SOCAN Tariff for Adult Entertainment Clubs

Summary#

This item publishes SOCAN Tariff 3.C – Adult Entertainment Clubs (2018–2022). It sets the royalty fee that adult entertainment clubs in Canada must pay to Society of Composers, Authors and Music Publishers of Canada (SOCAN) to play recorded music or otherwise use SOCAN’s repertoire during the years 2018–2022.

What it does#

• Sets the fee at 4.7¢ per day for each person of authorized capacity (seating and standing). The number used is the capacity on the club’s liquor licence or similar official document.
• Defines a “day” as the period between 6:00 a.m. and the next 6:00 a.m. during which the business operates as an adult entertainment club.
• Requires licensees to send SOCAN an estimate and payment no later than January 31 of the licence year, and a final report (showing actual capacity and number of operating days) no later than January 31 of the following year. Fees are adjusted after that final report.
• Says all amounts are exclusive of taxes and levies.
• Allows SOCAN to audit a club’s records on reasonable notice; the club can choose an independent auditor from a SOCAN-provided list. If the audit finds the fee was understated by more than 10%, the club must pay the auditor’s fees.
• Charges interest on late payments at a rate equal to 1% above the Bank Rate as published by the Bank of Canada. SOCAN may terminate a licence after 30 days’ written notice for breach of terms.

Who's affected#

• Primarily adult entertainment clubs in Canada that play recorded music or otherwise use works in SOCAN’s repertoire.
• Club owners/operators who hold a liquor licence (or similar document) that states capacity, since that capacity is used to calculate the fee.
• Songwriters, composers, and music publishers represented by SOCAN, who receive the collected royalties.

Why it matters#

• It creates a predictable, per-capacity daily cost for clubs that use recorded music. For many venues this is a small recurring fee but it adds up with many operating days or large capacity.
• It adds administrative tasks: estimated and final reports, recordkeeping for potential audits, and possible adjustments or interest on late payments.
• It clarifies how royalties are calculated for this specific type of venue for the years 2018–2022, so clubs and rights-holders know what to expect.