Decisions
Decision Information
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Overview
The Society of Composers, Authors and Music Publishers of Canada (SOCAN) proposed tariffs for the communication to the public by telecommunication of musical and dramatico-musical works in its repertoire by non-commercial radio stations for the periods 2022-2024 and 2025-2027. These tariffs do not apply to the Canadian Broadcasting Corporation. The proposed royalty rate of 1.9% of gross operating costs remains unchanged from the previously approved tariff for 2018-2021 (paras 1-2, 7-8).
- SOCAN Tariff 1.B – Radio – Non-Commercial Radio other than the Canadian Broadcasting Corporation (2018-2021), 2020 CB 005-T: Approved a royalty rate of 1.9% of gross operating costs (para 7).
Parties' Submissions
- SOCAN: Proposed maintaining the royalty rate of 1.9% of gross operating costs for the periods 2022-2024 and 2025-2027, with minor wording changes to the terms and conditions of the tariff (paras 1, 8).
- [Not applicable or not found]
Legal Issues
- Whether the proposed tariffs for 2022-2027, including the royalty rate of 1.9% of gross operating costs, are fair and equitable.
Decision
- The Board approved the proposed tariffs under the title "SOCAN Tariff 1.B – Radio – Non-Commercial Radio other than the Canadian Broadcasting Corporation (2022-2027)" (para 12).
Reasons
The Board:
- Determined that the last approved tariff (2018-2021) serves as an appropriate proxy for assessing the fairness and equity of the proposed tariffs, as the royalty rate and terms remain largely unchanged (paras 9-11).
- Found no evidence of market changes that would necessitate an adjustment to the royalty rate of 1.9% of gross operating costs (paras 10-11).
- Concluded that the minor wording modifications in the proposed tariffs for 2025-2027 are consistent with recent Board practices and do not affect the fairness of the terms (para 11).
Decision Content
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Copyright Board |
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Commission du droit d’auteur |
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Date |
2025-08-22 |
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Citation |
SOCAN Tariff 1.B – Radio – Non-Commercial Radio other than the Canadian Broadcasting Corporation (2022-2027), 2025 CB 9 |
|
Member |
Drew Olsen |
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Proposed Tariffs Considered |
SOCAN Tariff 1.B Non-Commercial Radio (2022-2024) SOCAN Tariff 1.B – Radio – Non-Commercial Radio other than the Canadian Broadcasting Corporation (2025-2027) |
Approval of Proposed Tariff As:
SOCAN Tariff 1.B – Radio – Non-Commercial Radio other than the Canadian Broadcasting Corporation (2022-2027)
Reasons for Decision
I. Overview
[1] This decision relates to tariffs proposed by the Society of Composers, Authors and Music Publishers of Canada (SOCAN): Tariff 1B – Non-Commercial Radio Other Than the Canadian Broadcasting Corporation for the years 2022-2024 and 2025-2027 (the "Proposed Tariffs").
[2] The Proposed Tariffs cover the communication to the public by telecommunication of the musical works and dramatico-musical works in SOCAN’s repertoire by non-commercial radio stations. The Proposed Tariffs do not apply to the activities of the Canadian Broadcasting Corporation.
[3] No objections were filed in regard to the Proposed Tariffs.
[4] I find that a tariff based on the text of the proposed tariff for the period 2025 to 2027 is fair and equitable, and approve the Proposed Tariffs under a single title, using this text.
II. Background
[5] In accordance with the Copyright Act, the Proposed Tariffs were duly published and users were provided with an opportunity to file objections, as provided for in subsection 68.3(2) of the Copyright Act.
[6] No objections were filed in regard to the Proposed Tariff.
[7] The previously approved tariff, which was for the years 2018 to 2021 (the “Last-Approved Tariff”)[1], fixed the royalty rate at 1.9% of a non-commercial radio station’s gross operating costs.
[8] The Proposed Tariffs for the years 2022 to 2024 and 2025 to 2027 include a royalty rate of 1.9% of gross operating costs, which is unchanged from the Last-Approved Tariff. The terms and conditions of the Proposed Tariffs have only small wording differences from the Last-Approved Tariff.
III. Analysis
[9] The Board has frequently held that it is appropriate—absent reasons to the contrary—to use the previously approved tariff as a proxy of what could be fair and equitable. The Board has identified changes in the relevant market as one potential indicator of whether an adjustment to the rate is appropriate or necessary.[2]
[10] The Proposed Tariffs set the same royalty rate as in the Last-Approved Tariff. I am not aware of any changes in the market that would lead me to conclude that such royalty rate is not fair and equitable.
[11] Therefore, I find that the Last-Approved Tariff is an appropriate proxy in this proceeding. Using this proxy, I approve the proposed rate of 1.9% of gross operating costs. Since the terms and conditions of the tariff proposed for 2025 to 2027 are largely identical to those in the Last-Approved Tariff, with only minor modifications, all of which are consistent with recent Board practice, I am convinced that they are appropriate, and I approve the tariffs based on the wording of the tariff proposed for 2025 to 2027.
IV. Conclusion
[12] The Proposed Tariffs are approved under the title SOCAN Tariff 1.B – Radio – Non-Commercial Radio other than the Canadian Broadcasting Corporation (2022-2027).