SOCAN Tariff for Commercial TV (2014–2024)

Summary#

This item from the Copyright Board sets the royalties that SOCAN can collect from commercial television stations for broadcasting music in Canada for the period 2014–2024. It lays out two licence options, the basic rate to be paid, how an alternative “modified” licence is calculated, and rules on reporting, records and audits.

What it does#

• Establishes the tariff titled SOCAN Tariff 2.A – Commercial Television Stations (2014-2024) for music used by broadcast TV stations in Canada for 2014–2024.
• Offers two licence choices:
  • Standard blanket licence: a station pays 1.9% of the station’s gross income (based on income from two months earlier). Payment and income reporting are due before the month covered.
  • Modified blanket licence (MBL): a station uses Form A to calculate a more detailed charge. That calculation includes extra percentage additions to account for administrative costs and the use of “cleared” programs and ambient/production music (components include 3% × 1.9%, 1% × 1.9%, 5% × 1.9%, and 22% × 95% × 1.9% on parts of gross income). Stations must submit Form A and a Form B music report for each cleared program and provide supporting documents.
• Defines key terms such as “cleared music,” “ambient music,” “production music,” and what counts as gross income (with specific exclusions, e.g., investment income and some commissioned-program fees).
• Requires stations to keep records for six years and allows SOCAN to audit those records on reasonable notice. If an audit finds royalties understated by more than 10%, the station may have to pay the audit costs.
• States that amounts paid because a program was incorrectly claimed as cleared are not refundable. Late payments incur interest at Bank Rate + 1% (calculated daily, non-compounding). All amounts are exclusive of taxes.

Who's affected#

• Primarily commercial television stations and their owners/operators in Canada.
• Stations owned by the Canadian Broadcasting Corporation or those covered by a different tariff are not included.
• Program producers and anyone who claims music in a program is “cleared” will be affected because they must provide documentation to support those claims.
• SOCAN, as the collecting society, administers the tariffs and enforces reporting and audits.

Why it matters#

• It sets a clear formula for how much TV broadcasters must pay for the right to air music from SOCAN’s repertoire over a ten-year span (2014–2024).
• The choice between the standard licence and the MBL affects both the dollar amount owed and the paperwork required. The MBL can reduce some payments but requires program-level reporting and documentation.
• Stations need to keep good records for six years, meet reporting deadlines, and be prepared for audits—failure can mean extra costs and non‑refundable charges.
• For viewers and advertisers, the practical effect may show up indirectly through broadcaster costs and business decisions, such as how stations use music or how they budget for rights.