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What is a reduced rate license?

How to Request a Reduced Rate Mechanical License Through HFA.

A reduced rate license is a mechanical license that the licensee has negotiated with the publisher at a rate reduced from the statutory rate. HFA will not issue a mechanical license at a reduced rate without written approval from the publisher.

Any reduced rates must be negotiated directly with the copyright owner, publisher, or administrator prior to obtaining the mechanical license. A gratis license (no royalties paid) is considered a reduced rate, but it must be obtained directly from the copyright owner. HFA does not issue gratis licenses. When requesting a reduced rate license through HFA, a licensee must submit an original copy of written publisher approval of the reduced rate with a standard mechanical license request.