DISTRIBUTION
RULES
March 2016
SOCAN DISTRIBUTION RULES
TABLE OF CONTENTS
1
Enactment.............................................................................................................................................. 1
2
Interpretation.......................................................................................................................................... 1
3
Sources of Revenue - Distribution Pools ............................................................................................... 2
4
Distribution - Broadcast, Retransmission and Non-Broadcast (Pay, Specialty, Cable and Satellite)
Television Performances ....................................................................................................................... 6
5
Distribution - Concert Performance ...................................................................................................... 10
6
Distribution - Cinema Performances .................................................................................................... 14
7
Distribution - Radio & General, Pay Audio and Satellite Radio Performances ..................................... 15
7.1 Distribution – Private Copying Royalties ....................................................................................... 18
7.2 Distribution - Ringtone .................................................................................................................. 25
7.3 Distribution – Satellite Radio ......................................................................................................... 25
7.4 Distribution - Internet..................................................................................................................... 26
8
Distribution - International Performances ............................................................................................. 27
9
Adjustments ......................................................................................................................................... 27
10 Distribution Periods .............................................................................................................................. 28
11 Distributions to International Affiliated Societies .................................................................................. 28
12 Allocation of Shares ............................................................................................................................. 29
13 General - Controlled and Non-Controlled Shares ................................................................................ 30
14 Allocation of Shares - Participants ....................................................................................................... 30
15 Re-allocation of Shares Applicable to Arrangements, Adaptations and Orchestrations ....................... 35
16 Notification, Reallocation and Disputes Regarding Shares .................................................................. 36
17 Value Of A Performance Credit ........................................................................................................... 37
18 Credits in Suspense ............................................................................................................................. 37
19 Distribution Payments - Payee............................................................................................................. 38
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SOCAN DISTRIBUTION RULES
1
2
Enactment
1.01
Distribution rules are enacted from time to time by the Board of Directors of SOCAN as a result of
circumstances and assumptions made at the time of enactment and may be amended from time to
time as a result of changes of those circumstances and assumptions.
1.02
The licence fees received by SOCAN, the interest earned on investments less expenses incurred,
and the number of credits allocated to the pools according to the distribution rules, vary from time
to time. As a result, the amount that may be attributed to a performance credit may vary from
distribution to distribution.
1.03
Rules enacted or amended may be effective from the date they are enacted or amended by the
Board of Directors and may take effect in the distribution immediately following their enactment or
amendment.
1.04
These rules shall endeavour, as far as possible, to comply with resolutions of the International
Confederation of Societies of Authors and Composers (“CISAC”) related to principles governing the
fair and equitable distribution of royalties.
Interpretation
General
The distribution rules are approved by the Board of Directors from time to time with the intent and purpose
of achieving a fair and equitable distribution of the income collected by SOCAN.
These rules are applied and interpreted by the management and Board of Directors of SOCAN in a manner
that best achieves this intent and purpose.
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2.01
If, in management’s view, this intent and purpose is being abused or has been abused, then
appropriate action may be taken in order to prevent or remedy this abuse or potential abuse.
2.02
If a member disagrees with the interpretation or application of a rule to their particular case or with
any action taken by management under 2.01, then that member may submit a written request for
review of that matter to management. Management shall review the matter, make a determination
and advise the member accordingly.
2.03
If, after management advises the member according to 2.02, the member disagrees with this
determination, then the matter shall be submitted by management to the Board of Directors for its
consideration. The Board of Directors may refer the request for review of the matter to a
Committee of the Board for its consideration. Any decision made, when approved by the Board of
Directors, shall be final.
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3
Sources of Revenue - Distribution Pools
Domestic Distribution Pools:
“Net overhead” or “net overhead rate” means the net performing rights expenses in relation to the
domestic performing rights revenue, expressed as a percentage.
3.01
Broadcast Television and Television Retransmission Distributions
All revenue from licence fees from broadcast television for terrestrial and AV online services and
broadcast television retransmission royalties, less net overhead, shall be pooled for the purposes
of the television distribution.
3.02
Non Broadcast Television Distribution
All revenue from license fees, less net overhead, from non-broadcast television licensees for
terrestrial and AV online services shall be pooled for the purposes of the non-broadcast television
distribution.
3.03
Concert Distribution
All revenue from concert licence fees, less net overhead not to exceed $2,000 per concert, plus
20% of the revenue from licence fees, less net overhead from licences issued under Tariffs 3.A
(Cabarets, cafes, clubs, cocktail bars, etc), 5.A (Exhibitions & Fairs), 8 (Receptions, etc.), 9
(Sporting Events) 10 (Parks), 11 (Circuses and ice shows), 12 (Theme Parks) shall be pooled for
the purposes of the concert distribution.
3.04
Cinema Distribution
All licence fee revenues from
(a) Tariff 6 (Motion Pictures) licence fees; and
(b) the Audio-Visual portion of Tariff 23 (Hotel and Motel In-Room Services); and
(c) the licence fees from online movie rentals;
less net overhead rate shall be pooled for the purposes of the Cinema Distribution.
3.05
Radio, Radio Retransmission & General Distribution
For the purposes of the Radio, Radio Retransmission and General Distribution, all revenue from:
(a) radio licence fees under Tariffs 1.A (Commercial Radio), excluding low music use station fees
under this tariff (“Low Music”), 1.B (Non-Commercial Radio) and 1.C (CBC Radio) (“Radio
Tariffs’ Revenues”); and
(b) Low Music and Radio Retransmission fees (“Low Music/Retransmission Revenues”);
and
(c) 80% of the revenue from licence fees, from licences issued under Tariffs 3.A (Cabarets, cafes,
clubs, cocktail bars, etc), 5.A (Exhibitions & Fairs), 8 (Receptions, etc.), 9 (Sporting events), 10
(Parks), 11 (Circuses and ice shows), 12 (Theme Parks) and all revenue from licence fees,
from licences issued under all other tariffs other than those in 3.01, 3.02, 3.03 and 3.04
(“General/Background Music Tariffs”); and
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SOCAN DISTRIBUTION RULES
(d) Internet radio Tariffs 22.B (Commercial Radio), 22.C (Non-commercial Radio) and 22.E (CBC
Radio)
less net overhead rate, shall be pooled into the following three pools namely the CBC pool, Survey
of Radio pool and Census of Radio pool.
CBC Pool
CBC pool will include:
(a) all revenue from Tariff 1.C and the portion of the revenues from the Low Music/Retransmission
Revenues equal to Tariff 1.C’s share of the total Radio Tariffs’ Revenues (“CBC Revenues”);
and
(b) the portion of revenues from the General/Background Music Tariffs necessary to ensure that
the share of the CBC Revenues in relation to the total revenues of the Radio Tariffs’ Revenues
and Low Music/Retransmission Revenues is no less than the CBC’s listener share of the
Canadian radio market based on the audience data assessed in the last twelve months
(“Market Share Adjustment”). This Market Share Adjustment will be reviewed by the Tariff,
Licensing and Distribution Committee (“TLD Committee”) on at least an annual basis and the
TLD Committee may recommend that it be adjusted. If the TLD Committee recommends a
change to the Market Share Adjustment, it will be subject to approval by the Board of
Directors; and
(c) the portion of 22.E as it relates to CBC’s internet radio licence fees; and
(d) less net overhead rate applied against the revenue in (a), (b) and (c).
Survey of Radio Pool
Survey of Radio pool will include:
(a) all revenue from Tariffs 1.A, excluding Low Music, 1.B, 22.B and 22.C whose programming
has been analyzed on a survey basis and the portion of the revenues from the Low
Music/Retransmission Revenues equal to this pool’s share of the total Radio Tariffs’ Revenues
(“Survey of Radio Revenues”); and
(b) the portion of the revenues from the General/Background Music Tariffs necessary to ensure
that the value of each credit in this pool is of equal value based on the value of the highest
credit (“Credit Value Adjustment”). The Credit Value Adjustment ensures that the value of a
credit or performance credit on a Non-Commercial Radio Station is equal in value to a
performance credit on a Commercial Radio Station; and
(c) once distributions have been made from the General/Background Music Tariffs’ revenues for
the Credit Value Adjustment and the Market Share Adjustment, any additional revenues left
from the General/Background Music Tariffs will be distributed between the Survey of Radio
pool and the Census of Radio pool proportional to each pool’s share of the Radio Tariffs’
Revenues; and
(d) less net overhead rate applied against the revenue in (a), (b) and (c).
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SOCAN DISTRIBUTION RULES
Census of Radio Pool
Census of Radio pool will include:
(a) all revenue from Tariffs 1.A, excluding Low Music, 1.B, 22.B and 22.C whose programming
has been analyzed on a census basis and the portion of the revenues from the Low
Music/Retransmission Revenues equal to this pool’s share of the total Radio Tariffs’
Revenues (“Census of Radio Revenues”); and
(b) once distributions have been made from the General/Background Music Tariffs’ revenues for
the Credit Value Adjustment and the Market Share Adjustment, any additional revenues left
from the General/Background Music Tariffs will be distributed between the Survey of Radio
pool and the Census of Radio pool proportional to each pool’s share of the Radio Tariffs’
Revenues; and
(c) less Net overhead rate applied against the revenue in (a) and (b).
3.06
International Incoming Distribution Pool: Distribution of Royalties from International
Affiliated Societies
All revenue from international affiliated societies is subject to verification for completeness and
reasonableness and is paid to SOCAN members in accordance with the performance
documentation received from the remitting international affiliated societies.
3.07
Pay Audio Distribution
All licence fee revenues from
(a) Pay Audio Tariff; and
(b) the musical services portion of Tariff 23 (Hotel and Motel In-Room Services); and
(c) the pay audio portion of Tariff 22.D (Internet);
less net overhead rate shall be pooled for the purposes of the Pay Audio Distribution.
3.08
Ringtones Distribution
All revenue from Tariff 24 (Ringtones), less net overhead rate, shall be pooled for the purposes of
the Ringtone distribution.
3.09
Satellite Radio Distribution
(a) All revenue from Tariff 25 (Satellite Radio); and
(b) The satellite portion of Tariff 22.D (Internet);
less net overhead rate against the revenue in (a) and (b), shall be pooled for the purposes
of the Satellite Radio distribution.
3.10
Internet Distribution
(a) all revenue from Tariff 22.A (Online Music Sites), 22.F(Audio Websites), 22.G (Game
Sites); and
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SOCAN DISTRIBUTION RULES
(b) the portion of 22.D YouTube whose programming represents online music works
performances;
less net overhead rate applied against the revenue in (a) and (b), shall be pooled for the
purposes of the Internet Distribution.
3.11
Audiovisual Internet Distribution
All revenue from Tariff 22.D.1 (Online Audiovisual Services), less net overhead rate, shall
be pooled for the purposes of the Audiovisual Internet Distribution.
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SOCAN DISTRIBUTION RULES
4
Distribution – Broadcast, Retransmission, Non-Broadcast (Pay, Specialty,
Cable and Satellite) Television Performances and Audiovisual Internet
Definitions:
“Broadcast television performances” means performances of musical works transmitted by terrestrial
television stations licensed under Tariff 2.
“Non-broadcast television performances” means performances of musical works on pay, specialty,
satellite, and other cable television services transmitted by cable, satellite or other means licensed under
Tariff 17.A.
“Retransmission television performances” means performances originally transmitted by terrestrial
television stations transmitted as distant signals by cable, satellite or other means licensed under the
retransmission tariff.
“Audiovisual Internet performances” means performances of musical works in connection with the
operations of an online audiovisual service and is authorized distributors.
4.01
Performance Credits
Those performances analyzed within the broadcast and the non-broadcast television distribution
shall receive one credit for each second of duration as indicated on all audio visual cue sheets that
are analyzed and are subject to the following rules.
4.02
If the use and duration of a musical work is not shown on the music cue sheet or audio visual cue
sheets of a television program, SOCAN may attribute a reasonable estimate of the probable use
and duration of the music content taking into account all circumstances and all available
information regarding the program until the actual use and duration is confirmed.
4.03
Weighting
4.03.01
Broadcast Television and Television Retransmission Distribution
Those performance credits analyzed that are attributed to programs broadcast over the
air by Canadian television broadcaster licensees shall be weighted in direct proportion
to the licence fees paid by or attributed to each licensee. The performance credits
analyzed that are attributed to programs retransmitted by Canadian retransmitters shall
be weighted in direct proportion to the audience share of the station or stations whose
programming is analyzed according to these rules relative to the fees paid by or
attributed to cable retransmitters.
4.03.02
Non Broadcast Television Distribution (Pay, Specialty, Cable and Satellite
Services)
Those performance credits analyzed that are attributed to programs on pay, specialty,
satellite, and cable television services transmitted by Canadian non-broadcast
television licensees shall be weighted in proportion to the license fees paid under or
attributed to Tariff 17 for each pay specialty and other television service.
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SOCAN DISTRIBUTION RULES
4.03.03
Audiovisual Internet Distribution
Those performances credits analyzed that are attributed to programs on the Internet
transmitted by an online audiovisual service and its authorized distributors shall be
weighted in proportion to the licence fees paid under or attributed to the service.
4.04
Programming Analyzed
4.04.01
Broadcast Television and Television Retransmission Distribution
All of the programming information available and received for programs carried by
Canadian broadcast television stations that accurately accounts for the musical
content of the programming televised by those stations shall be included in each
distribution period and thirteen weeks of programming requested and received that is
carried on a television station or stations affiliated with the PBS Network and that is
retransmitted in Canada as a distant signal as defined in the Copyright Act shall be
included in each quarterly distribution period.
4.04.02
Non Broadcast Television
All of the programming information available and received for programs carried by
Canadian non broadcast television that accurately accounts for the musical content of
the programming televised by those non broadcast television services.
4.04.03
Audiovisual Internet
All of the programming information available and received for programs carried by the
online services that accurately accounts for the musical content of the programming
streamed by those online services.
4.05
Definitions
4.05.01
Theme music shall mean music which identifies a program, a film or a series at the
beginning, end, or within the program, film or series.
4.05.02
Feature, “visual” or “source” music shall mean music which falls into one or more of the
following categories:
(a)
(b)
(c)
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music which is performed by, or represented on screen as being audible to one
or more of the characters in the scene portrayed;
music performed in video clips;
music performed in association with choreographed dance sequences;
4.05.03
Dramatic, background, or score music shall mean music which is neither theme nor
feature music.
4.05.04
Logo music shall mean music that identifies the production company at the beginning
and/or end of a television program, film or television series which is not a theme.
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SOCAN DISTRIBUTION RULES
4.06
Dramatic, Background or Score, Theme, Feature, and Logo Use of Music
Performance credits shall be given as either dramatic, background or score, theme, opening and
closing theme, feature, or logo depending upon the use made of the music according to the
notification on a cue sheet or audio visual cue sheet that is acceptable to SOCAN.
4.06.01
Theme Music Credit
Theme music shall receive a full credit for each second of duration for the opening and
closing theme in each program. Theme music that is within a program shall receive
60% of the credit normally attributed to a feature performance.
4.06.02
Feature, Visual or Source Music Credit
Feature/visual or source music shall receive a full credit for each second of duration.
4.06.03
Dramatic, Background or Score Music Credit
Dramatic, background or score music shall receive 60% of the credit normally
attributed to a feature performance.
4.06.04
Logo Music Credit
Logo music shall receive 5% of the credit normally attributed to a feature performance.
4.07
Exceptions
4.07.01
Commercial Messages (Jingles), Program Promotions (Promos), Public Service
Announcements of One Minute Duration or Less and similar uses of music.
With the exception of Public Service Announcements classified as programming in
accordance with CRTC regulations and program promotions contained in the program
promoted, the music contained in commercial messages, program promotions, and
public service announcements of one minute duration or less and similar uses shall not
be analyzed for distribution purposes.
4.07.02
Exercise, “Dancercise” and Similar Programs
The music contained in broadcast and non broadcast television exercise or
“dancercise” programs, other than the opening and closing theme, shall receive a
credit that is ordinarily attributed to dramatic, background, or score music.
4.07.03
Performances of music in broadcast and non-broadcast television series
between 2:00 A.M. and 5:59 A.M.
Performance of music in television series broadcast between 2:00 A.M. and 5:59 A.M.
shall receive 5% of the credit ordinarily attributed to that performance.
4.07.04
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Performance of music on broadcast and non-broadcast television, which is
performed during test patterns and static images.
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SOCAN DISTRIBUTION RULES
Performances of music on broadcast and non-broadcast television, which is performed
during test patterns and static images, shall receive 1% of the credit ordinarily
attributed to music performed during the regular program day.
4.07.05
Performance of music on broadcast and non-broadcast television, which is
performed as music over text during program listings.
Performances of music on broadcast and non-broadcast television, which is performed
during program listings and as music over text shall receive 60% of the credit ordinarily
attributed to music performed during the regular program day.
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SOCAN DISTRIBUTION RULES
5
Distribution - Concert Performance
5.01
Distribution - Concert Performances
A concert, for the purposes of the distribution rules, shall mean a presentation of musical works
licensed by SOCAN at a concert hall, auditorium, theatre or similar place of musical entertainment
at which individuals attend for the primary purpose of hearing the performance of musical works “in
concert”.
5.02
Performance Credits
5.02.01
All performances taking place at concerts as defined in 5.01 that are licensed under
the applicable tariff for which the proper license fee has been paid and for which
programming has been received shall, subject to the distribution rules applicable to
concert performances, receive performance credits based on the following:
 the license fees received as set out below
 the duration of the works performed as set forth in Rule 7.01.01
 Subject to Rule 5.02.02
Concerts
For a concert where the (pop music) Tariff 4.A and Tariff 5.B license fees are as follows, the
maximum amount available for distribution is indicated in the schedule below.
Level
1
2
3
4
5
6
7
8
9
10
11
12
13
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$
License Fees
00.00 24.99
25.00 49.99
50.00 74.99
75.00 99.99
100.00 - 124.99
125.00 - 149.99
150.00 - 174.99
175.00 - 199.99
200.00 - 224.99
225.00 - 249.99
250.00 - 274.99
275.00 - 299.99
300.00 and over
Maximum Amount Distributable
$ 75.00
100.00
120.00
140.00
160.00
180.00
200.00
220.00
240.00
260.00
280.00
300.00
actual license fees received, plus a pro-rata
share of the percentage of the revenue of
those license fees collected under tariffs
3A, 5.A, 8, 9, 10, 11 & 12 and allocated to
the concert pool, less net overhead not to
exceed $2,000 per concert.
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SOCAN DISTRIBUTION RULES
A concert licensed under tariffs 4.B and 14 (serious music) shall receive a distribution
amount available as if it were licensed under the 4.A Tariff (pop music), with each work
receiving its duration’s share of the total time of the concert, subject to the following:
5.02.01.1
Concerts not licensed under Tariff 4 that are covered under a blanket
license issued to a licensee, shall be deemed to be included in Level 1.
5.02.01.2
Circuses and ice shows for which licence fees received were $1,000 or
more, shall be considered concerts for the purposes of Rule 5.
5.02.01.3
The overhead factor referred to in Rule 5, level 13, will be the overhead
as at the time the distribution is calculated.
5.02.01.4
Performances licensed under Tariff 11.B, Comedy Shows and Magic
Shows will be attributed credits equal to the license fees received.
5.02.01.5
Performances of music at major league Sporting Events licensed under
Tariff 9, and for which SOCAN has received an annual fee of over
$300.00, shall be considered a concert for the purposes of Rule 5.
A sample of programming requested, and received, from major league
sports teams, or obtained by SOCAN shall be included in each 4th
quarter distribution.
Major league is defined as teams in the following leagues, including but
not limited to: National Hockey League – NHL; National Basketball
Association – NBA; Major League Baseball – MLB; World Wrestling
Entertainment – WWE; Canadian Football League – CFL. The
performance data sample received or obtained, and the annual licence
fee shall be processed as a single concert for each licensee.
In each calendar year, teams having the following number of games will
be surveyed, as follows:
10 – 25 games = 1 log
26 – 50 games = 2 logs
51 – 80 games = 3 logs
5.02.01.6
5.02.02
For a concert where the licence fee received is $500 or more, and at which there are
two or more musical acts, royalties shall be allocated and distributed in the following
manner:
5.02.02.1
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Prior to the application of rule 5.02.01 to determine the distribution
amount for a performance at a concert licensed under Tariff 4.B.2 (ACO
Agreement), the licence fee received shall be multiplied by a factor of
1.4.
For concerts that feature one headline act and one support act, 90% of
the royalties to be distributed on account of that concert shall be
allocated to the headline act and 10% of the royalties to be distributed
on account of that concert shall be allocated to the support act.
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SOCAN DISTRIBUTION RULES
5.02.02.2
For concerts that feature three or four musical acts, 70% of the royalties
to be distributed on account of that concert shall be allocated to the
headline act and 30% of the royalties to be distributed on account of
that concert shall be allocated to the support acts, on a pro rata basis
for share of each act based on music duration as defined in Rule
5.02.01.
5.02.02.3
For concerts that feature more than four musical acts, a distribution of
the royalties on account of that concert shall be allocated according to
the duration of the works performed as set out in Rule 5.02.01.
5.02.02.4
Where there are two or more headline acts and no support acts, the
headline acts shall be entitled to a distribution of the royalties on
account of that concert according to the duration of the works performed
as set out in Rule 5.02.01.
5.02.02.5
For greater certainty, where there are two or more headline acts, and
any support act(s), the headline acts shall share, in equal proportion,
the percentage allocated to the headline act according to 5.02.02.1.
5.02.02.6
(a) ”Headline act or acts” shall mean the act or acts that are the primary
act or acts performing at the concert and that are featured as such in
any advertisements or newspaper reviews.
(b) ”Support act or acts” shall mean the act or acts that are secondary
to the headline act or acts performing at the concert and that are
featured as such in any advertisements or newspaper reviews.
5.03
5.04
Programming Analyzed
5.03.01
The complete programming information received for those concerts taking place in
each distribution period for which licenses have been granted under the applicable
tariff shall be included in each distribution.
5.03.02
In the absence of complete or reliable programming, SOCAN may make estimates of
the number of works performed based upon the best available information that is
acceptable to SOCAN.
5.03.03
Notification Period - All programming information for a concert performance must be
received by SOCAN no later than twelve months after the concert performance
occurred. Notifications of performances received after this twelve-month period may
be included, in special circumstances, in the analysis of performance credits.
Performances at Venues where a cover charge or admission fee is levied
Licensed performances of musical works controlled by SOCAN at premises licensed under Tariff
3.A (bars, etc.) shall, subject to the rules applicable to concert performances, be included in the
Concert distribution under Level 1 in Rule 5.02.01, if it can be established to SOCAN’s satisfaction
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SOCAN DISTRIBUTION RULES
that an approved cover charge or admission fee of $6 or more, exclusive of taxes, was paid by
those in attendance at the licensed premise.
5.05
Contrived Concerts
If, in SOCAN’s opinion, a concert, as defined in paragraph 5.01 is presented primarily to enable a
member or members to receive a performance credit, then SOCAN shall have the right to attribute
a credit equal to the licence fee received.
5.06
Musical Festivals and Similar Events
Attribution of License Fee and Applicable Credits
Where concerts are presented as part of a music festival or similar event for which a single licence
fee is received on account of all the concerts presented at the festival or event the following shall
apply.
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5.06.01
The attribution of the license fee for the purposes of the determination of the applicable
level in Rule 5.02.01, shall be deemed to be the total fee received for the entire festival
or similar event divided by the total number of days during which concerts were
presented.
5.06.02
Where more than one concert is presented on a day of the festival, the maximum
royalties available for distribution will be as per the Level determined in 5.06.01,
divided by the number of concerts that were presented on that day.
5.06.03
In the absence of accurate information concerning the total number of concerts
presented during the entire event or the number of concerts presented on a given day,
a reasonable number or numbers shall be attributed for the purpose of the application
of this rule.
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SOCAN DISTRIBUTION RULES
6
Distribution - Cinema Performances
6.01
Programming Analyzed – Motion Pictures
SOCAN shall obtain the best available performance information relating to motion pictures
exhibited across Canada. These performances shall be included in the analysis of Motion Picture
performances and shall receive one credit per week, per screen exhibited. In addition, any motion
picture not included in the sample data but which is exhibited within Canada and for which
evidence of exhibition is provided to SOCAN and for which a license fee has been paid shall be
included in the distribution.
6.02
Cinema commercials and trailers are not analyzed for distribution purposes.
6.03
Programming Analyzed – Hotel and Motel In-Room Services (Audio-Visual)
All of the performance information received pertaining to the audio-visual component of a Tariff 23
licence and for which the licence fees have also been received shall be included in the analysis of
the audio-visual performances of Hotel and Motel In-Room Services and shall receive one credit
per viewing reported.
6.04
Programming Analyzed – Movie Rentals Online
For the period beginning January 2013 onwards, all of the performance information received
pertaining to the movie rental online component of Tariff 22 licence and for which the licence fees
have also been received shall be included in the analysis of the audio-visual performances of
Movie Rentals Online and shall receive one credit per viewing reported.
6.05
Determination of Performance Credits
The performance credits shall be given according to the rules applicable to the theme, feature,
dramatic, background or score, and logo use of music on television, as stated in Rules 4.05 and
4.06.
6.06
Weighting – Performance Credit Value
(a) The value attributed to the Motion Picture performance credit shall be determined by taking the
amount of Cinema pool revenues attributable to Tariff 6 and dividing it by the total number of
Motion Picture performance credits.
(b) The value attributed to the Hotel and Motel In-Room Services (Audio-Visual) performance
credit shall be determined by taking the amount of Cinema pool revenues attributable to the
audio-visual portion of Tariff 23 and dividing it by the total number of Hotel and Motel In-Room
Services (Audio-Visual) performance credits.
(c) The value attributed to the Movie Rental Online performance credit shall be determined by
taking the amount of Cinema pool revenues attributable to the audio-visual portion of Tariff
22.D and dividing it by the total number of Movie Rental Online performance credits.
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SOCAN DISTRIBUTION RULES
7
Distribution - Radio & General, Pay Audio and Satellite Radio Performances
7.01
Duration Credits
The performances analyzed within the Radio & General, Pay Audio and Satellite Radio
distributions, unless otherwise stated, shall receive duration credits according to the duration of the
music performances as follows:
Duration of Work Credit
Less than 1 Minute
1:00 - 6:59
7:00 or longer
7.02
1
4
One credit per minute
Exceptions
7.02.01
Commercial Messages and Advertisements (Jingles), Program Promotions
(Promos), Public Service Announcements of One Minute Duration or less and
similar uses of music.
The performance of music licensed by SOCAN that is contained in commercial
messages, program promotions, public service announcements of one minute duration
or less and similar uses shall not be analyzed for distribution purposes.
7.02.02
Bridge, Theme, Signature Tunes, Dramatic Music or “fill” music.
The performance of bridge, theme, signature tunes, dramatic music or “fill” music shall
receive a credit that is equal to its duration as reported to SOCAN. The duration of the
music performed in each calendar quarter and reported shall be totalled and each
second shall be given one forty-fifth of a credit. If no timings are given a reasonable
attribution shall be made.
7.02.03
Monologues, comedy routines, poetry and other similar works.
Performance credits claimed for works that are classified as monologues, comedy
routines, poetry and other similar works shall be treated as follows:
If there is no musical accompaniment then those works shall not be considered to be
within SOCAN’s repertoire for licensing or distribution purposes.
If there is musical accompaniment and this musical accompaniment is considered to
be dramatic or background music then the music portion shall receive 20% of the
credit ordinarily attributed to a composer and the spoken word portion that is
performed with that music shall be treated as lyrics and receive the credit ordinarily
attributed to a lyricist.
7.02.04
Medleys
Medleys shall receive a credit equal to the actual duration of the medley pro-rated
among all of the works contained in the medley.
March 2016
15
SOCAN DISTRIBUTION RULES
7.03
Programming Analyzed
7.03.01 Radio
7.03.01.1 CBC
CBC Network and Regional Programming
All of the programming information available and received shall be included in
the CBC pool in each distribution period.
CBC Local Programming
1050 days per year pro-rated equally over each distribution period and in
proportion to the population of each locality, received on account of CBC local
programming from across Canada, shall be included in the CBC pool in each
distribution period.
7.03.01.2 Survey of Commercial and Non-Commercial Radio
Survey of Commercial Station Programming
Each station that is requested to provide programming information to SOCAN
shall be asked four times per year. The four requests shall consist of four
seven consecutive day periods. One of the periods from each station shall be
included in the Survey of Radio pool in each distribution period.
Survey of Non-Commercial Station Programming
A representative number of days of programming information, consisting of:
7.03.01.2.1
Either one three day or one four day period in each calendar
quarter from each non-commercial station paying annual
license fees to SOCAN of $2,000 or more, shall be included in
each distribution period.
7.03.01.2.2
Either one three day or one four day period in each calendar
year from each non-commercial radio station paying annual
license fees to SOCAN of less than $2,000 shall be included in
the Survey of Radio pool for each distribution period.
7.03.01.3 Census of Commercial and Non-Commercial Radio
All of the programming information available and received by way of census for
each commercial station and non-commercial station shall be analyzed in the
Census of Radio pool for each distribution period. For stations for which the
programming information is received by way of survey and census, only the
census data will be analyzed.
March 2016
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SOCAN DISTRIBUTION RULES
7.03.02
Background Music Services
Programming Analyzed
A representative sample of programming information, consisting of 104 days of
programming information supplied by background music services in each calendar
year shall be pro-rated equally over each distribution period.
Performance Credits
Works performed that appear on the programs requested and received according to
7.03.02 shall receive one credit equal to a performance credit that is ordinarily
attributed to a performance in the Radio and General Distribution.
7.03.03
In-Flight Programming
Audio Programming
Each musical work listed in the audio programs received from Canadian based airlines
for a given period shall receive one credit equal to the credit that is ordinarily attributed
to a performance in the Radio and General Distribution.
Audio Visual Programming
The music contained in each film listed in the audio visual programs received from
Canadian based airlines shall receive one credit equal to the credit that is ordinarily
attributed to a performance in the Cinema Distribution according to Rule 6.
7.03.04
Pay Audio Services
A sample of programming information, consisting of 21 days each distribution period,
of the 84 days of programming information supplied by pay audio services in each
calendar year, if available. Whereas programming information for the Pay Audio
Royalties is not available for the years 1997 to 2001, the amounts collected on account
of those years and available for distribution under these rules, will be distributed based
on programming for the years 2002 to 2004 inclusive on the following basis: Royalties
collected for the period prior to 2002 will be distributed in equal proportion allocated to
12 calendar quarters commencing with the distribution for the first quarter of 2002.
7.03.05
Hotel and Motel In-Room Services (Musical Services)
As no programming information for the musical services portion of a Tariff 23 licence is
available for the period prior to January 1, 2007, the amounts collected on account of
those years and available for distribution will be distributed based on the programming
information that is subject to Rule 7.03.04.
For the period from January 1, 2007 onwards, royalties collected for the musical
services portion of a Tariff 23 licence will be distributed based on the programming
information that is subject to Rule 7.03.04, or, as may be required, based partly or
exclusively on the programming information received from the musical services
licensed under Tariff 23 and for which the licence fees have been received.
March 2016
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SOCAN DISTRIBUTION RULES
7.1
Distribution – Private Copying Royalties
Distribution of amounts collected on account of the “right of remuneration for private copying” (“private
copying right”) received from the Canadian Private Copying Collective (CPCC) shall be distributed in
accordance with the following rules.
7.1.1 Definitions for the purposes of paragraph 7.1 only:
“Private Copying Royalties” shall mean monies collected on account of the private copying right.
“Writer” shall mean any writer who is a member of SOCAN who has assigned to SOCAN the
private copying right as provided for under the Copyright Act of Canada or a writer member of a
performing right society affiliated with SOCAN where such a society has granted that right to
SOCAN.
“Publisher” shall mean any publisher member of SOCAN that has assigned to SOCAN the private
copying right as provided for under the Copyright Act of Canada or a publisher member of a
performing right society affiliated with SOCAN where such society has granted that right to
SOCAN.
“Claim” shall mean the right of SOCAN to request from the CPCC the payment of private copying
royalties to SOCAN for the work of a Writer and/or Publisher.
“Member” shall mean a writer and/or a publisher as defined above.
7.1.2
7.1.3
7.1.4
Allocation of Amounts Received from the CPCC
7.1.2.1
Only those works determined by the CPCC, in accordance with its by-laws, rules,
regulations, policies and agreements among its members, to be entitled to a distribution
and subject to these rules, shall qualify for a distribution by SOCAN to its members or to
its affiliated societies, and
7.1.2.2
Only those Members on whose behalf SOCAN is entitled to claim and for works it has
received royalties from the CPCC on account of the right of remuneration for private
copying shall qualify for a distribution by SOCAN.
Works Entitled to a Distribution
7.1.3.1
Subject to these rules, a Writer shall receive a distribution credit for those works that
SOCAN is entitled to claim and has received royalties from the CPCC on account of the
claim made by SOCAN.
7.1.3.2
Subject to these rules, a Publisher shall receive a distribution credit for those works that
SOCAN is entitled to claim and has received royalties from the CPCC on account of the
claim made by SOCAN.
Distribution for Works Performed in 2000, 2001, 2002 2
Distribution of private copying royalties collected by CPCC and received by SOCAN for works
performed in any of the years 2000, 2001 and 2002, shall be distributed in accordance with the
following rule:
March 2016
18
SOCAN DISTRIBUTION RULES
7.1.4.1
7.1.5
The proportion of the private copying royalties of a work allocated to the Writer(s) shall
in no case be less than the proportion of private copying right that are allocated to the
Publisher(s) of that work, if any, regardless of whether the Publisher(s) has assigned
the private copying right to SOCAN or another entity or regardless of whether a claim
has been made on the Publisher(s)’ behalf by SOCAN or another entity.
Distribution for Works Performed in 2003 and Subsequent Years
Distribution of private copying royalties collected by CPCC and received by SOCAN for works
performed in 2003 or subsequent years shall be distributed in accordance with the following rules:
7.1.5.1
Rules 13.03, 7.1.4.1 and 14 will not apply to distributions falling within this section so
that the proportion of the private copying royalties of a work allocated to the writer(s), if
any, may be less than the proportion of private copying royalties that are allocated to
the publisher(s) of that work, if any, regardless of whether the publisher(s) has assigned
the private copying right to SOCAN or another entity or regardless of whether a claim
has been made on the publisher(s)’ behalf by SOCAN or another entity.
7.1.5.2
For published works registered with SOCAN or after April 25, 1996, SOCAN will
distribute the private copying royalties received in accordance with written instructions
received from all of the member(s) sharing in the work.
7.1.5.3
For unpublished works or for published works registered with SOCAN prior to April 25,
1996, in the absence of a specific written notification from all of the member(s) sharing
in the work or by a performing right society that is affiliated with SOCAN, the private
copying royalties associated with such work shall be credited as follows:
7.1.5.3.1
Unpublished Works
7.1.5.3.1.1
Compositions without lyrics
Participants
Composer(s)
7.1.5.3.1.2
Compositions with lyrics
Participants
Composer(s)
Lyricist(s)
7.1.5.3.1.3
Percentage of Private
Copying Royalties
100%
Percentage of Private
Copying Royalties
50%
50%
Original Unpublished Works with a Maximum Duration
of Public Domain Text of 25% of the Duration of the
Entire Work.
Where Public Domain lyrics or text of a maximum duration
of 25% of the entire work are included in an original
unpublished work, the composer or composers shall
receive 90% of the private copying royalties normally
attributable to a fully copyright protected work.
March 2016
19
SOCAN DISTRIBUTION RULES
7.1.5.3.2
Published Works
7.1.5.3.2.1
Compositions without lyrics
Participants
Composer(s)
Publisher(s)
7.1.5.3.2.2
Compositions with lyrics
Participants
Composer(s)
Lyricist(s)
Publisher(s)
7.1.5.3.2.3
Percentage of Private
Copying Royalties
100%
0%
Percentage of Private
Copying Royalties
50%
50%
0%
Original Published Works with a Maximum Duration of
Public Domain Text of 25% of the Duration of the
Entire Work.
Where Public Domain lyrics or text of a maximum duration
of 25% of the entire work are included in an original
published work, the composer or composers shall receive
90% of the private copying royalties normally attributable
to a fully copyright protected work and the publishers will
not receive any private copying royalties.
7.1.5.3.3
Copyright Arrangements of Musical Works in the Public Domain
General
Subject to the rules governing shares applicable to works in the Public
Domain with new lyrics and subject to notification from affiliated
performing right societies and to rule 7.1.5.3.4, the percentage of the
private copying royalties of a copyright protected arrangement of the
music of a work in the Public Domain, or the adaptation of the lyrics of a
work in the Public Domain shall be 25% respectively. The remaining
percentage shall not be controlled.
Definitions
“A work in the Public Domain” means a work in which no part of the work
is protected by the copyright law of Canada.
“A copyright arrangement, adaptation or orchestration of a work in
the Public Domain” shall mean a musical work or that part of a musical
work that is protected to the extent provided under Canadian Copyright
Law.
March 2016
20
SOCAN DISTRIBUTION RULES
7.1.5.3.3.1
Published Copyright Arrangements
Public Domain Work Without Lyrics
Arrangement Without Lyrics
Participants
arranger(s)
publisher(s)
non-controlled
Percentage of Private
Copying Royalties
25%
0%
75%
Arrangement With New Lyrics
Participants
arranger(s)
lyricist(s)
publisher(s)
non-controlled
Percentage of Private
Copying Royalties
25%
50%
0%
25%
Public Domain Work With Or Without The Original
Public Domain Lyrics
Arrangement Without The Original Public Domain
Lyrics
Participants
arranger(s)
publisher(s)
non-controlled
Percentage of Private
Copying Royalties
25%
0%
75%
Arrangement With New Lyrics
Participants
arranger(s)
lyricist(s)
publisher(s)
non-controlled
Percentage of Private
Copying Royalties
25%
50%
0%
25%
Unarranged adaptation of the original Public Domain
lyrics or an adaptation of any Public Domain lyrics
Participants
adaptor(s)
publisher(s)
non-controlled
March 2016
Percentage of Private
Copying Royalties
25%
0%
75%
21
SOCAN DISTRIBUTION RULES
Unarranged Public Domain Work With New Lyrics
Participants
lyricist(s)
publisher(s)
non-controlled
Percentage of Private
Copying Royalties
50%
0%
50%
Arrangement with an adaptation of the original Public
Domain lyrics or any other Public Domain lyric.
Participants
arranger(s)
adaptor(s)
publisher(s)
non-controlled
7.1.5.3.3.2
Percentage of Private
Copying Royalties
25%
25%
0%
50%
Unpublished Copyright Arrangements
Public Domain Work With or Without The Original
Public Domain Lyrics
Arrangement Without Any Lyrics
Participants
arranger(s)
non-controlled
Percentage of Private
Copying Royalties
25%
75%
Arrangement With New Lyrics
Participants
arranger(s)
lyricist(s)
non-controlled
Percentage of Private
Copying Royalties
25%
50%
25%
Unarranged Public Domain work with adaptation of
the original Public Domain lyrics or an adaptation of
any other Public Domain lyrics.
Participants
adaptor(s)
non-controlled
March 2016
Percentage of Private
Copying Royalties
25%
75%
22
SOCAN DISTRIBUTION RULES
Arrangement with an Adaptation of the original Public
Domain lyrics or an adaptation of any Public Domain
lyric.
Participants
arranger(s)
adaptor(s)
non-controlled
Percentage of Private
Copying Royalties
25%
25%
50%
Unarranged Public Domain work with new lyrics.
Participants
lyricist(s)
non-controlled
7.1.5.3.4
Percentage of Private
Copying Royalties
50%
50%
Arrangements of copyright works, new lyrics or adaptations of
Public Domain lyrics in copyright works
The distribution of private copying royalties attributed to an arrangement
of a copyright work, to a copyright work with new lyrics, or to a copyright
work that incorporates an adaptation of Public Domain lyrics, shall be
established according to an agreement, in writing, between the
copyright owner and the lyricist or adaptor. In the absence of such an
agreement, the new arranger, lyricist, or adaptor, shall not receive any
private copying royalties.
7.1.5.3.5
Translations of Copyright Works
7.1.5.3.5.1
Unauthorized Translations and Unauthorized New
Versions of Existing Musical Works.
Credits for private copying royalties attributed to the
translator or new lyricist of the new lyrics of an
unauthorized translation or new version of a copyright
work shall be held in suspense for a period not exceeding
six months from the time that SOCAN is advised, in
writing, of a claim by the translator, or new lyricist of the
new lyrics.
If at the end of that six-month period the translation or new
version has not been authorized then all credits attributed
to the original work, the translation, or the new version of
the work shall be made in accordance with the notification
given by the original copyright owner.
The interests of any authorized parts of an unauthorized
translation or version shall continue to receive distribution
credits in accordance with the rules.
March 2016
23
SOCAN DISTRIBUTION RULES
When a translation or a new version has been authorized,
SOCAN shall make all future distributions on account of
the allocation agreed to by the parties.
7.1.5.3.5.2
Authorized Translations
The percentage of private copying royalties of authorized
translations of copyright works are allocated as follows:
Published Translated Works
Participants
composer(s)
original lyricist(s)
translator(s)
publisher(s)
Percentage of Private
Copying Royalties
50%
25%
25%
0%
Unpublished Translated Works
Participants
Percentage of Private
Copying Royalties
composer(s)
original lyricist(s)
translator(s)
7.1.5.3.6
50%
25%
25%
Translations of copyright arrangements of works in the Public
Domain that are subject to rule 7.1.5.3.3
In each case where the new musical arrangement contains lyrics the
lyricist(s) and the translator(s) shall share equally.
Published Copyright Arrangements with Translation
Participants
arranger(s)
translator(s)
publisher(s)
non-controlled
Percentage of Private Copying Royalties
25%
25%
0%
50%
Unpublished Copyright Arrangements With Translation
Participants
arranger(s)
translator(s)
non-controlled
7.1.6
Percentage of Private Copying Royalties
25%
25%
50%
Performance Period
The periods for which the CPCC will distribute private copying royalties to SOCAN are subject
solely to the by-laws, distribution rules, regulations and procedures of the CPCC.
March 2016
24
SOCAN DISTRIBUTION RULES
7.1.7
Payment Period
Provided the distribution from the CPCC is received by SOCAN within a reasonable time that
allows SOCAN to make a distribution to its members, SOCAN shall use its best efforts to distribute
the amounts that are received from the CPCC at the next SOCAN quarterly distribution of
performing rights royalties following receipt of the amounts from the CPCC.
7.1.8
7.1.9
Adjustments and Disputes
7.1.8.1.
All royalty distributions received from the CPCC are subject to verification by SOCAN
for completeness and reasonableness prior to distribution by SOCAN.
7.1.8.2.
Although SOCAN is not required to review the royalty distributions received from the
CPCC for accuracy, SOCAN shall have the right to withhold and/or adjust any private
copying royalty distribution on account of a work erroneously credited by SOCAN or the
CPCC.
7.1.8.3.
A dispute by any party regarding a work for which a claim has been made may prevent
the CPCC from distributing the private copying royalties of that work to SOCAN or may
prevent SOCAN from allocating those amounts received from the CPCC to a Writer
and/or Publisher. If private copying royalties have been received by SOCAN, the
royalties shall be held in suspense pending resolution of the conflicting claim by the
parties, Rule 16 applicable to “Notification, Reallocation and Disputes regarding
Shares” applicable to performing rights shall apply where applicable to the private
copying right of equitable remuneration.
Overhead
The amounts allocated to writers and publishers referred to in paragraph 7.1.2 shall be net of any
cost of distribution determined by SOCAN to be those costs associated with the allocation and
distribution of those amounts to its members.
7.2
Distribution - Ringtone
7.2.01 Ringtone Downloads Analyzed
For the period beginning January 2009 onwards, license fees collected for Tariff 24 licences will be
distributed based on all of the available and received information pertaining to ringtones supplied,
which is provided by Tariff 24 licensees. This information shall be analyzed in the Ringtone pool
for each distribution period. Where that information is missing or incomplete, the license fees
collected on account of Ringtones supplied in a particular quarter will be based on the information
received to date for that same quarter.
7.3
Distribution – Satellite Radio
7.3.01 Satellite Radio Performances Analyzed
A sample of programming information consisting of 21 days each distribution period, if available.
Where performance information is missing or incomplete, the distribution on account of Satellite
Radio in a particular quarter will be based on the information received to date for that same
quarter.
March 2016
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SOCAN DISTRIBUTION RULES
7.4
Distribution - Internet
7.4.01 Internet Online Music Streams Analyzed
For the period beginning January 2007 onwards, license fees collected for Tariffs 22.A, 22.F, 22.G
and 22.D YouTube licences will be distributed based on all of the available and received
information pertaining to online music streams supplied, which is provided by the licensees. This
information shall be analyzed in the Internet pool for each distribution period. Where that
information is missing or incomplete, the license fees collected on account of Internet supplied in a
particular quarter will be based on the information received to date for that same quarter.
March 2016
26
SOCAN DISTRIBUTION RULES
8
Distribution - International Performances
8.01
Distributions of royalty income received from international affiliated societies.
8.01.01
Performance Period
The international distribution is based on the distribution received by SOCAN from
affiliated societies according to the laws, distribution rules and procedures in those
countries and may include payments for performances that may have occurred during
periods prior to the periods in which SOCAN makes this distribution. All distributions
received from international affiliated societies are subject to verification by SOCAN for
completeness and reasonableness.
8.01.02
Revenue and Payment Period
All amounts that are received from international affiliated societies prior to February 15,
May 15, August 15 and November 15 of each year (allowing a reasonable time for the
preparation of distribution statements) shall be distributed on those dates after
conversion to Canadian currency, supplemented by any additional amounts deducted
from the distributions made to those societies and deducted in accordance with the
reciprocal agreements that SOCAN has with those societies.
9
Adjustments
A “member’s or an international affiliated society’s distribution account” means the statement of
performance credits and the dollar amount that is attributed to those credits for that member or an affiliated
society in a distribution period.
9.01
Adjustment by SOCAN:
A member’s or an international affiliated society’s distribution account for any distribution may be
adjusted during any distribution period by SOCAN if it is determined that an adjustment is required
in order to conform with these rules.
9.02
Request for a review or an adjustment by member:
All requests by a member or an international affiliated society for review or an adjustment of the
member’s or the international affiliated society’s distribution account must be in writing. Any
request for a review or adjustment of any performance credits shall be limited to performances
occurring in the distribution periods occurring within the three years prior to the date of the written
request for review or adjustment. If any adjustment is required after full examination of the claim,
that adjustment shall be limited to the distributions made in the three-year period prior to the date
that the request is received.
9.03
Errors and Omissions by International Affiliated Societies:
SOCAN may recover any royalty payments made as a result of errors or omissions by international
affiliated societies that have been distributed to members.
March 2016
27
SOCAN DISTRIBUTION RULES
10
Distribution Periods
Radio & General Performances, Pay Audio Performances, Concert Performances, Broadcast
Television Performances, Non-Broadcast Television Performances and Cinema Performances.
10.01
Each distribution payment shall have a performance period and a revenue allocation as defined in
Rule 10.03.
10.02
The performance period is the period during which the performance took place and appeared in
SOCAN’s surveys.
Each performance period may include performances from prior periods where lack of
documentation or other factors prevented accurate identification and payment in the period in
which the performances were surveyed.
10.03
Since the license fees received and net overhead incurred in each quarter vary from quarter to
quarter, the total licence fees less net overhead that are allocated to each quarterly distribution
shall be determined by calculating one-fourth of the previous twelve months accumulated licence
fees less net overhead and making that amount available for distribution in each quarter.
10.03.01
Radio & General, Pay Audio, Concert, Broadcast Television, Non-Broadcast
Television and Cinema Distributions
Distribution
Payment Date
Performance Period
1st
2nd
3rd
4th
11
Quarter
Quarter
Quarter
Quarter
January
April
July
October
1
1
1
1
to
to
to
to
March
June
Sept.
Dec.
31
30
30
31
November
February
May
August
15
15
15
15
Distributions to International Affiliated Societies
11.01
Performance Period and Revenue Period
Distributions to international affiliated societies and the determination of performance credits are
calculated in every respect on the same basis as calculations for SOCAN members with the
exception of the payment period
11.02
March 2016
The distribution to any international affiliated society shall be made in accordance with the
reciprocal arrangements made between SOCAN and the international affiliated society.
28
SOCAN DISTRIBUTION RULES
12
Allocation of Shares
Definitions
“Writer” shall mean a composer, lyricist, author or a songwriter living or deceased.
“Publisher” shall mean any assignee of all or part of the copyright ownership of a musical work or part of a
musical work, or any party to whom a “writer” has assigned the right to receive a share of performing right
royalties.
12.01
12.02
“Controlled Shares” shall mean those elements of a musical work that:
12.01.01
contain music or lyrics or both that were created by a writer who is either a member of
SOCAN or a member of a performing right society that is affiliated with SOCAN that
has assigned its members’ shares to SOCAN for licensing in Canada.
12.01.02
are published, co-published or administered by a publisher who is a member of
SOCAN or is a member of a performing right society that is affiliated with SOCAN that
has assigned its members’ shares to SOCAN for licensing in Canada where there are
corresponding controlled writer share(s).
“Non-Controlled Shares” shall mean those parts of a musical work that:
12.02.01
contain music or lyrics or both that were created by a “writer” who is neither a member
of SOCAN nor a member of a performing right society that is affiliated with SOCAN.
12.02.02
are neither published, co-published nor administered by a “publisher” who is a member
of SOCAN or a member of a performing right society that is affiliated with SOCAN or
are published but have no corresponding controlled writer share(s).
12.02.03
contain music or lyrics or both that are not protected under Canadian Copyright Law or
are specifically excluded from assignment to SOCAN.
“Performance Credit or Credits” shall mean the performance information that is analyzed according to
SOCAN’s distribution rules and that is attributed to a share or shares of a given work.
“The amount available for distribution” is the revenue from licence fees collected, from performing right
licences issued, less operating expenses net of interest income earned.
March 2016
29
SOCAN DISTRIBUTION RULES
13
General - Controlled and Non-Controlled Shares
Performance credits for the performance of a musical work shall be shared according to the following rules:
14
13.01
A 100% interest in each musical work may consist entirely of controlled shares or entirely of noncontrolled shares or a combination of both.
13.02
Controlled shares shall be entitled to a distribution according to SOCAN’s rules applicable to the
determination of performance credits. Non-controlled shares shall not be entitled to a distribution.
A work that has a non-controlled share or shares shall receive a performance credit or credits,
however, the credits attributable to the non-controlled shares shall be returned to the distribution
pool(s) and shall be shared on a pro-rata basis among all the credits attributed to controlled shares
according to SOCAN’s rules applicable to the determination of performance credits.
13.03
The total of all the shares of a work, both controlled and non-controlled that are allocated to a
writer, or writers, of a work shall not be less than the shares that are allocated to the publisher or
publishers of that work.
Allocation of Shares - Participants
Subject to rule 13.03 and in the absence of a specific notification or by notification of contractual
agreements between participants, by a member or by a performing right society that is affiliated with
SOCAN, the shares of a musical work shall be credited as follows:
14.01
Original Published Works
14.01.01 Composition with lyrics
Participants
composer(s)
lyricist(s)
publisher(s)
14.01.02
Composition without lyrics
Participants
composer(s)
publisher(s)
14.01.03
Shares
25%
25%
50%
Shares
50%
50%
Original Published Works With a Maximum Duration of Public Domain Text of
25% of the Duration of The Entire Work
Where Public Domain lyrics or text of a maximum duration of 25% of the entire work
are included in an original published work, the composer or composers and the
publisher or publishers shall each receive 45% of the share normally attributable to a
fully copyright protected work.
March 2016
30
SOCAN DISTRIBUTION RULES
14.02
Original Unpublished Works
14.02.01
Composition with lyrics
Participants
composer(s)
lyricist(s)
14.02.02
Composition without lyrics
Participants
composer(s)
14.02.03
Shares
50%
50%
Shares
100%
Original Unpublished Works With a Maximum Duration of Public Domain Text of
25% of The Duration of The Entire Work
Where Public Domain lyrics or text of a maximum duration of 25% of the entire work
are included in an original unpublished work, the composer or composers shall receive
90% of the share normally attributable to a fully copyright protected work.
14.03
Copyright Arrangements of Musical Works in the Public Domain
General
Subject to the rules governing shares applicable to works in the Public Domain with new lyrics and
subject to notification from affiliated performing right societies and to rule 13.03 and 14.04, the
shares of a copyright protected arrangement of the music of a work in the Public Domain, or the
adaptation of the lyrics of a work in the Public Domain shall be 25% respectively. The remaining
share shall be a non-controlled share.
Definitions
“A work in the Public Domain” means a work in which no part of the work is protected by the
copyright law of Canada.
“A copyright arrangement, adaptation or orchestration of a work in the Public Domain” shall
mean a musical work or that part of a musical work that is protected to the extent provided under
Canadian Copyright Law.
14.03.01
Published Copyright Arrangements
Public Domain Work Without Lyrics
Arrangement Without Lyrics
Participants
arranger(s)
publisher(s)
non-controlled
Shares
12.5%
12.5%
75%
Arrangement With New Lyrics
Participants
arranger(s)
lyricist(s)
publisher(s)
non-controlled
March 2016
Shares
12.5%
25%
37.5%
25%
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SOCAN DISTRIBUTION RULES
Public Domain Work With Or Without The Original Public Domain Lyrics
Arrangement Without The Original Public Domain Lyrics
Participants
arranger(s)
publisher(s)
non-controlled
Shares
12.5%
12.5%
75%
Arrangement With New Lyrics
Participants
arranger(s)
lyricist(s)
publisher(s)
non-controlled
Shares
12.5%
25%
37.5%
25%
Unarranged adaptation of the original Public Domain lyrics or an adaptation of
any Public Domain lyrics.
Participants
adaptor(s)
publisher(s)
non-controlled
Shares
12.5%
12.5%
75%
Unarranged Public Domain Work With New Lyrics
Participants
lyricist(s)
publisher(s)
non-controlled
Shares
25%
25%
50%
Arrangement with an adaptation of the original Public Domain lyrics or any other
Public Domain lyric.
Participants
arranger(s)
adaptor(s)
publisher(s)
non-controlled
14.03.02
Shares
12.5%
12.5%
25%
50%
Unpublished Copyright Arrangements
Public Domain Work With or Without The Original Public Domain Lyrics
Arrangement Without Any Lyrics
Participants
arranger(s)
non-controlled
March 2016
Shares
25%
75%
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SOCAN DISTRIBUTION RULES
Arrangement With New Lyrics
Participants
arranger(s)
lyricist(s)
non-controlled
Shares
25%
50%
25%
Unarranged Public Domain work with adaptation of the original Public Domain
lyrics or an adaptation of any other Public Domain lyrics.
Participants
adaptor(s)
non-controlled
Shares
25%
75%
Arrangement with an Adaptation of the original Public Domain lyrics or an
adaptation of any Public Domain lyric.
Participants
arranger(s)
adaptor(s)
non-controlled
Shares
25%
25%
50%
Unarranged Public Domain work with new lyrics.
Participants
lyricist(s)
non-controlled
14.04
Shares
50%
50%
Arrangements of copyright works, new lyrics or adaptations of Public Domain lyrics in
copyright works.
Subject to Rule 13.03, the shares attributed to an arrangement of a copyright work, to a copyright
work with new lyrics, or to a copyright work that incorporates an adaptation of Public Domain lyrics,
shall be established according to an agreement, in writing, between the copyright owner and the
lyricist or adaptor. In the absence of such an agreement, the new arranger, lyricist, or adaptor,
shall not receive a share.
14.05
Translations of Copyright Works
14.05.01
Unauthorized Translations and Unauthorized New Versions of Existing Musical
Works.
Credits for shares attributed to the translator, new lyricist or publisher of the new lyrics
of an unauthorized translation or new version of a copyright work shall be held in
suspense for a period not exceeding six months from the time that SOCAN is advised,
in writing, of a claim by the translator, new lyricist or the publisher of the new lyrics.
If at the end of that six-month period the translation or new version has not been
authorized then all credits attributed to the original work, the translation, or the new
version of the work shall be made in accordance with the notification given by the
original copyright owner.
The interests of any authorized parts of an unauthorized translation or version shall
continue to receive distribution credits in accordance with the rules.
March 2016
33
SOCAN DISTRIBUTION RULES
When a translation or a new version has been authorized, SOCAN shall, subject to
Rule 13.03 make all future distributions on account of the allocation agreed to by the
parties.
14.05.02
Authorized Translations
The shares of authorized translations of copyright works are allocated as follows:
Published Translated Works
Participants
composer(s)
original lyricist(s)
translator(s)
publisher(s)
Shares
25%
12.5%
12.5%
50%
Unpublished Translated Works
Participants
composer(s)
original lyricist(s)
translator(s)
14.06
Shares
50%
25%
25%
Translations of copyright arrangements of works in the Public Domain that are subject to
rule 14.03
In each case where the new musical arrangement contains lyrics the lyricist(s) and the translator(s)
shall share equally.
Published Copyright Arrangements with Translation
Participants
arranger(s)
translator(s)
publisher(s)
non-controlled
Shares
12.5%
12.5%
25%
50%
Unpublished Copyright Arrangements With Translation
Participants
arranger(s)
translator(s)
non-controlled
March 2016
Shares
25%
25%
50%
34
SOCAN DISTRIBUTION RULES
15
Re-allocation of Shares Applicable to Arrangements, Adaptations and
Orchestrations
If a member or affiliated society entitled to a controlled share or shares of any work disagrees with the
allocation of shares for such work made according to rule 14.03 then that member or affiliated society may
apply to SOCAN for a reallocation of shares applicable to arrangements, adaptations and orchestrations.
An application for a reallocation of shares applicable to arrangements, adaptations and orchestrations shall
be made in writing to SOCAN and the member or affiliated society shall provide copies of a recording or
manuscript of such work, together with copies of recordings or manuscripts or any documentation of the
Public Domain work in question. The applicant shall demonstrate, in writing, the extent of both the new
material and of the Public Domain material contained in such work and shall provide information, in writing,
concerning any other versions of the Public Domain source of which the member or affiliated society is
aware.
The Board of Directors shall delegate a committee or other party to evaluate the work and shall allocate a
share in accordance with the guidelines set out in Rule 15.01. An allocation may be made, however, that
results in an evaluation that is less than rule 14.03. The member may appeal the allocation to a committee
of the Board established for this purpose and that committee’s decision shall be final.
15.01
The guidelines used by the Committee of the Board of Directors, or other party, for the
purpose of evaluating the work shall be as follows:
ARRANGEMENTS
Grading Range:
Description of Work
100%
Public Domain material is used as theme or motif only and this is
developed into a new work.
The structure of the new work is entirely independent of Public
Domain material.
90% - 60%
New settings with new independent instrumental parts. This rating
covers a range of independence from the Public Domain material.
50%
Straightforward concert setting.
Repetition of tune with various new harmonizations.
The structure is dictated by the Public Domain material.
March 2016
40% - 25%
Simple settings for a few voices or instruments.
The structure dictated by non-copyright material.
Harmonies simple.
Arrangements firmly rooted in a performance tradition are likely to be
towards the lower end of the range.
15%
Written arrangements showing melody and chord symbols only.
0%
Any transformation other than an orchestration that does not include
new compositional elements.
35
SOCAN DISTRIBUTION RULES
ORCHESTRATIONS
Expansion:
25%
Expansion from one instrument or small group of instruments to full or
symphony orchestra or electronic equivalent.
20%
Expansion from one instrument to chamber orchestra or electronic
equivalent.
15%
Expansion from one instrument to string orchestra or electronic
equivalent.
Reduction:
16
15%
Reduction of large instrumental forces to small forces.
10%
Reduction of large instrumental forces to one or two instruments.
Notification, Reallocation and Disputes Regarding Shares
16.01
Notification of Participants
SOCAN must be advised of the full names of all of the participants and their writer/publisher
designation, in sufficient detail, of each work to be administered by SOCAN.
16.02
Subject to Rule 13.03, each writer and publisher member must provide SOCAN with notification to
an allocation of shares, including writer/publisher designation of a given work if that allocation
varies from the allocations stated in Rule 14.
SOCAN management may, at its discretion, request written notification, including copies of the
relevant portion of contracts, even if the allocation of shares of a given work agrees with the
allocations stated in Rule 14.
16.03
Method of Notification
“Notification” shall consist of an electronic registration, either by way of online work registration or
by way of SOCAN approved file formats.
"Written notification" shall consist of either the appropriate form supplied by SOCAN, properly
completed and signed by all the participants sharing, a letter or other correspondence signed by all
participants sharing, the relevant portion of a contract or contracts between the participants that
establishes the allocation of the shares, a properly completed index card, signed by all participants
sharing or advice from an affiliated performing right society.
16.04
Reallocation
Subject to rule 13.03, members may reallocate the shares of a given work among themselves
providing all of the members affected by the reallocation agree and advise SOCAN.
March 2016
36
SOCAN DISTRIBUTION RULES
16.05
Disputes
In an instance where a dispute arises among members of SOCAN as to the allocation of shares of
a work, SOCAN will only place the performance credits and any distribution payable on account of
those shares in suspense if a legal action is commenced and if SOCAN is provided with a copy of
the pleading as filed in the court. The performance credits and any distribution payable shall be
placed in suspense as of the day SOCAN was provided with the pleading until the action is finally
decided, discontinued, or otherwise settled. Distributions payable on account of those shares
placed in suspense shall be deposited in an interest bearing account. When SOCAN is notified
that the dispute has been resolved, the distribution payment on account of the performance credits
in suspense shall be made according to the terms of the Order, settlement (providing those terms
do not conflict with the distribution rules) or if discontinued, according to the allocation of the shares
prior to the date that the dispute arose.
If SOCAN is advised in writing by a foreign society with whom it has a reciprocal agreement of a
dispute between their members, or if SOCAN is advised of a dispute between a SOCAN member
and a non-SOCAN member, SOCAN may suspend the distribution of royalties relating to that
dispute.
17
Value Of A Performance Credit
“Dollar amount that may be attributed to a performance credit” is the amount that is determined by
dividing the number of performance credits accounted for according to these rules into the amount available
for that distribution.
18
Credits in Suspense
SOCAN shall use its best efforts to identify all works appearing in its distribution analysis. Distribution
credits otherwise payable may be held in suspense on account of performances for which no distribution
can be made due to lack of reliable information or notification. Subject to Rule 9, when the information
becomes available the distribution shall be made at the dollar amount that may be attributed to a
performance credit in effect at the time the distribution is made. No interest shall accrue nor be paid to the
interested parties upon receipt of reliable information or notification, except as provided in Rule 16.05.
March 2016
37
SOCAN DISTRIBUTION RULES
19
Distribution Payments - Payee
19.01
General
Except as provided for in Rule 19.03, non-members shall not be entitled to receive any distribution
on account of performing right royalties credited to a writer or publisher member. In accordance
with this provision, distribution payments shall bear the name of the member, the beneficiaries of a
member’s estate, or the international affiliated society entitled to receive the performing right
royalties that are credited in accordance with these rules.
When a work of a SOCAN Publisher Member is administered by another SOCAN Publisher
Member, royalties earned for that work by the administered Publisher Member may be directly
deposited into the account of the administrating Publisher Member upon written notification
provided to SOCAN by both parties advising it accordingly.
19.02
March 2016
Distribution Payments Payable to Writer Members
19.02.01
Except as provided for in Rule 19.02.03, the right of a writer member to participate in
his share of any performing right royalties shall not be sold, encumbered, assigned or
otherwise disposed of by any writer member and shall not be the subject of sale or
other disposition by voluntary action, operation of law, legal proceeding or otherwise,
and no member shall sell, otherwise dispose of, hypothecate or create a lien upon any
royalties accruing or that may thereafter accrue to him by virtue of his membership, or
any of the rights, benefits or royalties to which he may be entitled by virtue of his
membership. In accordance with this provision, distribution payments on account of
performing right royalties credited to a writer member for a work created in whole or in
part by that writer member shall, subject to paragraphs 19.02.02 and 19.02.03, and to
Rule 19.03, bear the name of that writer member.
19.02.02
Distribution payments on account of performing right royalties credited to a writer
member may, on that writer member’s written direction, be made payable to an
incorporated entity or to a division of an incorporated entity the shares of which are
entirely owned and controlled by that writer member. Such payments shall bear the
name of that incorporated entity until such time as that writer member advises SOCAN
otherwise or until that incorporated entity ceases to be entirely owned and controlled
by the writer member. If the shares of such incorporated entity to which SOCAN has
made distributions ceases to be entirely owned and controlled by the writer member,
and SOCAN has received notice accordingly, SOCAN shall thereafter pay all royalties
to the writer member. Nothing in these rules shall be deemed to give any such
incorporated entity any right of membership except the right to receive distribution
cheques on account of performing right royalties ordinarily payable to the writer
member.
19.02.03
The prohibition in above Rule 19.02.01 shall not apply when such action is necessary
in order to allow a member to obtain a loan from or enter into any other similar credit
arrangement with an accredited financial institution when the transaction in question
has received the prior written consent of SOCAN.
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SOCAN DISTRIBUTION RULES
19.03
Distribution Payments to Non-Members and Non-Sharing Members
Distribution payments on account of performing right royalties credited to a writer or publisher
member may be made payable to a non-member, or a member not otherwise entitled to a share in
the performing right royalties under these rules, in the following cases:
19.03.01
When SOCAN is ordered by a Court of Law within Canada to pay a party other than
that writer or publisher member who is otherwise entitled to the distribution payment.
19.03.02
When SOCAN is served with a Third Party Demand from a government taxing
authority within Canada and is ordered to pay a party other than that writer or publisher
member who is otherwise entitled to the distribution payment.
19.03.03
When SOCAN is in the possession of a direction from a properly authorized trustee,
guardian, administrator, or executor of the interest or estate of a writer or publisher
member who is an infant, incompetent or deceased person, that authorizes SOCAN to
pay a party other than that writer or publisher member who is otherwise entitled to the
distribution payment.
19.03.04
When a Posthumous Member has assigned only the writer’s royalty stream to his/her
works and provides SOCAN with a copy of the agreement supporting the transaction
and that authorizes SOCAN to pay a party other than the Posthumous member.
19.03.05
When a writer member who has attained or exceeded the age that makes him/her
eligible for a full pension under the Old Age Security Act, has assigned only the writer’s
royalty stream to his/her works and provides SOCAN with a copy of the agreement
supporting the transaction and that authorizes SOCAN to pay a party other than the
writer member.
19.03.06
When, subject to the prior written consent of SOCAN, a publisher and a writer member
request that SOCAN pay the writer member’s royalty share to the publisher for the sole
purpose of permitting the publisher to recoup an advance of royalties to the writer
member, and the parties provide SOCAN with a copy of the documentation supporting
the transaction and authorizing SOCAN to pay the writer member’s share of royalties
to the publisher. Rule 19.03.06 shall not apply in situations where the writer member’s
services are being commissioned for the purpose of composing new musical works,
including but not limited to, new musical works created for an audio-visual program.
Any payment made to the writer member in relation to such commission shall not
constitute an advance of royalties for the purposes of this rule.
19.04
In those circumstances where paragraph 19.03 apply, SOCAN shall issue a statement of income
earned for income tax purposes as legally required under the relevant tax legislation.
19.05
Partial Administrations
19.05.01
March 2016
Distribution statements containing all of the performance credits attributed to a musical
work or works for performances in any given distribution period shall only be credited
and remitted to the publisher member entitled to the distribution or if there is an
authorized direction signed by that publisher, to the publisher member’s agent who
must also be a member.
39
SOCAN DISTRIBUTION RULES
19.05.02
March 2016
Distribution statements containing all of the performance credits attributed to a musical
work or works for performances in any given distribution period shall only be credited
and remitted to the member entitled to the distribution. SOCAN shall not make
separate distributions to separate interested parties credited to a musical work on
account of different performance media or venues for that musical work (e.g. radio,
television, concert hall) or different territories within Canada (e.g. province, city) for that
musical work.
40