2010 Mechanial Royalty Rates (Digital and Physical Product)
Last Updated on Wednesday, 21 July 2010 22:38 Written by Todd and Jeff Brabec Monday, 01 February 2010 00:00
CD/Physical Product: The mechanical CD royalty rate is 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, 2010 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, 87.5 % statutory, etc.). These rates may be further reduced by royalty caps on an album (e.g., 10 song cap, 12 song cap, etc.) and the number of non-artist written songs on an album.
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 or co-publishing agreement (e.g., 50%, 75%, etc.).