Part INoticeVolume 158, Number 34Published: August 24, 2024

SOCAN Hotel and Motel In‑Room Tariff 2025–2027

Canada Gazette, Part I, Volume 158, Number 34: SUPPLEMENT

COPYRIGHT BOARD

Key facts

Published
August 24, 2024
Comment deadline
Unclear
Effective date
Unclear

Summary#

The Copyright Board has published SOCAN TARIFF 23 – HOTEL AND MOTEL IN-ROOM SERVICES (2025-2027), a set of royalty rules for hotel and motel in-room audiovisual and music services. For 2025 to 2027 it sets specific percentage fees for pay-per-view films and for in-room music, and requires quarterly payments and reporting within 60 days. It was published under section 70.1 of the Copyright Act.

What it does#

  • Sets royalty rates for the communication to the public by telecommunication of works in SOCAN’s repertoire when delivered through hotel or motel in-room audiovisual or musical services:
    • 1.25% of the fees guests pay to view audiovisual works that are not mature-audience films.
    • 0.3125% of the fees guests pay to view mature-audience films that contain any work requiring a SOCAN licence.
    • 5.5% of the revenues of the provider of any musical service.
  • Defines “mature audience film” as an audiovisual work whose main component is sexual activity and that is marketed separately as adult entertainment.
  • Requires payments and a detailed quarterly report to accompany each payment. Reports must list titles used and the fees or revenues for:
    • audiovisual works (titles and fees);
    • mature audience films (titles, fees, and documentation when a film contains no SOCAN-licensed works);
    • musical services (fees, provider revenues, and recordings’ Universal Product Code (UPC) and International Standard Recording Code (ISRC)).
  • Lists exclusions where the tariff does not apply:
    • musical works transmitted with a television signal for private or domestic use;
    • musical works delivered by online services (including online music, online audiovisual, user-generated content, allied audiovisual, or game services);
    • musical works in connection with a pay audio service;
    • Internet access services and video game services.
  • Gives SOCAN the right to audit a user’s books on reasonable notice during normal business hours.
  • Applies late-payment interest at a daily rate equal to 1% above the Bank Rate (as published by the Bank of Canada) on the last day of the previous month; interest does not compound.
  • States that all amounts are exclusive of federal, provincial, or other taxes.

Who's affected#

  • Hotels and motels that offer in-room pay-per-view films, on-demand audiovisual services, or in-room music services.
  • Companies that operate or supply those in-room audiovisual and music systems.
  • SOCAN members (music creators and publishers) whose works are in the repertoire covered by the tariff.
  • Guests may be indirectly affected if providers pass costs on in the form of higher fees.
  • It is unclear from the notice whether some newer streaming models or third‑party dongles used by guests are covered; the tariff explicitly excludes many online and Internet access services.

Why it matters#

  • Practical cost impact: the tariff creates a clear fee structure operators must pay for using music and film works in rooms. That can raise operating costs for in-room entertainment systems.
  • Pricing and service decisions: hotels or service providers might raise guest charges, change which films or music services they offer, or alter reporting systems to comply.
  • Administrative burden: quarterly reports, possible audits, and interest on late payments add compliance work for operators.
  • Clarifies scope: the exclusions mean many online streaming services and Internet-access uses are not covered, which affects what providers must license through SOCAN.

Key topics

Copyright ActCopyright BoardSOCANSOCAN Tariff 23mature audience filmUniversal Product Code (UPC)International Standard Recording Code (ISRC)hotels and motelsin-room entertainmentmusic royaltiesaudiovisual servicespay-per-viewBank of Canadaquarterly reporting

Source: Canada Gazette

Official source