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Updated Business Policies & Program Guidelines

We have made some changes to FACTOR’s Glossary of Standard Terms and Business Policies and to some of our Program Guidelines, effective October 15, 2015. Take a look at these documents before you submit any application.

Click to download the new Glossary of Standard Terms and Business Policies document.

Significant rule and policy changes are outlined below.

Business Policies

22.0 ELIGIBLE MUSIC COMPANIES – we have clarified the date requirements for Qualifying Releases, so that companies can qualify following either the Annual Review or the Semi-Annual Review (excluding Record Labels rated 4 / 5).

29.0 MAPL CERTIFICATION – The policy has been clarified with respect to instrumental music, as follows: Each of the tracks will be assessed. The total quantity of Music and Lyrics on the album must add up so that at least half of the album is composed by a Canadian.

  • i) For an instrumental track: if a single track has no Lyrics, then at least 50% of its Music should be composed by a Canadian.
  • ii) For an instrumental album: the total quantity of Music must add up so that at least half the album is composed by a Canadian.
  • iii) For an album that has tracks both with and without lyrics, at least 50% of the Album’s total music and lyrics must be written by a Canadian.

35.0 SPONSORSHIP PROGRAM – This section has been removed from the Business Policies. Please see the Sponsorship program page for details.

Glossary

ANNUAL FUNDING CAP

– The Annual Funding Cap for all applicants (excluding funding under Collective Initiatives) has been redefined as follows: No applicant may receive more than $200,000 per FACTOR fiscal year in funding derived from any program funded in whole or in part by the New Musical Works component of the Canada Music Fund (the “New Musical Works portion”); nor more than $200,000 per FACTOR fiscal year in funding derived from any program funded in whole by private broadcaster contributions (the “Radio Contributions portion”). The Annual Funding Cap is based on all applicable FACTOR offers, adjusted by amounts actually paid out, in the fiscal year. If a funded project spans two fiscal years, any offer unpaid at the end of year one will roll into year two and will count against that year’s cap.

Program Changes

Marketing and Promotion for Non-FACTOR-Funded Sound Recordings

As announced in August, sound recordings that appear to qualify based solely on off-stage sales reported to SoundScan through the Venue Settlement Program are no longer eligible.
Sound recordings may still qualify with a SoundScan report showing the qualifying sales threshold was met with traditional and digital retail sales; or may qualify based on the current radio charting criteria.

Radio Marketing Fund

This fund has been restructured and is available as a component of the following programs: Juried Sound RecordingComprehensive ArtistComprehensive Music Company, Marketing and Promotion for Non-FACTOR-Funded Sound Recordings.

Tour Support & Showcase components

We have clarified that artists’ performance fees will not count towards the In-House cap.

Sound Recording

We have clarified that third-party studio and mixing costs may be deducted from the Self-Production allowance to the maximum of 10 tracks/$5,000 for the full-length recording and 2 tracks/$1000 for Demo.


If you have any questions about these changes, please contact your Project Coordinator for clarification.