I can only tell you what it says in the PRS' application form, on their website, and also what they told me verbally, in connection with 'Limited Availability Productions'. They specifically state that permissions are not required for Audio CDs where the total number to be produced is limited to 500 copies or less. I know of several artists who have produced such CDs and they have done so on this exact premise. Here's what it says under 'Educational and Limited Availability Productions on their website:-

"MCPS has recently introduced a scheme to mlicence non-corporate audio and audio-visual productions that have a total run of under 500 copies. Although this licence allows easy access to MCPS members' repertoire without the need for obtaining permission from each individual copyright owner, there are several exclusions that apply".

It then goes on to explain the exclusions, which are to do with branding, sponsorship, defamation, sexual or violent or drug-related content, or political or other contentious material.

The person I spoke to there reiterated the above, (twice in fact, as I was determined to be certain on this point) and confirmed that specific permissions are not required for this kind of production, where sales are not made on a retail basis (i.e. in retail outlets such as record stiores etc.)

I know of several artists who have produced CDs on precisely this basis, for sale by them at gigs etc., without any problem.

As I said earlier, the rules for Audio Product Licencing for Retail Sales are different, and are covered by AP1, AP2 or AP2A agreements, and require specific permissions.

That's good enough for me!