SOCAN Online Allied Audiovisual Tariff Erratum

Summary#

This is an erratum from the Copyright Board correcting the text of SOCAN Tariff 22.D.3 (the Online Allied Audiovisual Services tariff for 2014–2024) that was misprinted in a previous Gazette supplement. The corrected tariff spells out who pays music royalties for certain online video services and what those payments and reporting rules are.

What it does#

• Restates the corrected text of SOCAN Tariff 22.D.3 for the years 2014 to 2024.
• Sets the basic royalty rates for allied online audiovisual services:
  • Standard rate: 1.9% of relevant revenue.
  • Low music-use rate: 0.8% of relevant revenue if music makes up less than 20% of airtime.
• Sets minimums and special amounts:
  • Minimum per-program fee: 1.3¢ per program.
  • Minimum monthly per-subscriber fee: 7.5¢.
  • No royalty for a single initial free trial of up to 31 days in any 12‑month period.
  • If a service has no revenue in a year, the fee is $15.00 for that year.
• Requires monthly sales and usage reports to SOCAN, due within 30 days of month-end.
• Requires services to keep records for 6 years and to make certain data available for audits.
• Limits SOCAN audits to no more than once in any 12‑month period and allows SOCAN to recover audit costs when understatement exceeds 10%.
• Provides formulas and definitions used to calculate the taxable “Rate Base,” including default ratios such as a 10% Domestic Ratio when data are missing.

Who's affected#

• Online video services that are run in conjunction with or as an adjunct to traditional TV broadcasters or distribution undertakings (BDUs). These are called "Allied Audiovisual Services" in the tariff.
• SOCAN (the music rights society) and the music creators and publishers it represents.
• Broadcasters, BDUs, authorized distributors, and any platform that shares content with a conventional service and streams audiovisual works to end users.
• Smaller services could be affected by the reporting and record-keeping requirements and the monthly or minimum fees.
• It is not always obvious from the text exactly which specific online platforms will qualify as “allied” in every case; that may depend on how a service is linked to a conventional broadcaster or BDU.

Why it matters#

• It clarifies who must pay music royalties when audio-containing video is streamed by online services tied to traditional broadcasters. That affects the cost structure of those services.
• The rates and minimums determine how much money flows to songwriters and performers represented by SOCAN for streams on these types of services.
• Monthly reporting, record-keeping for 6 years, and audit rules add administrative requirements for affected services.
• Because this is an erratum, it corrects the official published tariff text so companies and rights holders can rely on the correct rules. If you run or use such a service, the corrected text could change how royalties are calculated or reported.