Pandora CloudCover provides fully licensed music for businesses across Canada, including SOCAN coverage.

Canada has strict copyright laws.

If you play music in your business — whether from a playlist, CD, or streaming service — you’re performing music in public. You’re required to pay fees for publicly performing that music.

One of the key organizations in Canada that collects those fees is SOCAN.

Pandora CloudCover makes compliance simple with one subscription that includes SOCAN licensing for Canada (and U.S. PRO coverage), so you can stream ad-free music worry-free.

Not yet a Pandora CloudCover customer? Here's what you need to know about what this organization is and what it does, so you can understand how Pandora CloudCover takes care of music performance fees so you don't have to.

What Is SOCAN?

SOCAN (Society of Composers, Authors and Music Publishers of Canada) is Canada’s largest performing rights organization (PRO).

It represents composers, songwriters, and music publishers and ensures they’re paid when their music is played in public.Remember, that includes businesses like yours playing music inside a store, restaurant, gym, office, or any commercial setting.

SOCAN at a Glance:

• Formed in 1990 from the merger of CAPAC and PROCAN
• Works with 4+ million creators and publishers worldwide
• Collects royalties and distributes payments back to artists

Any business playing music in Canada needs SOCAN coverage, even if the music isn’t by Canadian artists.

SOCAN vs. Other Canadian PROs

There are two PROs in Canada, and SOCAN is only one of them.

According to the organization's website, the other PRO (Re:Sound) has a slightly different business model. Where SOCAN represents composers, songwriters, and publishers, Re:Sound represents artists and record companies.

Put another way, SOCAN represents people who have the ideas that are preserved in music. Re:Sound represents the people who bring those ideas tolife

Why You Need Both Canadian PROs

These organizations are empowered by Canadian law to seek  payment of music performance royalties on behalf of their members.

This means most Canadian businesses will need a relationship with both PROs in order to have full coverage. Partnering with just one may leave you unprotected from claims by the other set of participants.

This chart can help you compare these two Canadian PROs:

*Actual fees depend on business type, size, and music use. See each organization's website for details.

Why Licensing Matters

Canada’s Copyright Act (R.S.C, 1985, c. C-42) further details the laws regarding playing music in public.

PROs in both the U.S. and Canada, including SOCAN, actively enforce their duties through audits, site visits, and collections. Even small Canadian businesses can face fines, back fees, and legal action.

The exact amount of the fines varies, but here are some examples:

• SOCAN can impose fines ranging from $200 to $5,000 (perhaps even more in the future) per instance of unlicensed music use.
• Re:Sound fines can also be hefty, especially for repeat offenders or those who ignore warnings.

Avoiding the Fees Rarely Works Out

Avoiding the fees rarely works out. Music creators rely on these organizations to help protect their rights and collect fees, and these PROs are obligated to do so.

Don't Break the Law

If you play music within the walls of your Canadian business, laws require the payment of fees to play that music.

SOCAN contracts are typically delivered yearly with one fee that allows you to play music from the entire library. But when the year is up, you will need to answer questions about your business, your location, and use of music. That can mean a great deal of paperwork and contracts for you. Also, if you don't notify SOCAN of a change that happened the year prior that affected your use of music, the company could charge you back fees.

A Better Approach: Play Pandora CloudCover

We offer another way. At Pandora CloudCover, we have an entire library of music that is appropriate for businesses like yours. 

• One subscription covers both the U.S. and Canada, including SOCAN and Re:Sound fees for the music we provide.
• Ad-free, family-friendly stations curated for business use.
• Manage music, schedules, and custom messaging from a single dashboard.

Best of all, you get a simple monthly plan, and your business stays protected against the demands for music performance fees. Try it free for 14 days. Terms and conditions apply.

SOCAN Licensing for Business FAQs

Who needs a SOCAN license?

Businesses in Canada that play music should have a license with SOCAN. The organization protects the rights of composers, songwriters, and publishers.

Anytime musical works are played publicly, including inside your Canadian business, the music creators are entitled to a small fee. SOCAN collects these fees on music creators' behalfs.

How much does a SOCAN license cost?

SOCAN fees are detailed, and some may find them confusing. The organization determines how much you'll pay based on the size of your potential audience, your revenue, and more.

Different fees apply for recorded music vs. live music. In general, it's best to contact the company and ask how much you'll pay.

How do you license music for commercial use?

By working directly with SOCAN or a company like Pandora CloudCover, you're ensuring that you're playing licensed music legally.

Can I skip licensing if I use my own collection of music, Spotify, Apple Music, or other consumer services?

‍No. You need a music service and licenses specifically covering a commercial business establishment.

How does Pandora CloudCover help?‍

Our subscription includes the licenses you need for the music we stream, so you don’t have to manage contracts with multiple organizations.

References

SOCAN. SOCAN.

Copyright Act (R.S.C., 1985, c. C-42). Government of Canada Justice Laws Website.

Fines for Playing Music in a Business Without a License in Canada. Cloud Music Canada.

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Please note this article is here for informational purposes and is not legal advice or a recitation of applicable law, or the rights and obligations of any organizations mentioned above. All information contained in any links is owned and controlled by third parties, and Pandora CloudCover makes no representations or warranties regarding such websites.