Canada Makes Progress in Music Royalty Administration

CONNECT and Re:Sound Streamline Royalty Distribution Process

Copyright royalty distribution will become more efficient in Canada with the announcement that Re:Sound will distribute public performance and private copying royalties directly to CONNECT Music Licensing Agency members.

As of June 17, CONNECT’s 2,700 members will no longer depend on an outside firm to perform this service. Re:Sound has overseen the allocation of copyright royalties for artists and music labels since 1997, when Canada formalized the right to be compensated for sound recordings that are performed in public.

In the past, CONNECT distributed such royalties after making an application to Re:Sound on behalf of its members. An outside firm would then be commissioned to do an audit of the distribution process. Going forward, CONNECT members will deal directly with Re:Sound, cutting administrative costs by 33% and increasing the speed and accuracy of the process.

Direct payments from Re:Sound to CONNECT members will begin next month, helping ensure that Canadian copyright administration remains on par with international standards of sophistication and efficiency.
SOCAN Announces New High in Global Royalties Collection

In the 2015, the Society of Composers, Authors and Music Publishers of Canada (SOCAN) collected $307.8 million in national and international royalties on behalf of its members, who consist of artists, composers, publishers and music distributors.

This is the first time SOCAN has reached the $300 million mark in total earnings from music royalties. Also for the first time, more than $20 million went to SOCAN’s members for live music performances. Music performances outside the country generated over $62.7 million, an increase of 15% above 2014. While SOCAN was able to pay its members $276.2 million, net business expenditures reached an all-time low, totalling only 9.2%.

4,000 new companies that are involved in playing copyrighted music entered licensing agreements with SOCAN in 2015. The Society also increased its membership to 135,000 – adding 6,000 members since 2014. Finally, one of SOCAN’s top recent priorities has been to show leadership in the collection of digital music royalties. To this end, $15.5 million was raised in 2015 from the rapidly expanding digital streaming market – 24.4% more than in 2014.