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Simple English definitions for legal terms
mechanical royalty
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A quick definition of mechanical royalty:
Term: Mechanical Royalty
Definition: When someone makes a copy of a song on a CD or other music player, the person who wrote the song gets paid a special fee called a mechanical royalty. This fee is set by the government and is paid for each song or for every minute of the song, whichever is more. If the person making the copy pays this fee, they don't need to ask the songwriter for permission. Sometimes, the songwriter and the person making the copy can agree on a lower fee.
A more thorough explanation:
Definition: Mechanical royalty is a payment that a songwriter receives every time their song is reproduced on a phonorecord by a mechanical-right holder. The rates for mechanical royalties are set by law and can be paid per song or per minute, whichever is higher. If an artist pays the statutory rate, they do not need the songwriter's permission to make a recording. However, artists and songwriters can negotiate lower royalty rates if they choose to.
Example: Let's say a singer wants to record a cover of a popular song written by someone else. The singer would need to pay a mechanical royalty to the songwriter for each copy of the recording that is sold. If the statutory rate is 9.1 cents per song, the songwriter would receive 9.1 cents for each copy sold.
Explanation: This example illustrates how mechanical royalties work in the music industry. The songwriter earns a royalty every time their song is reproduced on a phonorecord, such as a CD or digital download. The rate is set by law and is payable per song or per minute. If an artist wants to record a cover of someone else's song, they must pay the mechanical royalty to the songwriter.