A Canadian Master Use Licence Agreement is a legally binding contract that grants a producer, filmmaker, or other licensee the right to use a specific sound recording of a musical composition in a new production such as a film, television programme, commercial, video game, podcast, or other audiovisual or audio work. This agreement is governed by the Copyright Act (R.S.C. 1985, c. C-42), which is the federal statute providing the comprehensive framework for copyright protection and licensing throughout all Canadian provinces and territories.

The master use licence specifically addresses the rights in the sound recording itself — the particular recorded performance of a musical work — which are distinct from the rights in the underlying musical composition. Under section 18 of the Copyright Act, the maker of a sound recording has copyright in the recording, including the sole right to publish it for the first time, to reproduce it in any material form, and to rent it out. The performer also has rights in their performance under sections 15 and 26 of the Act. These rights exist separately from the songwriter’s or music publisher’s copyright in the underlying musical work under section 3 of the Act, which typically requires a separate synchronization licence.

In the Canadian context, the Master Use Licence Agreement must take into account the unique features of Canadian copyright law, including the moral rights provisions of sections 14.1 and 28.2 of the Copyright Act, which cannot be assigned but may be waived in writing. Canada’s copyright regime also involves a system of collective societies — including SOCAN (Society of Composers, Authors and Music Publishers of Canada), CMRRA (Canadian Musical Reproduction Rights Agency), Re:Sound Music Licensing Company, and others — that administer collective licensing and whose tariffs are certified by the Copyright Board of Canada.

The agreement establishes the specific terms under which the licensee may use the master recording, including the scope of permitted uses, the territory (whether limited to Canada, specific provinces, or worldwide), the duration of the licence, the financial arrangements (royalties, flat fees, or a combination denominated in Canadian dollars), and the obligations of both parties regarding the protection of intellectual property rights.

A Canadian Master Use Licence Agreement is needed whenever a producer, broadcaster, filmmaker, or other creative professional wishes to incorporate a pre-existing sound recording into a new production within Canada. The most common scenario involves film and television production, where producers need to licence both the master recording and the underlying musical composition for use in their projects. Canada’s vibrant film and television industry, supported by federal and provincial tax credits under the Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)) and provincial programmes such as the Ontario Film and Television Tax Credit, generates significant demand for music licensing arrangements.

Advertising agencies and their clients require Master Use Licence Agreements when incorporating recorded music into commercials, whether for broadcast television, radio, streaming platforms, or digital media campaigns. The Canadian advertising industry must comply with the Competition Act (R.S.C. 1985, c. C-34) and the Canadian Code of Advertising Standards, and the music licence must clearly define the media, territory, and duration of permitted use.

Video game developers and interactive media producers in Canada’s growing digital entertainment sector need Master Use Licence Agreements when incorporating licensed music into their products. The interactive nature of video games raises unique licensing considerations, as the music may be triggered by user actions and may play in different contexts within the game. The licence must address these interactive uses and specify whether the rights extend to downloadable content, expansions, and online multiplayer modes.

Podcast producers and streaming content creators have emerged as significant users of licensed music. As podcasting has grown in Canada, producers must secure proper licences for any recorded music used in their programmes. The Copyright Act’s provisions regarding communication to the public by telecommunication (section 3(1)(f)) are particularly relevant for streaming and online distribution. SOCAN tariffs may apply to the public performance aspect, and CMRRA tariffs may apply to the reproduction aspect.

Corporate video producers, event organizers, and educational institutions also require Master Use Licence Agreements when incorporating recorded music into training videos, presentations, live events, or educational materials. Fair dealing provisions under section 29 of the Copyright Act may apply in some educational contexts, but most commercial uses require a formal licence.

A valid Canadian Master Use Licence Agreement must include several essential components to comply with the Copyright Act (R.S.C. 1985, c. C-42) and applicable provincial law. The identification of parties section records the full legal names, addresses (including province and postal code), and entity types of both the licensor (typically the record label or sound recording owner) and the producer (the licensee). For corporations, the jurisdiction of incorporation under the Canada Business Corporations Act (R.S.C. 1985, c. C-44) or applicable provincial corporations act should be specified.

The composition identification section provides a precise description of the licensed sound recording, including the title of the musical composition, the performing artist, the album or release from which the recording is taken, the duration of the recording, and the catalogue or ISRC (International Standard Recording Code) number. This section must clearly distinguish between the rights in the sound recording (master rights) and the rights in the underlying musical composition (publishing rights), as each requires separate licensing.

The grant of rights section defines the specific rights being licensed under the Copyright Act, including reproduction rights (section 18(1)(b)), synchronization rights (the right to combine the recording with visual images), communication rights (section 18(1)(a.1) for communication to the public by telecommunication), and any other rights relevant to the intended use. This section must also address the scope of the licence — whether exclusive or non-exclusive, the geographic territory, and the permitted media and formats.

The moral rights section addresses the composer’s and performer’s moral rights under sections 14.1, 17.1, and 28.2 of the Copyright Act. Since moral rights cannot be assigned under Canadian law, the agreement should specify whether the relevant rights holders have waived their moral rights in writing with respect to the licensed use. The collective society notice section addresses obligations to SOCAN, CMRRA, Re:Sound, and other collective societies whose tariffs may apply to certain uses of the licensed material.

The financial terms section specifies the licensing fees or royalties payable in Canadian dollars, the payment method and schedule, late payment provisions (subject to the Interest Act, R.S.C. 1985, c. I-15), and withholding tax obligations for cross-border payments under the Income Tax Act. The term and termination section establishes the duration of the licence, renewal options, and termination rights, including insolvency provisions under the Bankruptcy and Insolvency Act (R.S.C. 1985, c. B-3). The governing law clause identifies the applicable provincial law, while the dispute resolution clause designates the appropriate court or arbitration mechanism.