For the labels who do not have the administrative means and the resources to properly meet the requirements outlined in the Standard MLA Format, CMRRA has created a new MLA model that significantly reduces the complexity of the royalty reporting process.
Under this new model, the requirements are as follows:
a) The label will report all product sales to CMRRA per album rather than at a song level.
b) CMRRA will identifies the musical works represented in its repertoire on the label reported sales
c) CMRRA will produce royalty statements for each musical work / copyright owner based on the number of units reported by the label.
d) CMRRA will provide copies of these royalty statements to the label along with a reconciliation of accounts based on a royalty advance paid to CMRRA (which is pre-determined and agreed upon with the label).
e) Manufacturer will seek licences in a timely manner and provide all necessary back up information, including direct licences. A licence application is composed of one (1) copy of each CD, LP, MC or DR version of each Recording which it releases for sale to the public. The manufacturer will at the same time provide CMRRA with sufficient information (including song title, author/composer/arranger and publisher) to identify the musical works reproduced on each release.
f) The label will pay CMRRA a quarterly advance against royalties based on the number of units sold each quarter (less a reasonable reserve). The due dates are: February 15, May 15, August 15 and November 15. The advance is calculated based on a percentage of representation from the label’s releases.
g) The royalty statements will be generated at the applicable royalty rate for full and budget line products. CMRRA will not honour any other reduced or controlled composition rate for the purpose of this model.
h) The label will appoint CMRRA as its agent to seek licences from the Copyright Board of Canada for any unlocatable copyright owner where applicable pursuant to Section 77 of the Copyright Act.
