Copyright Board of Canada’s latest decision on Internet Tariff 22 released

SOCAN is pleased that rates have finally been established for the second part of SOCAN's Tariff 22 for the years 1996-2006.

The first part of that tariff (Tariff 22A) was issued on October 18, 2007, and dealt exclusively with online music services. This second part (Tariff 22 B-G) sets rates for other music uses over the Internet as they relate to Commercial Radio, Non-commercial Radio, Commercial Television, Non-Broadcast Television, Pay Audio Services, Satellite Radio Services, CBC, TVO, Télé-Québec, Audio Websites, and Game Sites.

“We are encouraged by the Board’s decision,” says Paul Spurgeon, SOCAN’s VP Legal Services & General Counsel. “On behalf of our songwriter and music publisher members we are glad that a decision has been rendered. This decision will provide a foundation for the management of performing rights royalties for online music use for the period it covers.”

However, SOCAN is disappointed that the Copyright Board declined to approve a tariff for all of the Internet uses that SOCAN requested. As the Internet continues to change – and indeed, has changed since the hearing began – SOCAN will address this and other issues when the Board considers SOCAN’s tariff proposals for 2007 and subsequent years.

Under the new decision, SOCAN licence fees for Tariff 22 B-G are set, as follows:

B. Commercial radio stations will pay 4.2% of their Internet-related revenues and 1.5% if they are a low music use station. The base upon which these rates are calculated is reduced by at least 50% to account for the fact that not all of a radio station’s web pages contain sounds and therefore all of the revenue earned by those sites is not associated with music.

C. Non-commercial radio pays a rate of 1.9% of its expenses associated with their websites. The minimum 50% reduction of the base also applies to non-commercial radio.

D. For commercial television, non-broadcast television, pay audio services, satellite radio services the rates are 1.9% for television and 12.35% for pay audio services. The rate for satellite radio has yet to be set. The rate bases are also reduced.

E. CBC, TVO, Télé-Québec will pay a proportion of the amounts they already pay to SOCAN.

F. Stand alone audio websites that play music will pay a rate based on the amount of music they use: 1.5% with music use of 20% or less, 4.2% if music use is more than 20% and less than 80%, and 5.3% if music use is 80% or more. The base upon which the tariff applies is also reduced to no greater than 50% of the website’s entire revenue.

G. The starting rate for game sites that use music will be 0.8% of 10% of the revenue generated by the website.

For the full Tariff 22 B - G decision, go to the Copyright Board website