SOCAN-CBC Internet Royalties (2014–2018)
Canada Gazette, Part I, Volume 158, Number 49: SUPPLEMENT 2
This notice publishes SOCAN Tariff 22.E, which sets how much the Canadian Broadcasting Corporation (CBC) must pay SOCAN for music and sound used in its Internet audio and audiovisual services for 2014–2018. It defines royalty formulas (1.9% of internet-related revenues for CBC online audiovisual services; 5.3% for online music services; and a $72,128.91 base amount for other online programming adjusted by audio-page-share), monthly payment timing, monthly reporting requirements, six-year records retention and audit and confidentiality rules.
Summary
Summary#
This notice publishes the SOCAN Tariff 22.E (2014-2018), a rate-setting decision about how much the Canadian Broadcasting Corporation / Société Radio-Canada must pay SOCAN for music and sound used in its Internet broadcasts for the years 2014-2018. It spells out the money formulas, monthly payment timing, reporting rules and record-keeping requirements that apply to those online services.
What it does#
- Sets how royalties are calculated for CBC internet audio and audiovisual content during 2014-2018.
- For online audiovisual services (examples named are tou.tv and Gem): CBC pays 1.9% of the service’s Internet-related revenues, multiplied by the share of page views that allow audio playback (or 1.0 if that share isn’t available).
- For online music services (examples named are cbcmusic.ca and espace.mu / icimusique.ca): CBC pays 5.3% of Internet-related revenues.
- For other online programming: a fixed base amount of $72,128.91 multiplied by the audio-page-share (or 0.15 if that share isn’t available).
- Requires monthly payments, due on the first day of each month, with interest on late payments at 1% above the Bank Rate (calculated daily, not compounded).
- Requires monthly reports within 20 days after each month describing plays, files, subscribers, revenues and audio-versus-all page impressions (different details depending on the service type).
- Requires CBC to keep records for six years and lets SOCAN audit them on reasonable notice.
- Includes confidentiality rules but allows sharing in specific cases (e.g., with the Copyright Board, authorized distributors, royalty claimants or as required by law).
- Where the tariff asks for certain detailed information, CBC must supply it within 14 days after the end of the relevant month but not for more than 14 days in a year.
Who's affected#
- Primary: Canadian Broadcasting Corporation / Société Radio-Canada (the CBC) and its named online services (tou.tv, Gem, cbcmusic.ca, espace.mu / icimusique.ca).
- Rights organizations: SOCAN (the collecting society) and the songwriters, composers, performers and music publishers who receive royalties through SOCAN.
- CBC’s authorized distributors and any parties involved in distributing or reporting CBC’s online content may also be involved because of reporting and data-sharing rules.
- The general public and most CBC users will not see direct changes to services. The tariff concerns payments and reporting for the historical period 2014-2018.
Why it matters#
- It determines how much money flows from the CBC to music creators and rights holders for online uses during 2014-2018. That affects income for songwriters, performers and publishers.
- The formulas and data rules mean CBC must track detailed usage and revenue information. That can affect CBC’s internal accounting and how it measures online audience and revenue.
- Because this covers a past period (2014-2018), it may involve retroactive payments or adjustments for that time. The notice itself is a technical, administrative decision about who gets paid and how.
Key topics
Source: Canada Gazette