What is the current mechanical royalty statutory rate?
Understanding Mechanical Royalty Rates for CDs and Digital Downloads
The current statutory mechanical royalty rate for a physical format (such as a CD) or a permanent digital download is 12.4¢ per song, per unit for compositions that are five minutes (5:00) or less in length. This rate is set by U.S. Copyright law.
Example (Song 5 Minutes or Less)
If one were to re-record a song up to five minutes in length and then manufacture and distribute 500 units, the total royalty due would be:
- $62.00
- Calculation: $0.124 × 1 song × 500 units
Songs Over Five Minutes
For songs longer than five minutes, the rate is 2.38¢ per minute or fraction thereof. The royalty is calculated as follows:
- 5:01 to 6:00 = $0.1428 (6 × $0.0238)
- 6:01 to 7:00 = $0.1666 (7 × $0.0238)
- 7:01 to 8:00 = $0.1904 (8 × $0.0238)
Example (Song Longer Than 5 Minutes)
If a song is 6 minutes and 38 seconds (6:38) and 500 units are manufactured and distributed, the royalty due would be:
- $83.30
- Calculation: $0.1666 × 1 song × 500 units
Songfile Licensing Fees
If using Songfile for licensing:
- $16 processing fee per song license
- If more than 5 songs are requested in a single transaction, the fee is reduced to $14 per additional song