NOTICE OF GROUNDS FOR PROPOSED TARIFF Filed with the Copyright Board by SOCAN on 2024-10-15 pursuant to Rule 15 of Copyright Board Rules of Practice and Procedure
SOCAN Tariff 18 – Recorded Music for Dancing (2026-2028) 1. Description of Uses Covered by the Proposed Tariff This tariff applies to public performances of any or all of the musical works in SOCAN’s repertoire by means of recorded music for dancing by patrons in in bars, cabarets, restaurants, taverns, clubs, dining rooms, discotheques, dance halls, ballrooms and similar premises. This tariff does not cover the use of music at concerts or as part of events at receptions, conventions, assemblies or fashion shows. Such uses are covered by a separate tariff.
2. Description of Users / Groups of Users Covered by the Proposed Tariff Users are bars, cabarets, restaurants, taverns, clubs, dining rooms, discotheques, dance halls, ballrooms and similar premises. Importantly, it is the nature of the use, and not the nature of the user, that determines whether the tariff applies.
3. Explanation of How Royalties are Determined The proposed royalty rates for 2026-2028 are as follows: (a) Premises accommodating no more than 100 patrons: Days of Operation Months of Operation 1-3 days 4-7 days 6 months or less $415.48 $830.94 More than 6 months $830.94 $1,661.88 (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.
The proposed royalties are based on the previously approved tariff. The proposed royalty rates have been increased since the last approved tariff which received a rate increase, which was approved in 2017 for the years 2013 to 2017 (and, more specifically, the rate increase for the year 2015). This proposed increase accounts for inflation according to the Board’s established CPI-adjustment formula and the Board’s default methodology as published by the Board in its Inflation Adjustment to Royalty Rates – Default Methodology. The inflation calculation commences in January 2014. SOCAN has estimated the appropriate inflationary increase based on projected CPI for years that full CPI data is not available. According to the Board’s adjustment formula, this figure will likely change once actual CPI data is available. Notwithstanding the proposed royalty rates, SOCAN requests that the Board certify the maximum inflationary increase that SOCAN is entitled to under the Board’s adjustment formula at the time of approval of the tariff and that such inflation calculation commence as of the last inflationary increase to the royalty rates.
Published by the Copyright Board of Canada, pursuant to subsection 17(2) of the Copyright Board Rules of Practice and Procedure, on November 15, 2024.
4. Submissions on the Collection of Information The proposed tariff requires each user to report the room capacity in number of patrons by January 31 of the year covered by the tariff. The information collected under the proposed tariff is needed to calculate and verify the applicable royalties.
5. Explanation of Changes from Previously Approved Tariff 1) The explanation for the proposed rates for 2026-2028 is found above. 2) The tariff wording has been amended to remove the COVID-19 adjustment and temporary measures implemented in the previously-approved tariff. Such COVID-19 adjustment and related terms are no longer necessary, and, in any event, were not applicable to the year 2022 and, therefore, should not be applicable for the years 2026-2028.
3) The proposed tariff includes a clarification to the application section. The proposed tariff clarifies that uses of music at concerts or as part of events at receptions, conventions, assemblies, and fashion shows are covered by a different SOCAN tariff.
Published by the Copyright Board of Canada, pursuant to subsection 17(2) of the Copyright Board Rules of Practice and Procedure, on November 15, 2024.