SOCAN TV Royalty Tariff 2014–2024

Summary#

This Canada Gazette item publishes the Copyright Board’s statement of royalties called SOCAN Tariff 2.A for commercial television stations covering the years 2014–2024. It sets how much the Society of Composers, Authors and Music Publishers of Canada (SOCAN) can collect from broadcasters when musical works in SOCAN’s repertoire are communicated to the public by television.

What it does#

• Sets a royalty charge on a station’s “gross income” (money a station earns from offering broadcasting services, with some listed exclusions).
• Offers two licence choices for stations:
  • The standard blanket licence requires payment of 1.9% of the station’s gross income for the month two months earlier.
  • The modified blanket licence (MBL) uses a detailed formula reported on Form A, combining several added percentage factors (see below) plus a separate 1.9% charge on non-cleared programs. Stations using the MBL must also submit a music breakdown on Form B for each “cleared program.”
• Key percentage factors used in the MBL calculation (applied to gross income in different ways):
  • 3% × 1.9% for additional SOCAN expenses,
  • 1% × 1.9% to account for later payment timing,
  • 5% × 1.9% for ambient and production music in cleared programs,
  • 22% × 95% × 1.9% for SOCAN’s operating expenses.
• Reporting and timing rules:
  • A station’s election between licence types must be in writing and made at least 30 days before it takes effect.
  • Standard licence payments and reports are due before the month in question; MBL reports and payments are due no later than the last day of the month after the month for which the tariff applies.
• Record-keeping and audits:
  • Stations must keep records for 6 years and SOCAN may audit those records on reasonable notice.
  • If an audit finds underpaid royalties by more than 10%, the station may have to pay the audit costs.
• Other rules:
  • Amounts connected to incorrectly claimed cleared programs (certain lines in Form A) are not refundable.
  • Late amounts accrue interest at a rate equal to 1% above the Bank Rate (calculated daily).

Who's affected#

• Primarily commercial broadcast television stations in Canada that use music in their programming and are not covered by another tariff.
• The tariff explicitly does not apply to the Canadian Broadcasting Corporation (CBC) or stations operating under a different tariff.
• Producers and program owners who supply “cleared” programming will be affected because stations using the MBL must list and document cleared music on Form B.

Why it matters#

• This sets the royalty bills that commercial TV stations may have to pay for music. The basic rate is 1.9% of gross income, but choosing the MBL changes how much and when money is due and requires detailed music reporting.
• For stations, the choice between the standard licence and the MBL affects cash flow, paperwork, and potential audit exposure.
• For producers and anyone supplying cleared programs, the tariff creates a need for clear documentation proving music rights so stations can claim cleared programs under the MBL.
• The rules on audits, record retention (6 years) and interest on late payments (Bank Rate + 1%) can have real cost implications if payments or records are handled incorrectly.