Canada Gazette, Part I, Volume 153, Number 21: Proposed Statements of Royalties to Be Collected for the Reproduction of Musical Works

May 25, 2019

COPYRIGHT BOARD

Proposed Statements of Royalties to Be Collected for the Reproduction of Musical Works

In accordance with section 70.14 of the Copyright Act, the Copyright Board hereby publishes the proposed statements of royalties filed by the Society of Composers, Authors and Music Publishers of Canada (SOCAN) and SODRAC 2003 Inc. and the Society for Reproduction Rights of Authors, Composers and Publishers in Canada Inc. (SODRAC) [collectively, SOCAN/SODRAC] on March 28, 2019, with respect to royalties it proposes to collect, for the reproduction of musical works by commercial television stations, in Canada, in 2020-2021 (Tariff No. 2.A.R), for the reproduction of musical works embedded in music videos for their transmission by a service, in Canada, in 2020 (Tariff No. 22.A.R), and for the reproduction of musical works embedded in audiovisual works for their transmission by a service, in Canada, in 2020 (Tariff No. 22.D.1.R).

In accordance with the provisions of the same section, the Board hereby gives notice that prospective users or their representatives who wish to object to the proposed statements of royalties may file written objections with the Board, at the address indicated below, within 60 days of the publication hereof, that is no later than July 24, 2019.

Ottawa, May 25, 2019

Gilles McDougall
Secretary General
56 Sparks Street, Suite 800
Ottawa, Ontario
K1A 0C9
613‑952‑8624 (telephone)
613‑952‑8630 (fax)
gilles.mcdougall@cb-cda.gc.ca (email)

PROPOSED STATEMENT OF ROYALTIES TO BE COLLECTED BY SOCAN/SODRAC FROM COMMERCIAL TELEVISION STATIONS FOR THE REPRODUCTION, IN CANADA, OF MUSICAL WORKS FOR THE YEARS 2020-2021

Short Title

1. This tariff may be cited as the SOCAN/SODRAC Tariff No. 2.A.R, Commercial Television Tariff, 2020-2021.

Definitions

2. The following definitions apply in this tariff.

Application

3. (1) A station that complies with this tariff is authorized to reproduce a work of the repertoire already embedded in a program, in any material form and by any process now known or hereafter devised, solely for the purpose of broadcasting the program on the station, including any simulcast.

(2) A station that complies with this tariff is also authorized to

(3) The reproductions referred to in subsection (1) and paragraphs (2)(b) and (c) shall be limited to the work of the repertoire already embedded in the program, including the associated visual images.

(4) This tariff does not authorize

(5) This tariff does not apply where there is an agreement between SOCAN/SODRAC and a person authorized to do the acts referred to therein, if the agreement is in effect during the period of the approved tariff.

Royalties

4. (1) The royalties payable to SOCAN/SODRAC for a month shall be 0.66 per cent of the station’s gross income for the reference month, adjusted in accordance with the use of SOCAN/SODRAC’s repertoire, as a percentage of the music played.

(2) If a program contains at least one musical work and the station provides or has provided SOCAN/SODRAC with documentation establishing that the rights referred to in subsection 3(1) have been cleared with respect to all the musical works embedded into the program, the station is entitled, with respect to that program, to a discount of

Formula showing A multiplied by B divided by C see surrounding text for further details

where

5. Royalties owed in respect of part of a month shall be prorated according to the number of days the station engaged in broadcasting during that month.

6. All royalties are exclusive of any bank fees and any federal, provincial or other governmental taxes or levies of any kind.

Reporting and Payment Requirements

7. No later than the later of 30 days after the coming into force of this tariff and 20 days after the end of the first month during which a station reproduces a program that may require a SOCAN/SODRAC licence, the station shall provide to SOCAN/SODRAC the following information:

8. No later than the first day of each month, a station shall

9. (1) No later than the first day of each month, a station shall provide SOCAN/SODRAC with a cue sheet indicating, in relation to each program broadcast by the station for the first time during the reference month, the following information:

(2) A station shall provide a cue sheet for each program that is otherwise identical to another program if their musical content differs in any way contemplated by paragraph (1)(d) or otherwise.

(3) The cue sheet that a station shall provide is that which is received by the station from the person from whom the station acquires the right to broadcast the program. A station shall cooperate with SOCAN/SODRAC in any attempt by SOCAN/SODRAC to obtain cue sheets from third parties, regardless of whether such parties produced the programs.

10. No later than the first day of each month, a station shall provide SOCAN/SODRAC with a copy of its broadcast schedule for the reference month and a broadcast report indicating, in relation to each program broadcast during the reference month, the following information:

11. At any time during the period set out in subsection 12(1), SOCAN/SODRAC may require the production of any contract granting rights referred to in paragraph (c) of the definition of “gross income,” together with the billing or correspondence relating to the use of those rights by other parties, and the station shall provide that information within 10 days after receiving a request in writing from SOCAN/SODRAC.

Records and Audits

12. (1) A station shall keep and preserve, for a period of six years after the end of the year to which they relate, records from which the information set out in sections 8, 9, 10, and 11, any other information that must be provided under this tariff, and the amounts owed under this tariff, can be readily ascertained.

(2) SOCAN/SODRAC may audit these records at any time during the period set out in subsection (1), during normal business hours and on notice of 10 business days.

(3) SOCAN/SODRAC shall, upon receipt of the audit report, supply a copy to the station.

(4) If an audit discloses that royalties due to SOCAN/SODRAC have been understated in any month by more than 10 per cent, the station shall pay the reasonable costs of the audit within 30 days of a demand for such payment.

Breach and Termination

13. (1) A station that fails to provide any information required under this tariff within five business days of the date on which the information is required, or to pay royalties within five business days of the date on which the royalties are due, is not entitled to do any of the acts described in section 3 as of the first day of the month in relation to which the information should have been provided or the royalties should have been paid, as the case may be, and until the information is provided and the royalties and any accrued interest are paid.

(2) A station that fails to comply with any other provision of this tariff is not entitled to do any of the acts described in section 3 as of five business days after SOCAN/ SODRAC has notified the station in writing of that failure and until the station remedies that failure.

(3) A station whose owner or operator becomes insolvent, commits an act of bankruptcy, makes an assignment for the benefit of its creditors, files for protection under the Companies’ Creditors Arrangement Act or other comparable legislation in another jurisdiction, winds up its affairs, ceases to carry on business, or has a receiver/manager appointed for it or for a substantial part of its property, is not entitled to do any of the acts described in section 3 as of the day immediately preceding the day of the relevant occurrence.

Confidentiality

14. (1) Subject to subsections (2) and (3), SOCAN/ SODRAC shall treat in confidence information received pursuant to this tariff, unless the station consents in writing to the information being treated otherwise.

(2) SOCAN/SODRAC may share information referred to in subsection (1)

(3) Subsection (1) does not apply to information that is publicly available or to information obtained from someone other than the station and who is not under a duty of confidentiality to the station.

Adjustments

15. Adjustments in the amount of royalties owed (including excess payments), as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.

Interest

16. (1) In the event that a station does not pay the amount owed under section 8 or provide the information required by sections 8, 9, and 10 by the due date, the station shall pay to SOCAN/SODRAC interest calculated on the amount owed from the due date until the date both the amount and the information are received by SOCAN/SODRAC. Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.

(2) In the event that a station does not provide the information required by sections 8, 9, and 10 by the due date, the station shall pay to SOCAN/SODRAC a late fee of $50.00 per day from the due date until the date the information is received by SOCAN/SODRAC.

Delivery of Notices and Payments

17. (1) Anything that a service sends to SOCAN/SODRAC pursuant to sections 8 to 10 shall be sent by email to licence@socan.com. Anything else that a distributor sends to SOCAN/SODRAC shall be sent to 41 Valleybrook Drive Toronto, Ontario M3B 2S6, Att.: General Counsel and Head of Legal Services, email: licence@socan.com, fax: 416‑442‑3371, or to any other address of which the service has been notified in writing.

(2) Anything that SOCAN/SODRAC sends to a service shall be sent to the last address, fax number or email address of which SOCAN/SODRAC has been notified in writing.

18. (1) Subject to subsection (2), a notice may be delivered by hand, by postage-paid mail, by email, by fax, or by File Transfer Protocol (FTP). A payment must be delivered by hand, by postage-paid mail, or as otherwise agreed upon by SOCAN/SODRAC and the station.

(2) To the extent possible, information that a service provides pursuant to sections 8 to 10 shall be delivered electronically, in Excel format or in any other format agreed upon by SOCAN/SODRAC and the service. Each type of information shall be provided in a separate field.

(3) A notice or payment mailed in Canada shall be presumed to have been received four business days after the day it was mailed.

(4) A notice sent by fax, by email, or by FTP shall be presumed to have been received the day it was transmitted.

(5) All amounts required to be reported or paid under this tariff shall be reported or paid in Canadian dollars.

Term

19. This tariff comes into force on January 1, 2020, and ends on December 31, 2021.

PROPOSED STATEMENT OF ROYALTIES TO BE COLLECTED BY SOCAN/SODRAC FOR THE REPRODUCTION OF MUSICAL WORKS EMBEDDED IN MUSIC VIDEOS FOR THEIR TRANSMISSION BY A SERVICE, IN CANADA, FOR THE YEAR 2020

Short Title

1. This tariff may be cited as SOCAN/SODRAC Tariff No. 22.A.R, Reproduction of Musical Works Embedded in Music Videos for Transmission by a Service, 2020.

Definitions

2. In this tariff,

Application

3. (1) This tariff entitles an online music service that complies with this tariff, and its authorized distributors,

in connection with the operation of the online music service.

(2) For greater certainty, this tariff does not apply to activities subject to the reproduction right licence in force between SOCAN and the Canadian Broadcasting Corporation / Société Radio-Canada or to activities subject to SODRAC Tariff No. 5 or SODRAC Tariff No. 7 or SOCAN/SODRAC Tarif No. 22.D.1.R or SOCAN/SODRAC Tariff No. 2.A.R.

4. (1) This tariff does not authorize the reproduction of a musical work of the repertoire embedded in a music video in a medley, for the purpose of creating a mashup, for use as a sample or in association with a product, service, cause or institution.

(2) This tariff does not entitle the owner of the copyright in a sound recording of a musical work to authorize the reproduction of that work.

(3) This tariff does not authorize the production of a music video or the synchronization of a musical work in a music video. It authorizes only the transmission by any means whatsoever of existing music videos in which the musical work is already embedded.

Royalties Payable

Permanent and Limited Download Services

5. (1) The royalties payable by a licensee that operates a download service for music videos shall be 5.64 per cent of the amount paid by end-users for the downloads of music videos, multiplied by SOCAN/SODRAC’s share in those works payable to SOCAN/SODRAC.

Subscription-Based Limited Download Service

(2) The royalties payable by a licensee that operates a limited download service with a subscription for music videos, with or without webcasting shall be,

Formula showing A multiplied by B divided by C see surrounding text for further details

where

Where a service does not report to SOCAN/SODRAC the number of plays of files as limited downloads, (B) will be deemed to equal either (a) the number of plays of the same music video as a webcast during the month, or (b) if the music video has not been played as a webcast during the month, the average number of plays of all music videos as webcast during the month.

Webcast

(3) The royalties payable in a month by a service that offers webcast but does not offer limited downloads shall be

Formula showing A multiplied by B divided by C see surrounding text for further details

where

For clarity, if the service permits an end-user to copy files onto a local storage medium or device for later access, the service shall pay royalties pursuant to subsection (1), not pursuant to this subsection.

Free Subscription to a Webcast Service

(4) The royalties payable in a month by a service that offers a free webcast service shall be the lesser of 16.37¢ per unique visitor per month and 0.054¢ per free webcast requiring a SOCAN/SODRAC licence received by that unique visitor in that month.

(5) Where an online music service that is required to pay royalties under any of subsections (2) to (4) also offers downloads, the royalty payable by the service for each download requiring a SOCAN/SODRAC licence shall be 5.64 per cent of the amount paid by an end-user for the download, subject to a minimum of 2.6¢ per musical work in a music video that contains 19 musical works or more, per permanent download, and 8.04¢ per permanent download in all other cases.

Minimum Royalties

(6) The royalties payable by a licensee pursuant to subsection 5(1) shall be no less than $0.066 per music video containing only one musical work, and $0.026 per musical work in a music video containing two or more musical works, where both of these amounts are to be adjusted for the partial ownership of the musical works by SOCAN/SODRAC.

(7) The royalties payable by a licensee pursuant to subsection 5(2) shall be a minimum equal to the greater of

(8) The royalties payable by a licensee pursuant to subsection 5(3) shall be a minimum equal to the greater of

Mixed Bundles

(9) Where an end-user pays for a mixed bundle, the amount paid by the end-user for the files containing music videos in the bundle shall be deemed to be (a) the price of the bundle, multiplied by the price of the files containing the music videos when not sold in a bundle, divided by the sum of the prices of all files in the bundle when not sold in a bundle; or (b) when information required to calculate the amount in paragraph (a) is not available, the price of the bundle, multiplied by two, divided by the sum of the number of files containing audio tracks and two times the number of files containing a music video.

Adjustments

(10) For the purpose of calculating the minimum payable pursuant to subsection (2) and subsection (3), the number of subscribers shall be determined as at the end of the month in respect of which the royalties are payable.

(11) All royalties payable under this tariff are exclusive of any bank fees and any federal, provincial or other governmental taxes or levies of any kind.

ADMINISTRATIVE PROVISIONS

Reporting Requirements

6. No later than the earlier of 20 days after the end of the first month during which a licensee, in connection with the operation of an online music service, communicates or reproduces a file requiring a SOCAN/SODRAC licence under this tariff, or authorizes another person to do the same, and in any event before the service first makes that file available to the public, the licensee shall provide to SOCAN/SODRAC the following information:

Music Use Report

Definition

7. (1) In this section, “required information” means, in respect of a file, where available

(1.1) For certainty, information is “available” under subsection (1) if it is in the possession or control of the licensee operating the relevant online music service, regardless of the form or the way in which it was obtained.

Permanent and Limited Download Services

(2) No later than 20 days after the end of each quarter, a service that is required to pay royalties pursuant to subsection 5(1) shall provide to SOCAN/SODRAC a report setting out, for that quarter, allocated by month, in relation to each file that was downloaded by an end-user,

Subscription-Based Limited Download and Webcast Services

(3) No later than 20 days after the end of each quarter, a service that is required to pay royalties pursuant to subsections 5(2) and 5(3) shall provide to SOCAN/SODRAC a report setting out, for that quarter, allocated by month,

Free Subscription to a Webcast Service

(4) No later than 20 days after the end of each quarter, an online music service that is required to pay royalties pursuant to subsection 5(4) shall provide to SOCAN/SODRAC a report setting out, for that quarter, allocated by month,

(5) An online music service that is required to pay royalties pursuant to more than one subsection of section 5 shall file a separate report pursuant to each subsection of this section.

(6) Whenever an online music service is required to report its gross revenue for a month, it shall include, separately — and in addition to any other information specifically required by the relevant subsection — the amount of revenue received from subscribers, the amount received from non-subscribers, the amount received from advertisers, the amount attributable to sponsorships, and the amounts received from each additional revenue source.

(7) Using the information received pursuant to subsections (1) to (4) and any other information at its disposal, SOCAN/SODRAC shall make reasonable efforts to determine the information required to calculate and distribute the royalties payable pursuant to section 5.

(8) An online music service shall provide the information set out in subsection (1) with respect to each otherwise identical music video if the musical content in each such work is different.

(9) If the information supplied pursuant to subsection (1) or (8) does not allow SOCAN/SODRAC to reasonably proceed to the distribution of royalties, SOCAN/SODRAC, after first conducting its own reasonable search, may further inquire with the online music service, which will make reasonable efforts to supply any further, relevant information to assist SOCAN/SODRAC in its royalty distribution, including

8. (1) As soon as possible after receiving the information set out in section 7, SOCAN/SODRAC shall notify the online music service of those music videos that include a work for which a SOCAN/SODRAC licence is required. With respect to such works, SOCAN/SODRAC shall also provide to the online music service a report setting out

(2) At least once each quarter, SOCAN/SODRAC shall provide a new report with respect to music videos for which the information set out in paragraph (1)(c) or (d) has changed.

9. Royalties payable pursuant to section 5 are due no later than six months after the quarter. If SOCAN/SODRAC does not provide the report under section 8 prior to the date where the payment is due, the payment of royalties for that quarter is deferred to the next quarter.

Repertoire Disputes

10. (1) A licensee that disputes the indication that a file contains a work in the repertoire or requires a SOCAN/SODRAC licence shall provide to SOCAN/SODRAC information that establishes why the licence is not required, unless the information was provided earlier.

(2) An online music service that disputes the indication more than 20 days after receiving a report pursuant to section 8 is not entitled to interest on the amounts owed to it.

Adjustments

11. (1) Updates to any information provided pursuant to sections 6, 7, 8 and 10 shall be provided with the next report dealing with such information.

(2) Subject to subsection (3), adjustments in the amount of royalties owed, including excess payments, as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.

(3) Any excess payment resulting from a licensee providing incorrect or incomplete information about a file shall be deducted from future amounts owed in respect of works owned by the same person as the work in the file.

Records and Audits

12. (1) A licensee shall keep and preserve, for a period of six years after the end of the month to which they relate, records from which the information set out in subsection 5(9) and sections 6, 7, and 10 can be readily ascertained.

(2) SOCAN/SODRAC may audit these records at any time during the period set out in subsection (1) on reasonable notice and during normal business hours.

(3) Subject to subsection (4), if an audit discloses that royalties due have been understated in any quarter by more than 10 per cent, the licensee shall pay the reasonable costs of the audit within 30 days of the demand for such payment.

(4) For the purposes of subsection (3), any amount owing as a result of an error or omission on the part of SOCAN/SODRAC shall not be taken into account.

Confidentiality

13. (1) Subject to subsections (2) and (3), SOCAN/ SODRAC and each licensee and authorized distributor shall treat in confidence information received pursuant to this tariff, unless the disclosing party consents in writing to the information being treated otherwise.

(2) Information referred to in subsection (1) may be shared

(3) Where confidential information is shared with a service provider as per paragraph 2(a), the service provider shall sign a confidentiality agreement, which shall be shared prior to the release of the information with the party whose information is to be disclosed, and shall not use any confidential information for any purpose other than to assist in the conduct of an audit or in the distribution of royalties to rights holders.

(4) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the collectives, a licensee or their authorized distributors, and who is not under an apparent duty of confidentiality to the service.

Interests on Late Payments

14. (1) Subject to subsection (4), any amount not received by the due date shall bear interest from that date until the date the amount is received.

(2) Any overpayment resulting from an error or omission on the part of SOCAN/SODRAC shall bear interest from the date of the overpayment until the overpayment is refunded.

(3) For the purposes of this section, a report provided pursuant to section 8 following the late reception of a report provided pursuant to section 7 is deemed to have been received within the time set out in section 8 as long as SOCAN/SODRAC provides the report no more than 20 days after receiving the late report.

(4) Any amount owing by an online music service as a result of an error or omission on the part of SOCAN/ SODRAC shall not bear interest until 30 days after SOCAN/SODRAC has corrected the error or omission.

(5) Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.

Delivery of Notices and Payments

15. (1) Anything that an online music service sends to SOCAN/SODRAC pursuant to sections 6 and 7 shall be sent by email to licence@socan.com. Anything else that an online music service sends to SOCAN/SODRAC shall be sent to 41 Valleybrook Drive, Toronto, Ontario M3B 2S6, Att.: General Counsel and Head of Legal Services, email: licence@socan.com, fax number: 416‑442‑3371, or to any other address of which the online music service has been notified in writing.

(2) Anything that SOCAN/SODRAC sends to an online music service shall be sent to the last address, fax number or email address of which SOCAN/SODRAC has been notified in writing.

16. (1) Subject to subsection (2), a notice may be delivered by hand, by postage-paid mail, by fax, by email or by File Transfer Protocol (FTP).

(2) To the extent possible, information that an online music service provides pursuant to section 7 shall be delivered electronically, in Excel format or in any other format agreed upon by SOCAN/SODRAC and the online music service. Each type of information shall be provided in a separate field.

(3) A notice or payment mailed in Canada shall be presumed to have been received four business days after the day it was mailed.

(4) A notice sent by fax, by email or by FTP shall be presumed to have been received the day it is transmitted.

Termination

17. (1) SOCAN/SODRAC may, after providing 30 days’ notice in writing, terminate the licence of an online music service that does not comply with this tariff.

(2) Upon termination of the licence, an online music service shall immediately withdraw from the market all copies it owns that contain a work of the repertoire.

Term

18. This tariff comes into force on January 1, 2020, and ends on December 31, 2020.

PROPOSED STATEMENT OF ROYALTIES TO BE COLLECTED BY SOCAN/SODRAC FOR THE REPRODUCTION OF MUSICAL WORKS EMBEDDED IN AN AUDIOVISUAL WORK FOR THEIR TRANSMISSION BY A SERVICE, IN CANADA, FOR THE YEAR 2020

Short Title

1. This tariff may be cited as SOCAN/SODRAC Tariff No. 22.D.1.R, Reproduction of Musical Works Embedded in Audiovisual Works for Transmission by a Service, 2020.

Definitions

2. In this tariff,

Application

3. This tariff entitles a service that complies with this tariff, and its authorized distributors,

in connection with the operation of the service.

Restrictions

4. (1) This tariff only authorizes the reproduction of a musical work in association with the same images with which the musical work was embedded in the audiovisual work.

(2) For greater certainty, this tariff does not apply to activities subject to SODRAC Tariff No. 5, SODRAC Tariff No. 6 and/or SODRAC Tariff No. 8 and SOCAN/SODRAC Tariff No. 22.A.R and SOCAN/SODRAC Tariff No. 2.A.R.

(3) This tariff does not authorize the production of an audiovisual work or the synchronization of a musical work in an audiovisual work. It authorizes only the transmission by any means whatsoever of an existing audiovisual work in which a musical work is already embedded.

Royalties

Permanent Downloads

5. (1) Subject to paragraph (6)(a), the royalties payable in a month by a service that offers permanent downloads requiring a SOCAN/SODRAC licence shall be the greater of paragraphs (1)(a) and (b):

Limited Downloads

(2) The royalties payable in a month by a service that offers limited downloads requiring a SOCAN/SODRAC licence shall be the greater of paragraphs (2)(a) and (b):

On-Demand Streams

(3) The royalties payable in a month by a service that offers on-demand streams but does not offer limited downloads shall be the greater of paragraphs (3)(a) and (b):

For clarity, if the service permits an end-user to copy files onto a local storage medium or device for later access, the service shall pay royalties pursuant to subparagraph (2)(a)(i) or paragraph (2)(b), not pursuant to this subsection.

Free On-Demand Streams

(4) Subject to paragraph (6)(a), the royalties payable for free on-demand streams shall be the lesser of 7.95¢ per unique visitor per month and 0.054¢ per free on-demand stream requiring a SOCAN/SODRAC licence received by that unique visitor in that month.

(5) Subject to paragraph (6)(a), where a service that is required to pay royalties under any of subsections (2) to (4) also offers permanent downloads, the service is required to pay royalties under subsection (1).

Adjustments

(6) Where SOCAN/SODRAC does not hold all the rights in a musical work,

(7) For the purpose of calculating the minimum payable pursuant to subparagraph (2)(a)(ii) and paragraph (3)(a), the number of subscribers shall be determined as at the end of the month in respect of which the royalties are payable.

(8) All royalties payable under this tariff are exclusive of any bank fees and any federal, provincial or other governmental taxes or levies of any kind.

ADMINISTRATIVE PROVISIONS

Reporting Requirements

6. No later than the earlier of 20 days after the end of the first month during which a service reproduces a file requiring a SOCAN/SODRAC licence and the day before the service first makes such a file available to the public, the service shall provide to SOCAN/SODRAC the following information:

Sales Reports

7. (1) In this section, “required information” means, in respect of a file,

Permanent and Transactional Limited Downloads

(2) No later than 20 days after the end of each semester, any service that is required to pay royalties pursuant to subsection 5(1), subparagraph 5(2)(a)(i) or paragraph 5(2)(b) shall provide to SOCAN/SODRAC a report setting out, for that semester, allocated by month,

Subscription-Based Limited Downloads and On-Demand Streams

(3) No later than 20 days after the end of each semester, any service that is required to pay royalties pursuant to subparagraph 5(2)(a)(ii), paragraph 5(2)(b) and subsection 5(3) shall provide to SOCAN/SODRAC a report setting out, for that semester, allocated by month,

Free On-Demand Streams

(4) No later than 20 days after the end of each semester, a service that is required to pay royalties pursuant to subsection 5(4) shall provide to SOCAN/SODRAC a report setting out, for that semester, allocated by month,

(5) A service that is required to pay royalties pursuant to more than one subsection of section 5 shall file a separate report pursuant to each subsection of this section.

(6) Whenever a service is required to report its gross revenue for a month, it shall include, separately — and in addition to any other information specifically required by the relevant subsection — the amount of revenue received from subscribers, the amount received from non-subscribers, the amount received from advertisers, the amount attributable to sponsorships, and the amounts received from each additional revenue source.

(7) Using the information received pursuant to subsections (1) to (4) and any other information at its disposal, SOCAN/SODRAC shall make reasonable efforts to determine the information required to calculate and distribute the royalties payable pursuant to section 5.

(8) A service that does not supply a musical cue sheet pursuant to paragraph (1)(b) shall collaborate with SOCAN/SODRAC if SOCAN/SODRAC attempts to secure the cue sheet from anyone, including the producer of the audiovisual work. If SOCAN/SODRAC does not receive the cue sheet despite such collaboration, the service shall provide to SOCAN/SODRAC, if available,

(9) A service shall provide the information set out in subsection (1) or (8) with respect to each otherwise identical audiovisual work if the musical content in each such work is different.

(10) If the information supplied pursuant to subsection (1), (8) or (9) does not allow SOCAN/SODRAC to reasonably proceed to the distribution of royalties, SOCAN/SODRAC, after first conducting its own reasonable search, may further inquire with the service, which will make reasonable efforts to supply any further, relevant information to assist SOCAN/SODRAC in its royalty distribution, including

8. (1) As soon as possible after receiving the information set out in section 7, SOCAN/SODRAC shall notify the service of those audiovisual works that include a work for which a SOCAN/SODRAC licence is required. With respect to such works, SOCAN/SODRAC shall also provide to the service a report setting out

(2) At least once each semester, SOCAN/SODRAC shall provide a new report with respect to audiovisual works for which the information set out in paragraph (1)(c) or (d) has changed.

9. Royalties payable pursuant to section 5 are due no later than six months after the semester. If SOCAN/SODRAC does not provide the report under section 8 prior to the date where the payment is due, the payment of royalties for that semester is deferred to the next semester.

Repertoire Disputes

10. (1) A service that disputes the indication in a report received pursuant to section 8 that a file contains a musical work requiring a SOCAN/SODRAC licence shall provide to SOCAN/SODRAC the information on which the service relies to conclude that the licence is not required, unless the information was provided earlier.

(2) A service that disputes the indication more than 20 days after receiving a report pursuant to section 8 is not entitled to interest on the amounts owed to it.

Records and Audits

11. (1) A service and SOCAN/SODRAC shall keep and preserve, for a period of four years after the end of the semester to which they relate, records from which the information set out in sections 7 and 8 can be ascertained.

(2) SOCAN/SODRAC may audit these records at any time during the period set out in subsection (1) on notice of 10 business days and during normal business hours.

(3) SOCAN/SODRAC shall, upon receipt, supply to the distributor a copy of the audit report.

(4) If an audit discloses that royalties have been understated in any semester by more than 10 per cent, the distributor shall pay the reasonable costs of the audit within 30 days of the demand for such payment.

Confidentiality

12. (1) Subject to subsections (2) and (3), SOCAN/SODRAC shall treat in confidence information received pursuant to this tariff, unless the disclosing party consents in writing to the information being treated otherwise.

(2) Information referred to in subsection (1) may be shared

(3) Subsection (1) does not apply to information that is publicly available, or to information obtained from someone other than the service or its authorized distributors and who is not under an apparent duty of confidentiality to the service.

Adjustments

13. Adjustments in the amount of royalties owed (including excess payments), as a result of the discovery of an error or otherwise, shall be made on the date the next royalty payment is due.

Interests on Late Payments

14. (1) Subject to subsection (4), any amount not received by the due date shall bear interest from that date until the date the amount is received.

(2) Any overpayment resulting from an error or omission on the part of SOCAN/SODRAC shall bear interest from the date of the overpayment until the overpayment is refunded.

(3) For the purposes of this section, a report provided pursuant to section 8 following the late reception of a report provided pursuant to section 7 is deemed to have been received within the time set out in section 8, as long as SOCAN/SODRAC provides the report no more than 20 days after receiving the late report.

(4) Any amount owing by a service as a result of an error or omission on the part of SOCAN/SODRAC shall not bear interest until 30 days after SOCAN/SODRAC has corrected the error or omission.

(5) Interest shall be calculated daily, at a rate equal to one per cent above the Bank Rate effective on the last day of the previous month (as published by the Bank of Canada). Interest shall not compound.

Delivery of Notices and Payments

15. (1) Anything that a service sends to SOCAN/SODRAC pursuant to sections 6 and 7 shall be sent by email to licence@socan.com. Anything else that a distributor sends to SOCAN/SODRAC shall be sent to 41 Valleybrook Drive, Toronto, Ontario M3B 2S6, Att: General Counsel and Head of Legal Services, email: licence@socan.com, fax number: 416‑442‑3371, or to any other address of which the service has been notified in writing.

(2) Anything that SOCAN/SODRAC sends to a service shall be sent to the last address, email address or fax number of which SOCAN/SODRAC has been notified in writing.

16. (1) Subject to subsection (2), a notice may be delivered by hand, by postage-paid mail, by fax, by email or by File Transfer Protocol (FTP).

(2) To the extent possible, information that a service provides pursuant to section 7 shall be delivered electronically, in Excel format or in any other format agreed upon by SOCAN/SODRAC and the service. Each type of information shall be provided in a separate field.

(3) A notice or payment mailed in Canada shall be presumed to have been received four business days after the day it was mailed.

(4) A notice sent by fax, by email or by FTP shall be presumed to have been received the day it is transmitted.

Termination

17. (1) SOCAN/SODRAC may, after providing 30 days’ notice in writing, terminate the licence of a service that does not comply with this tariff.

(2) Upon termination of the licence, a service shall immediately withdraw from the market all files that contain a musical work of the repertoire.

Term

18. This tariff comes into force on January 1, 2020, and ends on December 31, 2020.