Canadian performing rights society SOCAN has finalized its buyout of mechanical rights collection group SODRAC – with ambitious plans for what the merger might mean for songwriters.
In a press release, SOCAN (the Society of Composers, Authors & Music Publishers of Canada) called its acquisition of SODRAC (the Society for Reproduction Rights of Authors, Composers & Publishers in Canada) ‘a historic moment for music rights in Canada’.
SOCAN further said the move ‘broadens the choices available, notably for music publishers and self published writers for the licensing of the reproduction right’.
An acquisition fee was not disclosed.
SOCAN says it can now license, track and distribute all royalties for both music performing rights and mechanical rights. It believes this ability will lead to more timely and accurate distributions for members, in addition to reduced operating costs across the two organizations and increased efficiencies through leveraged licensing relationships.
A transition period will result in the full integration of the organizations.
SODRAC’s management team and employees will now become employees of SOCAN, while SODRAC’s current General Manager, Alain Lauzon, will continue his work as a special consultant to SOCAN’s CEO.
‘Efficiencies in overhead expenses and operations will be sought and ultimately passed along for the benefit of members,’ said SOCAN in a statement.
“SOCAN is thrilled to complete a made-in-Canada solution for music rights holders in this country and worldwide,” said SOCAN CEO Eric Baptiste. “This transaction fits perfectly with SOCAN’s goal of leading the global transformation of music rights, and SOCAN’s past and ongoing commitment to create alliances within the Canadian music ecosystem.
“With the full integration of SODRAC’s assets and expansion into mechanical rights, the combination of public performance and reproduction rights increases efficiencies, leverages licensing relationships, and reduces operating costs, resulting in even more music royalties going to those who have earned them.”
“With the full integration of SODRAC’s assets and expansion into mechanical rights, the combination of public performance and reproduction rights increases efficiencies, leverages licensing relationships, and reduces operating costs, resulting in even more music royalties going to those who have earned them.”
Eric Baptiste, SOCAN (pictured)
“The integration of SODRAC into SOCAN is the result of many years of discussions and negotiations,” said Lise Aubut, Chair of SODRAC’s Board of Directors and co-founder of SODRAC in 1985. “Today, this concentration of energy and resources has become essential in a context where markets are globalized, copyright media is dematerialized, and the financial means necessary to defend rights in a digital world are prodigious.
“Music is borderless, and tracking musical works requires cutting-edge technology that provides services to a large number of music rights-holders and users.”
In 2016, SOCAN expanded its position in rights management by acquiring Seattle-based MediaNet and New York-based music technology company Audiam.Music Business Worldwide
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