Statutory Compulsory Mechanical License Rate

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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 mechanical royalty rate for physical recordings such as CDs and permanent digital downloads is 9.10 Cents per copy for songs 5 minutes or less.

 

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