SOCAN is undertaking its first arrears distribution of ringtones royalties on Nov. 13, 2009, relating to the transmission of ringtones by ringtone suppliers for the years 2003 through 2008. Regular ongoing quarterly distribution of ringtones royalties is targeted to begin with the Feb. 15, 2010, distribution.

The arrears distribution includes more than 35.6 million ringtone tracks sold by digital service providers between 2003 through 2008. More than 97 percent of these tracks were successfully matched to registration details by SOCAN’s Distribution Operations department and will be paid as royalties.

SOCAN’s board of directors approved new distribution rules relating to this tariff in early 2009, whereby revenue collected is pooled for the purposes of the ringtones distribution. Distributions are based on all available and received sales information pertaining to ringtones, provided by SOCAN’s Tariff 24 licensees (digital service providers).

The royalties accruing to SOCAN members and international performing rights organizations for this communication of musical works stem from a new SOCAN tariff, Tariff 24, approved by the Copyright Board in a 2006 decision. That decision was upheld in 2008 by the Federal court of Appeal, and in the fall of that year the Supreme Court of Canada dismissed the application presented by the wireless operators (mobile telephone companies and others) for a further appeal. The completion of that legal process then cleared the way for SOCAN to begin distributing royalties. The portion of this tariff that pertains to ringbacks is yet to be decided by the Copyright Board.