Press Release
| Fall/Winter 1999/2000 News & Views is now available. |
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New Statutory Mechanical Royalty Rate NMPA/HFA President & CEO, Edward P. Murphy, recently announced a new, increased statutory mechanical royalty rate, effective as of January 1, 2000. The new rate is 7.55 cents per song, or 1.45 cents per minute of playing time — or fraction thereof — whichever is greater. (The previous rate was 7.1 cents/1.35 cents per minute.) This rate is applicable to all phonorecords made and distributed on or after January 1, 2000, regardless of the date upon which the recording was first released, unless other contractual arrangements apply. This increase is per the “physical phonorecord” royalty rate schedule, which was adopted by the Library of Congress as of January 1, 1998. The schedule covers the ten-year period of 1998 through 2008, and provides for increases every two years. Therefore, the next increase will take place on January 1, 2002 (to 8.00 cents/1.55 cents per minute). The statutory royalty rate structure for physical phonorecords can be reviewed again in 2007. Below is a chart of the physical phonorecord royalty rate schedule through the year 2007. Dates 5 minutes or less Over 5 minutes Jan. 1, 2000 — Dec. 31, 2001 7.55 cents 1.45 cents per minute or fraction Jan. 1, 2002 — Dec. 31, 2003 8.00 cents 1.55 cents per minute or fraction Jan. 1, 2004 — Dec. 31, 2005 8.50 cents 1.65 cents per minute or fraction Jan. 1, 2006 — Dec. 31, 2007 9.10 cents 1.75 cents per minute or fraction |
