(a) Administrative Requirements: MLA companies must be able to produce error-free royalty statements in a standard electronic format. They must demonstrate that their royalty system can adequately track royalties owed as well as the handling of reserves, returns, free goods and promotional units. They must be able to deliver a quarterly report of undistributed royalties.
(b) Volume Requirements: MLA companies should be able to demonstrate that their use of CMRRA-represented works will account for a minimum amount of quarterly mechanical royalties. This may require them to provide CMRRA with information such as sales projections, release and work information, or business plans/models.
