Since mid-2003, the Society of Composers, Authors and Music Publishers of Canada (SOCAN), a national copyright collective that works on behalf of its 70,000 members --- songwriters, composers and publishers --- has escalated its efforts to collect royalties for music from professional workplaces such as dental/medical offices, skating rinks, and government departments.
In the past, the ODA has made information available to its members regarding music use in dental offices. This action was prompted by letters dentists had received from the Society of Composers, Authors and Music Publishers of Canada (SOCAN) demanding payment for playing "music on hold" and/or "background music" in their offices.
Recently, many dentists have been receiving letters from SOCAN once again asking for payment of license fees. The ODA wishes to clarify the circumstances under which SOCAN is entitled to collect license fees under federal legislation. This updated notice also deals with the use of Internet radio/music.
Playing Radio in Dental Offices
Section 69(2) of the Copyright Act does not permit SOCAN to collect royalties for public performances of radio "by means of any radio receiving set in any place" , or for simulcasts of radio programming delivered over the Internet, other than theatres and other places of entertainment. Royalties for these uses of music are paid for by radio broadcasters.
A "radio" is a "radio receiving set." Accordingly, under the exception, a dental office can play one or more radios, with or without speakers, for reception by patients, staff and visitors. The number of patients, staff and/or visitors frequenting a dental office does not matter.
Some dentists may subscribe to a cable service. The public performance exemption from infringement in the Copyright Act extends to music transmitted by cable to a dental office which is played using a radio located at a dental office.
Music on Hold
SOCAN also seeks royalties for performances of music, including Internet music, that are communicated "to the public by telecommunication over a telephone on hold." SOCAN is seeking to collect royalties from dentists under Tariff 15(B) if they play live radio music to callers who are on hold.
Dentists are not clearly obligated to pay royalties to SOCAN under this Tariff, as the public performance exemption may apply. The music heard by callers may be regarded as "public performances" and the means of creating the performances may still be radios in dental offices. Further, in specific instances because the transmission of music may be only to a limited number of individual callers on hold at any one time, there may not be a communication "to the public."
Unfortunately, the public performance exemption in relation to the music on hold tariff has not been judicially considered and there is uncertainty related to how it would be applied to dentists providing music on hold to callers. To some degree, the application of Tariff 15(B) to dental offices may also depend on how the music on hold is made available to callers and the number of callers that are capable of receiving the music at any one time.
Accordingly, dentists may consider whether it is economically efficient to pay SOCAN the royalties claimed or to suspend making music available to callers on hold.
In Summary - Music Use
The following summarizes the most common scenarios involving decisions on whether a SOCAN license fee is payable:
Type of Music Played / SOCAN License Fee
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- Dental Office's CD's, Tapes, etc. as background music: Yes, license fee payable
- Dental Office's CD's, Tapes, etc. as music on hold: Yes, License fee payable
- Radio, including Internet radio, as background music: No, Copyright Act exempts radio
- Radio, including Internet radio, as music on hold: The law is unclear. Consider paying license fee, or discontinuing playing radio on hold
- Other Internet Music: The law is unclear. Consider paying license fee, or discontinuing playing other Internet music on hold
- Dental Office's purchases music service, recorded tapes promoting dental practice, etc. to play as music on hold: No, please ensure provider of service has paid appropriate license fees
Source: oda.on.ca