SOCAN (the Society of Composers, Authors and Music Publishers of Canada) announced Wednesday it has entered into a purchase agreement to acquire the Canadian Musical Reproduction Rights Agency (CMRRA) from SoundExchange, a Washington, D.C.-based global neighbouring rights organization.
Details of the transaction, which is subject to regulatory approval and other customary closing conditions, were not disclosed.
Founded in 1975, CMRRA, which SoundExchange acquired in 2017, is a music licensing and royalty collection agency representing music rights holders, issuing licences on their behalf for the reproduction of songs on various media including streaming services, physical products, satellite and terrestrial broadcasters.
Music rights organization SOCAN collects licence fees for the public performance and reproduction of music on behalf of its more than 200,000 members, which include songwriters, composers and music publishers.
SOCAN’s proposed acquisition of CMRRA “brings together SOCAN’s century-long leadership in performing rights administration and advocacy — alongside nearly a decade of reproduction rights expertise — with CMRRA’s more than 50 years of specialized expertise in reproduction rights,” says a SOCAN press release.
“Acquiring CMRRA is about strengthening Canada’s music rights landscape and building a more seamless experience for music publishers and creators. By bringing together CMRRA and SOCAN, we have an opportunity to harness our respective strengths and support long-term growth,” Jennifer Brown, CEO of SOCAN, said in the press release. “SoundExchange has been a strong and reliable home for CMRRA, ensuring continuity and care through a period of significant change in our industry. That foundation in reproduction rights and expertise will play a central role in advancing a more connected and effective music rights management system in Canada.”
“When SoundExchange acquired CMRRA nearly a decade ago, we saw an opportunity to strengthen its foundation, invest in its future, and enhance the services it provides to music publishers and songwriters,” Michael Huppe, president and CEO of SoundExchange, said in a statement. “Together, SoundExchange and CMRRA have built a strong, innovative, and thriving organization. We are proud of the progress achieved and believe SOCAN is the right organization to build on that success.”
CMRRA’s president, Paul Shaver, said the agency “has benefited greatly” from SoundExchange’s investment, partnership and commitment to CMRRA’s mission, adding: “As we look ahead, this next chapter with SOCAN represents an exciting opportunity to build on that foundation, drive innovation, deepen our service to music publishers and self-published songwriters, and contribute to a more integrated and effective rights administration ecosystem in Canada.”
