Technical Corner

September 17, 2026

As we collectively learn about the power of tariff's and how they can impact all aspects of our personal and work lives, we thought it would be a good opportunity to revisit how ORFA championed musical tariffs and instigated change more than 30-years ago. Past Presidents Tony Brenner and Fred Horvath were instrumental in championing change and negotiating a "fair tariff" with Composers, Authors and Publishers Association of Canada (CAPAC) and Performing Rights Organization (PRO) that later become the Society of Composers, Authors and Music Publishers of Canada (SOCAN). Fred and Tony appeared on behalf of all recreation facilities at the Copyright Review Board of Canada after ORFA challenged how tariffs were being applied and how administratively burdened recreation facility owners were in collecting tariffs on behalf of SOCAN. The ORFA was granted a formal hearing to table (industry) grievances and concerns along with legal counsel representing SOCAN.

What are musical tariffs?

SOCAN is a Canadian non-profit performance rights organization that represents the performing rights of more than 180,000 songwriters, composers and music publishers. In short, any time music is played in a public setting, and the owner is collecting a revenue, a licensing fee must be paid for this privilege. How much is based on the event and where the music is being used. The music we hear is created by artists who have rights under Canada’s Copyright Act. SOCAN issues music licenses to ensure the owners of that music are paid for their work through the tariffs and rates approved by the Copyright Board of Canada.

[More] SOCAN Music Licenses 

How music licensing impacts recreation operations.

Any time music is being used as part of a program, event or as background there are obligations for facility owners to submit the appropriate fee for this use. There are no exemptions as Maple Leaf Sport and Entertainment discovered when they challenged SOCAN in respect to their licensing fees. [More] Society of Composers, Authors and Music Publishers of Canada v. Maple Leaf Sports & Entertainment Ltd. ((2009), 388 N.R. 76 (FCA),2009 FCA 78) – v Lex Canada

Common tariffs that can impact recreation operations.

• SOCAN TARIFF 11.A – CIRCUSES, ICE SHOWS, FIREWORKS DISPLAYS, SOUND AND LIGHT SHOWS AND SIMILAR EVENTS (2023-2025)

• SOCAN TARIFF 15 – BACKGROUND MUSIC IN ESTABLISHMENTS

• SOCAN Tariff 11.B – Comedy Shows and Magic Shows (2026-2028)

• SOCAN Tariff 5.A – Exhibitions and Fairs (2025-2027)

• SOCAN Tariff 19 – Physical Exercises and Dance Instruction (2013-2017)

• SOCAN Tariff 10.B – Parks, Parades, Streets and Other Public Areas - Marching Bands; Floats with Music (2026-2028)

• SOCAN Tariff 18 – Recorded Music for Dancing (2023-2025)

• SOCAN Tariff 21 – Recreational Facilities Operated by a Municipality, School, College, University, Agricultural Society or Similar Community Organizations (2026-2028)

• SOCAN Tariff 7 – Skating Rinks (2026-2028)

• SOCAN Tariff 9 – Sports Events (2024-2026)

Note: it is a facility owners' responsibility to ensure that all applicable musical use fees are paid. This responsibility cannot be shifted to the individual(s) providing live or recorded music.

[More] A General Understanding of Musical Tariffs in a Recreation Setting

What did ORFA accomplish?

Fred and Tony appeared before the Copyright Board of Canada and argued that the tariffs being applied in recreation operations were unfair and administratively complicated to calculate. They requested a dedicated tariff be created to simplify the licensing fees for recreation facilities. Their arguments included the suggestion that a simplified tariff would most likely result in more compliance by recreation facilities and increased revenues for SOCAN. The Copyright Board accepted the argument, and a new tariff was added to SOCAN's licensing menu. It is worthy of noting that this success in having SOCAN shift the way they were conducting business was rarely successfully argued. [More] SOCAN - Various Tariffs, 1992-1994 - Copyright Board of Canada

What is RE:SOUND verses Entandem?

At the time of the ORFA challenge, another court case was underway between SOCAN and RE:SOUND. SOCAN represented the authors and composers of music. When an author published their music and registered it with SOCAN they would receive regular compensation for this use, regardless of who played it or sang it. RE:SOUND was formed to create a compensation platform for artists who used other artists music and whose version was being played in public. This resulted in Entandem which is a joint venture between SOCAN and RE:SOUND created in 2019. Entandem is a not-for-profit organization that simplifies the music licensing process for Canadian businesses by providing a single point of contact for music licenses common to both SOCAN and RE:SOUND. [More] Re:Sound Music Licensing Company & About Us - Entandem

What ORFA promotes

The ORFA reminds members that paying all applicable music licensing fees is mandatory and should not be avoided. Musical tariff expenses should be passed along as part of the facilities user fee calculations. SOCAN will act in the best interest of their clients and will make every effort to collect on their behalf. SOCAN has proven to be flexible and understanding and will work with any business or organization that steps forward indicating that licensing fee submissions may not have been remitted as part of the various tariff responsibilities. However, choosing to ignore SOCAN will result in legal action being taken with little to no chance of the recreation facility being successful in defending their lack of compliance. [More] Defending Against a SOCAN Fee Demand Letter in Canada

The ORFA covers this subject and many other legal topics in Legal Awareness 2 - Managing in a Recreation Setting online or in-person training course.

Conclusion

The new generation of industry leaders are benefiting from past efforts of volunteer ORFA Board members who believed in fair and equal application of musical tariff fees. ORFA Past President’s Tony Brenner and Fred Horvath stepped forward and shifted established processes for the benefit of every recreation department regardless of size or financial capability. The ORFA continues to monitor legislation and other governance to ensure we are recognized in the best interest of our members.