New Songwriter/Publishing Mechanical Royalties

On October 2, 2008, the Copyright Royalty Judges signed a ruling which determined what the permanent download and CD / physical recording rates would be for a 5 year period (i.e., retroactive to January 1, 2008 through December 31, 2012).

CDS: The compulsory mechanical CD royalty rate will be 9.1¢ per composition (sometimes called the "minimum statutory rate) or 1.75¢ per minute for songs over 5 minutes (the latter timing royalty being sometimes referred to as the "long song" rate).

This statutory mechanical rate represents the songwriter/music publishing royalties payable for songs contained on all physical audio recordings which are made and distributed from January 1, 2008 through December 31, 2012.

This royalty rate applies unless the music publisher and songwriter have agreed to a lesser rate in the mechanical license or controlled composition clause of the recording artist agreement (e.g., 75% statutory).

These monies are paid by the record company to the music publisher, which then pays the songwriter his or her share of the royalties per the terms of the songwriter agreement (e.g., 50%, 75%, etc.).

Digital Downloads: The songwriter / publisher rate for permanent digital downloads will also be 9.1¢ (with 1.75¢ per minute for songs over 5 minutes).

This digital rate will be effective for the years 2008 through 2012