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AP2/2A FREQUENTLY ASKED QUESTIONS.

These questions & answers were taken from an MCPS leaflet, This guide should not be treated as a substitute for the Audio Products Agreement and is not intended to add to, detract from, or form part of that agreement or the Audio Product Licensing Scheme.

Q. How much does an AP.2 or AP2A licence cost?

A. (This is a guide and prices may have changed) Royalties are calculated at 8.5% of the Published Dealer Price (PPD) multiplied by the number of copies to be manufactured (plus VAT). If you do not operate a PPD structure, you may use the alternative rate of 6.5% of the retail price (ex. VAT), again, multiplied by the number of copies to be manufactured (plus VAT). Royalties are only charged on MCPS controlled Works and are calculated pro rata on timings of each musical work against the overall length of all the musical works on the Disc.

Q. How do I apply for a licence?

You can apply on line for your AP2 Licence at the following link.
On Line MCPS AP2 Licence Application Form.

Q. How long does it take to get a licence?

A. In general the MCPS will send you an invoice around seven working days following the receipt of your completed AFL. You should, however, make your application at the earliest possible opportunity. It is very important that the AFL is fully completed. There are several stages of processing which we need to undertake and missing or unclear information can cause delays. We aim to process Application For Repress Licence (AFRL) forms and send an invoice within two working days of receipt.

Q. Why do I need an AP licence from the MCPS?

A. Under the terms of the MCPS Membership Agreement we are appointed as sole agents for the licensing of our members’ Musical Works. Manufacture and distribution of Discs embodying our members’ Musical Works without a licence is an infringement of copyright under the terms of the Copyright, Designs and Patents Act 1988.

Q. If the copyright owners are not MCPS members, or if the works are in the public domain, do I still have to apply for a licence?

A. We need an Application For Licence form to be completed in all cases in order to assess the repertoire used and, if applicable, issue a Notification Of No Claim. This will be required by your manufacturer to show that MCPS does not currently have any members’ interest in your product. It will also eliminate your product from our monitoring activities and help us to keep a comprehensive database.

Q. If some of the copyright owners on your licence are not MCPS members can I go ahead and manufacture?

A. MCPS can only license on behalf on its members whose repertoire we control. If you wish to use Musical Works which are not controlled by us, you must make direct contact with the copyright owner concerned and get their permission. If we do not control 100% of the Musical Works involved, your licence from MCPS will not by itself be sufficient for you to proceed. You must also have the permission of the non-MCPS copyright owner.

Q. Can I use existing sound recordings?

A. Only if you have obtained the prior consent of the sound recording owner. If you do not own the master recording from which you will manufacture, you should ensure you have a valid licence from the owner before applying to MCPS. The MCPS licence is conditional on these licences being in place.

Q. What does a licence from MCPS entitle me to do?

A. To make the number of Discs specified in the licence and put them into circulation with a view to ~ their retail sale to the public for private use.

Q. What provisions are there for promotional copies under the AP2/2A agreement?

A. Copies of records which are manufactured and distributed to promote sales of other copies of the same record are not subject to an MCPS royalty, provided that certain conditions are met:

At the time of manufacture the records must be marked with a non-erasable or non-removable notice carrying the words ‘PROMOTIONAL COPY – NOT FOR SALE’ on both the packaging and the record itself.

The record must be provided bona fide free of charge to a broadcaster, DJ or similar party for broadcast or review. Further guidance on uses and recipients of promotional copies can be obtained from the Audio Products Business Team

Q. How do I keep records of promotional copies?

A. Within 21 days of the end of each calendar month, you must send to MCPS a statement showing for each record, by licence number, catalogue number and title, the number of the promotional copies which you have distributed. You must also keep books and records which will allow MCPS to check that these statements and your claims about the manufacture of promotional copies are broadly accurate. You should also keep for at least two years, reasonably detailed information about the general nature and category of people receiving promotional copies from you (i.e. your mailing lists, etc.) MCPS has the right of access, upon reasonable notice, to visit your premises to check books and records with regard to royalty free promotional copies, which you must keep.

Some record companies have said that strict observance of the above provisions on promotional copies is difficult to comply with. There is therefore the alternative option of having a set promotional allowance.

Q. What is the AP2/2A set promotional allowance?

A. You can choose to accept a fixed allowance for promotional copies. The allowance is 25% of the first manufacture. Record producers will be allowed to manufacture this amount royalty free. The allowance will be available where 500 or more copies of the record are being manufactured. The maximum allowance is 400 units per format per single and 250 per format per album. If you wish to benefit from this option, you should tick the appropriate box on your Application For Licence (AFL). If this option is chosen, the record’s packaging must be prominently marked by embossing or with a non-removable or non-erasable notice fixed by a heavy duty glue carrying the words

‘PROMOTIONAL COPY – NOT FOR SALE’. It is not sufficient to attach this to any shrink wrapping. Apart from the above, all the other conditions referred to under the general guidance for promotional copies apply..

Do I need a licence for samplers, demos or white labels?

A. Yes, you do. These are subject to separate agreements and licensing arrangements. For details on. licensing samplers or demos, please request our leaflet on the AP4 Agreement. Enquiries about white labels or DJ mix tapes should be directed to the Audio Products Business Team.

MCPS Footnote.

This guide should not be treated as a substitute for the Audio Products Agreement and is not intended to add to, detract from, or form part of that agreement or the Audio Product Licensing Scheme.

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