Compulsory License
A statutory license that allows anyone to create a new recording of a previously published composition, subject to set royalty rates.
What it means
A compulsory license (also called a statutory license or mechanical license) is a provision in copyright law that allows anyone to record and distribute their own version of a previously published musical composition, without needing the copyright owner's permission, as long as they follow specific procedural requirements and pay the statutory royalty rate. This concept was established in the US Copyright Act of 1909 and is now codified in Section 115 of the Copyright Act of 1976. The compulsory license was originally created to prevent monopolistic control of compositions — without it, a songwriter could exclusively license their song to a single recording artist and prevent any cover versions. The compulsory license ensures that once a composition has been publicly distributed in a recording, the songwriter cannot prevent others from recording their own versions. However, the compulsory license only covers the right to make a faithful reproduction of the composition — it does not permit changes to the basic melody or fundamental character of the work. For ambient music creators, compulsory licensing is less commonly encountered than in pop or rock music, since covers of ambient compositions are relatively rare. However, understanding compulsory licensing is important if your compositions are covered by other artists, or if you want to create your own recordings of existing compositions for meditation playlists or ambient arrangements.
Technical details
Under 17 U.S.C. § 115, a compulsory mechanical license requires the licensee to: (1) serve notice of intent on the copyright owner or file with the Copyright Office if the owner cannot be identified, (2) pay the statutory royalty rate as set by the Copyright Royalty Board, and (3) provide monthly usage reports. The statutory rate as of 2023 is 12 cents per copy for songs over 5 minutes or 9.1 cents per copy for songs 5 minutes or under (for physical/download). For streaming, the rates are determined through the Phonorecords proceedings. The Music Modernization Act of 2018 created the Mechanical Licensing Collective (MLC) to administer a blanket mechanical license for digital streaming services, replacing the song-by-song compulsory licensing process for interactive streaming. The compulsory license does not cover synchronization uses, dramatic performances, or significant arrangement changes.
Frequently asked questions
Related content
Want to monetize your catalog?
SPACE buys music catalogs in ambient, lo-fi, and meditation genres.
Apply Now