The Copyright Royalty Board has chosen to keep the statutory mechanical royalty rate at 9.1 cents.
The mechanical royalty rate is the royalty paid for reproduction/manufacture/distribution of a composition on records and sometimes other media. The origin of the “mechanical” is that it is a royalty paid to mechanically reproduce the composition on a record. It’s not done mechanically anymore, but the principle is the same.
The record labels always want the mechanical royalty rate to be lower, so they can pay less to the publishers. On the other hand, the publishers understandably want the rate to be higher so that they can make more money. Thus, this new decision by the CRB is a victory for publishers.
In addition to keeping the statutory mechanical rate at 9.1 cents, ringtones will remain at 24 cents. The CRB also came out with new revenue sharing rates for publishers regarding some newly-created royalty categories, mostly having to do with the cloud, lockers, and interactive services.
You can read more detail in Billboard.
© 2012 Erin M. Jacobson, Esq. All Rights Reserved. If you like this article and want to share it, please provide a link to www.erinmjacobsonesq.com or a direct link to the post for others to read it.
This site is not intended or offered as legal advice. These materials have been prepared for educational and information purposes only. They are not legal advice or legal opinions on any specific matters. If they are considered advertisements, they are general in nature and not directed towards any particular person or entity. Transmission of the information is not intended to create, and receipt does not constitute, a lawyer-client relationship between this site, Erin M. Jacobson, Esq., and you or any other user. The content is not guaranteed to be correct, complete, or up-to-date. The law may vary based on the facts of particular circumstances or the law in your state. You should not act, or fail to act, upon this information without seeking professional counsel. No person should act or fail to act on any legal matter based on the contents of this site. Unless expressly stated otherwise, no document herein should be assumed to be produced by an attorney licensed in your state. For more information, please click on the “Disclaimer” section in the top menu of this site.