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LSDefine
Simple English definitions for legal terms
statutory rate
Read a random definition: action for money paid
A quick definition of statutory rate:
Statutory rate: The amount of money a songwriter gets paid every time their song is reproduced on a recording. This payment is called a mechanical royalty and is set by law. If an artist is willing to pay the statutory rate, they don't need the songwriter's permission to record the song. However, artists and songwriters can negotiate lower royalty rates if they choose to.
A more thorough explanation:
A statutory rate is a fixed rate that is set by law and must be paid for a specific service or product. In the music industry, the statutory rate is the payment that a songwriter receives each time their song is reproduced on a phonorecord.
For example, if a musician wants to record a cover of a popular song, they must pay the statutory rate to the songwriter for each copy of the recording that is sold. The statutory rate is set by law and is payable per song or per minute, whichever is higher.
It is important to note that if an artist is willing to pay the statutory rate, they do not need the songwriter's permission before making a recording. However, artists and songwriters can negotiate lower royalty rates if they choose to.
Overall, the statutory rate ensures that songwriters are fairly compensated for the use of their work and provides a standard rate for the music industry to follow.