What is a Compulsory Mechanical License and what is the corresponding Statutory Rate?
The mechanical license was the first compulsory license created in US Copyright law, originating in 1909. A Compulsory Mechanical License allows an individual or company to record, distribute, reproduce and sell a composition in exchange for a royalty paid to the owner for each sale pursuant to the guidelines of US Copyright. The Statutory Rate was set by the Copyright Arbitration Royalty Panel until November 30, 2004 when the Copyright Royalty and Distribution Reform Act of 2004 replaced CARP with a system of three Copyright Royalty Judges. These judges will determine rates and terms for the copyright statutory licenses and make determinations on distribution of statutory license royalties collected by the Copyright Office.
