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
