Photo Credit: Hermes Rivera
Canadian publishing society SOCAN announces a purchase agreement to acquire mechanical rights society CMRRA from SoundExchange.
The Society of Composers, Authors, and Music Publishers of Canada (SOCAN) and SoundExchange have announced that the two entities have entered into a purchase agreement under which SOCAN will acquire the Canadian Musical Reproduction Rights Agency (CMRRA). The transaction, which is still subject to regulatory approval, will unite the neighboring rights management of mechanical rights with public performance rights in Canada.
The deal aims to further the entitiesâ shared commitment to strengthen the music rights ecosystem and ensure songwriters, composers, music publishers, artists, and rights owners continue to benefit from âefficient, modern, and innovativeâ rights administration services.
The proposed acquisition brings together SOCANâs century-long leadership in performing rights administration and advocacyâalongside nearly a decade of reproduction rights expertiseâwith CMRRAâs 50-plus years of specialized expertise in reproduction rights.
âAcquiring CMRRA is about strengthening Canadaâs 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,â said Jennifer Brown, CEO of SOCAN.
âSoundExchange 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.â
âWhen 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,â said Michael Huppe, President and CEO of SoundExchange.
âTogether, 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. This transaction benefits creators, publishers, and the broader music community while allowing SoundExchange to continue advancing our core mission of delivering value to artists and rights owners around the world.â
âCMRRA has benefitted greatly from SoundExchangeâs investment, partnership, and commitment to our mission, and we are proud of the progress we have made together,â said Paul Shaver, President of CMRRA. âAs 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 music rights administration ecosystem in Canada.â
The announcement comes after nearly a decade of SoundExchangeâs ownership of CMRRA, since the latter was acquired by SoundExchange subsidiary SXWorks in 2017. This transaction linked U.S. digital performance administration with Canadian mechanical rights licensingâan odd rights mash-up, but one that apparently worked for almost ten years. Now, CMRRA will find a new home under SOCAN, a seemingly better fit both geographically and to connect two neighboring rights societies.