SOCAN is pleased with the Federal Court of Appeal’s recent ruling in support of the 2006 Copyright Board’s decision to set licence fees for the transmission of ringtones by ringtone suppliers for the years 2003-2005.

The decision confirms SOCAN’s position that the transmission of a ringtone to subscribers by ringtone suppliers constitutes a "communication to the public by telecommunication” and allows SOCAN to seek licence fees from wireless carriers for the communication of musical works via ringtones in Canada.

"SOCAN is delighted that the Federal Court of Appeal allowed the decision of the Copyright Board setting Tariff 24 to stand," says Paul Spurgeon, Vice President Legal Services and General Counsel, SOCAN.

Tariff 24 authorizes SOCAN to collect royalties on the wireless transmission of ringtones requested by cell phone users from wireless carriers. Under the ruling, all wireless carriers must obtain a licence to communicate a ringtone or make a ringtone available to the public for the years 2003-2005. The royalty payable is 6 per cent of the price paid by the subscriber for the ringtone, net of any network usage fees, subject to a minimum royalty of 6¢ each time a ringtone is supplied in 2004 or 2005.