What is the current statutory mechanical rate? How is it calculated?
The current statutory mechanical royalty rate is $.091 (9.1 cents) per song per unit for recordings of compositions up to five minutes (5:00) in length. For example, if one were to make a recording of a song that is less than five minutes in length (e.g. 4:07) and then manufacture and distribute 500 units of the recording, the total amount of royalties due would be $45.50. ($0.091 X 500 (units) = $45.50). For songs over five minutes in length, the rate is based upon $.0175 (1.75 cents) per minute or fraction thereof as demonstrated below: 5:01 to 6:00 = $0.105 (6 X $.0175) 6:01 to 7:00 = $0.1225 (7 X $.0175) 7:01 to 8:00 = $0.14 (8 X $.0175) For example, if one were to make a recording of a song that is six minutes and thirty-eight seconds in length (6:38) and then manufacture and distribute 500 units, the total amount of royalties due is $56.25. ($0.1225 X 500 (units) = $61.25). You cannot obtain a reduced rate mechanical license through HFA’s Songfile. Information about reduced rates
