New tariffs are proposed in response to the many new uses of our members’ music. For example: satellite or internet radio. In other cases, a pre-existing tariff must be renewed or updated.

As for how it’s done, our lawyers consult with our employees, industry representatives and outside experts to get their input on how music is being used. Industry research is conducted to obtain information and establish the groundwork. SOCAN must also consider how it wants the tariff administered and fees collected. Finally, a value for the music use must be established, which normally requires input from the music users themselves at a later hearing.

In our next issue: “Getting the proposed tariff off the ground.”