SOCAN Tariff 17 — TV Signal Royalties

Summary#

This item publishes SOCAN Tariff 17 (2014–2024), the schedule of royalties that the Society of Composers, Authors and Music Publishers of Canada (SOCAN) says it will collect for music used when television signals are transmitted by cable, satellite or similar distributors. The tariff sets rates, reporting duties and deadlines for distribution companies and TV services about how much to pay and how to report those payments.

What it does#

• Defines who counts as a small cable transmission system (systems serving no more than 2 000 premises) and other technical terms used in the rules.
• Sets a flat royalty of $10 a year for each small cable system, certain low-power TV stations and comparable small terrestrial systems.
• Charges 0.14¢ per premise per month for community channels and non-programming services that have no affiliation payments or gross income.
• Provides two main licence options for programming services:
  • Standard blanket licence: generally 1.9% of affiliation payments plus a share based on the programming service’s gross income and the number of premises receiving the signal.
  • Modified blanket licence (MBL): a different formula that breaks royalties into parts and uses percentages including 3%, 5%, 22% and 95% in its calculation (details are in the tariff’s Form C).
• Allows a lower royalty rate of 0.8% in limited cases where a service uses licensed music for less than 20% of its airtime and keeps the required recordings.
• Sets payment and reporting timing:
  • Royalties are due on the last day of the third month following the relevant month.
  • Distribution undertakings must report certain data no later than the last day of the month following the relevant month.
  • Programming undertakings that are not paying must provide income and audience data no later than the last day of the second month following the relevant month.
• Requires records be kept for six years and allows SOCAN to audit them.
• Applies confidentiality rules and rules about interest on late payments (interest is calculated at 1% above the Bank Rate effective at the relevant time).

Who's affected#

• Distribution undertakings: cable companies, satellite distributors, small cable systems and similar operators who carry TV signals.
• Programming undertakings: pay channels, specialty channels and other TV services whose signals are carried by distributors.
• Community channels and providers of non-programming services that are carried by distributors.
• The Copyright Board appears as the publisher of the tariff and is named in the notice.
• It is unclear from the notice how much, if any, of these costs would be passed on to individual viewers or subscribers — the tariff sets what SOCAN can collect from industry participants, not how businesses will price their services.

Why it matters#

• This tariff tells TV services and distributors how much they may have to pay SOCAN for music used in the signals they carry. That affects their cost calculations and record-keeping.
• Small local systems are mostly spared large fees (the annual $10 rate). Larger distributors and national channels face percentage-based charges that can add up.
• The rules include clear reporting deadlines, audit requirements and penalties for late payments. That means more bookkeeping for broadcasters and distributors.
• The tariff covers the years 2014–2024, so it governs how SOCAN can collect royalties for that period.