How does PEL2 differ from PEL1 

    How does PEL2 differ from PEL1?

    The subject matter of both agreements is identical: the appointment of MCPS as your agent for the management of your Anglo-American online mechanical rights throughout Europe. However, there are differences in detail, the key commercial aspect of which we have summarised below:

    Provision PEL1 /(clause) PEL2 /(clause)
    Appointment Sole and Exclusive agency/ (clause 4.1) Sole and non-exclusive agency /(clause 1.1) (publisher may not appoint another society to act as its agent, but may license an online service provider directly)
    Term 3 years from date on which MCPS first grants pan-European licence containing your catalogue/ (11.1, 11.2) The period beginning with the date on which your catalogue is first included in pan-European licence and ending on 31 Dec 2011 /(6.1)
    Scope of mandate and exclusions You grant all online mechanical rights in your Anglo-American works with power to exclude from mandate on one month’s notice licence to cover initial fixation of works in combination with visual images for purpose of creating audio visual works /(4.2A) You grant all online rights in your Anglo-American works save for right of approval for reproduction of works in the form of commercial advertisement, endorsement or sponsorship; and making of adaptations/ (2).
  • Subject to unforeseen or exceptional circumstances, 7.5% -10% of gross sums received and collected /(5.4, 5.4A) depending on local licensing and territorial conditions.
  • Subject to unforeseen or exceptional circumstances, 7.5% for Multi-Territory Licensing by MCPS
  • 10% for all UK domestic blanket licensing
  • If MCPS pays commission to sub-agents to collect and distribute on its behalf, commission to be determined by negotiation with society and approved by MCPS Board (4.6,4.7)
  • Additional Services Online Access for many services (e.g. licensing agreement review, audit results, etc)/(6.1) Online Access has not been built; all queries concerning licensing agreements, audit results, etc to be funnelled via Member Services
    Audit Publisher may at own expense audit PRS for Music in relation to the administration of its Online Rights/(12) Currently no provision.
    Review and oversight of MCPS administration of PEL No provision Advisory Committee appointed by MCPS Board to advise on operation of PEL2, including commission rates and terms and conditions of appointment of sub-agents (5).
    Territory EEA + Albania, Andorra, Bosnia-Herzegovina, Croatia, Gibraltar, Macedonia, Moldova, Monaco, Montenegro, San Marino, Serbia /(Schedule 1) As for PEL 1 + Switzerland /(8.1.15)

    Please click here for copies of PEL1 and PEL2, in order to enable you to compare the details of the changes.

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