Definitions
How a SOCAN licence works
Paying a licence fee
Why the music user pays
Background music
Music user scenarios
If the following FAQs do not answer your questions, E-mail us and we will assist you.
Definitions
Q: What is a Music User?
A: If you use music as part of your business or functions, you are a music user and require a SOCAN performing rights licence.
Q: What is a SOCAN customer?
A: A music user who has applied for and received a required performing rights licence from SOCAN, and who then pays regularly scheduled fees for that licence through SOCAN.
Q: I've never heard of SOCAN. How do I know you're legitimate?
A: The performing right that SOCAN administers on behalf of creators of musical works and their publishers is a right granted under Canada's Copyright Act. The Canadian Intellectual Property Office (CIPO), the government department which is responsible for copyright matters, publishes information circular No. 4 which discusses SOCAN. The Copyright Board of Canada approves SOCAN's tariffs, so it too can verify SOCAN's role. In addition, many industry umbrella organizations (restaurant and hotel associations, etc.) that represent those who frequently require a SOCAN licence can also provide some background about SOCAN. Finally, you can contact your legal counsel who can verify SOCAN's role.
Q: What is a performing right?
A: A performing right is one of the rights granted to creators of copyright-protected works under the Copyright Act of Canada. It is the right to perform music works in public, or to communicate them to the public by telecommunication. SOCAN's members assign this right to us so that we can administer it for them.
How a SOCAN licence works
Q: Why do I need a SOCAN licence?
A: The licensing system is important because everyone deserves to get paid for their work - including the people who create the music that fills our lives every day. According to the Copyright Act, any public performance of copyright-protected musical works requires a licence. When a song gets played in public, music creators (not just the performers) are entitled to collect their licence fees - it's part of their livelihood. The tariffs for these uses are set by the Copyright Board, and the fees generally work out to mere fractions of a penny per song.
Q: What is a SOCAN performing right licence?
A: A SOCAN performing right licence grants the right to perform in public any of the musical works in SOCAN's repertoire. Without it, you would have to get permission from every songwriter, composer, lyricist and music publisher for every piece of music you perform. A SOCAN licence is the simplest way to allow you access to virtually the world's entire repertoire of copyright-protected music.
Q: Where does the money go?
A: SOCAN collects licence fees and, after its operating costs are deducted, distributes the revenue as royalties to its members (songwriters, composers, lyricists and their publishers) as well as to affiliated international societies for their members. More than 80% of the monies received from licence fees are distributed to the music creators and publishers entitled to it.
Q: How are SOCAN licence fees set?
A: SOCAN licence fees are set by the Copyright Board, an independent body appointed by the government. Each year SOCAN files proposed tariffs with the Copyright Board. Interested parties are then permitted to submit objections to SOCAN's proposals within a limited period. If an objection or concern is raised concerning a particular tariff, the Copyright Board may hold a hearing. After hearings are completed and any amendments are made, the Copyright Board publishes the approved tariffs in the Canada Gazette.
Paying a licence fee
Q: How much will this cost me?
A: The SOCAN music tariffs take into consideration the value of music to a particular business. If music is in the "foreground" of your business, integral to its operation, then it's worth more to your business. Just imagine a dance club without music. If music is used solely as a background to your business, as might be the case in a restaurant, you'll generally pay less. E-mail us and we can help you figure out which licence(s) you need, or have a look at our tariffs.
Q: What happens if I don't pay?
A: Our business is to make sure that music creators and publishers are fairly compensated for the use of their works. A SOCAN licence allows you access to virtually the world's entire repertoire of copyright-protected musical works. If you authorize the public performance of copyright protected-musical works without obtaining a performing right licence, you are liable for copyright infringement and we may protect these rights by pursuing the matter through legal channels.
Why the music user pays
Q: When is a performance a grand right versus a small right?
A: SOCAN represents the "small" performing rights in musical works. When musical works are used in theatrical shows and/or operas that combine the music with staging, dialogue and costuming, it is referred to as a "grand" right. "Anne of Green Gables" by Norman Campbell and "The Nutcracker" by Pyotr Tchaikovsky are both productions which are "grand" rights. To obtain a grand right licence, you must contact the publisher directly. If you don't know whether an event is a "grand" or a "small" right, please e-mail us.
Q: Shouldn't the bands and performers I hire pay the SOCAN fee?
A: No. As the owner or operator of a venue using any music, live or recorded, you are responsible for obtaining the appropriate SOCAN music licences, and paying the corresponding fees. As in any other business, the music creators and publishers deserve to get paid for their work.
Q: If I don't use Canadian music, do I still have to get a SOCAN licence?
A: You still need a licence. A SOCAN licence allows you access to copyright-protected musical works created around the world and in all styles and genres. Performing rights exist worldwide and we have agreements with other international performing rights organizations to ensure the reciprocal collection of licence fees.
Q: I rent my venue to promoters. Shouldn’t they be responsible for paying the SOCAN fee?
A: Yes, they are also responsible. If the promoter of an event doesn’t obtain the necessary licence, the owner of the venue can be held responsible for the unlicensed performance. If music is used in your venue, simply contact SOCAN. It’s easy to ensure that the right SOCAN licence is obtained. Just
e-mail us.
Q: We already pay the performers. Why do we have to pay SOCAN?
A: When you hire a band or a DJ, you are paying for their services as performing artists – but not for the public performance of the music. Performing music and creating music are two separate types of creative work, and each deserves fair compensation. Only when you obtain a SOCAN licence are you paying the owners of the music.
Q: The bands I present play only their own music. Why do we have to pay SOCAN?
A: When you hire performers to play at an event, you are contracting them for their performing services. This does not cover the public performance of music – even their own works. If a performer also created the music, they have assigned the performing rights to SOCAN or another performing rights organization for administration.
Q: What is Public Domain Music?
A: In Canada, a musical work enters the public domain 50 years after the year of the death of the last surviving composer/author of the work. No fee is due if all the works in a performance are public domain. However, you might be surprised to learn that some of the music we take for granted is not in the public domain. Make no presumptions; you are responsible for submitting a program to SOCAN for final determination.
Q: Why should I care about getting a performing right licence?
A: Fair compensation for the use of a creator's work is protected under the Copyright Act. Protection of intellectual property, such as copyright-protected music, declares that Canada is a society that values creativity and encourages artists to compose works, as their works will be protected.
Q: If I get a licence, does this cover all of the music I use in my establishment?
A: You may need more than one licence depending on how you use the music. There are more than 20 different categories of licences to accommodate the many different uses of music, live or recorded, for which a tariff has been approved by the Copyright Board of Canada.
Q: I already bought the CD so why do I need a SOCAN licence?
A: When you buy a CD at a record store, you have not paid the owners for the right to use their music in public. Only a SOCAN licence allows you to perform that CD in public. Of course, if you purchase a CD for private use (e.g., playing it in your car) a licence is not required.
Background music
Q: I only play CDs, tapes, etc. for background music in my establishment. Why do I need a licence?
A: Background music is considered a public performance, so you need a SOCAN licence to play most types of background music in your establishment. E-mail us to be sure.
Q: When is music not background music?
A: Any music covered by another tariff cannot be eligible for the background music rates. For example, music played during public skating and via an in-flight headset doesn't qualify as background music. Each has its own tariff.
Q: What about telephone music on hold?
A: : If a background music supplier provides your music on hold, then the supplier should pay. If you use music from CDs, DVDs, tapes or the radio, then your business is required to pay (under Tariff 15B). Cost is based on the number of trunk lines (lines simultaneously available for outside calls) in use. There's a base fee for the first line, then a nominal fee for each additional line.
Q: Doesn't my background music supplier pay my SOCAN licence?
A: Not always. And, when they do pay, it's for the use of the music as background or music-on-hold only. Any other use of that music requires a SOCAN licence.
Q: I get my music from a background music supplier. Since they already pay for a SOCAN licence, does that cover my usage as well?
A: No, not if you are using the music for a purpose other than background music. Licensed background music suppliers pay only for the use of music as background. If you use licensed background music to accompany fitness or dance activities, you must also be licensed under Tariff 19.
Q: I play the radio in my store or restaurant. Why do I need a licence?
A: Under Canadian Copyright law, if you exclusively play a radio by means of a stand-alone radio receiver in any place other than a theatre that is ordinarily and regularly used for entertainment and admission is charged, you do not need a background music licence.
However, radio signals that can be heard in different areas of an establishment through the use of a sound system are not covered by this exemption (ie. they must be licensed.). It also does not exempt background music performed by Internet radio, CD players, cable or satellite TV receivers or TV receiving sets that are also capable of receiving radio broadcast signals.
An example of an exempt use would be a single radio set on a receptionist's desk that is played primarily for personal enjoyment. An example of a non-exempt (i.e. licensable) use would be a radio signal that is broadcast through additional speakers in the public area of a retail store, or a TV playing a radio station.
Music user scenarios
Q: I'm producing a show that is carried on a community channel of a cable company and I'm using music on it. Do I need a licence?
A: No. Cable companies have a blanket licence with SOCAN that covers the transmission of pay, specialty and other services. We also license all radio and TV stations for the signals they broadcast.
Q: Is there a special licence for smaller community facilities?
A: Yes. Below a certain threshold annual income, each facility operated by your organization likely falls under Tariff 21. It incorporates virtually all the types of music use expected for typical Community Halls and Recreational Facilities. You'll pay a simple set annual licence fee, plus applicable taxes. Tariff 21 includes facilities operated by a municipality, a school, college, university or agricultural society, or similar community organization.
Q: We're a religious or educational organization or institution. Do we need a SOCAN licence for the music we perform in public?
A: Under the Copyright Act, there are certain exemptions, but specific conditions must be met in order to qualify for the exemption. The exemptions are:
E-mail us to be sure.
Q: I only use folk dance music to teach my fitness classes. Do I still need a SOCAN licence?
A: You may. Even though much of folk music is deemed to be "public domain," either because its creator is unknown or has been deceased for more than 50 years, much of recorded traditional folk music is "arranged" (different parts are created for each instrument or singer), and those arrangements are subject to copyright–and SOCAN licensing. Make no presumptions; you are responsible for submitting a program to SOCAN for final determination.
Q: I bought recorded music specifically developed for exercise classes. Isn't the SOCAN licence covered in the cost of that recording?
A: No, the producer of the recording may have paid for "mechanical rights," but it would not have paid for the "performing rights" covered under SOCAN licensing. A performing rights licence is the responsibility of the person or organization hosting the public performance.
Q: Is there a licence for music on the internet?
A: Yes, there is. The Copyright Board of Canada approved Tariff 22A in 2007, and Tariffs 22 B-G in 2009, dealing with music use on the internet. For more information, visit our SOCAN Tariffs page and scroll down to the description of these tariffs.
