SOCAN is pleased with the Copyright Board of Canada’s recent decision to increase the rate applicable to background music suppliers under Tariff 16, for the years 2007-2009. The Board has increased the rate by 30%, and has estimated that this new rate will generate approximately $400,000 in additional revenues per year. This additional revenue is expected to increase the royalties paid to SOCAN members.

The Board set two rates for the tariff: The first for communicating music and the second for authorizing clients to perform the music in public. The rate for the performance right is set at the current rate of 7.5 percent of the total amount paid by subscribers, while the one for communicating is set at 2.25 percent.

“We’re pleased with this recent decision of the Board,” said Anne Godbout, Director, Legal Services & Legal Counsel, SOCAN. “There are many interesting aspects to this decision, including the fact that the Board has given the music supplier the choice to obtain a licence for the communication right only, and/or to obtain a licence for the right to authorize the public performance of the music.”

Currently, SOCAN licenses more than 60 background music suppliers, who provide their services to some 31,000 premises, including restaurants, hotels, shopping centres, banks, retail stores, factories and professional offices. SOCAN estimates that Tariff 16 currently generates approximately $1.4 million in royalties annually.