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What is the current mechanical royalty statutory rate?

Understanding Mechanical Royalty Rates for CDs and Digital Downloads

For musical works licensed under the compulsory licensing statute (Section 115 of the Copyright Act), the royalty rate is set by the Copyright Royalty Board every five years. The royalty rate currently in effect can be located within the CRB's regulations, specifically Part 385 of Title 37 of the Code of Federal Regulations. If a licensee is distributing musical works via permanent downloads or ringtones or embodied in physical media (like CDs or vinyl), the statutory royalty rate is a set penny rate per unit sold. For interactive streaming and other uses, the rate is calculated using a specific formula.

For permanent downloads and physical formats, a licensee can calculate the amount of royalties owed by multiplying the number of units sold/downloaded by the current royalty rate. For example, the CRB may have determined that the royalty rate is the greater of 13.1 cents or 2.52 cents per minute. For a musical work that has a playing time of 5 minutes or less, the rate will always be 13.1 cents. If the song is over 5 minutes, then the rate is determined by calculating the number of minutes (or fraction thereof) by 2.52 cents.

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:

  • $65.50
  • Calculation: $0.131 × 1 song × 500 units

Songs Over Five Minutes

For songs longer than five minutes, the rate is 2.52¢ per minute or fraction thereof. The royalty is calculated as follows:

  • 5:01 to 6:00 = $0.1512 (6 × $0.0252)
  • 6:01 to 7:00 = $0.1764 (7 × $0.0252)
  • 7:01 to 8:00 = $0.2016 (8 × $0.0252)

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:

  • $88.20
  • Calculation: $0.1764 × 1 song × 500 units

Songfile Licensing Fees

If using Songfile for licensing, Songfile will calculate the total amount of royalties owed by using the current statutory rate and the number of units you indicated you intended to manufacture. In addition to the royalty, Songfile charges a processing fee per song license. Please go to www.songfile.com to see the current processing fee. A digital invoice is generated before purchase.