If you plan to physically release music on your label you will require an MCPS license. This license fee pays the publisher/writer their mechanical royalties. The current mechanical royalty rate is 8.5% of dealer price per record pressed (AP2) or sold (AP1). If you control the publishing on your releases you will still need to register your releases with the MCPS, but you will be able to secure an exclusion for your label. This exclusion must be in place before you commence manufacture and is only available to labels who operate under an AP2 agreement. Most smaller labels operate under an AP2 agreement as it can be quite difficult to secure an AP1.
MCPS Licensing (physical labels)
Last updated bykudos
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