Press Release
| New Statutory Mechanical Rate Takes Effect January 1, 2000. |
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The new compulsory mechanical royalty rate for physical phonorecords under Section 115 of the U.S. Copyright Act will take effect on JANUARY 1, 2000. As of this date, the royalty rate will rise from 7.1 cents/1.35 cents per minute to 7.55 cents/1.45 cents, respectively. This increase is per the "physical phonorecord" royalty rate schedule adopted by the Library of Congress, effective as of January 1, 1998. The new mechanical royalty rate will be applicable to all phonorecords made and distributed on or after JANUARY 1, 2000, regardless of the date upon which the mechanical license under which such records are manufactured was issued, or the date upon which the recording was first released, unless special contractual provisions apply. In accordance with the authorizations from our publisher principals to grant licenses under the compulsory license provision of the Copyright Act, and unless otherwise instructed by our publisher principals, HFA intends to require payment of royalties by licensees at this new rate for phonorecords distributed on or after January 1, 2000, unless the licensee can verify that such phonorecords were manufactured prior to that date, or that the licensee is contractually entitled to a lower rate. The burden of demonstrating that the royalties are payable at a lower rate will rest with the licensee in all circumstances. Please feel free to contact us with any questions that may arise. For your information, the next scheduled physical phonorecord compulsory mechanical royalty increase (to 8.0 cents/1.55 cents per minute) is due to take effect on January 1, 2002. |
