Yes, if you play background music in a Canadian retail store, gym, or restaurant, you generally must pay for a Public Performance Licence through Entandem (a joint venture of SOCAN and Re:Sound). Standard annual tariffs are set by the Copyright Board of Canada and often cost between $30 and $200 CAD depending on your square footage.
Walking into a boutique in Calgary or a coffee shop in Winnipeg and hearing excellent background music creates a welcoming atmosphere for customers. 🎵 However, many Canadian business owners are unaware that playing a Spotify playlist, turning on the radio, or having a TV playing in the background constitutes a “public performance” under the federal Copyright Act. You cannot legally use personal streaming accounts to entertain customers without paying royalties to the creators of that music.
To simplify the collection of these royalties, Canada uses a unified licensing body called Entandem. Entandem collects fees on behalf of SOCAN (which represents songwriters and music publishers) and Re:Sound (which represents recording artists and record labels). If your business uses music to enhance the customer experience, obtaining this joint licence protects you from significant copyright infringement penalties. You can always reach out to a local intellectual property lawyer in our directory if you face a licensing dispute.
Step-by-Step Process to License Your Business in Canada
Securing a public performance licence is an essential administrative step for any brick-and-mortar business. The process is entirely online and designed to be simple for busy entrepreneurs across the country.
Step 1: Audit Your Business Music Usage
First, determine exactly how you are using music. 🔍 Is it just quiet background music in an Ottawa retail store? Are you hosting live DJs at a nightclub in Vancouver? Or are you playing music for fitness classes in a Halifax gym? The specific use case dictates which legal tariff applies to your business.
Step 2: Visit the Entandem Portal
Instead of contacting SOCAN and Re:Sound separately, you can simply visit the official Entandem website. This joint venture was created specifically to give Canadian businesses a “one-stop shop” to legally acquire both necessary licences simultaneously.
Step 3: Calculate Your Tariff Rate
You will need to provide specific metrics about your business to calculate your fee. 📏 For standard background music (known as Tariff 15A), you must provide the exact square footage or square metres of the area accessible to your customers. Areas strictly for staff, like a back stockroom, are generally excluded from this calculation.
Step 4: Pay the Annual Licence Fee
Once your tariff is calculated, you will be issued an invoice. You can pay this via credit card or cheque. The licence must be renewed annually. Upon payment, you are legally clear to play music in your commercial space for the rest of the calendar year.
How Much Does it Cost in Canada?
Licence fees are not randomly decided; they are strictly set and legally enforced by the Copyright Board of Canada based on established tariffs.
| Business Type (Tariff) | Estimated Annual Cost (CAD) |
|---|---|
| Retail / Background Music (Tariff 15A) | $1.23 per square metre (Minimum fee approx. $94.51/year) |
| Fitness Classes (Tariff 68) | Varies by the number of classes and attendees per year. |
| Live Music Venues (Tariff 3A) | Usually calculated as a percentage of the cover charge or entertainment budget. |
| Telephone Music on Hold | Approx. $94.51 base fee plus extra for multiple phone lines. |
💰 Keep in mind that failing to pay these fees can result in retroactive invoices from Entandem, and ignoring them can lead to federal copyright lawsuits.
How Long Does the Process Take?
Obtaining a public performance licence is virtually instantaneous. Once you enter your business details into the Entandem portal and submit your payment, your business is immediately legally compliant. It typically takes less than 15 minutes to complete the entire process online.
Frequently Asked Questions (FAQ)
Can I just use my personal Spotify or Apple Music account?
No. Even if you pay Entandem for a public performance licence, the Terms of Service for personal streaming apps like Spotify strictly prohibit commercial use. To be fully compliant, you should use a commercial music service (like Soundtrack Your Brand or SiriusXM for Business) alongside your Entandem licence.
Do I need a licence if I only play traditional AM/FM radio?
Generally, yes. While the radio station pays its own broadcast royalties, taking that broadcast and playing it publicly to enhance your retail environment is considered a secondary public performance under Canadian law, requiring a basic background music licence.
What if I only play royalty-free music?
If you exclusively play 100% royalty-free or “podsafe” music where the artists have explicitly waived their public performance rights, you do not need an Entandem licence. However, you must be absolutely certain that not a single copyrighted song ever plays in your store.
Do I need a licence if the music is only for staff in the back room?
No. If the music is played in a private staff-only area (like a warehouse or break room) and cannot be heard by the general public or customers, it is generally not considered a public performance and does not require a licence.
Are non-profit organisations exempt from these fees?
Not entirely. While some specific charitable events or educational institutions may qualify for certain exemptions under the Copyright Act, most non-profits running regular events with music still need to pay SOCAN/Re:Sound tariffs. You should consult a lawyer to verify your exact legal standing.
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