A mechanical licence permits you to reproduce a musical work on a physical or digital sound carrier, granted by the copyright owner or their representative. CMRRA offers two primary licensing plans:

• Pay-As-You-Press/Import: Ideal for small-scale production or imports.
• Mechanical Licensing Agreement (MLA): Designed for ongoing, large-scale production.

If you plan to produce or import a small number of products, visit our Pay-As-You-Press/Import Licence page. For larger, ongoing projects, an MLA may be the right fit.

The MLA is a standard agreement between CMRRA and record labels selling or otherwise distributing physical products in Canada. It outlines essential licensing terms such as:

• Application for licences
• Royalty rates
• Reporting and payment schedules
• Reserve accounting and promotional copy rules
• Handling of deleted products and controlled composition clauses

Under the MLA, royalties are reported and paid quarterly, based on actual sales. It also includes provisions for returns and promotional copies.

The MLA is tailored for businesses that manufacture, distribute, and sell records in Canada on an ongoing basis. It requires robust accounting systems and expertise to handle the following:

• Accurate royalty tracking and quarterly reporting
• Processing changes in musical work ownership
• Producing error-free royalty statements

Eligibility is assessed on a case-by-case basis. Contact CMRRA to discuss the prerequisites and determine if an MLA is suitable for your business.

Mechanical Licence Costs and Rates

The current royalty rate is 8.3 cents per work, per copy manufactured for musical works with a playing time of up to five minutes. For works longer than five minutes, an additional 1.66 cents per minute (or part thereof) is added.

Note: A small number of publishers may charge higher-than-standard rates.

This rate applies only to audio-only sound recordings (e.g., CDs, cassettes, vinyl). Licences for other merchandise (e.g., toys, games) are subject to individual negotiation.

If you’ve signed the MLA, you may qualify for discounts on budget recordings or works under controlled composition clauses. Refer to your MLA terms or contact us for more details.

Quarterly Royalty Payments Based on Sales

MLA licensees can report and pay royalties quarterly as products are sold. However, MLA signatories must:

• Track ownership changes in musical works
• Provide accurate quarterly royalty statements

This capability is part of the assessment for MLA eligibility.

Become an MLA Signatory

To qualify for the MLA, your business must meet the following criteria:

1. Administrative Requirements:

• Ability to produce error-free royalty statements in a standard electronic format.
• Robust systems to track royalties, reserves, returns, free goods, and promotional units.
• Quarterly reporting of undistributed royalties.

2. Volume Requirements:

• Demonstrated use of CMRRA-represented works, meeting a minimum threshold for quarterly royalties.
• Sales projections, release schedules, and business plans may be required for evaluation.

Contact us for more information on becoming an MLA signatory.

Ready to get started or have questions? Contact CMRRA today, and we’ll help you find the right licensing solution for your needs.