Canada Gazette, Part I, Volume 152, Number 18: COPYRIGHT BOARD
May 5, 2018
COPYRIGHT BOARD
Proposed Statement of Royalties to Be Collected for the Public Performance or the Communication to the Public by Telecommunication of Musical or Dramatico-Musical Works
In accordance with subsection 67.1(5) of the Copyright Act, the Copyright Board hereby publishes the proposed statement of royalties filed by the Society of Composers, Authors and Musical Publishers of Canada (SOCAN) on March 29, 2018, with respect to royalties it proposes to collect, effective January 1, 2019, for the public performance or the communication to the public by telecommunication, in Canada, of musical or dramatico-musical works.
In accordance with the provisions of the same subsection, the Board hereby gives notice that prospective users or their representatives who wish to object to the proposed statement of royalties may file written objections with the Board, at the address indicated below, within 60 days of the publication hereof, that is, no later than July 4, 2018.
Ottawa, May 5, 2018
Gilles McDougall
Secretary General
56 Sparks Street, Suite 800
Ottawa, Ontario
K1A 0C9
613-952-8624 (telephone)
613-952-8630 (fax)
gilles.mcdougall@cb-cda.gc.ca (email)
PROPOSED STATEMENT OF ROYALTIES TO BE COLLECTED BY THE SOCIETY OF COMPOSERS, AUTHORS AND MUSIC PUBLISHERS OF CANADA (SOCAN)
in compensation for the right to perform in public or to communicate to the public by telecommunication, in Canada, musical or dramatico-musical works forming part of its repertoire including the right to make such works available to the public by telecommunication in a way that allows a member of the public to have access to them from a place and at a time individually chosen by that member of the public.
GENERAL PROVISIONS
All amounts payable under these tariffs are exclusive of any federal, provincial or other governmental taxes or levies of any kind.
As used in these tariffs, the terms "licence," "licence to perform" and "licence to communicate to the public by telecommunication" mean a licence to perform in public or to communicate to the public by telecommunication or to authorize the performance in public or the communication to the public by telecommunication, including the right to make works available to the public by telecommunication in a way that allows a member of the public to have access to them from a place and at a time individually chosen by that member of the public.
Except where otherwise specified, fees payable for any licence granted by SOCAN shall be due and payable upon grant of the licence. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
Each licence shall subsist according to the terms set out therein. SOCAN shall have the right at any time to terminate a licence for breach of terms or conditions upon 30 days' notice in writing.
Tariff No. 1
RADIO
A. Commercial Radio
Short Title
1. This tariff may be cited as the Commercial Radio Tariff (SOCAN: 2019; Re:Sound (…); CSI (…); Connect/SOPROQ (…); Artisti (…)).
Definitions
2. In this tariff,
"Act" means the Copyright Act; (« Loi »)
"collective societies" means SOCAN, Re:Sound, CSI, Connect/SOPROQ and Artisti; (« sociétés de gestion »)
"gross income" means the gross amounts paid by any person for the use of one or more broadcasting services or facilities provided by a station's operator, including the value of any goods or services provided by any person in exchange for the use of such services or facilities, and the fair market value of non-monetary consideration (e.g. barter or "contra"), but excluding the following:
- (a) income accruing from investments, rents or any other business unrelated to the station's broadcasting activities. However, income accruing to or from any allied or subsidiary business, income accruing to or from any business that is a necessary adjunct to the station's broadcasting services or facilities, or income accruing to or from any other business that results in the use of such services or facilities, including the gross amounts received by a station pursuant to turn-key contracts with advertisers, shall be included in the station's "gross income";
- (b) amounts received for the production of a program that is commissioned by someone other than the station and which becomes the property of that person;
- (c) the recovery of any amount paid to obtain the exclusive national or provincial broadcast rights to a sporting event, if the station can establish that the station was also paid normal fees for station time and facilities; and
- (d) amounts received by an originating station acting on behalf of a group of stations, which do not constitute a permanent network and which broadcast a single event, simultaneously or on a delayed basis, that the originating station subsequently pays out to the other stations participating in the broadcast. These amounts paid to each participating station are part of that station's "gross income."
This definition is understood to include any income from simulcast; (« revenus bruts »)
"ingest copy" means a reproduction of a sound recording of a musical work made for the purpose of ingesting that sound recording into a radio station's broadcast system; (« copie d'incorporation »)
"live performance copy" means a reproduction made by a radio station of a live performance of one or more musical works that occurs either at the radio station or at a remote location, but excludes any live performance embodied in a published sound recording; (« copie de prestation en direct »)
"low-use station (sound recordings)" means a station that
- (a) broadcasts published sound recordings of musical works for less than 20 per cent of its total broadcast time (excluding production music) during the reference month; and
- (b) keeps and makes available to Re:Sound, Connect/SOPROQ and Artisti complete recordings of its last 90 broadcast days; (« station utilisant peu d'enregistrements sonores »)
"low-use station (works)" means a station that
- (a) broadcasts works in the repertoire of SOCAN for less than 20 per cent of its total broadcast time (excluding production music) during the reference month; and
- (b) keeps and makes available to SOCAN and CSI complete recordings of its last 90 broadcast days; (« station utilisant peu d'œuvres »)
"month" means a calendar month; (« mois »)
"performer's performance" means a performer's performance that has been fixed with the authorization of the performer; (« prestation »)
"production music" means music used in interstitial programming such as commercials, public service announcements and jingles; (« musique de production »)
"reference month" means the second month before the month for which royalties are being paid; (« mois de référence »)
"service provider" means a professional service provider which may be retained by a collective society to assist in the conduct of an audit or in the distribution of royalties to rights holders; (« prestataire de services »)
"simulcast" means the simultaneous, unaltered, real-time streaming of the over-the-air broadcast signal of the station, or of another station that is part of the same network as the station, via the Internet or other similar digital network; (« diffusion simultanée »)
"voice-tracking copy" means a reproduction of a sound recording of a musical work made to facilitate the making of a spoken-word recording to be broadcast in association with that sound recording; (« copie de préenregistrement vocal »)
"year" means a calendar year. (« année »)
Application
3. (1) This tariff sets the royalties to be paid each month by commercial radio stations
- (a) in connection with the over-the-air broadcasting operations of a station
- (i) to communicate to the public by telecommunication in Canada musical or dramatico-musical works in the repertoire of SOCAN and published sound recordings embodying musical works and performers' performances of such works in the repertoire of Re:Sound, and
- (ii) to reproduce in Canada musical works in the repertoire of CMRRA or SODRAC, sound recordings in the repertoire of Connect or SOPROQ and performers' performances in the repertoire of Artisti; and
- (b) in connection with a simulcast, to communicate to the public by telecommunication in Canada musical or dramatico-musical works in the repertoire of SOCAN and to reproduce in Canada musical works in the repertoire of CMRRA or SODRAC.
(2) This tariff also entitles a station to authorize a person to communicate to the public by telecommunication a musical work, sound recording or performer's performance and to reproduce a musical work or performer's performance for the purpose of delivering it to the station, so that the station can use it as permitted in subsection (1).
(3) This tariff does not
- (a) authorize the use of any reproduction made pursuant to subsection (1) in association with a product, service, cause or institution; or
- (b) apply to a communication to the public by telecommunication that is subject to another tariff, including SOCAN Tariff 16, 22 or 25, Re:Sound Tariff 8, the Satellite Radio Services Tariff or the SOCAN-Re:Sound Pay Audio Services Tariff.
4. This tariff is subject to the special royalty rates set out in subparagraph 68.1(1)(a)(i) of the Act.
Royalties
SOCAN | Re:Sound | CSI | Connect/ SOPROQ |
Artisti | |
---|---|---|---|---|---|
on the first $625,000 gross income in a year | 1.5% | (...)% | (...)% | (...)% | (...)% |
on the next $625,000 gross income in a year | 1.5% | (...)% | (...)% | (...)% | (...)% |
on the rest | 1.5% | (...)% | (...)% | (...)% | (...)% |
SOCAN | Re:Sound | CSI | Connect/ SOPROQ |
Artisti | |
---|---|---|---|---|---|
on the first $625,000 gross income in a year | 3.2% | (...)% | (...)% | (...)% | (...)% |
on the next $625,000 gross income in a year | 3.2% | (...)% | (...)% | (...)% | (...)% |
on the rest | 4.4% | (...)% | (...)% | (...)% | (...)% |
7. All royalties payable under this tariff are exclusive of any federal, provincial or other governmental taxes or levies of any kind.
Administrative Provisions
8. (1) No later than the first day of each month, a station shall
- (a) pay the royalties for that month;
- (b) report the station's gross income for the reference month;
- (c) provide to CSI, for the reference month, the gross income from any simulcast, as well as the number of listeners and listening hours or, if not available, any other available indication of the extent of the listeners' use of simulcast; and
- (d) provide to the collective societies the sequential lists of all musical works and published sound recordings, or parts thereof, broadcast during each day of the reference month. For greater clarity, sequential list reporting requires full music use reporting for each day of the month, for 365 days per year.
(2) On September 1 and March 1, a station electing to benefit from the discount factors X and Y referred to in sections 5 and 6 shall report to CSI, Connect/SOPROQ and Artisti the values A, B, C and D and provide all the information necessary to assess the level of compliance of the station with section 30.9 of the Act for the six-month periods ending on June 30 and December 31, respectively.
9. At any time during the period set out in subsection 11(2), a collective society may require the production of any contract granting rights referred to in paragraph (c) of the definition of "gross income," together with the billing or correspondence relating to the use of these rights by other parties.
Information on Repertoire Use
10. (1) Each entry provided under paragraph 8(1)(d) shall include the following information, where available:
- (a) the date of the broadcast;
- (b) the time of the broadcast;
- (c) the title of the sound recording;
- (d) the title of the musical work;
- (e) the title of the album;
- (f) the catalogue number of the album;
- (g) the track number on the album;
- (h) the record label;
- (i) the name of the author and composer;
- (j) the name of all performers or the performing group;
- (k) the duration of the sound recording broadcast, in minutes and seconds;
- (l) the duration of the sound recording as listed on the album, in minutes and seconds;
- (m) the Universal Product Code (UPC) of the album;
- (n) the International Standard Recording Code (ISRC) of the sound recording; and
- (o) the cue sheets for syndicated programming, with the relevant music use information inserted into the report.
(2) The information set out in subsection (1) shall be provided in electronic format (Excel format or any other format agreed upon by the collective societies and the station), where possible, with a separate field for each piece of information required in subsection (1) other than the cue sheets which are to be used to insert the relevant music use information into each field of the report.
(3) For certainty, the use of the expression "where available" in subsection (1) means that all the listed information in the station's possession or control, regardless of the form or the way in which it was obtained, must mandatorily be provided to the collective societies.
Records and Audits
11. (1) A station shall keep and preserve, for a period of six months after the end of the month to which they relate, records from which the information set out in subsection 10(1) can be readily ascertained.
(2) A station shall keep and preserve, for a period of six years after the end of the year to which they relate, records from which the station's gross income can be readily ascertained.
(3) A station shall keep and preserve, for a period of six months after the end of the period to which they relate, records from which the information set out in subsection 8(2) can be readily ascertained.
(4) A collective society may audit the records referred to in subsections (1) and (2) at any time during the period set out therein, on reasonable notice and during normal business hours. The collective society shall, upon receipt, supply a copy of the report of the audit to the station that was the object of the audit and to the other collective societies.
(5) Any of CSI, Connect, SOPROQ and Artisti may audit the records referred to in subsection (3) at any time during the period set out therein, on reasonable notice and during normal business hours. The collective society shall, upon receipt, supply a copy of the report of the audit to the station that was the object of the audit and may also supply a copy of the report to one or more of the other collective societies on request.
(6) If an audit discloses that royalties due have been understated in any month by more than 10 per cent, the station shall pay the reasonable costs of the audit within 30 days of the demand for such payment.
Confidentiality
12. (1) Subject to subsections (2), (3) and (4), information received from a station pursuant to this tariff shall be treated in confidence, unless the station that supplied the information consents in writing and in advance to each proposed disclosure of the information.
(2) Information referred to in subsection (1) may be shared
- (a) amongst the collective societies and their service providers to the extent required by the service providers for the service they are contracted to provide;
- (b) with the Copyright Board;
- (c) in connection with proceedings before the Board, if the station had the opportunity to request that it be protected by a confidentiality order;
- (d) to the extent required to effect the distribution of royalties, with royalty claimants; or
- (e) if required by law.
(3) Where confidential information is shared with service providers as per paragraph (2)(a), those service providers shall sign a confidentiality agreement which shall be shared with the affected station prior to the release of the information.
(4) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the station that supplied the information and who is not under an apparent duty of confidentiality to that station with respect to the supplied information.
Adjustments
13. Adjustments in the amount of royalties owed (including excess payments), as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.
Interest on Late Payments
14. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
Addresses for Notices, etc.
15. (1) Anything addressed to SOCAN shall be sent to 41 Valleybrook Drive, Toronto, Ontario M3B 2S6, email: licence@socan.ca, fax number: 416-445-7108, or to any other address, email address or fax number of which a station has been notified in writing.
(2) Anything addressed to Re:Sound shall be sent to 1235 Bay Street, Suite 900, Toronto, Ontario M5R 3K4, email: radio@resound.ca, fax number: 416-962-7797, or to any other address, email address or fax number of which a station has been notified in writing.
(3) Anything addressed to CSI shall be sent to 1470 Peel Street, Tower B, Suite 1010, Montréal, Quebec H3A 1T1, email: csi@cmrrasodrac.ca, fax number: 514-845-3401, or to any other address, email address or fax number of which a station has been notified in writing.
(4) Anything addressed to Connect shall be sent to 85 Mowat Avenue, Toronto, Ontario M6K 3E3, email: radioreproduction@connectmusic.ca, fax number: 416-967-9415, or to any other address, email address or fax number of which a station has been notified in writing.
(5) Anything addressed to SOPROQ shall be sent to 6420 Saint-Denis Street, Montréal, Quebec H2S 2R7, email: radioreproduction@soproq.org, fax number: 514-842-7762, or to any other address, email address or fax number of which a station has been notified in writing.
(6) Anything addressed to Artisti shall be sent to 1441 René-Lévesque Boulevard W, Suite 400, Montréal, Quebec H3G 1T7, email: radiorepro@uda.ca, fax number: 514-288-7875, or to any other address, email address or fax number of which a station has been notified in writing.
(7) Anything addressed to a station shall be sent to the last address, email address or fax number of which a collective society has been notified in writing.
Delivery of Notices and Payments
16. (1) Royalties payable to Connect/SOPROQ are paid to Connect. All other information to which Connect/SOPROQ is entitled pursuant to this tariff is delivered to Connect and SOPROQ separately.
(2) A notice may be delivered by file transfer protocol (FTP), by hand, by postage-paid mail, by email or by fax. A payment must be delivered by hand, by postage-paid mail, or by electronic bank transfer (EBT), provided that the associated reporting is provided concurrently to the collective society by email.
(3) Information set out in sections 8 and 10 shall be sent by email.
(4) Anything mailed in Canada shall be presumed to have been received four business days after the day it was mailed.
(5) Anything sent by fax, email, FTP or EBT shall be presumed to have been received the day it was transmitted.
B. Non-Commercial Radio Other than the Canadian Broadcasting Corporation
For a licence to perform over the air or over the Internet, at any time and as often as desired in the years 2019-2020, for private and domestic use, any or all of the works in SOCAN's repertoire by a non-commercial AM, FM or Internet-only radio station other than a station of the Canadian Broadcasting Corporation, the fee payable is 1.9 per cent of the station's gross operating costs in the year covered by the licence. For greater certainty, "the station's gross operating costs" includes its gross Internet operating costs.
No later than January 31 of the year covered by the licence, the licensee shall pay the estimated fee owing for that year. The payment shall be accompanied by a report of the station's actual gross operating costs for the previous year. The fee is subject to adjustment when the actual gross operating costs for the year covered by the licence have been determined and reported to SOCAN.
If broadcasting takes place for less than the entire year, an application must be made for a licence by the end of the first month of broadcasting on the form to be supplied by SOCAN and, together with the application form, the station shall forward its remittance for the estimated fee payable.
For the purpose of this tariff item, "non-commercial AM, FM or Internet-only radio station" shall include any station that is non-profit or not-for-profit, whether or not any part of its operating expenses is funded by advertising revenues.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff 1.B does not apply to the use of music covered by Tariff 26 [the Pay Audio Services Tariff].
C. Canadian Broadcasting Corporation
Short Title
1. This tariff may be cited as the SOCAN-Re:Sound CBC Radio Tariff, 2019.
Application
2. This tariff sets the royalties to be paid by CBC for the communication to the public by telecommunication, in Canada, for private or domestic use, of musical works in the repertoire of SOCAN and of published sound recordings embodying musical works and performers' performances of such works in the repertoire of Re:Sound, by over-the-air radio broadcasting and by simulcasting of an over-the-air radio signal.
Royalties
3. (1) CBC shall pay, per month, on the first day of each month, $157,118.47 plus 4.4 per cent of any "gross income" in connection with the above uses for the reference month, as that term is defined in SOCAN Tariff 1.A (Commercial Radio), to SOCAN and (…) to Re:Sound.
(2) The royalties set in subsection (1) are exclusive of any applicable federal, provincial or other governmental taxes or levies of any kind.
Interest on Late Payments
4. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
Music Use Information
5. (1) Each month, CBC shall provide to both SOCAN and Re:Sound the following information in respect of each musical work, or part thereof, and each sound recording embodying a musical work, or part thereof, broadcast by each of CBC's conventional radio stations, as may be applicable:
- (a) the date, time, duration of the broadcast of the musical work and sound recording, and the type of broadcast (e.g. local, regional);
- (b) the title of the work and the name of its author, composer and arranger;
- (c) the type of usage (e.g. feature, theme, background);
- (d) the title and catalogue number of the album, the name of the main performer or performing group and the record label, and whether the track performed is a published sound recording;
- (e) the name of the program, station (including call letters) and location of the station on which the musical work or sound recording was broadcast; and
- (f) where possible, the International Standard Musical Work Code (ISWC) of the work, the Universal Product Code (UPC) of the album, the International Standard Recording Code (ISRC) of the sound recording, the names of all of the other performers (if applicable), the duration of the musical work and sound recording as listed on the album and the track number on the album.
(2) The information set out in subsection (1) shall be provided electronically, in Excel format or in any other format agreed upon by SOCAN, Re:Sound and CBC, with a separate field for each piece of information required in paragraphs (a) to (f), no later than 15 days after the end of the month to which it relates.
Tariff No. 2
TELEVISION
A. Commercial Television Stations
Definitions
1. In this tariff,
"ambient music" means music unavoidably picked up in the background when an event is videotaped or broadcasted. (« musique ambiante »)
"cleared music" means any music, other than ambient music or production music, in respect of which a station does not require a licence from SOCAN. (« musique affranchie »)
"cleared program" means
- (a) if the only cleared music contained in the program is music that was cleared before 60 days after the publication of this tariff, a program containing no music other than cleared music, ambient music or production music; and
- (b) if not, a program produced by a Canadian programming undertaking and containing no music other than cleared music, ambient music or production music. (« émission affranchie »)
"gross income" means the gross amounts paid by any person for the use of one or more broadcasting services or facilities provided by the station's operator, whether such amounts are paid to the station owner or operator or to other persons, excluding the following:
- (a) any such amounts received by a person other than the operator or owner of the station which form part of the base for calculation of the SOCAN royalty payable by such other person under this or another tariff;
- (b) income accruing from investments, rents or any other business unrelated to the station's broadcasting activities. However, income accruing from any allied or subsidiary business that is a necessary adjunct to the station's broadcasting services and facilities or which results in their being used shall be included in the "gross income";
- (c) amounts received for the production of a program that is commissioned by someone other than the licensee and which becomes the property of that person;
- (d) the recovery of any amount paid to obtain the exclusive national or provincial broadcast rights to a sporting event, if the licensee can establish that the station was also paid normal fees for station time and facilities. SOCAN may require the production of the contract granting these rights together with the billing or correspondence relating to the use of these rights by other parties; and
- (e) amounts received by an originating station acting on behalf of a group of stations which do not constitute a permanent network and which broadcast a single event, simultaneously or on a delayed basis, that the originating station pays out to the other stations participating in the broadcast. These amounts paid to each participating station are part of that station's "gross income." (« revenus bruts »)
"production music" means music contained in interstitial programming such as commercials, public service announcements and jingles. (« musique de production »)
"programming undertaking" means a programming undertaking as defined in the Broadcasting Act, S.C. 1991, c. 11. (« entreprise de programmation »)
Application
2. (1) This tariff applies to licences for the communication to the public by telecommunication by a broadcast television station, at any time and as often as desired, in the years 2019 and 2020, for private or domestic use, of any or all of the works in SOCAN's repertoire.
(2) This tariff does not apply to stations owned and operated by the Canadian Broadcasting Corporation or licensed under a different tariff.
Election of Licence
3. (1) A station can elect for the standard or modified blanket licence.
(2) A station's election must be in writing and must be received by SOCAN at least 30 days before the first day of the month for which the election is to take effect.
(3) A station's election remains valid until it makes a further election.
(4) A station can make no more than two elections in a calendar year.
(5) A station that has never made an election is deemed to have elected for the standard blanket licence.
Standard Blanket Licence
4. (1) A station that has elected for the standard blanket licence shall pay 1.9 per cent of the station's gross income for the second month before the month for which the licence is issued.
(2) No later than the day before the first day of the month for which the licence is issued, the station shall pay the fee, and report the station's gross income for the second month before the month for which the licence is issued.
Modified Blanket Licence (MBL)
5. (1) A station that has elected for the modified blanket licence shall pay the amount calculated in accordance with Form A (found at the end of this Supplement).
(2) No later than the last day of the month after the month for which the licence is issued, the station shall
- (a) provide to SOCAN, using Form A, a report of the calculation of its licence fee;
- (b) provide to SOCAN, using Form B (found at the end of this Supplement), reports identifying, in respect of each cleared program, the music used in that program;
- (c) provide to SOCAN any document supporting its claim that the music identified in Form B is cleared music, or a reference to that document, if the document was provided previously; and
- (d) pay the amount payable pursuant to subsection (1).
Audit Rights
6. SOCAN shall have the right to audit any licensee's books and records, on reasonable notice and during normal business hours, to verify the statements and reports rendered and the fee payable by the licensee.
MBL: Incorrect Cleared Program Claims
7. Amounts paid pursuant to lines C and D of Form A on account of a program that a station incorrectly claimed as a cleared program are not refundable.
B. Ontario Educational Communications Authority
For a licence to perform, at any time and as often as desired in the years 2019 and 2020, for private or domestic use, any or all of the works in SOCAN's repertoire by
- (a) a station operated by the Ontario Educational Communications Authority; and
- (b) the websites and other technological platforms (e.g. Internet, iPod, mobile phones, iPad) operated by the Authority, the annual fee is $360,096 payable in equal quarterly instalments on January 1, April 1, July 1 and October 1 of the year covered by the licence.
Tariff 2.B does not apply to the use of music covered under Tariff 17.
C. Société de télédiffusion du Québec
For a licence to perform, at any time and as often as desired in the years 2019 and 2020, for private or domestic use, any or all of the works in SOCAN's repertoire by
- (a) a station operated by the Société de télédiffusion du Québec (STQ); and
- (b) the websites and other technological platforms (e.g. Internet, iPod, mobile phones, iPad) operated by the STQ, i.e. uses that would otherwise be the subject of SOCAN Tariff 22.E, the annual fee is $216,000 payable in equal quarterly instalments on March 31, June 30, September 30 and December 15 of the year covered by the licence.
Tariff 2.C does not apply to the use of music covered under Tariff 17.
D. Canadian Broadcasting Corporation
For a licence to perform, at any time and as often as desired in the year 2019, for private or domestic use, any or all of the works in SOCAN's repertoire for all broadcasts of programs by the television network and stations owned and operated by the Canadian Broadcasting Corporation, the annual fee shall be $8,273,699.65, payable in equal monthly instalments on the first day of each month, commencing January 1 of the year for which the licence is issued.
Tariff 2.D does not apply to the use of music covered under Tariff 17 or Tariff 22.
Tariff No. 3
CABARETS, CAFES, CLUBS, COCKTAIL BARS, DINING ROOMS, LOUNGES, RESTAURANTS, ROADHOUSES, TAVERNS AND SIMILAR ESTABLISHMENTS
A. Live Music
For a licence to perform, by means of performers in person, at any time and as often as desired in the year 2019, any or all of the works in SOCAN's repertoire, in cabarets, cafes, clubs, cocktail bars, dining rooms, lounges, restaurants, roadhouses, taverns and similar establishments, the fee payable by the establishment is 3 per cent of the compensation for entertainment paid in the year covered by the licence, subject to a minimum annual fee of $89.76.
"Compensation for entertainment" means the total amounts paid by the licensee to, plus any other compensation received by, musicians, singers and all other performers, for entertainment of which live music forms part. It does not include expenditures for stage props, lighting equipment, set design and costumes, or expenditures for renovation, expansion of facilities or furniture and equipment.
No later than January 31 of the year covered by the licence, the licensee shall pay to SOCAN the estimated fee owing for that year, as follows. If any music was performed as part of entertainment in the previous year, the payment is based on the compensation paid for entertainment during that year, and accompanied by a report of the actual compensation paid for entertainment during that year. If no music was performed as part of entertainment in that year, the licensee shall file a report estimating the expected compensation for entertainment during the year covered by the licence and pay according to that report.
No later than January 31 of the following year, the licensee shall file with SOCAN a report of the actual compensation paid for entertainment during the previous year and an adjustment of the licence fee shall be made accordingly. Any monies owed shall then be paid to SOCAN; if the fee due is less than the amount paid, SOCAN shall credit the licensee with the amount of the overpayment.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
B. Recorded Music Accompanying Live Entertainment
[This tariff was previously filed in 2017 for the years 2018-2020.]
C. Adult Entertainment Clubs
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 4
LIVE PERFORMANCES AT CONCERT HALLS, THEATRES AND OTHER PLACES OF ENTERTAINMENT
A. Popular Music Concerts
1. Per Event Licence
For a licence to perform, by means of performers in person at a concert in the year 2019, any or all of the works in SOCAN's repertoire, at concert halls, theatres and other places where entertainment is presented, including open-air events, the fee payable per concert is as follows:
- (a) 3 per cent of gross receipts from ticket sales of paid concerts, exclusive of any applicable taxes, with a minimum fee per concert of $35; or
- (b) 3 per cent of fees paid to singers, musicians, dancers, conductors and other performers during a free concert, with a minimum fee per concert of $35.
For greater certainty, Tariff 4.A.1 applies to the performance of musical works by lip synching or miming.
"Free concert" includes, with respect to festivals, celebrations and other similar events, a concert for which no separate admission charge is made.
"Performers" include DJs when they are the featured performer and their identity forms part of material used to promote the event.
Administrative Provisions
No later than 30 days after the concert, the licensee shall
- (a) pay the royalties due for the concert;
- (b) report the gross receipts from the ticket sales or the total fees paid to the performers, including all singers, musicians, dancers, conductors, and other performers, as may be applicable;
- (c) provide the legal names, addresses and telephone numbers of the concert promoters, if any, and the owners of the venue where the concert took place (if other than the licensee);
- (d) provide the name of the act(s) at the concert, if available; and
- (e) provide the title of each musical work performed, if available.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff 4.A.1 does not apply to performances covered under Tariff 3.A or Tariff 22.
2. Annual Licence
For an annual licence to perform, by means of performers in person at a concert in the year 2019, any or all of the works in SOCAN's repertoire, at concert halls, theatres and other places where entertainment is presented, including open-air events, the fee payable per concert is as follows:
- (a) 3 per cent of gross receipts from ticket sales of paid concerts, exclusive of any applicable taxes, with a minimum annual fee of $60; or
- (b) 3 per cent of fees paid to singers, musicians, dancers, conductors and other performers during a free concert, with a minimum annual fee of $60.
For greater certainty, Tariff 4.A.2 applies to the performance of musical works by lip synching or miming.
"Free concert" includes, with respect to festivals, celebrations and other similar events, a concert for which no separate admission charge is made.
"Performers" include DJs when they are the featured performer and their identity forms part of material used to promote the event.
Administrative Provisions
No later than 30 days after each concert, the licensee shall
- (a) provide the legal names, addresses and telephone numbers of the concert promoters, if any, and of the owners of the venue where the concert took place (if other than the licensee);
- (b) provide the name of the act(s) at the concert, if available; and
- (c) provide the title of each musical work performed, if available.
The licensee shall estimate the fee payable for the year for which the licence is issued, based on the total gross receipts/fees paid for the previous year, and shall pay such estimated fee to SOCAN on or before January 31 of the year for which the licence is issued. Payment of the fee shall be accompanied by a report of the gross receipts/fees paid for the previous year.
If the gross receipts/fees paid reported for the previous year were not based on the entire year, payment of this fee shall be accompanied by a report estimating the gross receipts/fees paid for the entire year for which the licence is issued.
On or before January 31 of the following year, a report shall be made of the actual gross receipts/fees paid during the calendar year for which the licence is issued, an adjustment of the licence fee payable to SOCAN shall be made, and any additional fees due on the basis of the actual gross receipts/fees paid. If the fee due is less than the amount paid, SOCAN shall credit the licensee with the amount of the overpayment.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff 4.A.2 does not apply to performances covered under Tariff 3.A or Tariff 22.
B. Classical Music Concerts
1. Per Concert Licence
For a licence to perform, by means of performers in person at a concert in the year 2019, any or all of the works in SOCAN's repertoire, at concerts or recitals of classical music, the fee payable per concert is as follows:
- (a) 1.56 per cent of gross receipts from ticket sales of paid concerts, exclusive of any applicable taxes, with a minimum fee per concert of $35; or
- (b) 1.56 per cent of fees paid to singers, musicians, dancers, conductors and other performers during a free concert, with a minimum fee per concert of $35.
For greater certainty, Tariff 4.B.1 applies to the performance of musical works by lip synching or miming.
"Free concert" includes, with respect to festivals, celebrations and other similar events, a concert for which no separate admission charge is made.
Administrative Provisions
No later than 30 days after the concert, the licensee shall
- (a) pay the royalties due for the concert;
- (b) report the gross receipts from the ticket sales or the total fees paid to the performers, including all singers, musicians, dancers, conductors, and other performers, as may be applicable;
- (c) provide the legal names, addresses and telephone numbers of the concert promoters, if any, and of the owners of the venue where the concert took place (if other than the licensee);
- (d) provide the name of the act(s) at the concert, if available; and
- (e) provide the title of each musical work performed, if available.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
2. Annual Licence for Orchestras
For an annual licence to perform, at any time and as often as desired in the year 2019, any or all of the works in SOCAN's repertoire, as live performances by orchestras (including singers), at concerts or recitals of classical music, an annual fee calculated in accordance with the following is payable in semi-annual instalments by no later than January 31 and July 31:
Annual Orchestra Budget | Annual Fee × Total Number of Concerts |
---|---|
$0 to $100,000 | $73 |
$100,001 to $500,000 | $117 |
$500,001 to $1,000,000 | $191 |
$1,000,001 to $2,000,000 | $238 |
$2,000,001 to $5,000,000 | $398 |
$5,000,001 to $10,000,000 | $436 |
Over $10,000,000 | $477 |
"Orchestras" include a musical group which offers to the public one or more series of concerts or recitals that have been predetermined in an annual budget.
Included in the "total number of concerts" are the ones where no work of SOCAN's repertoire is performed.
Where fees are paid under this tariff, no fees shall be payable under Tariff 4.B.1.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
3. Annual Licence for Presenting Organizations
For an annual licence to perform, by means of performers in person at a concert in the year 2019, any or all of the works in SOCAN's repertoire during a series of concerts or recitals of classical music forming part of an artistic season of a presenting organization, the fee payable per concert is as follows:
0.96 per cent of gross receipts from ticket sales, subscription and membership revenues, for all concerts (including concerts where no work of SOCAN's repertoire is performed), exclusive of any applicable taxes, with a minimum annual fee of $35.
Where a series of concerts and recitals forming part of a presenting organization's artistic season is free of charge, the fee payable is as follows:
0.96 per cent of fees paid to singers, musicians, dancers, conductors, and other performers, for all concerts (including concerts where no work of SOCAN's repertoire is performed) in the series, with a minimum annual fee of $35.
For greater certainty, Tariff 4.B.3 applies to the performance of musical works by lip synching or miming.
No later than 30 days after each concert, the licensee shall
- (a) provide the legal names, addresses and telephone numbers of the concert promoters, if any, and of the owners of the venue where the concert took place (if other than the licensee);
- (b) provide the name of the act(s) at the concert, if available; and
- (c) provide the title of each musical work performed, if available.
No later than January 31 of the year for which the licence is issued, the licensee shall file with SOCAN a report estimating the gross receipts from ticket sales, subscription and membership revenues for that year. For a series of free concerts and recitals, the licensee shall file a report estimating the fees paid to singers, musicians, dancers, conductors, and other performing artists for all concerts in the series. If the estimated payment is $100 or less, payment shall accompany the report. Otherwise, payments based on the report's estimate shall be made quarterly within 30 days of the end of each quarter.
No later than January 31 of the following year, the licensee shall file with SOCAN a report of the actual gross receipts from ticket sales, subscription and membership revenues or, for a series of free concerts and recitals, the fees paid to singers, musicians, dancers, conductors and other performing artists, during the year for which the licence is issued, and an adjustment of the licence fee shall be paid to SOCAN. Any amount due shall accompany the report; if the fee due is less than the amount paid, SOCAN shall credit the licensee with the amount of the overpayment.
Where fees are paid under this tariff, no fees shall be payable under Tariff 4.B.1.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff No. 5
EXHIBITIONS AND FAIRS
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 6
MOTION PICTURE THEATRES
For a licence to perform, at any time and as often as desired in the year 2019, any or all of the works in SOCAN's repertoire, covering the operations of a motion picture theatre or any establishment exhibiting motion pictures at any time during the year, the annual fee is as follows:
0.25 per cent of gross receipts from ticket sales, exclusive of any applicable taxes, with a minimum annual fee of $300 per screen.
A licence obtained under this tariff does not authorize any concert or other performance of music when the exhibition of one or more films is not an integral part of the program. The fees for those performances shall be calculated under other applicable tariffs.
The licensee shall estimate the fee payable for the year for which the licence is issued, based on the total gross receipts from ticket sales for the previous year, and shall pay such estimated fee to SOCAN on or before January 31 of the year for which the licence is issued. Payment of the fee shall be accompanied by a report of the gross receipts from ticket sales for the previous year.
If the gross receipts from ticket sales reported for the previous year were not based on the entire year, payment of this fee shall be accompanied by a report estimating the gross receipts/fees paid for the entire year for which the licence is issued.
On or before January 31 of the following year, a report shall be made of the actual gross receipts from ticket sales during the calendar year for which the licence is issued, an adjustment of the licence fee payable to SOCAN shall be made, and any additional fees due on the basis of the actual gross receipts/fees paid. If the fee due is less than the amount paid, SOCAN shall credit the licensee with the amount of the overpayment.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff No. 7
SKATING RINKS
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 8
RECEPTIONS, CONVENTIONS, ASSEMBLIES AND FASHION SHOWS
For a licence to perform, at any time and as often as desired in the years 2019-2020, any or all of the works in SOCAN's repertoire as part of events at receptions, conventions, assemblies and fashion shows, the fee payable for each event, or for each day on which a fashion show is held, is as follows:
Room Capacity (seating and standing) |
Fee per Event | |
---|---|---|
Without Dancing | With Dancing | |
1–100 | $22.06 | $44.13 |
101–300 | $31.72 | $63.49 |
301–500 | $66.19 | $132.39 |
Over 500 | $93.78 | $187.55 |
No later than 30 days after the end of each quarter, the licensee shall file with SOCAN a report for that quarter of the actual number of events with and without dancing and of the number of days on which a fashion show was held. The report shall also include the room capacity (seating and standing) authorized under the establishment's liquor licence or any other document issued by a competent authority for this type of establishment, and payment of the licence fees.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff No. 9
SPORTS EVENTS
For a licence to perform, at any time and as often as desired for the year 2019, any or all of the works in SOCAN's repertoire, by means of performers in person or by means of recorded music, in connection with baseball, football, hockey, basketball, skating competitions, races, track meets and other sports events, the fee payable per event shall be 0.1 per cent of gross receipts from ticket sales, exclusive of sales and amusement taxes.
The fee payable for an event to which the admission is free is $5.
A complimentary ticket is valued at half the lowest price paid for a sold ticket from the same ticket category in the same event.
No later than 30 days after the end of each quarter, the licensee shall file with SOCAN a report for that quarter of the actual number of events, together with payment of the licence fees.
A licence to which Tariff 9 applies does not authorize performances of music at opening and closing events for which an additional admission charge is made; for such events, Tariff 4 shall apply.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff No. 10
PARKS, PARADES, STREETS AND OTHER PUBLIC AREAS
A. Strolling Musicians and Buskers; Recorded Music
[This tariff was previously filed in 2017 for the years 2018-2020.]
B. Marching Bands; Floats with Music
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 11
CIRCUSES, ICE SHOWS, FIREWORKS DISPLAYS, SOUND AND LIGHT SHOWS AND SIMILAR EVENTS; COMEDY SHOWS AND MAGIC SHOWS
A. Circuses, Ice Shows, Fireworks Displays, Sound and Light Shows and Similar Events
[This tariff was previously filed in 2017 for the years 2018-2020.]
B. Comedy Shows and Magic Shows
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 12
THEME PARKS, ONTARIO PLACE CORPORATION AND SIMILAR OPERATIONS; PARAMOUNT CANADA'S WONDERLAND AND SIMILAR OPERATIONS
A. Theme Parks, Ontario Place Corporation and Similar Operations
[This tariff was previously filed in 2017 for the years 2018-2020.]
B. Paramount Canada's Wonderland Inc. and Similar Operations
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 13
PUBLIC CONVEYANCES
A. Aircraft
[This tariff was previously filed in 2017 for the years 2018-2020.]
B. Passenger Ships
[This tariff was previously filed in 2017 for the years 2018-2020.]
C. Railroad Trains, Buses and Other Public Conveyances, Excluding Aircraft and Passenger Ships
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 14
PERFORMANCE OF AN INDIVIDUAL WORK
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 15
BACKGROUND MUSIC IN ESTABLISHMENTS NOT COVERED BY TARIFF NO. 16
A. Background Music
For a licence to perform recorded music forming part of SOCAN's repertoire, by any means, including a television set, and at any time and as often as desired in 2019, any or all of the works in SOCAN's repertoire, in an establishment not covered by Tariff 16, the annual fee is $1.53 per square metre or 14.28¢ per square foot, payable no later than January 31 of the year covered by the licence.
If no music is performed in January of the first year of operation, the fee shall be prorated on a monthly basis, calculated from the month in which music was first performed, and shall be paid within 30 days of the date on which music was first performed.
Seasonal establishments operating less than six months per year shall pay half the above-mentioned rate.
In all cases, a minimum annual fee of $117.75 shall apply.
The payment shall be accompanied by a report showing the area of the establishment.
This tariff does not cover the use of music expressly covered in other tariffs, including performances covered under Tariff 8.
Pursuant to subsection 69(2) of the Copyright Act, no royalties are collectable from the owner or user of a radio receiving set in respect of public performances effected by means of that radio receiving set in any place other than a theatre that is ordinarily and regularly used for entertainments to which an admission charge is made.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
B. Telephone Music on Hold
For a licence to communicate to the public by telecommunication over a telephone on hold, at any time and as often as desired in 2019, any or all of the works in SOCAN's repertoire, in an establishment not covered by Tariff 16, the fee payable is as follows:
$117.75 for one trunk line, plus $2.60 for each additional trunk line.
For the purposes of this tariff, "trunk line" means a telephone line linking the licensee's telephone switching equipment to the public telephone system and over which music is provided to a caller while on hold.
No later than January 31 of the year covered by the licence, the licensee shall pay the applicable fee to SOCAN and report the number of trunk lines.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Where fees are paid under Tariff 16, subsection 3(2), no fees shall be payable under Tariff 15.
Tariff No. 16
BACKGROUND MUSIC SUPPLIERS
Definitions
1. In this tariff,
"quarter" means from January to March, from April to June, from July to September and from October to December. (« trimestre »)
"revenues" means any amount paid by a subscriber to a supplier. (« recettes »)
"small cable transmission system" has the meaning attributed to it in sections 3 and 4 of the Definition of "Small Cable Transmission System" Regulations, SOR/94-755 (Canada Gazette, Part II, Vol. 128, page 4096), amended by SOR/2005-148 (Canada Gazette, Part II, Vol. 139, page 1195). (« petit système de transmission par fil »)
"supplier" means a background music service supplier. (« fournisseur »)
Application
2. (1) This tariff sets the royalties payable in 2019 by a supplier who communicates to the public by telecommunication works in SOCAN's repertoire or authorizes a subscriber to perform such works in public as background music, including making such works available to the public by telecommunication in a way that allows a member of the public to have access to them from a place and at a time individually chosen by that member of the public, and including any use of music with a telephone on hold or by means of a television set.
(2) This tariff does not cover the use of music expressly covered in other tariffs, including performances covered under SOCAN Tariffs 8 and 19 and the Pay Audio Services Tariff.
Royalties
3. (1) Subject to subsection (4), a supplier who communicates a work in SOCAN's repertoire during a quarter pays to SOCAN 2.25 per cent of revenues from subscribers who received such a communication during the quarter, subject to a minimum fee of $1.75 per relevant premises.
(2) Subject to subsections (3) and (4), a supplier who authorizes a subscriber to perform in public a work in SOCAN's repertoire during a quarter pays to SOCAN 7.5 per cent of revenues from subscribers so authorized during the quarter, subject to a minimum fee of $5.85 per relevant premises.
(3) A supplier who authorizes a subscriber to perform in public a work in SOCAN's repertoire is not required to pay the royalties set out in subsection (2) to the extent that the subscriber complies with SOCAN Tariff 15.
(4) Royalties payable by a small cable transmission system are reduced by half.
Reporting Requirements
4. (1) No later than 60 days after the end of the quarter, the supplier shall pay the royalty for that quarter and shall report the information used to calculate the royalty.
(2) A supplier subject to subsection 3(1) shall provide with its payment the sequential lists of all musical works transmitted on the last seven days of each month of the quarter. Each entry shall mention the date and time of transmission, the title of the musical work, the name of the author and the composer of the work, the name of the performer or of the performing group, the running time, in minutes and seconds, the title of the record album, the record label, the Universal Product Code (UPC) and the International Standard Recording Code (ISRC).
(3) The information set out in subsection (2) is provided only if it is available to the supplier or to a third party from whom the supplier is entitled to obtain the information.
(4) A supplier subject to subsection 3(1) is not required to comply with subsection (2) with respect to any signal that is subject to the Pay Audio Services Tariff.
(5) A supplier subject to subsection 3(2) shall provide with its payment the name of each subscriber and the address of each premises for which the supplier is making a payment.
(6) Information provided pursuant to this section shall be delivered electronically, in plain text format or in any other format agreed upon by SOCAN and a supplier.
(7) A small cable transmission system is not required to comply with subsections (2) to (4).
Records and Audits
5. SOCAN shall have the right to audit the supplier's books and records, on reasonable notice during normal business hours, to verify the statements rendered and the fee payable by the supplier.
Confidentiality
6. (1) Subject to subsections (2) and (3), SOCAN shall treat in confidence information received pursuant to this tariff, unless the person who supplied the information consents in writing to the information being treated otherwise.
(2) SOCAN may share information referred to in subsection (1)
- (a) with the Copyright Board;
- (b) in connection with proceedings before the Copyright Board, if the supplier had the opportunity to request a confidentiality order;
- (c) to the extent required to effect the distribution of royalties, with any other collective society or with any royalty claimant; or
- (d) if required by law or by a court of law.
(3) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than a supplier and who is not under an apparent duty of confidentiality to the supplier.
Tariff No. 17
TRANSMISSION OF PAY, SPECIALTY AND OTHER TELEVISION SERVICES BY DISTRIBUTION UNDERTAKINGS
Definitions
1. In this tariff,
"affiliation payment" means the amount payable by a distribution undertaking to a programming undertaking for the right to carry the signal of the programming undertaking. (« paiement d'affiliation »)
"ambient music" means music unavoidably picked up in the background when an event is videotaped or broadcasted. (« musique ambiante »)
"cleared music" means any music, other than ambient music or production music, in respect of which a licence from SOCAN is not required. (« musique affranchie »)
"cleared program" means a program produced by a Canadian programming undertaking and containing no music other than cleared music, ambient music or production music. (« émission affranchie »)
"distribution undertaking" means a distribution undertaking as defined in the Broadcasting Act, S.C. 1991, c. 11. (« entreprise de distribution »)
"gross income" means the gross amount paid by any person for the use of one or more broadcasting services or facilities provided by a programming undertaking, excluding the following:
- (a) income accruing from investments, rents or any other business unrelated to the broadcasting activities of the programming undertaking. However, income accruing from any allied or subsidiary business that is a necessary adjunct to the broadcasting services and facilities of the programming undertaking or which results in their being used shall be included in the "gross income";
- (b) amounts received for the production of a program that is commissioned by someone other than the programming undertaking and which becomes the property of that person;
- (c) the recovery of any amount paid to obtain the exclusive national or provincial broadcast rights to a sporting event, if the programming undertaking can establish that it was also paid normal fees for its time and facilities. SOCAN may require the production of the contract granting these rights together with the billing or correspondence relating to the use of these rights by other parties;
- (d) amounts received by an originating programming undertaking acting on behalf of a group of programming undertakings, which do not constitute a permanent network and which broadcast a single event, simultaneously or on a delayed basis, that the originating undertaking pays out to the other programming undertakings participating in the broadcast. These amounts paid to each participating undertaking are part of that undertaking's "gross income"; and
- (e) affiliation payments. (« revenus bruts »)
"premises" has the meaning attributed to it in section 2 of the Regulations, which reads:
"‘premises' means
- (a) a dwelling, including a single-unit residence or a single unit within a multiple-unit residence; or
- (b) a room in a commercial or institutional building." (« local »)
"production music" means music contained in interstitial programming such as commercials, public service announcements and jingles. (« musique de production »)
"programming undertaking" means a programming undertaking as defined in the Broadcasting Act. (« entreprise de programmation »)
"Regulations" means the Definition of "Small Cable Transmission System" Regulations, SOR/94-755 (Canada Gazette, Part II, Vol. 128, page 4096), amended by SOR/2005-148 (Canada Gazette, Part II, Vol. 139, page 1195). (« Règlement »)
"relevant month" means the month for which the royalties are payable. (« mois pertinent »)
"service area" has the meaning attributed to it in section 2 of the Regulations, which reads:
"‘service area' means an area in which premises served in accordance with the laws and regulations of Canada by a cable transmission system are located." (« zone de service »)
"signal" means a television signal, other than a signal within the meaning of subsection 31(1) of the Copyright Act retransmitted in accordance with subsection 31(2) of the Copyright Act. "Signal" includes the signals of Canadian pay and specialty services, non-Canadian specialty services, community channels, and other programming and non-programming services. (« signal »)
"small cable transmission system" has the meaning attributed to it in sections 3 and 4 of the Regulations, which read:
"3. (1) Subject to subsections (2) to (4) and section 4, ‘small cable transmission system' means a cable transmission system that transmits a signal, with or without a fee, to not more than 2 000 premises in the same service area.
(2) For the purpose of subsection (1), where a cable transmission system is included in the same unit as one or more other cable transmission systems, the number of premises to which the cable transmission system transmits a signal is deemed to be equal to the total number of premises to which all cable transmission systems included in that unit transmit a signal.
(3) For the purpose of subsection (2), a cable transmission system is included in the same unit as one or more other cable transmission systems where
(a) they are owned or directly or indirectly controlled by the same person or group of persons; and
(b) their service areas are each less than 5 km distant, at some point, from at least one other among them, and those service areas would constitute a series of contiguous service areas, in a linear or non-linear configuration, were it not for the distance.
(4) Subsection (2) does not apply to a cable transmission system that was included in a unit on December 31, 1993.
4. The definition set out in subsection 3(1) does not include a cable transmission system that is a master antenna system located within the service area of another cable transmission system that transmits a signal, with or without a fee, to more than 2 000 premises in that service area." (« petit système de transmission par fil »)
"TVRO" means a Television Receive Only Earth Station designed for the reception of signals transmitted by satellite. (« TVRO »)
"year" means a calendar year. (« année »)
2. For the purposes of this tariff, a cable transmission system shall be deemed to be a small cable transmission system in a given year if
(a) it is a small cable transmission system on the later of December 31 of the preceding year or the last day of the month in which it first transmits a signal in the year; or
(b) the average number of premises, determined in accordance with the Regulations, the system served or was deemed to serve on the last day of each month during the preceding year was no more than 2 000.
Application
3. (1) This tariff applies to licences for the communication to the public by telecommunication, as often as desired during the years 2019 and 2020, of any or all of the works in SOCAN's repertoire, in connection with the transmission of a signal for private or domestic use.
(2) This tariff does not apply to any use of music subject to Tariff 2, 16 or 22.
Small Cable Transmission Systems and Unscrambled Low Power Television Stations
4. (1) The total royalty payable in connection with the transmission of all signals shall be $10 a year where the distribution undertaking is
- (a) a small cable transmission system;
- (b) an unscrambled Low Power Television Station or Very Low Power Television Station (as defined in Sections E and G of Part IV of the Broadcasting Procedures and Rules of Industry Canada effective April 1997); or
- (c) a terrestrial system that performs a function comparable to that of a cable transmission system, that uses Hertzian waves to transmit the signals and that otherwise meets the definition of "small cable transmission system."
(2) The royalty payable pursuant to subsection (1) is due on the later of January 31 of the relevant year or the last day of the month after the month in which the system first transmits a signal in the relevant year.
(3) The following information shall be provided in respect of a system for which royalties are being paid pursuant to subsection (1):
- (a) the number of premises served on the later of December 31 of the preceding year or the last day of the month in which the system first transmitted a signal in the relevant year;
- (b) if the small cable transmission system qualifies as such by virtue of paragraph 3(b) of the Regulations, the number of premises, determined in accordance with the Regulations, the system served or was deemed to serve on the last day of each month during the preceding year;
- (c) if the system is a master antenna system and is located within the service area of another cable transmission system, the name of that other system and a statement to the effect that the other system transmits a signal, with or without a fee, to no more than 2 000 premises in its licensed area; and
- (d) if the system is included in a unit within the meaning of the Regulations,
- (i) the date the system was included in the unit,
- (ii) the names of all the systems included in the unit,
- (iii) the names of the person or group of persons who own or who directly or indirectly control the systems included in the unit, and
- (iv) the nature of the control exercised by these persons.
Other Distribution Undertakings
5. (1) Sections 6 to 15 apply to distribution undertakings that are not subject to section 4.
(2) Unless otherwise provided, for the purposes of sections 6 to 15, any reference to a distribution undertaking, to affiliation payments or to premises served excludes systems subject to section 4 or payments made or premises served by such systems.
Community and Non-Programming Services
6. The total royalty payable in any month in respect of all community channels, non-programming services and other services generating neither affiliation payments nor gross income that are transmitted by a distribution undertaking shall be 0.14 ¢ per premise or TVRO served by the distribution undertaking on the last day of the relevant month.
Election of Licence
7. (1) A programming undertaking other than a service that is subject to section 6 can elect for the standard or modified blanket licence.
(2) An election must be in writing, and must be received by SOCAN at least 30 days before the first day of the month for which the election is to take effect.
(3) An election remains valid until a further election is made.
(4) A programming undertaking can make no more than two elections in a year.
(5) A programming undertaking that has never made an election is deemed to have elected for the standard blanket licence.
Standard Blanket Licence
8. (1) Subject to subsection (2), the monthly royalty payable for the transmission of the signal of a programming undertaking that has elected for the standard blanket licence is
- (a) 1.9 per cent of affiliation payments payable in the relevant month by a distribution undertaking to the programming undertaking; plus
- where
- X is the gross income of the programming undertaking during the relevant month
- Y is the number of premises or TVROs served by the distribution undertaking and lawfully receiving the signal of the programming undertaking on the last day of the relevant month
- Z is the total number of premises or TVROs (including those served by systems subject to section 4) lawfully receiving the signal of the programming undertaking on the last day of the relevant month.
(2) Notwithstanding subsection (1),
- (a) paragraph (1)(b) does not apply to non-Canadian specialty services; and
- (b) the royalty rate is 0.8 per cent if a programming undertaking communicates works for which it requires a licence from SOCAN, excluding production music and cleared music, for less than 20 per cent of the programming undertaking's total air time and keeps and makes available to SOCAN complete recordings of its last 90 broadcast days.
(3) The royalty payable pursuant to subsection (1) is calculated in accordance with Form A if the royalties are being paid by the distribution undertaking, and in accordance with Form B if the royalties are being paid by the programming undertaking.
Modified Blanket Licence (MBL)
9. (1) Subject to subsection (2), the monthly royalty payable for the transmission of the signal of a programming undertaking that has elected for the modified blanket licence is calculated in accordance with Form C.
(2) Notwithstanding subsection (1),
- (a) no account is taken of gross income in calculating the royalty payable in respect of a non-Canadian specialty service; and
- (b) the royalty rate is 0.8 per cent if a programming undertaking
- (i) communicates works for which it requires a licence from SOCAN, excluding production music and cleared music, for less than 20 per cent of the programming undertaking's total air time, excluding the air time of cleared programs, and
- (ii) keeps and makes available to SOCAN complete recordings of its last 90 broadcast days.
Due Date for Royalties
10. Royalties shall be due on the last day of the third month following the relevant month.
Reporting Requirements
11. No later than the last day of the month following the relevant month, a distribution undertaking shall provide to SOCAN and to each programming undertaking whose signal it transmitted during the relevant month
- (a) the number of premises or TVROs served by the distribution undertaking and lawfully receiving the signal on the last day of the relevant month; and
- (b) the amount of the distribution undertaking's affiliation payment for that signal for the relevant month.
12. (1) No later than the last day of the second month following the relevant month, a programming undertaking that does not intend to pay the royalty owed in respect of its signal for the relevant month shall provide to SOCAN and to each distribution undertaking that transmitted its signal during the relevant month
- (a) the number obtained by dividing its gross income for the relevant month by the total number of premises or TVROs (including those served by systems subject to section 4) lawfully receiving its signal on the last day of the relevant month;
- (b) if the programming undertaking has elected for the modified blanket licence, the percentage of its gross income that was generated by cleared programs in the relevant month and the percentage of total air time of cleared programs during that month; and
- (c) if the programming undertaking claims that it complies with paragraph 8(2)(b) or 9(2)(b), a notice to that effect.
(2) A programming undertaking referred to in subsection (1) shall also provide to SOCAN by the date mentioned in subsection (1),
- (a) its gross income during the relevant month;
- (b) the total number of premises or TVROs (including those served by systems subject to section 4) lawfully receiving the signal of the programming undertaking on the last day of the relevant month; and
- (c) the total number of premises or TVROs (excluding those served by systems subject to section 4) lawfully receiving the signal of the programming undertaking on the last day of the relevant month.
13. No later than the last day of the second month following the relevant month, a programming undertaking that has elected for the modified blanket licence shall provide to SOCAN, using Form D, reports identifying, in respect of each cleared program, the music used in that program as well as any document supporting its claim that the music identified in Form D is cleared music, or a reference to that document, if the document was provided previously.
14. (1) A programming undertaking that makes a payment shall provide to SOCAN with its payment the total amount of affiliation payments payable to it for the relevant month and the calculation of the royalty for the relevant month, using the applicable form.
(2) A distribution undertaking that makes a payment shall provide to SOCAN with its payment, for the relevant month and in respect of each programming undertaking whose signal it transmitted during the relevant month,
- (a) the name of the programming undertaking, the name of its signal and the affiliation payment;
- (b) the number of premises or TVROs served by the distribution undertaking and lawfully receiving the signal of the programming undertaking on the last day of the relevant month; and
- (c) the calculation of the royalty, using the applicable form.
MBL: Incorrect Cleared Program Claims
15. Amounts paid pursuant to lines B and C of Form C on account of a program that a programming undertaking incorrectly claimed as a cleared program are not refundable.
Audit
16. SOCAN shall have the right to audit the books and records of a programming undertaking or of a distribution undertaking, on reasonable notice and during normal business hours, to verify the statements rendered and the royalty payable.
Confidentiality
17. (1) Subject to subsections (2) and (3), information received pursuant to this tariff shall be treated in confidence, unless the undertaking that supplied the information consents in writing to the information being treated otherwise.
(2) Information referred to in subsection (1) can be shared
- (a) to comply with this tariff;
- (b) with the Copyright Board;
- (c) in connection with proceedings before the Copyright Board, if the collective society has first provided a reasonable opportunity for the undertaking providing the information to request a confidentiality order;
- (d) to the extent required to effect the distribution of royalties, with a royalty claimant; or
- (e) if ordered by law or by a court of law.
(3) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the undertaking and who is not under an apparent duty of confidentiality to that undertaking.
Interest on Late Payments
18. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
Tariff No. 18
RECORDED MUSIC FOR DANCING
For a licence to perform, by means of recorded music for dancing by patrons, at any time and as often as desired in the years 2019-2020, any or all of the works in SOCAN's repertoire, in bars, cabarets, restaurants, taverns, clubs, dining rooms, discotheques, dance halls, ballrooms and similar premises, the annual fee shall be as follows:
Months of Operation | Days of Operation | |
---|---|---|
1–3 days | 4–7 days | |
6 months or less | $286.85 | $573.69 |
More than 6 months | $573.69 | $1,147.38 |
- (b) Premises accommodating more than 100 patrons:
Premises accommodating between 101 and 120 patrons shall pay 10 per cent more than the fees set out in paragraph (a). For each subsequent capacity increase of up to 20 patrons, a further increase of 10 per cent of the fees set out in paragraph (a) shall be payable.
No later than January 31 of the year covered by the licence, the establishment shall pay the applicable fee to SOCAN and report the room capacity in number of patrons.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
This tariff does not cover the use of music expressly covered in other tariffs, including Tariffs 4 and 8.
Tariff No. 19
PHYSICAL EXERCISES AND DANCE INSTRUCTION
For a licence to perform, at any time and as often as desired in the year 2019, any or all of the works in SOCAN's repertoire, in conjunction with physical exercises (dancercize, aerobics, body building and other similar activities) and dance instruction, the annual fee for each room in which performances take place is $2.50 multiplied by the average number of participants per week in the room, with a minimum annual fee of $74.72.
No later than January 31 of the year covered by the licence, the licensee shall file with SOCAN a statement estimating the average number of participants per week for each room in which performances are expected to take place during the year, together with the payment of the estimated fee.
No later than January 31 of the following year, the licensee shall file with SOCAN a report setting out the actual average number of participants per week for each room in which performances took place during the year covered by the licence. Any monies owed shall then be paid to SOCAN; if the fee due is less than the amount paid, SOCAN shall credit the licensee with the amount of the overpayment.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff No. 20
KARAOKE BARS AND SIMILAR ESTABLISHMENTS
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 21
RECREATIONAL FACILITIES OPERATED BY A MUNICIPALITY, SCHOOL, COLLEGE, UNIVERSITY, AGRICULTURAL SOCIETY OR SIMILAR COMMUNITY ORGANIZATIONS
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 22
INTERNET
A. Online Music Services
[NOTE TO PROSPECTIVE USERS: The Copyright Board rendered its decision concerning SOCAN Tariff 22.A for the years 2011 to 2013 on August 25, 2017. This decision is now the subject of judicial review proceedings before the Federal Court of Appeal. SOCAN files Tariff 22.A for the year 2019 as set out below but reserves the right to propose changes as may be justified as a consequence of the judicial review process.]
Short Title
1. This tariff may be cited as the SOCAN Tariff 22.A (Online Music Services), 2019.
Definitions
2. In Tariff 22.A,
"bundle" means two or more digital files offered as a single product, if at least one file is a permanent download; (« ensemble »)
"download" means a file intended to be copied onto a consumer's local storage device; (« téléchargement »)
"file" except in the definition of "bundle," means a digital file of a sound recording of a musical work, and includes a music video; (« fichier »)
"free on-demand stream" excludes an on-demand stream provided to a subscriber; (« transmission sur demande gratuite »)
"free subscription" means the provision of free access to limited downloads or on-demand streams to a subscriber; (« abonnement gratuit »)
"gross revenue" means the gross amounts paid to an online music service or its authorized distributors for access to and use of the service, including membership and subscription fees, amounts paid for advertising, sponsorship, promotion and product placement, commissions on third-party transactions, and amounts equal to the value of the consideration received by an online music service or its authorized distributors pursuant to any contra and barter agreements related to the operation of the service; (« revenus bruts »)
"hybrid service" means an on-demand streaming service which, as an added feature of the mobile subscription tier, offers users the ability to cache tracks for offline listening; (« service hybride »)
"identifier" means the unique identifier an online music service assigns to a file or bundle; (« identificateur »)
"limited download" means a download that uses technology that causes the file to become unusable upon the happening of a certain event; (« téléchargement limité »)
"music video" means an audiovisual representation of a musical work, including a concert; (« vidéo musicale »)
"on-demand stream" means a stream selected by its recipient; (« transmission sur demande »)
"online music service" means a service that delivers streams (on-demand or semi-interactive) and downloads (limited or permanent) to subscribers. For greater certainty, "online music service" includes cloud-based music services and other services using similar technology, but excludes a service that offers only streams (other than semi-interactive) in which the file is selected by the service, which can only be listened to at a time chosen by the service and for which no advance playlist is published; (« service de musique en ligne »)
"permanent download" means a download other than a limited download; (« téléchargement permanent »)
"play" means the single performance of an on-demand or semi-interactive stream; (« écoute »)
"portable limited download" means a limited download that uses technology that allows the subscriber to reproduce the file on a device other than a device to which an online music service delivered the file; (« téléchargement limité portable »)
"quarter" means from January to March, from April to June, from July to September and from October to December; (« trimestre »)
"semi-interactive stream" means a stream delivered by an information filtering system where the end-user exercises some level of control over the content of the files, or timing of the transmission of the files, or both; (« transmission semi-interactive »)
"stream" means a file that is intended to be copied onto a local storage device only to the extent required to allow listening to the file at substantially the same time as when the file is transmitted; (« transmission »)
"subscriber" means an end-user with whom an online music service or its authorized distributor has entered into a contract for service other than on a transactional per-download or per-stream basis, for a fee, for other consideration or free of charge, including pursuant to a free subscription; (« abonné »)
"unique visitor" means each end-user, excluding a subscriber, who receives a free on-demand stream from an online music service in a month. (« visiteur unique »)
Application
3. (1) Tariff 22.A sets the royalties to be paid for the communication to the public by telecommunication of works in SOCAN's repertoire, including making works available to the public by telecommunication in a way that allows a member of the public to have access to them from a place and at a time individually chosen by that member of the public, in connection with the operation of an online music service and its authorized distributors in 2019, including the use of a musical work in a music video or a concert.
(2) Tariff 22.A does not apply to uses covered by other applicable tariffs, including SOCAN Tariffs 16, 22.B-G, 24 and 25.
Royalties
On-Demand and Semi-Interactive Streams
4. (1) The royalties payable in a month by an online music service that offers on-demand and/or semi-interactive streams shall be
where
- (A) is 10.3 per cent of the gross revenue of the service for the month, excluding amounts paid to the service for permanent and limited downloads; if the service provides only music videos, the rate shall be 5.9 per cent,
- (B) is the number of plays of files requiring a SOCAN licence during the month, and
- (C) is the number of plays of all files during the month,
subject to a minimum fee, which shall be the lesser of 60.8¢ per subscriber or unique visitor per month, and 0.13¢ per stream requiring a SOCAN licence.
In the case of hybrid services, the applicable rate for SOCAN on the mobile subscription tier shall be 50 per cent of the total rate certified by the Copyright Board for SOCAN and CSI for on-demand streams.
Limited Downloads
(2) The royalties payable in a month for an online music service that offers limited downloads of musical works shall be
where
- (A) is 4.9 per cent of the gross revenues of the service during the month, excluding amounts paid to the service for on-demand streams, semi-interactive streams and permanent downloads; if the service provides only music videos, the rate shall be 2.8 per cent,
- (B) is the number of limited downloads requiring a SOCAN licence during the month, and
- (C) is the total number of limited downloads during the month,
subject to a minimum fee of 73.1¢ per subscriber or unique visitor per month if portable limited downloads are allowed; 47.9¢ per subscriber or unique visitor per month if not.
For the purpose of calculating the minimum payable pursuant to subsection (2), the number of subscribers shall be determined as at the end of the quarter in respect of which the royalties are payable.
Permanent Downloads
(3) The royalties payable in a month for an online music service that offers permanent downloads requiring a SOCAN licence shall be
where
- (A) is 4.1 per cent of the gross revenue of the service for the month, excluding amounts paid to the service for on-demand streams, semi-interactive streams and limited downloads,
- (B) is the number of permanent downloads requiring a SOCAN licence during the month, and
- (C) is the total number of permanent downloads during the month,
subject to a minimum of 2.04¢ per file in a bundle that contains 13 or more files, and 2.8¢ per file in all other cases.
Free Per-Stream Transactions
(4) Where an online music service subject to subsection (1), (2) or (3) also offers streams free of charge, the royalty shall be 0.13¢ per streamed file requiring a SOCAN licence.
ADMINISTRATIVE PROVISIONS
Reporting Requirements: Service Identification
5. No later than 20 days after the earlier of the end of the first month during which an online music service reproduces a file requiring a SOCAN licence and the day before the service first makes such a file available to the public, the service shall provide to SOCAN the following information:
- (a) the name of the person who operates the service, including
- (i) the name of a corporation and a mention of its jurisdiction of incorporation,
- (ii) the name of the proprietor of an individual proprietorship, or
- (iii) the names of the principal officers of any other service, together with any other trade name under which the service carries on business;
- (b) the address of its principal place of business;
- (c) the name, address and email of the persons to be contacted for the purposes of notice, for the exchange of data and for the purposes of invoicing and payment;
- (d) the name and address of any authorized distributor; and
- (e) the Uniform Resource Locator (URL) of each website at or through which the service is or will be offered.
Sales Reports
Definition
6. (1) In this section, "required information" means, in respect of a file,
- (a) its identifier;
- (b) the title of the musical work;
- (c) the name of each performer or group to whom the sound recording is credited;
- (d) the name of the person who released the sound recording;
- (e) if the service believes that a SOCAN licence is not required, information that establishes why the licence is not required;
- (f) the name of each author of the musical work;
- (g) the International Standard Recording Code (ISRC) assigned to the sound recording;
- (h) the name of the music publisher associated with the musical work;
- (i) the International Standard Musical Work Code (ISWC) assigned to the musical work;
- (j) if the sound recording is or has been released in physical format as part of an album, the name, identifier, product catalogue number and Universal Product Code (UPC) assigned to the album, together with the associated disc and track numbers;
- (k) the Global Release Identifier (GRid) assigned to the file and, if applicable, the GRid of the album or bundle in which the file was released;
- (l) the running time of the file, in minutes and seconds; and
- (m) any alternative title used to designate the musical work or sound recording.
On-Demand and Semi-Interactive Streams
(2) No later than 20 days after the end of each month, any online music service that is required to pay royalties pursuant to subsection 4(1) shall provide to SOCAN a report setting out, for that month, the following information:
- (a) in relation to each file that was delivered as an on-demand or semi-interactive stream, the required information;
- (b) the number of plays of each file;
- (c) the total number of plays of all files;
- (d) the number of subscribers to the service during the month and the total amounts paid by them during that month;
- (e) the number of subscribers provided with free subscriptions and the total number of plays of all files by such subscribers as on-demand or semi-interactive streams;
- (f) the gross revenue of the service for the month; and
- (g) the total number of streams provided free of charge.
Limited Downloads
(3) No later than 20 days after the end of each month, an online music service that offers limited downloads shall provide to SOCAN a report setting out, for that month,
- (a) the identifier, number of portable limited downloads, number of other limited downloads, and number of plays of each file that requires a SOCAN licence;
- (b) the total number of portable limited downloads, other limited downloads, and plays of files that require a SOCAN licence;
- (c) the total number of portable limited downloads, other limited downloads, and plays of all files;
- (d) the number of subscribers entitled to receive portable limited downloads at the end of the month, the number of other subscribers at the end of the month and the total amounts paid by all subscribers;
- (e) the gross revenue of the service for the month; and
- (f) the total number of streams provided free of charge.
Permanent Downloads
(4) No later than 20 days after the end of each month, an online music service that offers permanent downloads shall provide to SOCAN a report setting out, for that month,
- (a) the total number of permanent downloads supplied;
- (b) the total number of permanent downloads requiring a SOCAN licence supplied and the total amount payable by subscribers for those downloads;
- (c) with respect to each permanent download requiring a SOCAN licence,
- (i) the number of times the file was downloaded,
- (ii) the number of times the file was downloaded as part of a bundle, the identifier of each such bundle and of the file as included in that bundle, the amount paid by consumers for each such bundle, the share of that amount assigned by the service to the file, and a description of the manner in which that share was assigned, and
- (iii) the identifier and number of other permanent downloads of the file and the amounts paid by consumers for the file, including, if the file is offered as a permanent download at different prices from time to time, the number of permanent downloads of the file at each different price;
- (d) the total amount paid by consumers for bundles;
- (e) the total amount paid by consumers for permanent downloads;
- (f) the gross revenue of the service for the month; and
- (g) the total number of streams provided free of charge.
Free On-Demand Streams
(5) No later than 20 days after the end of each month, any online music service that is required to pay royalties pursuant to subsection 4(4) shall provide to SOCAN a report setting out, for that month,
- (a) in relation to each file that was delivered as a free on-demand stream, the required information;
- (b) the number of plays of each file as a free on-demand stream;
- (c) the total number of plays of all files as free on-demand streams;
- (d) the number of unique visitors;
- (e) a description of the manner in which each unique visitor is identified; and
- (f) the number of free on-demand streams provided to each unique visitor.
(6) An online music service that is required to pay royalties pursuant to more than one subsection of section 4 shall file a separate report pursuant to each subsection of this section.
(7) An online music service that is required to pay royalties with respect to music videos shall file the required information separately from the information dealing with audio-only files.
Payment of Royalties
7. Royalties shall be due no later than 20 days after the end of each quarter.
Adjustments
8. Adjustments to any information provided pursuant to section 5 or 6 shall be provided with the next report dealing with such information.
9. (1) Subject to subsection (2), adjustments in the amount of royalties owed, including excess payments, as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.
(2) Any excess payment resulting from an online music service providing incorrect or incomplete information about a file shall be deducted from future amounts owed for the use of works owned by the same person as the work in that file.
Records and Audits
10. (1) An online music service shall keep and preserve, for a period of six years after the end of the month to which they relate, records from which the information set out in sections 5 and 6 can be readily ascertained.
(2) SOCAN may audit these records at any time during the period set out in subsection (1) on reasonable notice and during normal business hours.
(3) If an audit discloses that royalties due have been understated in any quarter by more than 10 per cent, the online music service shall pay the reasonable costs of the audit within 30 days of the demand for such payment.
Confidentiality
11. (1) Subject to subsections (2) and (3), SOCAN shall treat in confidence information received pursuant to this tariff, unless the online music service consents in writing to the information being treated otherwise.
(2) Information referred to in subsection (1) may be shared
- (a) in connection with the collection of royalties or the enforcement of a tariff, with CMRRA, SODRAC or CSI;
- (b) with the Copyright Board;
- (c) in connection with proceedings before the Copyright Board, once the online music service had a reasonable opportunity to request a confidentiality order;
- (d) with any person who knows or is presumed to know the information;
- (e) to the extent required to effect the distribution of royalties, with royalty claimants; and
- (f) if ordered by law.
(3) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than an online music service or its authorized distributors and who is not under an apparent duty of confidentiality to the service.
Interest on Late Payments
12. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
Addresses for Notices, etc.
13. (1) Anything addressed to SOCAN shall be sent to 41 Valleybrook Drive, Toronto, Ontario M3B 2S6, email: licence@socan.ca, fax number: 416-445-7108, or to any other address, email address or fax number of which a service has been notified in writing.
(2) Anything that SOCAN sends to an online music service shall be sent to the last address, email address or fax number of which SOCAN has been notified in writing.
Delivery of Notices and Payments
14. (1) Subject to subsection (2), a notice may be delivered by hand, by postage-paid mail, by fax, by email or by File Transfer Protocol (FTP).
(2) Information provided pursuant to sections 5 and 6 shall be delivered electronically, by way of delimited text file or in any other format agreed upon by SOCAN and the online music service.
(3) A notice or payment mailed in Canada shall be presumed to have been received four business days after the day it was mailed.
(4) A notice sent by fax, by email or by FTP shall be presumed to have been received the day it is transmitted.
(5) All amounts required to be reported or paid under this tariff shall be reported or paid in Canadian dollars.
INTERNET — OTHER USES OF MUSIC
Application
1. (1) Tariffs 22.B-G set the royalties to be paid for the communication to the public by telecommunication of works in SOCAN's repertoire, including making works available to the public by telecommunication in a way that allows a member of the public to have access to them from a place and at a time individually chosen by that member of the public, by means of certain Internet transmissions or similar transmission facilities in the year 2019 (other than Tariff 22.D.3 which is proposed for the years 2019-2020).
(2) Tariffs 22.B-G do not apply to uses covered by other applicable tariffs, including Tariffs 16 (Background Music Suppliers), 22.A (Internet — Online Music Services), 24 (Ringtones) and 26 (Pay Audio Services).
Definitions
2. The following definitions apply to Tariffs 22.B-G, other than Tariff 22.D.3.
"additional information" means, in respect of each musical work contained in a file, the following information:
- (a) the musical work's identifier;
- (b) the title of the musical work;
- (c) the name of each author of the musical work;
- (d) the name of each performer or group to whom the sound recording is credited;
- (e) the name of the person who released any sound recording contained in the audiovisual file;
- (f) the International Standard Recording Code (ISRC) assigned to the sound recording;
- (g) if the sound recording is or has been released in physical format as part of an album, the name, identifier, product catalogue number and the Universal Product Code (UPC) assigned to the album, together with the associated disc and track numbers;
- (h) the name of the music publisher associated with the musical work;
- (i) the International Standard Musical Work Code (ISWC) assigned to the musical work;
- (j) the Global Release Identifier (GRid) assigned to the musical work and, if applicable, the GRid of the album in which the musical work was released;
- (k) the running time of the musical work, in minutes and seconds; and
- (l) any alternative title used to designate the musical work or sound recording; (« renseignements additionnels »)
"audio page impression" means a page impression that allows a person to hear a sound; (« consultation de page audio »)
"audiovisual page impression" means a page impression that allows a person to hear and see an audiovisual work; (« consultation de page audiovisuelle »)
"channel" means a single transmission of content other than an "on-demand stream" or a "download" as defined in Tariff 22.A; (« canal »)
"download" means a file intended to be copied onto an end-user's local storage device; (« téléchargement »)
"file" means a digital file of an audio or audiovisual work; (« fichier »)
"identifier" means the unique identifier an online service assigns to a file; (« identificateur »)
"Internet-related revenues" means all revenues generated by Internet-related activities, including membership, subscription and other access fees, advertising, product placement, promotion, sponsorship, net revenues from the sale of goods or services and commissions on third-party transactions, but excluding
- (a) revenues that are already included in calculating royalties pursuant to another SOCAN tariff;
- (b) revenues generated by an Internet-based activity that is subject to another SOCAN tariff;
- (c) agency commissions;
- (d) the fair market value of any advertising production services provided by the user; and
- (e) network usage and other connectivity access fees; (« recettes d'Internet »)
"limited download" means a download that uses technology that causes the file to become unusable when a subscription or other authorized usage period ends; (« téléchargement limité »)
"music video" means an audiovisual representation of a musical work, including a concert; (« vidéo musicale »)
"music video service" means a website that focuses primarily on music videos; (« service de vidéo musicale »)
"on-demand stream" means a stream selected by its recipient; (« transmission sur demande »)
"online audiovisual service" means a service that delivers streams or downloads of audiovisual works to end-users, other than a service that offers only streams in which the file is selected by the service and can only be listened to at a time chosen by the service and for which no advance playlist is published; (« service audiovisuel en ligne »)
"online programming" means Internet-distributed audio and audiovisual content; (« programmation en ligne »)
"other content" means content other than pay content; (« autre contenu »)
"page impression" means a request to load a single page from a site; (« consultation de page »)
"pay content" means audiovisual works transmitted to end-users for a fee or charge; (« contenu payant »)
"permanent download" means a download other than a limited download; (« téléchargement permanent »)
"play" means the single performance of an on-demand stream; (« écoute »)
"quarter" means from January to March, from April to June, from July to September and from October to December; (« trimestre »)
"semi-interactive stream" means a stream delivered by an information filtering system where the end-user exercises some level of control over the content of the files, or timing of the transmission of the files, or both; (« transmission semi-interactive »)
"relevant revenues" means all revenues generated by all visits to watch pages on a site by end-users having Canadian IP addresses, irrespective of whether the content that is subject to those visits contains any musical works or other audio content or any musical works in the repertoire of SOCAN, including membership, subscription and other access fees, advertising, product placement, promotion, sponsorship, net revenues from the sale of goods or services and commissions on third-party transactions, but excluding
- (a) revenues generated from the transmission of pay content;
- (b) revenues that are already included in calculating royalties pursuant to another SOCAN tariff;
- (c) revenues generated by an Internet-based activity that is subject to another SOCAN tariff;
- (d) agency commissions;
- (e) the fair market value of any advertising production services provided by the user; and
- (f) network usage and other connectivity access fees; (« recettes pertinentes »)
"site" means a collection of pages accessible via a common root URL; (« site »)
"SOCAN repertoire use" means the share of total transmission time, excluding music used in interstitial programming such as commercials, public service announcements and jingles, that uses the works in the SOCAN repertoire; (« utilisation du répertoire SOCAN »)
"stream" means a file that is intended to be copied onto a local storage medium or device only to the extent required to allow listening to the file at substantially the same time as when the file is transmitted; (« transmission »)
"subscriber" means an end-user with whom an online service or its authorized distributor has entered into a contract for service, other than on a transactional per-download or per-stream basis, whether for a fee, for other consideration or free of charge, including pursuant to a free subscription; (« abonné »)
"user-generated content" means audiovisual content posted to a site by a person other than the operator of the site and available for free viewing by end-users; (« contenu généré par les utilisateurs »)
"user-generated content service" means an online audiovisual service that transmits predominantly user-generated content; (« service de contenu généré par les utilisateurs »)
"watch pages" means pages designed for viewing audiovisual content, including viewing of embedded pages accessed from another site; (« pages visionnées »)
"year" means a calendar year. (« année »)
B. Commercial Radio, Satellite Radio and Pay Audio
3. (1) The royalties payable for the communication of audio works on the Internet by a broadcaster that is subject to Tariff 1.A (Commercial Radio and Simulcast) or the Pay Audio Tariff are as follows:
A × B × C
where
- (A) is the rate applicable to the broadcaster pursuant to the above-referenced tariffs,
- (B) is the broadcaster's Internet-related revenues, and
- (C) is the ratio of audio page impressions containing advertising to all page impressions containing advertising, if that ratio is available, and 1.0 if not.
(2) The royalties payable for the communication of audio works by a satellite radio service that is subject to Tariff 25 are 10 per cent of the satellite radio service's Internet-related revenues if the service offers on-demand streams, 8 per cent if the streams are all semi-interactive streams, or 4.26 per cent if the service online only offers simulcasts.
C. Other Audio Websites
4. (1) The royalties payable by a site ordinarily accessed to listen to audio-only content, other than a site subject to section 3 or 8 or to SOCAN Tariffs 1.A, 1.B, 1.C or 22.A, are
A × B × [1 − (C × D)]
where
- (A) is 2.0 per cent of the site's Internet-related revenues if the SOCAN repertoire use is 20 per cent or less, 5.5 per cent if the use is between 20 and 80 per cent and 7.0 per cent if the use is 80 per cent or more,
- (B) is the ratio of audio page impressions containing advertising to all page impressions containing advertising, if that ratio is available, and 1.0 if not,
- (C) is 0.95 for a Canadian site and 1 for any other site, and
- (D) is
- (i) the ratio of non-Canadian page impressions containing advertising to all page impressions containing advertising, if that ratio is available, and
- (ii) if not, 0 for a Canadian site and 0.9 for any other site,
subject to a minimum fee of $37 per year if the combined SOCAN repertoire use on the site is 20 per cent or less, $104 if the combined use is between 20 and 80 per cent, and $132 if the combined use is 80 per cent or more.
(2) For the purposes of subsection (1), the applicable rate shall be determined by using the channel's SOCAN repertoire use for revenues that are tracked on a per-channel basis, and by using the combined SOCAN repertoire use of all channels for all other revenues.
D.1 Audiovisual Content
5. (1) Tariff 22.D.1 sets the royalties to be paid for the communication to the public by telecommunication of works in SOCAN's repertoire in connection with audiovisual content for the year 2019.
(2) This tariff does not apply to uses covered by other applicable tariffs, including
- (a) SOCAN tariffs for Online Music Services (Tariff 22.A as certified by the Board for the years 1996 to 2006, 2007 to 2010 and 2011 to 2013 and proposed by SOCAN for the years 2014 to 2019);
- (b) Game Sites (Tariff 22.G as certified by the Board for the years 1996 to 2006 and proposed by SOCAN for the years 2007-2008 [Proposed Tariff 22.6], 2009-2012 [Proposed Tariff 22.F], 2013 [Proposed Tariff 22.H]) and 2014-2019 [Proposed Tariff 22.G];
- (c) User-Generated Content (Tariff 22.D.2 as certified by the Board for the years 2007-2013 and proposed by SOCAN for the years 2014-2019); and
- (d) Audiovisual Services Allied with Broadcast and BDU Services (Tariff 22.D.3 as proposed by SOCAN for 2019-2020).
Royalties
(3) The royalties payable for the communication of an audiovisual program containing one or more musical works requiring a SOCAN licence shall be as follows:
- (a) for a service that charges per-program fees to end-users: 3.0 per cent of the amounts paid by end-users, subject to a minimum of 1.3¢ per program;
- (b) for a service that offers subscriptions to end-users: 3.0 per cent of the amounts paid by subscribers, subject to a minimum monthly fee of 19.5¢ per subscriber. In the case of a single, initial free trial of up to 31 days in any 12-month period offered to induce a prospective subscriber to enter into a paid subscription, there shall be no royalty fee payable;
- (c) for a service that receives Internet-related revenues in connection with its communication of audiovisual programs, the royalty calculation shall be as follows:
- 3.0% × A × B × (1 − C)
where
- (A) is the service's Internet-related revenues,
- (B) is the ratio of audiovisual page impressions containing advertising to all page impressions containing advertising, if available, and if not, 1.0,
- (C) is
- (i) 0 for a Canadian service,
- (ii) for any other service, the ratio of non-Canadian page impressions containing advertising to all page impressions containing advertising, if that ratio is available, and if not, 0.9;
- (d) a service with revenues from more than one of the categories in above-mentioned paragraphs (a), (b) and (c) shall pay royalties in accordance with each applicable paragraph, but the calculation in paragraph (c) shall exclude any fees charged to end-users pursuant to paragraphs (a) and (b), and the related page impressions; and
- (e) to the extent a service displays content and measures user "impressions" of such content in units other than single Internet pages, it shall be acceptable to treat impressions of such units as "page impressions" as long as the same unit measure is used in the numerator and denominator of part "B" of the royalty formula in paragraph (c).
(4) A non-commercial service with no revenue shall pay an annual fee of $25.00.
(5) In the case of a music video service, SOCAN Tariff 22.A shall apply.
D.2 User-Generated Content
6. (1) Tariff 22.D.2 sets the royalties to be paid for the communication to the public by telecommunication of works in SOCAN's repertoire in connection with the operation of a user-generated content service for the year 2019.
(2) This tariff does not apply to uses covered by other applicable tariffs, including
- (a) SOCAN tariffs for Online Music Services (Tariff 22.A as certified by the Board for the years 1996 to 2006, 2007 to 2010 and 2011 to 2013 and proposed by SOCAN for the years 2014 to 2019), other than the transmission of music videos, which are covered by this Tariff;
- (b) Game Sites (Tariff 22.G as certified by the Board for the years 1996 to 2006 and proposed by SOCAN for the years 2007-2008 [Proposed Tariff 22.6], 2009-2012 [Proposed Tariff 22.F], 2013 [Proposed Tariff 22.H]) and 2014-2018 [Proposed Tariff 22.G];
- (c) Online Audiovisual Services (Tariff 22.D.1 as certified by the Board for the years 2007-2013 and proposed by SOCAN for the years 2014-2019); and
- (d) Audiovisual Services Allied with Broadcast and BDU Services (Tariff 22.D.3 as proposed by SOCAN for 2019-2020).
Royalties
(3) The royalty payable to SOCAN for the communication of audiovisual programs, including but not limited to music videos, by a user-generated content service shall be 3.0 per cent of the service's relevant revenues. A non-commercial service with no revenue shall pay an annual fee of $25.00.
D.3 Audiovisual Services Allied with Broadcast and BDU Services
7. (1) Tariff 22.D.3 may be cited as the SOCAN Allied Audiovisual Services Tariff (2019-2020).
Application
(2) Tariff 22.D.3 sets the royalties to be paid for the right to communicate to the public by telecommunication (including by making available to the public by telecommunication in a way that allows a member of the public to have access to a work from a place and at a time individually chosen by that member of the public) or to authorize the communication to the public by telecommunication, as the context may require, of works in SOCAN's repertoire in connection with the operation of an Audiovisual Service that is allied with a Broadcast or BDU Service licensed under SOCAN Tariff 2.A or Tariff 17 and its authorized distributors during the years 2019 to 2020.
(3) Except as provided for herein, this tariff does not apply to uses covered by other applicable SOCAN tariffs, certified or proposed, including those relating to
- (a) Commercial Television Broadcasting (Tariff 2.A);
- (b) Transmission of Pay, Specialty and other Television Services by Distribution Undertakings — Television (Tariff 17);
- (c) Online Music Services (Tariff 22.A);
- (d) Audiovisual Services and User-Generated Content Services (Tariffs 22.D.1 and 22.D.2); and
- (e) Game Sites (Tariff 22.G as certified by the Board for the years 1996 to 2006 and proposed by SOCAN as Tariff 22.6 [2007-2008], Tariff 22.F [2009-2012] and Tariff 22.G [2013-present]).
Definitions
(4) In Tariff 22.D.3,
"additional information" means, in respect of each musical work contained in a file, the following information, if available:
- (a) the musical work's identifier;
- (b) the title of the musical work;
- (c) the name of each author of the musical work;
- (d) the name of each performer or group to whom the sound recording is credited;
- (e) the name of the person who released any sound recording contained in the file;
- (f) the International Standard Recording Code (ISRC) assigned to the sound recording;
- (g) if the sound recording is or has been released in physical format as part of an album, the name, identifier, product catalogue number and the Universal Product Code (UPC) assigned to the album, together with the associated disc and track numbers;
- (h) the name of the music publisher associated with the musical work;
- (i) the International Standard Musical Work Code (ISWC) assigned to the musical work;
- (j) the Global Release Identifier (GRid) assigned to the musical work and, if applicable, the GRid of the album in which the musical work was released;
- (k) the running time of the musical work, in minutes and seconds; and
- (l) any alternative title used to designate the musical work or sound recording; (« renseignements additionnels »)
"allied audiovisual service" means an audiovisual service analogous to, and operated in conjunction with, by or in support of, the operations of a conventional service or a BDU, the content of which is duplicative, complementary or adjunct to the content offered by the conventional service or BDU; (« service audiovisuel allié »)
"audiovisual service" means a service that delivers streams of audiovisual works to end-users over the Internet, and includes a hybrid service; (« service audiovisuel »)
"AV ratio" means, based on Internet-related revenue or usage data available to the licensee, (i) the ratio of AV SOCAN revenue to Internet-related revenue, or, if that ratio cannot be determined based on the revenue data available to the licensee, (ii) the ratio of AV usage to all usage, or, if that ratio cannot be determined based on the usage data available to the licensee, (iii) 100 per cent; (« ratio AV »)
"AV SOCAN revenue" means Internet-related revenue arising from AV usage other than non-SOCAN AV usage; (« revenus AV SOCAN »)
"AV usage" means usage that allows a person to hear an audiovisual work; (« utilisation AV »)
"BDU" means a distribution undertaking as defined in the Broadcasting Act, S.C. 1991, c. 11; (« EDR »)
"Canadian AV SOCAN revenue" means AV SOCAN revenue arising from Canadian usage; (« revenus AV canadiens de la SOCAN »)
"Canadian usage" means usage of a service by persons in Canada; (« utilisation canadienne »)
"conventional service" means over-the-air television stations, pay and specialty services, community channels and other programming and non-programming services subject to SOCAN Tariff 2.A or 17; (« service conventionnel »)
"domestic ratio" means, based on Internet-related revenue or usage data available to the licensee, (i) the ratio of Canadian AV SOCAN revenue to all AV SOCAN revenue, or, if that ratio cannot be determined based on the revenue data available to the licensee, (ii) the ratio of Canadian usage to all usage, or, if that ratio cannot be determined based on the usage data available to the licensee, (iii) 10 per cent; (« ratio national »)
"file" means a digital file of an audiovisual work; (« fichier »)
"hybrid service" means an audiovisual service, the content of which may temporarily be cached by end-users for offline viewing; (« service hybride »)
"identifier" means the unique identifier an allied audiovisual service assigns to a file; (« identificateur »)
"Internet-related revenue" means all revenues generated by Internet-related activities, including membership, subscription and other access fees, advertising, product placement, promotion, sponsorship, net revenues from the sale of goods or services and commissions on third-party transactions, but excluding
- (a) revenues that are already included in calculating royalties pursuant to another SOCAN tariff;
- (b) agency commissions;
- (c) the fair market value of any advertising production services provided by the user; and
- (d) network usage and other connectivity access fees; (« revenus liés à Internet »)
"non-SOCAN AV usage" means AV usage that allows a person to hear an audiovisual work containing musical works for which a SOCAN licence is not required, and for which the service retains records establishing the basis upon which the service claims a SOCAN licence is not required; (« utilisation AV non-SOCAN »)
"on-demand stream" means a stream of a file selected by its recipient and transmitted at a time selected by its recipient; (« transmission sur demande »)
"play" means the single performance of an on-demand stream; (« écoute »)
"production music" means music contained in interstitial programming such as commercials, public service announcements and jingles; (« musique de production »)
"quarter" means from January to March, from April to June, from July to September and from October to December; (« trimestre »)
"rate base" means
- (a) Canadian AV SOCAN revenue or, if not available;
- (b) Internet-related revenue × AV ratio × domestic ratio; (« assiette tarifaire »)
"stream" means a file that is intended to be copied onto a local storage medium or device only to the extent required to allow listening to the file at substantially the same time as when the file is transmitted; (« transmission »)
"subscriber" means an end-user with whom an allied audiovisual service or its authorized distributor has entered into a contract for service, other than on a transactional per-download or per-stream basis, whether for a fee, for other consideration or free of charge, including pursuant to a free subscription; (« abonné »)
"usage" means usage of a service measured by such reasonable measures of usage as are commonly and/or customarily used by the service; (« utilisation »)
"year" means a calendar year. (« année »)
Royalties
(5) Standard Rates
- (a) The royalty payable for the communication of an audiovisual program containing one or more musical works requiring a SOCAN licence shall be as follows:
- (i) for a service that charges per-program fees to end-users: 1.9 per cent of the amounts paid by Canadian end-users for plays for which a SOCAN licence was required, subject to a minimum of 1.3¢ per program communicated;
- (ii) for a service that offers subscriptions to end-users: 1.9 per cent of the amounts paid by Canadian subscribers, subject to a minimum monthly fee of 7.5¢ per subscriber. In the case of a single, initial free trial of up to 31 days in any 12-month period offered to induce a prospective subscriber to enter into a paid subscription, there shall be no royalty fee payable; and
- (iii) for a service that receives Internet-related revenue in connection with its communication of audiovisual works: 1.9 per cent of the rate base.
- (b) A service with revenues from more than one of the categories in subparagraphs (5)(a)(i), (ii) and (iii) shall pay royalties in accordance with each applicable subparagraph, but the calculation in subparagraph (iii) shall exclude any fees charged to end-users pursuant to subparagraphs (i) and (ii), and the related usage.
- (c) A service with no revenue shall pay an annual fee of $15.00.
(6) Low Music Use Rates
- (a) Notwithstanding subsection (5), the royalty rate is 0.8 per cent if the allied audiovisual service's transmissions of audiovisual works contain musical works for which a licence from SOCAN is required, excluding production music, that in total account for less than 20 per cent of the overall time of the transmissions, and the service keeps and makes available to SOCAN, upon request, records sufficient to demonstrate this calculation for 90 days after a month in which the low music use rate is paid.
- (b) Subject to the audit provisions in subsection (12), an allied audiovisual service may avail itself of the lower royalty rate set out in paragraph (a) above without keeping the records required by that subsection if
- (i) the conventional service with which the allied audiovisual service is allied requires a licence from SOCAN, excluding production music, for less than 20 per cent of the conventional service's total air time and keeps and makes available to SOCAN, upon request, complete recordings of its last 90 broadcast days; and
- (ii) the content and usage patterns of the allied audiovisual service are substantially similar to the conventional service with which it is allied.
Reporting Requirements
(7) Service Identification
- (a) No later than the earlier of 30 days after the end of the first month during which an allied audiovisual service communicates a file requiring a SOCAN licence and the day before the service first makes such a file available to the public, the service shall provide to SOCAN the following information:
- (i) the name of the person who operates the service, including:
- (A) the name of a corporation and a mention of its jurisdiction of incorporation,
- (B) the name of the proprietor of an individual proprietorship, or
- (C) the names of the principal officers of any other service, and
- (D) any other trade name under which the service carries on business;
- (ii) the address of its principal place of business;
- (iii) the name, address and email of the persons to be contacted for the purposes of notice, for the exchange of data and for the purposes of invoicing, and payments;
- (iv) the name and address of any authorized distributor; and
- (v) the Uniform Resource Locator (URL) of each Internet site at or through which the service is or will be offered.
- (i) the name of the person who operates the service, including:
(8) Sales Reports
- (a) No later than 30 days after the end of each month, each allied audiovisual service shall provide to SOCAN a report setting out for that month, in relation to the files that were streamed to end-users, the following information, if available:
- (i) the title of the program and/or series, episode name, number and season for each file;
- (ii) the number of plays of each file;
- (iii) the number of plays of all files;
- (iv) the International Standard Audiovisual Number (ISAN) assigned to each file;
- (v) in the case of a translated program, the title in the language of its original production; and
- (vi) the additional information.
- (b) No later than 30 days after the end of each month, each allied audiovisual service shall also provide to SOCAN a report setting out for that month
- (i) for allied audiovisual services that charge per-program fees to end-users, the total amount paid by Canadian end-users for plays for which a SOCAN licence was required;
- (ii) for allied audiovisual services with subscribers,
- (A) the number of subscribers to the service at the end of the month,
- (B) the total amounts paid by subscribers to the service during that month,
- (C) the number of subscribers provided with free trial subscriptions, and
- (D) the total number of plays of all files as on-demand streams by subscribers provided with free trial subscriptions;
- (iii) for allied audiovisual services that are required to pay royalties pursuant to subparagraph (5)(a)(iii) above,
- (A) the service's Internet-related revenue,
- (B) if the service's rate base for the month was its Canadian AV SOCAN revenue, then its (1) Canadian AV SOCAN revenue, (2) AV SOCAN revenue, (3) AV SOCAN usage, (4) AV usage, (5) Canadian usage and (6) total usage,
- (C) if the service's rate base for the month was not its Canadian AV SOCAN revenue, then its AV ratio and its domestic ratio and all the usage data upon which each ratio was calculated, including, in respect of each play for which the service claims a SOCAN licence is not required, the information set out in paragraph (c).
- (c) If the allied audiovisual service claims that a SOCAN licence is not required for a file, the service shall provide information that establishes why the licence is not required.
- (d) An allied audiovisual service that is required to pay royalties pursuant to more than one subparagraph of paragraph (5)(a) shall file a separate report pursuant to each paragraph of this subsection.
Administration
(9) Calculation and Payment of Royalties
- (a) Royalties shall be due no later than 30 days after the end of each month.
- (b) All amounts payable under this tariff are exclusive of any federal, provincial or other governmental taxes or levies of any kind.
(10) Late Payments
- (a) Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
(11) Adjustments
- (a) Adjustments to any information provided pursuant to subsection (7) or (8) shall be provided with the next report dealing with such information.
- (b) Adjustments in the amount of royalties owed, including excess payments, as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.
(12) Records and Audits
- (a) An allied audiovisual service shall keep and preserve, for a period of six years after the end of the month to which they relate, records from which the information set out in subsections (5), (6), (7) and (8) can be readily ascertained, including — if the service has based its royalty calculation on either its AV ratio or domestic ratio, or both — all the usage data the service relied upon in calculating the AV ratio and/or domestic ratio.
- (b) SOCAN may audit these records at any time during the period set out in paragraph (a), on reasonable notice and during normal business hours, but no more frequently than once in any 12-month period.
- (c) Subject to paragraph (d), if an audit discloses that royalties due have been understated in any quarter by more than 10 per cent, the service shall pay the reasonable costs of the audit within 30 days of the demand for such payment.
- (d) For the purposes of paragraph (c), any amount owing as a result of an error or omission on the part of SOCAN shall not be taken into account.
(13) Confidentiality
- (a) Subject to paragraphs (b) and (c), SOCAN, the allied audiovisual service and its authorized distributors shall treat in confidence information received pursuant to this tariff, unless the disclosing party consents in writing to the information being treated otherwise.
- (b) Information referred to in paragraph (a) may be shared
- (i) between the allied audiovisual service and its authorized distributors in Canada;
- (ii) with the Copyright Board;
- (iii) in connection with proceedings before the Board, once the allied audiovisual service has had a reasonable opportunity to request a confidentiality order;
- (iv) with any person who knows the information;
- (v) to the extent required to effect the distribution of royalties, with royalty claimants; and
- (vi) if required by law.
- (c) Paragraph (a) does not apply to information that must be provided pursuant to section 70.11 of the Copyright Act.
E. Canadian Broadcasting Corporation
8. (1) The royalties payable by the Canadian Broadcasting Corporation are as follows:
- (a) For the audiovisual service "www.tou.tv" and any similar online audiovisual service that may be launched by the Corporation during the term of this tariff (collectively "tou.tv"):
- A × B
- where
- (A) is 2.1 per cent of tou.tv's Internet-related revenues, and
- (B) is the ratio of audio page impressions containing advertising to all page impressions containing advertising relating to tou.tv, if that ratio is available, and 1.0 if not.
- (b) For the online audio and audiovisual services "cbcmusic.ca" and "espace.mu" (and any similar music intensive online services that may be launched by the Corporation), the royalties payable in a month shall be
- where
- (A) is 10 per cent of the Internet-related revenues of the service for the month,
- (B) is the number of plays of files requiring a SOCAN licence during the month, and
- (C) is the number of plays of all files during the month,
- subject to a minimum fee of 0.25¢ per stream.
- (c) For the Corporation's transmissions of online programming other than that to which paragraphs 8(1)(a) and (b) apply:
- A × B
- where
- (A) is 10 per cent of the total amount payable by the Corporation pursuant to Tariffs 1.C (Radio — Canadian Broadcasting Corporation) and 2.D (Television — Canadian Broadcasting Corporation) or an agreement with SOCAN, and
- (B) is the ratio of audio page impressions containing advertising to all page impressions containing advertising relating to the online programming, if that ratio is available, and 1.0 if not.
G. Game Sites
9. (1) The royalties payable by a site ordinarily accessed to play games, including gambling, other than a site subject to sections 3 to 8, are
- A × B × (1 − C)
where
- (A) is 3.0 per cent of the service's Internet-related revenues,
- (B) is the ratio of audiovisual page impressions containing advertising to all page impressions containing advertising, if that ratio is provided to SOCAN, and 1.0 if not, and
- (C) is
- (i) 0 for a Canadian service, and
- (ii) for any other service, the ratio of non-Canadian page impressions to all page impressions, if that ratio is available, and 0.9 if not,
subject to a minimum fee of $25 per year.
(2) Notwithstanding subsection (1), the royalty rate is 1.5 per cent of Internet-related revenues generated by any game containing less than 20 per cent music use for which a licence is required from SOCAN, if the service retains and makes available to SOCAN the records necessary to determine the level of music use in question.
ADMINISTRATIVE PROVISIONS
10. The administrative provisions in sections 11 through 16 apply to Tariffs 22.B-G, other than Tariff 22.D.3.
Reporting Requirements: Service Identification
11. (1) No later than the earlier of 20 days after the end of the first month during which a service communicates a file requiring a SOCAN licence and the day before the service first makes such a file available to the public, the service shall provide to SOCAN the following information:
- (a) the name of the person who operates the service, including
- (i) the name of a corporation and a mention of its jurisdiction of incorporation,
- (ii) the name of the proprietor of an individual proprietorship, or
- (iii) the names of the principal officers of any other service,
- together with any other trade name under which the service carries on business;
- (b) the address of its principal place of business;
- (c) the name, address and email of the persons to be contacted for the purposes of notice, for the exchange of data and for the purposes of invoicing, and payments;
- (d) the name and address of any authorized distributor; and
- (e) the Uniform Resource Locator (URL) of each Internet site at or through which the service is or will be offered.
Sales Reports
On-Demand Streams
(2) No later than 20 days after the end of each month, any service that provides on-demand streams shall provide to SOCAN a report setting out, for that month, in relation to each file that was delivered as an on-demand stream, the following information:
- (a) the title of the program and/or series, episode name, number and season and any other information that would assist SOCAN in identifying the file;
- (b) the number of plays of each file;
- (c) the number of plays of all files;
- (d) the International Standard Audiovisual Number (ISAN) assigned to the file;
- (e) in the case of a translated program, the title in the language of its original production; and
- (f) the additional information as defined in section 2.
(3) If the service offers subscriptions in connection with its provision of on-demand streams, the service shall provide the following information:
- (a) the number of subscribers to the service at the end of the month and the total amounts paid by them during that month; and
- (b) the number of subscribers provided with free trial subscriptions and the total number of plays of all files by such subscribers as on-demand streams.
(4) If the service claims that a SOCAN licence is not required for a file, the service shall provide information that establishes why the licence is not required.
Limited Downloads
(5) No later than 20 days after the end of each month, any service that provides limited downloads of files shall provide to SOCAN a report setting out, for that month,
- (a) the number of limited downloads of each file and the amounts paid by end-users for the file, including, if the file is offered as a limited download at different prices from time to time, the number of limited downloads at each different price;
- (b) the total number of limited downloads supplied; and
- (c) the total amount paid by end-users for limited downloads.
(6) No later than 20 days after the end of each month, any service that provides limited downloads shall provide to SOCAN a report setting out, for that month, in relation to each file that was delivered as a limited download, the following information:
- (a) the title of the program and/or series, episode name and number, season and any other information that would assist SOCAN in identifying the file;
- (b) the number of plays of each file;
- (c) the number of plays of all files;
- (d) the International Standard Audiovisual Number (ISAN) assigned to the file;
- (e) in the case of a translated program, the title in the language of its original production; and
- (f) the additional information as defined in section 2.
(7) If the service offers subscriptions in connection with its provision of limited downloads, the service shall provide the following information:
- (a) the number of subscribers to the service at the end of the month and the total amounts paid by them during that month; and
- (b) the number of subscribers provided with free trial subscriptions and the total number of plays of all files by such subscribers as limited downloads.
(8) If the service claims that a SOCAN licence is not required for a file, the service shall provide information that establishes why the licence is not required.
Permanent Downloads
(9) No later than 20 days after the end of each month, any service that provides permanent downloads of files shall provide to SOCAN a report setting out, for that month,
- (a) the number of permanent downloads of each file and the amounts paid by end-users for each file, including, if the file is offered as a permanent download at different prices from time to time, the number of permanent downloads at each different price;
- (b) the total number of permanent downloads supplied; and
- (c) the total amount paid by end-users for permanent downloads.
(10) No later than 20 days after the end of each month, any service that provides permanent downloads shall provide to SOCAN a report setting out, for that month, in relation to each file that was delivered as a permanent download, the following information:
- (a) the title of the program and/or series, episode name and number, season and any other information that would assist SOCAN in identifying the file;
- (b) the International Standard Audiovisual Number (ISAN) assigned to the file;
- (c) in the case of a translated program, the title in the language of its original production; and
- (d) the additional information as defined in section 2.
(11) If the service offers subscriptions in connection with its provision of permanent downloads, the service shall provide the following information:
- (a) the number of subscribers to the service at the end of the month and the total amounts paid by them during that month; and
- (b) the number of subscribers provided with free trial subscriptions and the total number of downloads of all files by such subscribers.
(12) If the service claims that a SOCAN licence is not required for a file, the service shall provide information that establishes why the licence is not required.
Page Impressions for Services with Internet-Related Revenues
(13) No later than 20 days after the end of each month, any service that is required to pay royalties pursuant to paragraph 5(3)(c) shall provide to SOCAN the following information:
- (a) the service's Internet-related revenues;
- (b) the ratio of audio or audiovisual page impressions containing advertising to all page impressions containing advertising, if available;
- (c) in the case of a non-Canadian service, the ratio of non-Canadian page impressions to all page impressions, if that ratio is available;
- (d) whether the service is a music video service or any other service; and
- (e) the information described in subsections 11(2) to 11(12), if applicable and on the same basis as described in those subsections (i.e. if available where so indicated).
(14) A service that is required to pay royalties pursuant to more than one subsection of section 5 shall file a separate report pursuant to each subsection of this section.
Calculation and Payment of Royalties
12. Royalties shall be due no later than 20 days after the end of each month.
Adjustments
13. Adjustments to any information provided pursuant to sections 3 to 6 and sections 8 to 11 shall be provided with the next report dealing with such information.
14. (1) Subject to subsection (2), adjustments in the amount of royalties owed, including excess payments, as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.
(2) Any excess payment resulting from an online audiovisual service providing incorrect or incomplete information about a file shall be deducted from future amounts owed for the use of works owned by the same person as the work in that file.
Records and Audits
15. (1) A service shall keep and preserve, for a period of six years after the end of the month to which they relate, records from which the information set out in sections 3 to 6 and sections 8 to 11 can be readily ascertained.
(2) SOCAN may audit these records at any time during the period set out in subsection (1) on reasonable notice and during normal business hours.
(3) Subject to subsection (4), if an audit discloses that royalties due have been understated in any quarter by more than 10 per cent, the online music service shall pay the reasonable costs of the audit within 30 days of the demand for such payment.
(4) For the purposes of subsection (3), any amount owing as a result of an error or omission on the part of SOCAN shall not be taken into account.
Confidentiality
16. (1) Subject to subsections (2) and (3), SOCAN, the service and its authorized distributors shall treat in confidence information received pursuant to this tariff, unless the disclosing party consents in writing to the information being treated otherwise.
(2) Information referred to in subsection (1) may be shared
- (a) between the service and its authorized distributors in Canada;
- (b) with the Copyright Board;
- (c) in connection with proceedings before the Board, once the service has had a reasonable opportunity to request a confidentiality order;
- (d) with any person who knows or is presumed to know the information;
- (e) to the extent required to effect the distribution of royalties, with royalty claimants; and
- (f) if required by law.
(3) Subsection (1) does not apply to information that must be provided pursuant to section 70.11 of the Copyright Act.
Tariff No. 23
HOTEL AND MOTEL IN-ROOM SERVICES
[This tariff was previously filed in 2017 for the years 2018-2020.]
Tariff No. 24
RINGTONES AND RINGBACKS
For a licence to communicate to the public by telecommunication, including making SOCAN works available to the public by telecommunication in a way that allows a member of the public to have access to them from a place and at a time individually chosen by that member of the public, at any time and as often as desired, in the year 2019, a ringtone or ringback for which a SOCAN licence is required, the royalty payable is 5 per cent of the price paid by the subscriber for the supplied ringtone or ringback (on a subscription and/or per unit basis, as may be the case), net of any network usage fees, subject to a minimum royalty of 5¢ for each ringtone or ringback supplied during that period.
"ringback" means a digital audio file that is heard by the calling party after dialing and prior to the call being answered at the receiving end; (« sonnerie d'attente »)
"ringtone" means a digital audio file that is played to indicate an incoming telephone call. (« sonnerie »)
Royalties shall be due no later than 60 days after the end of each quarter. The payment shall be accompanied by a report showing, with respect to the relevant quarter,
- (a) the total number of ringtones and ringbacks supplied;
- (b) the total number of ringtones and ringbacks requiring a SOCAN licence supplied and the total amount payable by subscribers for those ringtones and ringbacks;
- (c) with respect to each ringtone and ringback requiring a SOCAN licence,
- (i) the total number of times the ringtone or ringback was supplied at a particular price, and
- (ii) the title of the work, the name of the author, the name of the performer, the Universal Product Code (UPC) and the International Standard Recording Code (ISRC); and
- (d) with respect to each ringtone and ringback not requiring a SOCAN licence, information that establishes why the licence was not required.
SOCAN shall have the right to audit the licensee's books and records, on reasonable notice and during normal business hours, to verify the statements rendered and the fee payable by the licensee.
Tariff No. 25
USE OF MUSIC BY SATELLITE RADIO SERVICES
Short Title
1. This tariff may be cited as the Re:Sound-SOCAN Satellite Radio Services Tariff (Re:Sound: […]; SOCAN: 2019).
Definitions
2. In this tariff,
"month" means a calendar month; (« mois »)
"number of subscribers" means the average number of subscribers during the reference month; (« nombre d'abonnés »)
"reference month" means the second month before the month for which royalties are being paid; (« mois de référence »)
"service" means a multi-channel subscription satellite radio service licensed by the Canadian Radio-television and Telecommunications Commission as well as any similar service distributed in Canada; (« service »)
"service revenues" means the amounts paid by subscribers for a service, advertising revenues, product placement, promotion and sponsorship, net revenues from the sale of goods or services and commissions on third-party transactions. This includes activation and termination fees, as well as membership, subscription and all other access fees. It excludes advertising agency fees, revenue accruing from any business that is not a necessary adjunct to the distribution of the service or the use of the service's broadcasting facilities and revenue generated from the sale of hardware and accessories used in the reception of the service; (« recettes du service »)
"subscriber" means a person who is authorized to receive in Canada one or more signals offered by a service, whether for free or for valuable consideration, excluding a commercial subscriber; (« abonné »)
"year" means a calendar year. (« année »)
Application
3. (1) This tariff sets the royalties to be paid each month by a service to communicate to the public by telecommunication, in Canada, published sound recordings in Re:Sound's repertoire embodying musical works, performers' performances in Re:Sound's repertoire of such works, and musical or dramatico-musical works in SOCAN's repertoire, in connection with the operation of the service, for direct reception by subscribers for their private use.
(2) This tariff does not authorize
- (a) any use of a work, sound recording or a performer's performance by a service in connection with its delivery to a commercial subscriber; or
- (b) any use by a subscriber of a work or sound recording or a performer's performance transmitted by a service other than a use described in subsection (1).
(3) This tariff does not apply to uses covered by other tariffs, including Re:Sound Tariff 1.A, 1.C, 3, 5, 6, or 8, SOCAN Tariff 16, 18 or 22, or the SOCAN-Re:Sound Pay Audio Services Tariff. For greater certainty, this tariff does not apply to the communication to the public by telecommunication of sound recordings or musical works to end-users via the Internet, a cellular, mobile or wireless network or any similar network, but does permit the use of wireless functionalities (such as a Wi-Fi or Bluetooth functionality) integrated with a satellite radio receiving device that allows the relay of a satellite radio signal to local speakers for subscribers' private use.
Royalties
4. (1) A service shall pay to SOCAN, for each month of the tariff term, 4.26 per cent of its service revenues for the reference month, subject to a minimum fee of 43¢ per subscriber.
(2) A service shall pay to Re:Sound each month […].
Reporting Requirements
5. (1) No later than on the first day of each month of the tariff term, a service shall pay the royalties for that month as set out in section 4 and shall provide for the reference month
- (a) the total number of subscribers to the service; and
- (b) its service revenues, broken down into amounts paid by subscribers for the service, advertising revenues, sponsorship revenues and other revenues.
Sound Recording and Musical Work Use Information
6. (1) Each month, a service shall provide, to both Re:Sound and SOCAN, the following information in respect of each musical work, or part thereof, and each sound recording embodying a musical work, or part thereof, broadcast by the service:
- (a) the date, time and duration of the broadcast of the musical work and sound recording;
- (b) the title of the work and sound recording and the name of its author and composer; and
- (c) the name of the main performer or performing group and, if applicable, the album name and the record label.
However, the service shall not be deemed to be in contravention of this subsection (1) for failure to report the complete information listed above for any given musical work or sound recording or parts thereof unless there were commercially reasonable means available to the service to obtain such information, and the unreported information exists with respect to the musical work or sound recording.
(2) In addition to the reporting required under subsection (1), where such information is available on a commercially reasonable basis to the service, the service shall also provide to both Re:Sound and SOCAN the following information in respect of each musical work, or part thereof, and each sound recording embodying a musical work, or part thereof, transmitted by the service:
- (a) the catalogue number of the album;
- (b) the International Standard Musical Work Code (ISWC) of the work;
- (c) the Universal Product Code (UPC) of the album;
- (d) the International Standard Recording Code (ISRC) of the sound recording;
- (e) the names of all of the other performers (if applicable);
- (f) the duration of the musical work and sound recording as listed on the album, the track number on the album, and the year of the album and track;
- (g) the type of usage (feature, theme, background, etc.); and
- (h) whether the track is a published sound recording.
(3) The information set out in subsections (1) and (2) shall be provided electronically, in a format agreed upon by Re:Sound, SOCAN and the service, no later than 10 business days after the service receives the monthly music information report from its music information report supplier for a given month (in the case of SiriusXM Canada Inc., such supplier is SiriusXM Radio Inc.), and in any case no later than 45 days plus 10 business days after the end of a given month.
Records and Audits
7. (1) A service shall keep and preserve, for a period of six months after the end of the month to which they relate, records from which the information set out in section 6 can be readily ascertained.
(2) A service shall keep and preserve, for a period of six years after the end of the year to which they relate, records from which the information set out in section 5 can be readily ascertained.
(3) Re:Sound and/or SOCAN may audit these records at any time during the period set out in subsection (1) or (2), on reasonable notice and during normal business hours.
(4) Re:Sound and SOCAN shall, upon receipt, supply a copy of the report of the audit to the service that was audited and to the other collective society.
(5) If an audit discloses that royalties due to any collective society have been understated in any month by more than 10 per cent, the service shall pay the amount of the understatement and the reasonable costs of the audit within 30 days of the demand for such payment, provided that the understatement has been shown by an audit report supplied to the service under subsection (4) and the audit costs are evidenced by an invoice issued by the auditor.
Confidentiality
8. (1) Subject to subsections (2) and (3), information received from a service pursuant to this tariff shall be treated in confidence, unless the service that supplied the information consents in writing to the information being treated otherwise.
(2) A collective society may share information referred to in subsection (1)
- (a) with another collective society that is subject to this tariff;
- (b) with the Copyright Board;
- (c) in connection with proceedings before the Copyright Board, if the service that supplied the information had the opportunity to request a confidentiality order;
- (d) to the extent required to effect the distribution of royalties, with any other collective society, collecting body, royalty claimant, and their agents; and
- (e) if required by law.
(3) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the service that supplied the information and who is not under any actual or apparent duty of confidentiality with respect to the supplied information.
Adjustments
9. Adjustments in the amount of royalties owed (including excess payments), as a result of discovering an error or otherwise, shall be made on the date the next royalty payment is due.
Interest on Late Payments
10. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
Addresses for Notices, etc.
11. (1) Anything addressed to Re:Sound shall be sent to 1235 Bay Street, Suite 900, Toronto, Ontario M5R 3K4, email: satellite@resound.ca, fax number: 416-962-7797, or to any other address, email address or fax number of which the service has been notified in writing.
(2) Anything addressed to SOCAN shall be sent to 41 Valleybrook Drive, Toronto, Ontario M3B 2S6, email: licence@socan.ca, fax number: 416-445-7108, or to any other address, email address or fax number of which the service has been notified in writing.
(3) Anything addressed to a service shall be sent to the last address, email address or fax number of which the collective society has been notified in writing.
Delivery of Notices and Payments
12. (1) A notice may be delivered by hand, by postage-paid mail, by fax, by email or by file transfer protocol (FTP). A payment may be delivered by hand, by postage-paid mail or by electronic bank transfer.
(2) The information set out in section 6 shall be sent by email.
(3) Anything mailed in Canada shall be presumed to have been received four business days after the day it was mailed.
(4) Anything sent by fax, by email, by FTP or by electronic bank transfer shall be presumed to have been received on the day it was transmitted.
Tariff No. 26
PAY AUDIO SERVICES
[NOTE TO PROSPECTIVE USERS: SOCAN Tariff 26 (2010-2016) was the subject of a Copyright Board hearing in May 2017. A decision of the Board is pending. SOCAN files Tariff 26 for the year 2019 as set out below but reserves the right to propose changes as may be justified as a consequence of the Board's decision and any resulting judicial review.]
[NOTE: SOCAN files this Pay Audio Tariff in the same format as it was filed previously, in respect of SOCAN only. SOCAN takes no position on the applicability of this tariff to Re:Sound.]
Short Title
1. This tariff may be cited as the SOCAN-Re:Sound Pay Audio Services Tariff, 2019.
Definitions
2. In this tariff,
"distribution undertaking" means a distribution undertaking as defined in the Broadcasting Act, S.C. 1991, c. 11; (« entreprise de distribution »)
"premises" has the meaning attributed to it in section 2 of the Regulations, which reads:
- "‘premises' means
- (a) a dwelling, including a single-unit residence or a single unit within a multiple-unit residence; or
- (b) a room in a commercial or institutional building."; (« local »)
"programming undertaking" means a programming undertaking as defined in the Broadcasting Act, S.C. 1991, c. 11; (« entreprise de programmation »)
"Regulations" means the Definition of "Small Cable Transmission System" Regulations, SOR/94-755 (Canada Gazette, Part II, Vol. 128, page 4096), amended by SOR/2005-148 (Canada Gazette, Part II, Vol. 139, page 1195); (« Règlement »)
"service area" has the meaning attributed to it in section 2 of the Regulations, which reads:
"‘service area' means an area in which premises served in accordance with the laws and regulations of Canada by a cable transmission system are located."; (« zone de service »)
"signal" means a television or audio signal, other than a signal within the meaning of subsection 31(1) of the Act, retransmitted in accordance with subsection 31(2) of the Act; (« signal »)
"small cable transmission system" has the meaning attributed to it in sections 3 and 4 of the Regulations, which read:
"3. (1) Subject to subsections (2) to (4) and section 4, ‘small cable transmission system' means a cable transmission system that transmits a signal, with or without a fee, to not more than 2 000 premises in the same service area.
(2) For the purpose of subsection (1), where a cable transmission system is included in the same unit as one or more other cable transmission systems, the number of premises to which the cable transmission system transmits a signal is deemed to be equal to the total number of premises to which all cable transmission systems included in that unit transmit a signal.
(3) For the purpose of subsection (2), a cable transmission system is included in the same unit as one or more other cable transmission systems where
- (a) they are owned or directly or indirectly controlled by the same person or group of persons; and
- (b) their service areas are each less than 5 km distant, at some point, from at least one other among them, and those service areas would constitute a series of contiguous service areas, in a linear or non-linear configuration, were it not for that distance.
(4) Subsection (2) does not apply to a cable transmission system that was included in a unit on December 31, 1993.
4. The definition set out in subsection 3(1) does not include a cable transmission system that is a master antenna system located within the service area of another cable transmission system that transmits a signal, with or without a fee, to more than 2 000 premises in that service area."; (« petit système de transmission par fil »)
"year" means a calendar year. (« année »)
Application
3. (1) This tariff sets the royalties to be paid for the communication to the public by telecommunication of musical and dramatico-musical works in SOCAN's repertoire, and of published sound recordings embodying musical works and performers' performances of such works in Re:Sound's repertoire, including the right to make such works available to the public by telecommunication in a way that allows a member of the public to have access to them from a place and at a time individually chosen by that member of the public, in connection with the transmission in 2019 by a distribution undertaking of a pay audio signal for private or domestic use.
(2) This tariff does not apply to uses covered by other applicable tariffs, including SOCAN Tariff 16, 18 or 22, and Re:Sound Tariff 3.
Royalties
4. (1) Subject to subsections (2) and (3), the royalties payable to SOCAN and Re:Sound respectively are 15 per cent and […] per cent of the affiliation payments payable during a month by a distribution undertaking for the transmission for private or domestic use of a pay audio signal.
(2) Subject to subsection (3), the royalties payable to SOCAN and Re:Sound respectively are 9 per cent and […] per cent of the affiliation payments payable during a year by a distribution undertaking for the transmission for private or domestic use of a pay audio signal, where the distribution undertaking is
- (a) a small cable transmission system;
- (b) an unscrambled Low Power Television Station or Very Low Power Television Station (as defined in Sections E and G of Part IV of the Broadcast Procedures and Rules of Industry Canada effective April 1997); or
- (c) a system that performs a function comparable to that of a cable transmission system, that uses Hertzian waves to transmit the signals and that otherwise meets the definition of "small transmission system."
(3) The total royalties payable by a distribution undertaking for the year 2019 for the transmission for private or domestic use of a pay audio signal shall not be less than the total royalties paid by such distribution undertaking under this Tariff for the year 2014.
Dates of Payments
5. (1) Royalties payable pursuant to subsection 4(1) shall be due on the last day of the month following the month for which the royalties are being paid.
(2) Royalties payable pursuant to subsection 4(2) shall be due on January 31 of the year following the year for which the royalties are being paid.
Reporting Requirements
6. (1) A programming undertaking that makes a payment shall provide with its payment, for the relevant period and with respect to each distribution undertaking to which it supplied a pay audio signal,
- (a) the name of the distribution undertaking;
- (b) the list of pay audio signals the programming undertaking supplied to the distribution undertaking for transmission for private or domestic use; and
- (c) the amount of the affiliation payments payable for the transmission for private or domestic use of these signals.
(2) A distribution undertaking that makes a payment shall provide with its payment, for the relevant period and with respect to each programming undertaking from which it purchased a signal,
- (a) the name of the programming undertaking;
- (b) the list of pay audio signals supplied to the distribution undertaking by the programming undertaking for transmission for private or domestic use; and
- (c) the amount of the affiliation payments payable for the transmission for private or domestic use of these signals.
(3) The following information shall also be provided with respect to any system for which royalties are being paid pursuant to subsection 4(2):
- (a) the number of premises served in the system on the last day of each month for which payment is being made;
- (b) if the system is a master antenna system and is located within the service area of another cable transmission system, the name of that other system and a statement to the effect that the other system transmits a signal, with or without a fee, to not more than 2 000 premises in its service area; and
- (c) if the system is included in a unit within the meaning of the Definition of "Small Cable Transmission System" Regulations,
- (i) the date the system was included in the unit,
- (ii) the names of all the systems included in the unit,
- (iii) the names of the person or group of persons who own or who directly or indirectly control the systems included in the unit, and
- (iv) the nature of the control exercised by these persons.
Sound Recording Use Information
7. (1) A programming undertaking shall provide to both SOCAN and Re:Sound the sequential lists of all recordings played on each pay audio signal. Each entry list shall mention the title of the musical work, the name of the author or composer of the work, the name of the performers or of the performing group, the title of the record album and the record label.
(2) The information set out in subsection (1) shall be provided for a period of seven consecutive days for each month, no later than on the last day of the following month. It shall be provided in electronic format where available.
Records and Audits
8. (1) A programming undertaking shall keep and preserve, for a period of six months after the end of the month to which they relate, records from which the information set out in section 7 can be readily ascertained.
(2) Both the distribution undertaking and the programming undertaking shall keep and preserve, for a period of six years after the end of the year to which they relate, records from which a distribution undertaking's affiliation payments to the programming undertaking can be readily ascertained.
(3) A collective society may audit these records at any time during the period set out in subsection (1) or (2), on reasonable notice and during normal business hours.
(4) The collective society shall, upon receipt, supply a copy of the report of the audit to the undertaking that was the object of the audit and to the other collective society.
(5) If an audit discloses that royalties due to the collective society have been understated in any month by more than 10 per cent, the undertaking that was the object of the audit shall pay the reasonable costs of the audit within 30 days of the demand for such payment.
Confidentiality
9. (1) Subject to subsections (2) and (3), a collective society shall treat in confidence information received pursuant to this tariff, unless the undertaking that supplied the information consents in writing to the information being treated otherwise.
(2) A collective society may share information referred to in subsection (1)
- (a) with the other collective society;
- (b) with the Copyright Board;
- (c) in connection with proceedings before the Copyright Board, if the collective society has first provided a reasonable opportunity for the undertaking providing the information to request a confidentiality order;
- (d) to the extent required to effect the distribution of royalties, with any other collecting body or with its royalty claimants; or
- (e) if required by law.
(3) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the undertaking who is not under an apparent duty of confidentiality to that undertaking.
Adjustments
10. Adjustments in the amount of royalties owed (including excess payments), as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.
Interest on Late Payments
11. Any amount not received by the due date shall bear interest from that date until the date the amount is received. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.
Addresses for Notices, etc.
12. (1) Anything that an undertaking sends to SOCAN shall be sent to 41 Valleybrook Drive, Toronto, Ontario M3B 2S6, email: licence@socan.ca, fax number: 416-445-7108, or to any other address or fax number of which the undertaking has been notified.
(2) Anything that an undertaking sends to Re:Sound shall be sent to 1235 Bay Street, Suite 900, Toronto, Ontario M5R 3K4, fax number: 416-962-7797, or to any other address or fax number of which the undertaking has been notified.
(3) Anything that a collective society sends to an undertaking shall be sent to the last address of which the collective has been notified.
Delivery of Notices and Payments
13. (1) A notice may be delivered by hand, by postage-paid mail, by email or by fax.
(2) A notice or payment mailed in Canada shall be presumed to have been received three business days after the day it was mailed.
(3) A notice sent by email or fax shall be presumed to have been received the day it is transmitted.
TARIFF 2.A (COMMERCIAL TELEVISION STATIONS)
Payment on account of cleared programs | form |
---|---|
— to account for additional expenses incurred by SOCAN because of the availability of the MBL: 3% × 1.9% × gross income from all programs |
(A) _________ |
— to account for the fact that stations that use the MBL pay royalties two months later than other stations: 1% × 1.9% × gross income from all programs |
(B) _________ |
— to account for the use of ambient and production music in cleared programs: 5% × 1.9% × gross income from cleared programs |
(C) _________ |
— to account for SOCAN's general operating expenses: 22% × 95% × 1.9% × gross income from cleared programs |
(D) _________ |
TOTAL of A + B + C + D: | (E) _________ |
Payment on account of programs other than cleared programs: | |
— 1.9% × gross income from all programs other than cleared programs | (F) _________ |
TOTAL LICENCE FEE FOR THE MONTH (E + F): | (G) _________ |
Please remit the amount set out in (G) |
TARIFF 2.A (COMMERCIAL TELEVISION STATIONS)
FORM B
MUSIC REPORT FOR CLEARED PROGRAMS
Television Station: _________________________________________________________
Program Title and Episode Number: _____________________________________________
Air Date: __________________
Producer: _______________________________________________________________
Gross Income from Program: __________________________________________________
Please complete the following report for EVERY musical work included in the program. Please provide, for each musical work, a copy of any document on which you rely to conclude rights that the music is cleared music, or a reference to that document, if you provided it previously.
Item | Title | Use (Theme, Feature, Background) |
Timing | COMPOSER | PUBLISHER | PERFORMER | ||
---|---|---|---|---|---|---|---|---|
NAME | CLEARANCE (DIRECT, SOURCE, PUBLIC DOMAIN) (with reference to any supporting documents) |
NAME | CLEARANCE (DIRECT, SOURCE, PUBLIC DOMAIN) (with reference to any supporting documents) |
|||||
Tariff No. 17
TRANSMISSION OF PAY, SPECIALTY AND OTHER TELEVISION SERVICES BY DISTRIBUTION UNDERTAKINGS
FORM A
CALCULATION OF LICENCE FEE FOR A STANDARD BLANKET LICENCE FOR THE MONTH OF ______________ (Payment by the distribution undertaking)
Name of the distribution undertaking: _______________________________________________
Name of the programming undertaking or signal on account of which the royalties are being paid (please provide one form per programming undertaking or signal): ______________________________________________________
(A) 1.9% × amount payable by the distribution undertaking for the right to carry the signal for the relevant month: ____________
(B) 1.9% × number supplied by the programming undertaking pursuant to paragraph 12(1)(a) of the tariff × number of premises or TVROs served by the distribution undertaking and lawfully receiving the signal of the programming undertaking on the last day of the relevant month: ____________________
(C) TOTAL LICENCE FEE FOR THE MONTH (A + B): __________________
Please remit the amount set out in (C)
NOTE: If the programming undertaking claims that it complies with paragraph 8(2)(b) of the tariff, the applicable royalty rate is 0.8%.
FORM B
CALCULATION OF LICENCE FEE FOR A STANDARD BLANKET LICENCE FOR THE MONTH OF _____________ (Payment by the distribution undertaking)
Name of the programming undertaking or signal: _________________________________________________
List of the distribution undertakings on account of which royalties are being paid: ___________________________
(A) 1.9% × total amount payable by the relevant distribution undertakings for the right to carry the signal of the programming undertaking for the relevant month: _______________________
where
X is the gross income of the programming undertaking during the relevant month
Y is the total number of premises or TVROs served by the distribution undertakings and lawfully receiving the signal of the programming undertaking on the last day of the relevant month
Z is the total number of premises or TVROs (including those served by systems subject to section 4 of the tariff) lawfully receiving the signal of the programming undertaking on the last day of that month.
(C) TOTAL LICENCE FEE FOR THE MONTH (A + B): ___________________
Please remit the amount set out in (C)
NOTE: If the programming undertaking claims that it complies with paragraph 8(2)(b) of the tariff, the applicable royalty rate is 0.8%.
FORM C
CALCULATION OF LICENCE FEE FOR A MODIFIED BLANKET LICENCE (MBL) FOR THE MONTH OF _________
For the purposes of this form and for the month for which the royalties are being calculated
"Affiliation payments" does not include payments made by systems subject to section 4 of the tariff (small systems).
"Total affiliation payments" means
- (a) if a distribution undertaking fills the form, the affiliation payment payable by the distribution undertaking to the relevant programming undertaking for that month,
- (b) if a programming undertaking fills the form, the affiliation payments payable to the programming undertaking by all the distribution undertakings that carried its signal during that month.
"Affiliation payments from cleared programs" means the total affiliation payments multiplied by the percentage of total air time attributable to cleared programs in that month. (That figure is provided by the programming undertaking pursuant to paragraph 12(1)(b) of the tariff if a distribution undertaking fills the form.)
"Affiliation payments from programs other than cleared programs" means the difference between total affiliation payments and affiliation payments from cleared programs.
"Total gross income" means
- (a) if a distribution undertaking fills the form, the number provided by the programming undertaking for that month pursuant to paragraph 12(1)(a) of the tariff multiplied by the number of premises or TVROs served by the distribution undertaking and lawfully receiving the signal of the programming undertaking on the last day of that month,
- (b) if a programming undertaking fills the form, the undertaking's gross income for that month multiplied by the ratio of the total number of premises or TVROs (excluding those served by systems subject to section 4 of the tariff) lawfully receiving its signal on the last day of that month over the total number of premises or TVROs (including those served by systems subject to section 4 of the tariff) lawfully receiving its signal on the last day of that month.
"Gross income from cleared programs" means the total gross income multiplied by the percentage of gross income from cleared programs. (That figure is provided by the programming undertaking pursuant to paragraph 12(1)(b) of the tariff if a distribution undertaking fills the form.)
"Gross income from programs other than cleared programs" means the difference between total gross income and gross income from cleared programs.
If the distribution undertaking fills the form, one form must be completed with respect to each programming undertaking that has elected for the MBL that the distribution undertaking transmits in the relevant month. If the programming undertaking fills the form, only one form needs to be completed.
Payment on account of cleared programs |
form |
---|---|
— to account for additional expenses incurred by SOCAN because of the availability of the MBL: |
|
— to account for the use of ambient and production music in cleared programs: |
|
— to account for SOCAN's general operating expenses: 22% × 95% × 1.9% × (gross income from |
|
— TOTAL of A + B + C |
(D) _________ |
Payment on account of all programs other than cleared programs |
|
— 1.9% × (gross income from programs other than cleared programs + affiliation payments from programs other than cleared programs) |
|
TOTAL LICENCE FEE FOR THE MONTH (D + E) |
(F) __________ |
Please remit the amount set out in (F) |
NOTE: If the programming undertaking claims that it complies with paragraph 9(2)(b) of the tariff, the applicable royalty rate is 0.8%.
FORM D
MUSIC REPORT FOR CLEARED PROGRAMS
Signal / Channel: __________________________________________
Program Title and Episode Number: _____________________________
Air Date: __________________
Producer: _______________________________________________
Gross Income from Program: __________________________________
Please complete the following report for EVERY musical work included in the program. Please provide, for each musical work, a copy of any document on which you rely to conclude that the music is cleared music, or a reference to that document, if you provided it previously.
Item | Title | Use (Theme, Feature, Background) |
Timing | COMPOSER | PUBLISHER | PERFORMER | ||
---|---|---|---|---|---|---|---|---|
NAME | CLEARANCE (DIRECT, SOURCE, PUBLIC DOMAIN) (with reference to any supporting documents) |
NAME | CLEARANCE (DIRECT,
SOURCE, PUBLIC DOMAIN) (with reference to any supporting documents) |
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