SOCAN Commercial Radio Tariff (2014–2018)

Summary#

SOCAN Tariff 1.A – Commercial Radio (2014-2018) is a tariff published by the Copyright Board on May 31, 2025. It sets the royalty rates and reporting, record-keeping and audit rules that commercial over‑the‑air radio stations must follow for music they broadcast during the 2014–2018 period.

What it does#

• Sets royalty rates for commercial radio stations:
  • 1.5% of a station’s annual gross income for the reference month if the station is a “low‑use” station.
  • Otherwise, 3.2% on the first $1.25 million of gross income in a year and 4.4% on the remainder.
• Defines “gross income” and lists what counts and what is excluded (e.g., some production and outside program fees are excluded; barter/contra is included at fair market value).
• Requires monthly payments and reporting:
  • Stations must pay royalties and report gross income each month (report uses the “reference month,” defined in the tariff).
  • Stations must provide sequential daily lists of all music and published recordings broadcast — full day-by-day music reporting for 365 days per year.
• Record-keeping and audits:
  • Stations must keep broadcast-detail records for 6 months and financial records showing gross income for 6 years.
  • SOCAN may audit records; if royalties were understated by more than 10%, the station must pay the audit costs within 30 days.
• Data format and confidentiality:
  • Music-use information should be provided electronically (e.g., Excel) where possible, with specific fields for title, artist, timing, UPC/ISRC, etc.
  • Information supplied by stations is treated as confidential, but may be shared with other collective societies, service providers, the Copyright Board, or where required by law.
• Other practical rules:
  • Late payments bear interest at Bank Rate + 1%, calculated daily, not compounded.
  • The tariff does not apply to various online, satellite or pay audio services covered by other SOCAN tariffs.

Who's affected#

• Commercial over‑the‑air radio stations in Canada — especially those that broadcast recorded music.
• Small or “low‑use” stations that play music less than 20% of their broadcast time (they may qualify for the 1.5% rate if they meet the reporting requirements, including keeping recordings of the last 90 broadcast days).
• SOCAN and the music creators and publishers it represents, who receive the royalties.
• Service providers who handle audits or royalty distributions for SOCAN.
• Broadcasters using barter/contra deals or turn‑key advertising contracts (those receipts are treated as part of gross income under the tariff).
• This tariff does not apply to online music services, satellite radio, or pay audio services covered by separate SOCAN tariffs.

Why it matters#

• Money: The tariff sets concrete fees radio stations must pay for playing copyrighted music. That affects station costs and budgeting, and it determines how much money flows to songwriters and publishers.
• Paperwork and systems: Stations must keep detailed daily playlists and certain records for months or years. Many stations may need better logging, reporting tools, or bookkeeping to comply.
• Smaller stations: The lower 1.5% rate is available but only if a station meets the “low‑use” definition and strict recording/reporting requirements. That can be important for community or niche broadcasters.
• Retroactive period: Because the tariff covers 2014–2018, it concerns royalties for past years; stations and rights holders may be dealing with settlements or adjustments for those years.