SOCAN Tariff for Non-Commercial Radio

Summary#

The Copyright Board has published SOCAN Tariff 1.B (2022-2027). It sets a royalty for non-commercial AM, FM and Internet-only radio stations (other than the Canadian Broadcasting Corporation) equal to 1.9% of a station’s gross operating costs for each year from 2022–2027, with payment and reporting rules including an estimated payment due January 31 each year.

What it does#

• Sets the royalty rate at 1.9% of a station’s gross operating costs for the years 2022–2027.
  • “Gross operating costs” explicitly includes gross Internet operating costs.
• Applies to non-commercial AM, FM and Internet-only radio stations that are non‑profit or not‑for‑profit, whether or not they get any advertising revenue.
• Excludes stations of the Canadian Broadcasting Corporation and use of music in a pay audio signal transmitted by a distribution undertaking.
• Requires an estimated royalty payment no later than January 31 of the year covered by the tariff, together with a report of the station’s actual gross operating costs for the previous year.
  • The royalty is adjusted later once the actual costs for the year are reported.
• If a station broadcasts for less than a full year, it must apply to operate under the tariff by the end of its first month and remit estimated royalties then.
• Gives SOCAN the right to audit a station’s books and records on reasonable notice during normal business hours.
• States late payments incur interest calculated daily at a rate equal to 1% above the Bank of Canada Bank Rate on the last day of the previous month; interest does not compound.
• Notes that amounts are exclusive of any federal, provincial or other taxes or levies.

Who's affected#

• Non-commercial AM, FM and Internet-only radio stations that are non‑profit or not‑for‑profit. This includes community, campus, religious and other non-commercial stations.
• Stations of the Canadian Broadcasting Corporation are not covered by this tariff.
• Stations that carry pay audio signals via a distribution undertaking are not covered for that use.
• SOCAN (the collecting society) is the organization named to collect and enforce the tariff.

Why it matters#

• Stations will need to budget for a royalty equal to 1.9% of their reported operating costs each year. That affects small community and campus stations with tight budgets.
• The rules require early estimated payments and annual reporting, which may change cash‑flow and accounting practices for affected stations.
• The audit right and interest on late payments increase the financial and administrative consequences of non‑compliance.
• For listeners, tighter station budgets could affect local programming, volunteer capacity, and services offered by community broadcasters.