Lingo - Statutory (Compulsory) Mechanical License Rate

The compulsory mechanical license rate has been in existence since the 1909 Copyright Act. The statute places a ceiling—per record, per song—on the royalty a copyright owner can obtain (the royalty rate of 2 cents remained the same from 1909 to 1978). Provision was made, under the 1976 Copyright Act, for a periodic review of the rate. Such a review took place in 1980, whereby the royalty rate was increased in yearly increments. The statutory rate for 1999 is 7.10 per song for each copy of the CD or tape distributed or 1.35 per minute of playing time, whichever is greater. For subsequent years, the mechanical rates will be as follows:

2000 and 2001: 7.55 per song or 1.45 per minute

2002 and 2003: 8 per song or 1.55 per minute

2004 and 2005: 8.5 per song or 1.65 per minute

2006 and later: 9.1 per song or 1.75 per minute

Member Comments

You need to be logged in to post comments.