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SOCAN acquires CMRRA from SoundExchange
SOCAN has agreed to buy the Canadian Musical Reproduction Rights Agency (CMRRA) from SoundExchange, subject to regulatory approval and customary closing conditions. The deal would combine SOCAN’s performing-rights operations with CMRRA’s reproduction-rights licensing, potentially creating a more integrated system for Canadian music publishers and songwriters.
Financial terms were not disclosed. SoundExchange bought CMRRA in 2017; the agency, founded in 1975, distributed CAD 78 million (USD 57.8 million) in mechanical royalties in 2023, an 8.9% annual increase. SOCAN says it represents nearly 200,000 songwriters, composers and publishers, while CMRRA represents most music publishers operating in Canada.
In short
- SOCAN plans to acquire Canadian royalty agency CMRRA from SoundExchange.
- The transaction still requires regulatory approval.
- CMRRA distributed CAD 78 million in mechanical royalties during 2023.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Bringing performing-rights and reproduction-rights licensing under one Canadian organisation could make royalty collection simpler for songwriters and publishers, reduce administrative duplication and improve coordination. SOCAN’s existing reach and CMRRA’s publisher relationships may also help ensure royalties are identified and distributed more efficiently.
The case against
Combining two important licensing functions in one organisation could reduce competition and leave publishers and songwriters with fewer practical alternatives if service or governance falls short. A larger, more centralised agency may also create transition risks or weaken accountability, so regulatory scrutiny and clear safeguards would matter to those concerned.
Explained simply
When a song is played or copied, different rights can apply, and the organisations that manage them collect and pass royalties to rights holders. SOCAN handles rights linked to public performances, such as music played on radio or at a venue; CMRRA licenses reproduction rights, including the making of copies and some digital uses.
SOCAN represents songwriters, composers and music publishers, while CMRRA represents most music publishers operating in Canada. CMRRA was founded in 1975 and was bought by the US-based SoundExchange in 2017; in 2023, it distributed CAD 78 million in mechanical royalties.
Bringing the organisations together could give Canadian music publishers and songwriters a more integrated way to manage these different rights. The proposed change depends on regulatory approval and other closing conditions, and its financial terms have not been disclosed.