annual royalty of $235.48 per facility for the years 2023 to 2025, when the facility’s gross revenue from covered events in the year does not exceed $20,752.21.
• Applies to performances of works in SOCAN’s repertoire during recreational activities that would otherwise fall under Tariff 5.A, Tariff 7, Tariff 8, Tariff 9, Tariff 11.A or Tariff 19.
• Requires payment on or before January 31 of the tariff year, and a report (submitted by January 31 of the following year) confirming the facility’s gross revenue did not exceed $20,752.21.
• Gives SOCAN the right to audit the user’s books and records, with reasonable notice during normal business hours, to verify the report and royalty.
• Says a facility paying under this tariff does not also have to pay the listed tariffs for the same events.
• Charges interest on late payments at 1% above the Bank Rate (as published by the Bank of Canada) calculated daily, non‑compounding.
• Notes that all amounts are exclusive of any federal, provincial or other taxes or levies.

Who's affected#

• Municipal recreation facilities, school gyms and halls, college and university recreational venues, agricultural societies and similar community organizations that run recreational activities.
• Facilities whose gross revenue from the covered events is $20,752.21 or less in the year are the main group this flat fee targets.
• It’s unclear from the notice how this compares, dollar-for-dollar, with what each facility would have paid under the separate tariffs in every case; some facilities may save money, others may not.

Why it matters#

• Small community venues get a straightforward annual fee option instead of dealing with multiple, event-by-event tariffs. That can reduce paperwork and make budgeting easier.
• Facilities must still file a yearly report and can be audited, so they need basic bookkeeping.
• Late payment can quickly add interest, and the fee does not include taxes, so organizations should factor that into costs.