Retail audio products
AP1 and AP2 licences
We offer two main licences for companies that manufacture or distribute audio-only products for retail sale. This covers:
- DVD audio
- Other audio formats agreed with MCPS
The two options
Customer needs credit check and approval by PRS for Music board
On net copies shipped per quarter
On copies manufactured
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).
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 AP2 licence
Customers that cannot or choose not to fulfil the administrative requirements of the AP1 licence can apply for an AP2 licence.
AP2 application process (all before manufacture)
- We send an invoice (within 10 days of receipt of application)
- Customer pays invoice (within 28 days of issue date)
- Manufacture of product can begin
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).
MCPS songwriter, composer and publisher members have the right to set up an exclusion of their own record company from royalty collection arrangements.
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
- Send 'Statement of Shipments' (SOS) to MCPS quarterly (up to 21 days after each calendar quarter)
- We send an invoice following SoS (within 17 days of receipt)
- 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.
Here's a selection of other documents and links you may find useful:
Other licences you may need
Music Promotions to Trade (AP4) - Promo CDs for music industry (in excess of those under AP1 and AP2)