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The statute provides for fees to be paid for the following
compulsory licenses:
a) Phonorecords,
b) Juke Boxes,
c) Cable Systems, and
d) Public Broadcasting.
1) Since the license fee charged for the phonorecord compulsory license is adjusted for inflation periodically, the current statutory royalty rate may be ascertained by contacting the Copyright Office. The mailing address is Copyright Office, Library of Congress, Washington, DC 20559. The telephone number is (202) 707-3000.
The law provides that the license fee royalty be paid each
month. However, users are permitted to negotiate their own license,
called a mechanical license, and because of this provision, the
phonorecord compulsory license is normally not used. The main
reason for this is because the statutory license stipulates that
the user must account and pay royalties each month. Since the
industry standard is quarterly, the user benefits if he negotiates
his own mechanical license.
Also, the statutory royalty rate has become the industry standard
for all mechanical license rates. Even for songs never before
recorded. However, by law, since the copyright owner has the right
to the first recording of a song, this rate is negotiable and
could be increased for a first time recording. Any recording thereafter
would be licensed at the statutory rate since the user could,
as the copyright law permits, make his recording without the copyright
owner's permission (by means of the statutory compulsory license
provision).
2) Since the license fee charged for juke box performances is adjusted for inflation periodically, the current rate charged may be ascertained by contacting the Register of Copyrights. The mailing address is Register of Copyrights, Library of Congress, Washington, DC 20559. The telephone number is (202) 707-3000.
The license fee charged for juke box performances is paid to
the Register of Copyrights by the juke box owner. These fees are
then distributed with interest on a pro rata basis (after the
Copyright Office deducts a reasonable accounting and service charge)
to copyright owners (or their agents) who file a claim of entitlement
each January. Distribution is paid after October 1st and only
after all claims are validated by the Copyright Royalty Tribunal.
3 & 4) The license fees charged for secondary transmission by a cable system and for public broadcasting are legally complicated and beyond the scope of this book, but may be ascertained by contacting the Copyright Office. The mailing address is Copyright Office, Library of Congress, Washington, DC 20559. The telephone number is (202) 707-3000.
See: MECHANICAL LICENSE FEE, SYNCHRONIZATION LICENSE FEE, TRANSCRIPTION LICENSE FEE, PERFORMANCE LICENSE FEE, LICENSE, CONTRACT-RECORDING CONTRACT clause #31, CONTRACT-SONGWRITER/PUBLISHER CONTRACT clauses #22, #23, #24, COPYRIGHT LAW under "Compulsory License," "Statutory Royalty," "Notice of Intention," "Copyright Office," "Copyright," "Copyright Owner," "Exclusive Rights," "Limitations to Exclusive Rights," and "Copyright Royalty Tribunal."
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