Did you ever wonder what online music services like iTunes, Slacker, Rdio, Zik, and Songza pay for the music they use? On Friday, the Copyright Board released its decision in the SOCAN 22.A and CSI Online Music Services tariffs. The tariffs establish rates that music services must pay to music publishers for the communication to the public and reproduction rights in musical works for services that offer the following types of online music services:
- Permanent downloads – a service that sells and distributes copies of sound recordings of musical works to a device such as a computer, cell phone, Smartphone, or iPod. The person who receives the download can listen to it indefinitely.
- Limited downloads – a subscription service that sells and distributes copies of sound recordings of musical works that can be listened to for as long as the subscription is paid. The tracks are protected by technological protection measures to ensure they are available only while the subscription is active.
- On-demand music streaming – a service that streams musical work to users where the user is prevented from copying the recording onto a recording medium or device.
- Video-clip (or music video) – a service that streams short movies that integrates specific sound recordings with imagery.
The rates established by the Board are shown below.
In addition to these amounts, online music services have to pay royalties to the record labels to clear the reproduction rights in the sound recordings. This is usually done directly through license agreements. The services must also pay equitable remuneration to Re:Sound, the collective that administers the neighboring right of communication to the public for eligible sound recordings. The Copyright Board is currently in the midst of hearing Re:Sound Tariffs 8A and 8B to establish the rates for simulcasting and semi-interactive webcasting.