A mechanical royalty fee is paid to the songwriter when a song is copied onto a CD or other music player. The fee is determined by the government and is based on either the number of songs or the length of the song. If the fee is paid, the copier does not need to seek permission from the songwriter. Occasionally, the songwriter and copier may negotiate a lower fee.
Mechanical royalty refers to the payment received by a songwriter whenever their song is reproduced on a phonourecord by a mechanical-right holder. The rates for these royalties are determined by law and can be paid either per song or per minute, depending on which amount is higher. If an artist pays the statutory rate, they are not required to obtain the songwriter’s permission to make a recording. However, artists and songwriters have the option to negotiate lower royalty rates. For instance, if a singer wishes to record a cover of a popular song written by someone else, they would need to pay a mechanical royalty to the songwriter for each copy of the recording that is sold. In the case where the statutory rate is 9.1 cents per song, the songwriter would receive 9.1 cents for every copy sold. This example serves to demonstrate how mechanical royalties function within the music industry, where the songwriter earns a royalty each time their song is reproduced on a phonourecord, such as a CD or digital download. The rate is established by law and can be paid per song or per minute. In the event that an artist desires to record a cover of another person’s song, they must compensate the songwriter with the appropriate mechanical royalty.
A mechanical royalty is a payment made to the songwriter or copyright holder for the reproduction and distribution of their musical composition on physical or digital formats, such as CDs, vinyl records, or streaming platforms.
The mechanical royalty rate is typically set by law or through negotiations between music publishers and record labels. In the United States, the statutory mechanical royalty rate is currently set at 9.1 cents per copy or digital download of a song, or 1.75 cents per minute of playing time for songs over five minutes.
Record labels or music distributors are generally responsible for paying mechanical royalties to the copyright holders. They are required to obtain a mechanical license from the copyright owner and pay the appropriate royalties for each copy or digital download sold or streamed.
Yes, if you want to record and distribute a cover version of someone else’s song, you need to obtain a mechanical license from the copyright holder. This allows you to legally reproduce and distribute the song, and you will be required to pay the applicable mechanical royalties.
No, mechanical royalties are also applicable to digital sales and streaming services. Whenever a song is reproduced or distributed, whether physically or digitally, mechanical royalties must be paid to the copyright holder.
Yes, mechanical royalties can be negotiated between the copyright holder and the record label or distributor. However, in the absence of a negotiated agreement, the statutory mechanical royalty rates set by law will apply.
No, mechanical royalties are different from performance royalties. Mechanical royalties are paid for the reproduction and distribution of a song, while performance royalties are paid for the public performance of a song, such as on radio, TV, or live performances.
No, a mechanical license is not required for personal use or non-commercial purposes. Mechanical licenses are only necessary when you intend to reproduce and distribute a copyrighted song for commercial purposes, such as selling copies or making it available for streaming.
Yes, if you fail to obtain a mechanical license or neglect to pay the required mechanical royalties, you can be sued for copyright infringement. Copyright holders have the right to take legal action to protect their intellectual property and seek damages for unauthorized use.
There are certain exemptions to paying mechanical royalties, such as when a song falls under the public domain or when it is used for educational or religious purposes. However, it is important to consult with a legal professional to determine if your specific use qualifies for an exemption.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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