Yes. If a Canadian barbershop or hair salon plays commercial music for customers, it is legally considered a “public performance” under the federal Copyright Act. You must pay an annual SOCAN and Re:Sound licence fee (often via Entandem). These fees are based on your square footage and typically range from $150 to $300 CAD annually.
Creating the perfect vibe is essential for the beauty and grooming industry. Walk into almost any bustling hair salon or modern barbershop in cities like Mississauga, Victoria, or Moncton, and you will hear carefully curated playlists pumping through the speakers. 📍
However, what most salon owners do not realize is that music played in a commercial setting is not free. Under Canadian intellectual property laws, playing a song to entertain paying customers requires the permission of the artists who wrote and recorded it. You cannot simply plug your iPhone into the sound system. This guide clarifies the specific legal licensing rules for personal service businesses in Canada. 💼
Step-by-Step Process in Canada
Becoming compliant with federal copyright laws is a relatively quick administrative process. Whether you run a tiny two-chair barbershop in Kelowna or a massive luxury spa in St. John’s, you must follow these steps to avoid legal penalties. ⚔️
Step 1: Determine if Your Music is “Public”
First, evaluate how the audio is consumed. If music is playing over loudspeakers in the waiting area or cutting floor, it is a public performance, and you need a licence. If your stylists are wearing personal headphones and listening to their own private music, no commercial licence is required. 📜
Step 2: Measure Your Salon’s Square Footage
Licensing costs are heavily dependent on the size of your establishment. You need to calculate the total square footage (or square metres) of the area where the public has access and can hear the music. You do not need to include staff-only break rooms or storage closets in this calculation. 📈
Step 3: Identify the Correct Tariff
The Copyright Board of Canada sets strict pricing structures. For standard barbershops and salons, your music usage generally falls under “Tariff 15A: Background Music.” If you occasionally host live DJs for special promotional events, you may also need a supplementary live performance tariff. 💰
Step 4: Register with Entandem
You no longer have to pay SOCAN (for songwriters) and Re:Sound (for record labels) separately. You can register your business on the Entandem website. This joint venture acts as the single collection agency for both organizations. You simply input your square footage, and they calculate your combined annual invoice. 🏦
Step 5: Maintain Annual Compliance
Once registered, this is an ongoing legal obligation. You must renew your licence and pay the fee every single year. If you expand your salon or open a second location, you must update your account to ensure your intellectual property compliance remains fully intact. 📑
How Much Does it Cost in Canada?
The cost of legally playing music is designed to be affordable for small businesses, but failing to pay can trigger massive fines. Here are the standard costs in CAD: 💵
- SOCAN Tariff 15A: Approximately $1.23 CAD per square metre of customer-accessible space, subject to an annual minimum fee of around $95 CAD.
- Re:Sound Fees: Similar to SOCAN, Re:Sound charges roughly the same amount for the performers’ rights.
- Total Combined (Entandem): Most small to medium barbershops pay between $150 and $300 CAD per year in total royalties.
- Legal Consultations: If you receive a threat letter and need an IP lawyer to intervene, expect to pay $300 to $600 per hour.
How Long Does the Process Take?
Getting your business properly licensed is incredibly fast. You can complete the Entandem registration online in about 15 minutes. Once your payment is processed, your salon is immediately legally protected for the remainder of the calendar year. If you ignore warning letters, an infringement lawsuit can take over a year to resolve in Federal Court. ⏱️
Personal Streaming vs. Commercial Licensing
| Feature | Personal Spotify / Apple Music | Commercial Licence (Entandem / SiriusXM) |
|---|---|---|
| Legality in a Business | Illegal; violates Copyright Act and App Terms. | 100% legal and federally compliant. |
| Lawsuit Risk | High. Inspectors do perform random audits. | Zero. You are fully protected. |
| Cost Structure | ~$10 CAD/month (Personal use only). | Annual fee based on exact square footage. |
| Artist Compensation | Artists do not get commercial broadcast royalties. | Royalties are fairly distributed to creators. |
Frequently Asked Questions (FAQ)
What happens if I just ignore the SOCAN invoices?
If you repeatedly ignore invoices and warning letters, SOCAN can hand your file to a law firm. They may file a copyright infringement lawsuit against your salon at the Federal Court of Canada, seeking thousands in statutory damages.
Do I need a licence if I only have a TV playing in the waiting area?
Yes. If the television is playing standard broadcast cable, movies, or music channels that include copyrighted background music or theme songs, it still constitutes a public performance under Canadian law.
Can I just switch to royalty-free music?
Yes. If you guarantee that your barbershop only plays 100% royalty-free, public domain, or direct-licensed music, you do not need to pay Entandem. You must simply inform them in writing that you are exempt.
Why do I have to pay Re:Sound if I already paid SOCAN?
They cover two different copyrights. SOCAN collects money for the songwriters and composers who wrote the lyrics and sheet music. Re:Sound collects money for the actual singers and record labels who recorded the audio track.
Does my cable or internet provider already pay this for me?
No. Your internet or cable provider pays for the right to transmit the signal into your building. It is strictly your legal responsibility as the business owner to pay for the right to broadcast that audio to the public.
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