Rules of Compulsory Licenses

Here’s how it works. You may record someone else’s song on your own record if:

1. It has already been commercially released on a record.

2. You pay the song’s copyright holder (the writer and/or publisher) a fee - a mechanical royalty based on the “statutory rate.” That rate is currently 9.1¢, for songs under five minutes long. It increases periodically.

3. You pay this fee for every recording you manufacture on a fixed medium such as CD, download/mp3, cassette, or vinyl, whether you sell the recordings or give them away for promotion, etc.

4. You pay 9.1¢ per song. So if you use four songs by the same writer, you must pay 36.4¢ per CD made.

5. You pay the copyright holder of this song every month.

If these rules sound a bit harsh, put the shoe on the other foot. When someone uses one of your songs on their album, think of how it benefits you to have them held to the above standards.

The only way around these compulsory license laws is to negotiate a rate with the copyright holder to change some of the above terms. Should the copyright holder not want to negotiate with you, you must adhere to the rules.

So, while no one can stop you from recording their song once the song has been commercially released, it doesn't mean that you don't have to pay the piper...so to speak.

One note, you can NOT substantially change the song you are recording - neither the lyrics nor the melody. Doing so creates whiat is called a "derivative work," and only the copyright holder can do this. Similarly, you can not record a snippet of someone else's song (sort of like recording a sample).

Our band wants to make a demo cd of about 6 originals and a couple cover tunes. Is there any legal hassles to recording those cover tunes? Can we record those demo tunes for our cd and, sell the cds without worring about paying someone royalties? I doubt the cd will go anywhere other than a 200 mile radius of home.

This may help... I found it on the Artist House Music Web Site:



That last part got a lot of rap and hip-hop artists in legal hot water years back. Ask Vanilla Ice how it worked out for him...