The Mechanical License

The mechanical license affects composers’ exclusive right to reproduce and distribute their musical works. Once a composer has recorded and distributed his composition in America, the law permits others to make and distribute a recording of the same composition, subject to payment of prescribed fees to the copyright owner. In order to receive the benefit of the license the person making the recording has to serve a notice of intention on the copyright owner within 30 days of making the recording and before distributing it. If the owner’s name and address cannot be found in copyright office records, the notice can be filed in the copyright office. A copyright owner is entitled only to royalties collected after the copyright owner is identified in the copyright office records. This is another good reason to register your copyrights.

The mechanical license was introduced in 1909 because Congress feared that record companies could monopolize songs. It applies only to non-dramatic musical works. Thus it excludes the score of an opera or a musical ballet.

It is important to remember that a person who wants to record a musical composition cannot simply copy an earlier recording. That would violate the rights of the owner of copyright in the sound recordings. Also, he cannot “change the basic melody or the fundamental character of the song”.

Royalty rates for the license can be negotiated between the copyright owner and the record company. If the parties fail to come to an agreement, the rates will be determined by the Copyright Royalty Board. In practice, resort to arbitration proceedings is rare.

In 1995, an amendment to the law called the Digital Performance Right in Sound Recordings Act clarified that the mechanical license also extended to digital deliveries of sound recordings.

Many composers license their mechanical rights through an organization called the Harry Fox Agency. As a condition for granting membership to composers or music publishers, the Harry Fox Agency requires that the musician have at least one song commercially released through another party during the preceding 12 months.