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Retail audio products: AP1 and AP2 licences 

Mechanical-Copyright Protection Society Audio-only product licences – two options

  AP1 AP2
Customer needs credit check and approval by PRS for Music board Yes No
Payment basis On net copies shipped per quarter On copies manufactured
Payment terms Following invoice Before manufacture
  Apply now 
Apply now

Please note, application also subject to credit checks and bank reference

Formats covered by AP1 and AP2

  • CD
  • Vinyl
  • DVD Audio
  • SACD
  • Other audio formats agreed with MCPS

Licence scope

  • Manufacture audio-only products
  • Distribute audio-only products for retail sale

Rights – mechanical rights are separate from sound recording rights

The AP licences cover the payment of mechanical royalties only, which are paid to music publishers for the use of musical works. Sound recording rights must be licensed directly from record companies (where applicable).

Costs

8.5% of Published Dealer Price (PDP), or if unavailable, 6.5% of Retail Price (RP). This is then multiplied by the number of copies shipped. Customers who qualify for AP1 pay quarterly in arrears. Customers on AP2 pay before manufacture.

The charge is reduced proportionately if any of the music on the CD/LP is in the Public Domain or is non-MCPS repertoire.

Apply for an AP1 licence – pass a credit check

Potential customers must be approved, then when operating under the scheme,  take on additional administration to satisfy the requirements of the AP1 licence. Royalties are paid quarterly in arrears.

AP1 reporting process:

  1. Send ‘Statement of Shipments’ (SoS) to MCPS quarterly (up to 21 days after each calendar quarter)
  2. We send an invoice following SoS (within 17 days of receipt)
  3. Customer pays invoice (within 7 days of issue date)

Please note that, in addition to the reporting process, you need to submit product details to MCPS at least 7 days before release.

Apply for an AP2 licence

Customers that cannot or choose not to fulfil the administrative requirements of the AP1 licence can take out AP2.

AP2 application process (all before manufacture)

Apply for AP2 here or ppluk.com

  1. We send an invoice (within 10 days of receipt of application)
  2. Customer pays invoice (within 28 days of issue date)
  3. Manufacture of product can begin

AP2 exclusions

MCPS songwriter, composer and publisher members have the right to set up an exclusion of their own record company from royalty collection arrangements.

Promotional allowance

When licensees are manufacturing over 500 units, they can opt for a promotional allowance of up to 25%. The maximum number of promotional copies allowed under the AP2 agreement is 250 (where 1000+ units manufactured).

More information

  AP1 AP2
 FAQs Read FAQs Read FAQs
Application AP1 application criteria AP2 terms and conditions
Forms Status enquiry Setting up exclusions
Agreement View agreement View agreement

Find out more about Export reporting.

Other licences you may need

Music Promotions to Trade (AP4) - Promo CDs for music industry (in excess of those under AP1 and AP2)

Contact us

If you would like more information about this licence scheme, please contact us on:

T: +44 (0)20 3741 3888
applications@mcps.co.uk

 
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