SOCAN Recorded Music for Dancing Tariff

Summary#

This notice from the Copyright Board sets the fees that SOCAN can charge venues for playing recorded music when patrons dance, covering the years 2018, 2019, 2020, 2021 and 2022. It gives a clear fee schedule for most years and a special reduced rate for 2020 and 2021; it was published on June 4, 2022.

What it does#

• Establishes the tariff called SOCAN Tariff 18 — Recorded Music for Dancing (2018-2022) with yearly royalties for venues where patrons dance to recorded music.
• For 2018, 2019 and 2022, the basic fee rules for premises accommodating no more than 100 patrons are:
  • If operating 1–3 days per week and for 6 months or less: $286.85 per year.
  • If operating 4–7 days per week and for 6 months or less: $573.69 per year.
  • If operating 1–3 days per week and for more than 6 months: $573.69 per year.
  • If operating 4–7 days per week and for more than 6 months: $1,147.38 per year.
• For premises with more than 100 patrons:
  • A venue with 101–120 patrons pays 10% more than the corresponding fee above.
  • For each additional block of up to 20 patrons beyond that, add another 10% to the base fees.
• For 2020 and 2021, the tariff fixes the annual royalty at 50% of the total fee the user paid for 2019 (i.e., a pandemic-era reduction).
• Payment and reporting rules:
  • The venue must pay the applicable royalty and report room capacity no later than January 31 of the year covered by the tariff.
  • SOCAN can audit a user’s books on reasonable notice during normal business hours to check fees.
  • Late payments incur interest calculated daily at a rate equal to 1% above the Bank Rate published by the Bank of Canada (interest does not compound).
  • All fees are listed before any taxes or government levies.
• Temporary measure for overpayments from the 2020–2021 reduction:
  • By October 3, 2022, users who overpaid must send a notice to SOCAN with specified details (see below).
  • If the user miscalculates, SOCAN will tell them the correct overpayment.
  • Users may deduct the overpayment from their next payment. Overpayments do not bear interest.

Who's affected#

• Bars, cabarets, restaurants, taverns, clubs, dining rooms, discotheques, dance halls, ballrooms and similar premises that play recorded music for patrons to dance.
• Venue owners and operators who paid SOCAN fees for the years 2018–2022, especially those who paid 2019 fees and therefore have 2020–2021 reductions.
• SOCAN, as the collecting organization, and the Copyright Board, as the issuer of the tariff.
• It is clear who the rule targets (venues using recorded music for dancing). If you are unsure whether your space counts as a covered “premises,” the notice does not spell out every borderline case.

If you think you overpaid for 2020 or 2021, the notice requires a formal message to SOCAN by October 3, 2022 including:

• user name and address;
• name and contact details of the location operator;
• amount of royalties paid in 2019;
• amounts paid in 2020 and 2021;
• what should have been paid in 2020 and 2021 (i.e. 50% of 2019);
• the amount of any overpayment.

Why it matters#

• Practical cost: the tariff spells out fixed annual fees (for small venues $286.85, $573.69, or $1,147.38 depending on size and weeks of operation). That helps venues budget for music licensing costs.
• Pandemic relief: venues get a built-in reduction for 2020 and 2021 (fees set at 50% of 2019), which could have reduced financial pressure during closures and reduced operation.
• Refunds and deadlines: venues that overpaid because of the temporary reduction must act by October 3, 2022 to report and recover overpayments or deduct them from future fees.
• Compliance risks: missed payments can lead to interest charges and possible audits by SOCAN, so operators should check records and meet the January 31 payment/reporting deadline for each year covered.