SOCAN Tariff for Audio Websites (2007–2018)

Summary#

The Copyright Board published the SOCAN Tariff 22.C – Other Audio Websites (2007-2018), a tariff that sets how much operators of audio-only websites must pay for playing music from SOCAN’s repertoire for the years 2007 to 2018. It defines the royalty formula, reporting and record-keeping rules, and says any amounts owed for that period are due January 28, 2024 (with interest).

What it does#

• Sets a royalty formula for sites that provide audio-only content (including on-demand access). The base rates depend on how much of the site’s music comes from SOCAN’s repertoire:
  • 1.5% of Internet-related revenues if SOCAN repertoire use is 20% or less.
  • 4.2% if SOCAN repertoire use is between 20% and 80%.
  • 5.3% if SOCAN repertoire use is 80% or more.
• Adjusts the effective royalty by:
  • multiplying by the share of audio page impressions (or 0.5 if that ratio is not available),
  • reducing by 5% for Canadian sites (factor 0.95) and treating non‑Canadian sites differently (factor 1 and a non‑Canadian traffic factor).
• Sets minimum annual fees of $33.48, $94.45, or $119.56 depending on the SOCAN repertoire share band.
• Requires site operators to report detailed information:
  • identify the operator and site URL within 20 days of first use or first month of use,
  • provide monthly reports within 20 days after the end of each month showing revenues, page‑impression ratios, play counts for each file, and detailed metadata for each musical work.
• Says royalties are payable monthly, due 20 days after the end of each month.
• Requires records to be kept for six years and allows SOCAN to audit them on reasonable notice. If an audit finds understated royalties by more than 10%, the operator may have to pay the audit costs.
• Includes confidentiality rules for reported information, but allows sharing with certain parties (e.g., the Copyright Board and rights claimants).
• Charges interest on late payments at a rate equal to 1% above the Bank Rate (calculated daily, non‑compounding). The tariff publishes interest factors and tables for the 2007–2018 period.
• Applies retroactively to 2007–2018 and includes transitional provisions for records and amounts owed.

Who's affected#

• Operators of websites or online services that people use primarily to listen to audio-only content (for example, streaming audio sites and similar services).
• Authorized distributors tied to those sites.
• Songwriters, composers, and music publishers whose works are in SOCAN’s repertoire (they are the intended recipients of royalties).
• Smaller or newer audio services that must produce detailed play logs and metadata may feel the compliance burden most.
• It may also affect services based outside Canada because the formula treats non‑Canadian traffic differently.

If it’s unclear whether a particular site falls under this tariff (for example, mixed-content sites), the tariff text provides specific definitions and measurement rules.

Why it matters#

• This sets a clear, numeric method for calculating what online audio sites owe for the use of Canadian‑repertoire music for a long past period. That can lead to retroactive bills due January 28, 2024 plus interest.
• Operators need precise logs and metadata for each track. Producing and keeping that data for six years can be time‑consuming and costly, especially for small services.
• The rules include audit exposure and possible added costs if royalty under-reporting is found. That raises financial and compliance risks for site operators.
• For creators and rights holders, it clarifies how royalties for past online use will be measured and distributed.