MCPS

MCPS AP2 Application and Guide (PDF Format)

About the AP2 Agreement

This is the basic Licensing Agreement and covers the issuing of audio products (excluding Video and DVD) for retail sale. Under the AP2 Agreement you are required to pay a fee (a ‘royalty’) based on the quantity of products to be manufactured in advance of actual manufacture. You automatically become a signatory to the AP2 Agreement whenever a Licence Application for a particular product is submitted.

How does the licence application process work?

Having submitted an Application for Licence (AFL) to MCPS, an invoice is raised by MCPS for an applicable fee (‘royalty’) based on the Musical Works used that are owned by its members and the quantity of products being manufactured. Once this is payment is received, MCPS issues a licence both to the record producer and the designated pressing plant authorising the manufacture to go ahead.

A new Licence must be obtained for every subsequently manufacture of additional products, using a Application for Re-press Licence Form (AFRL). Re-press forms are included with each Licence.

How much does a Licence cost?

The fee for using an MCPS Member’s music (the ‘Royalty’) is 8.5% of Published Dealer Price (the price of the product paid by the retailer) multiplied by the number of copies to be manufactured (plus VAT). If there is no dealer price, the fee is calculated as 6.5% of Retail price (ex VAT).

However, royalties are only charged against the musical works owned, or controlled in the UK, by MCPS Members and are calculated pro rata on timings of each musical work against the total duration of the product. If timings are not available, then the tracks are treated as of equal duration.

Applying for a MCPS licence

An Application for Licence form (AFL) must be submitted to MCPS for every type of audio product (vinyl, CD, cassette or other audio format) and for any quantity however small. A new Licence must be obtained for every subsequently manufacture of additional products, using a Application for Re-press Licence Form (AFRL). Re-press forms are included with each Licence. The only products for which a licence is not required are those which contain no music of any kind.

You can send your AP2 applications to MCPS electronically, either using the AFL-Online or, if you are a PPL Member, via CatCo who will automatically forward your New Release details to MCPS as an Application for Licence. If you are intending to use CatCo, you should first acquaint yourself with the requirements of the Application for Licence Form (AFL).

Click here to access the AFL-Online service.

For details on sending your AP2 applications to MCPS via CatCo, contact PPL on 0207 534 1000.

The AFL must be completed in full and be accurate to the best of your knowledge, there are two parts: the Product Details and Track Listing. Information should only be left out if it is simply not available. In addition, you must immediately inform MCPS of any changes that occur to the information on your AFL after it has been sent. If the catalogue number, manufacturer, quantity to be manufactured or track listing changes prior to manufacturer you must submit a new AFL and let MCPS know this replaces the previous one (or if you are using CatCo, via an amendment notification to CatCo).

Note that at present, Application for Re-press Licence Forms (AFRL) can only be submitted to MCPS by paper. These are supplied with the Licence or can be obtained by calling MCPS Clearance on 0208 378 7261

Promotional Copies Allowance

Promotional copies are copies of the same audio product distributed to promote the same record.

Promotional copies are not subject to a MCPS royalty provided that certain guidelines are followed:

All promotional copies must be prominently marked with a non-removable or non-erasable notice carrying the words ‘PROMOTIONAL COPY – NOT FOR SALE’ on both the sleeve/ packaging and sound carrier itself. It is not sufficient to attach this label to any shrink-wrapping.

They must be supplied in good faith and free of charge to a broadcaster, disc jockey, critic or similar party for them to broadcast, play in public or review or use in some other bona fide promotional situation, and not be supplied in consideration or as a result of the recipient purchasing that or other products.Where you are applying for a first pressing of 500 copies or more, up to 25% (termed ‘the fixed allowance’) may be licensed as promotional copies, with an upper limit of 400 per format for a Single and 250 per format for an Album. This option must be identified on the Application for Licence Form (AFL). If less copies are required, this should be identified on the form.

In addition, there is an unlimited promotional copy option, but in order to operate this, identification must be made within the artwork that it is a promotional copy and detailed and accurate records must be kept of the recipients. In this case, prior arrangement with MCPS must be made. Contact the Audio Products Licensing Department to discuss this option further.

General guidance on use of promotional copies

Allowable Use. Supply to:• TV/ Radio for broadcast or review

• film companies for promotional purpose

• music publishers for promotional purpose

• overseas label for promotional purpose (listed as promotional product on export declaration)

• retail buyer

• ‘trade only’ music business events where there is paid admission and a list of delegates is published.

• independent promotional companies e.g. record pluggers (for the purposes as set out above).

Not allowable. Supply -

• to staff (except where dependent on job function, e.g. sales promotion, marketing – we recommend that you apply to the Audio Products department for agreement on staff categories)

• to Charities

• To retail outlets or overseas customers under merchandising deals

• as gifts – corporate or otherwise

• as competition prizes