ABOUT COPYRIGHTS, ROYALTIES, LICENSING
 
Music licensing, copyrights, royalties, etc., cause a great deal of concern because little is known about the process and few  know where to go to find out. Many who would like to record their church choir or school group don't for fear of violating some law and thereby incurring a fine or other legal entanglement. In order to use copyrighted material you must have a license to do so.
 
There are several forms of licensing. The one that we're concerned with is called a "mechanical" license - a term left over from earlier years. In order to sell phonograph recordings, audio cassettes, and Compact Discs you must have a mechanical license for each piece or work on the recording unless that work is in the public domain. The license issued is your "permission" to use the song or piece. Contrary to what you may have read (particularly those of you who subscribe to the Texas Music Educators' magazine) you do not have to retain the services of a lawyer in order to do this.  The fact that a publisher publishes indicates his music is for public consumption. The issuance of a mechanical license is your permission and a vehicle for collecting royalties (which is really what the publisher is interested in). It really is a simple process which anyone can do.
 
There are basically three ways to obtain a license:
 
1.  Deal directly with the publisher. You may write to the publisher's mechanical licensing department. You can search the Web and many of the large publishers have web sites that enable you to apply on-line for a mechanical license. Dealing directly with the publisher is the ONLY way to deal with many small publishers. For example, in the area of Christian music some publishers have only one or two pieces to their name. It is not economically feasible for them to deal in any other way. Most will charge the statutory rate (established by Congress and described below) though some can and do charge less. Some may request one or two copies of your recording or the statutory rate plus copies of the recording. There is no minimum fee when dealing directly with the publisher.
 
2.  Deal with the Library of Congress, U.S. Copyright Office. This is a rather involved approach and requires the filing of a Notice of Intention ($12.00 fee) to file, searching (or having it done for a fee - $65/hour) of the copyright office's records for the copyright owner, and finally the Certificate of Filing ($8.00 fee). The information involved is beyond the scope of this web page. Start with a visit to www.loc.gov/copyright  . You may also contact a Licensing Specialist via email at: [email protected] or telephone at (202) 707-8150 or FAX (202) 707-0905. A Specialist can send a packet of information on Compulsory License for Making and Distributing Phonorecords (their term for mechanical license is "compulsory" license). This is sometimes the only route to take if you cannot determine who the copyright holder is.
 
3.  Deal with the Harry Fox Agency. In 1927 publishers recognized the complexity of dealing with so many publishers and set up an agency or clearing-house called the Harry Fox Agency to issue recording (mechanical) licenses and collect royalties. Be aware that this involves a minimum fee per piece or song or work for a minimum of 25 CD's/cassettes/ etc..
 
  •      Schools, churches, community groups and other low-volume producers of music CD�s or cassettes can now easily and quickly obtain a "limited quantity" license via the Internet at NMPA/HFA�s website www.Songfile.com.
  •      The license allows for the production of a minimum of 25 units to a maximum of 2,500 units for a fee (based on the current statutory mechanical rate). All processing is done automatically online. Confirmations by e-mail are issued immediately and licenses follow via e-mail to the licensee within forty-eight hours. http://www.harryfox.com/public/songfile.jsp
  •      E-mail support is available by contacting HFA at [email protected]. Personal support is available through the HFA Client Relations Department at 212-834-0100.
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    STATUTORY RATE
         Effective March 1, 2009, the new statutory rate, under Section 115 of the U.S. Copyright Act, is $.091 per song for the first 5 minutes or $.0175 per minute or fraction thereof thereafter. For example, a song 3:25 long is $.091. A song 7:01 to 8:00 long is 8 x $.0175= $.14. These numbers are then multiplied by the quantity of Compact Discs/DVDs or cassettes ordered. If you wish to read a complete discussion of the matter see the Billboard publication, This Business of Music. See also http://www.copyright.gov/carp/m200a.pdf
       The statutory rate is fixed through January 1, 2012 per the royalty rate schedule adopted by the Library of Congress. See 37 C.F.R. (Code of Federal Regulations) Paragraph 255.3. The new statutory rate also applies to digital phonorecord deliveries in the form of permanent downloads, also known as "full DPDs". See 37 C.F.R. Paragraph 255.5.  Licenses issued after March 1, 2009 are subject to interest for late payments of 1.5% a month, or 18% a year.
     
     
               
     
     
     

     
     
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