Tag: Copyright Royalty Board

  • Upcoming Compulsory Mechanical License Rates

    The Copyright Royalty Board recently released recommendations for compulsory mechanical license rates for the period 2008 through 2012.  The recommendations were the result of a proceeding that has been ongoing all year.

     

    What Is the Compulsory Mechanical License?

     

    Once a recording of a non-dramatic song has been commercially released with the authorization of the copyright owner, anyone may make another recording of the song and sell copies of their recorded version.  You do not need the permission of the copyright owner in order to obtain a compulsory mechanical license.  Your only obligations to the copyright holder of the song are providing notice and periodic accountings and paying the mechanical license fee set forth in the statute.  The compulsory mechanical license rate is periodically adjusted.

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  • Determining Songwriters’ Livelihood with a New Mechanical Royalty Rate


    In previous posts, I’ve commented that while recording artists get the glamour, it is songwriting and the ownership of songs that generate greater revenue within the music industry.


    Songwriters have multiple music licensing opportunities and can often live on royalties from hit songs for decades.  One of the songwriter’s primary sources of revenue – the mechanical royalty – is facing a
    challenge.  Last month, the Copyright Royalty Board began a proceeding to determine the new mechanical royalty rates for songs.

    What’s at Stake?


    The current mechanical license rate is 9.1 cents.  A record label pays mechanical license fees for each copy of a song it distributes.  Cover artists who re-record and distribute previously released songs also pay mechanical license fees.  For a brief introduction to mechanical licenses and how songs generate revenue, see my article Music Publishing: How Your Songwriting Generates Income

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