Does anybody know how mechanical rights work?

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ProducerJC

ProducerJC

IndieHost


I would really love to understand what she's talking about.
 
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I don't know who "she" is... But "mechanical rights" refer to the exclusive right a copyright holder has in allowing people to make "mechanical copies" of his copyrighted work...

"mechanical copies" being CD, MP3, cassette, record, etc, etc...

If somebody wants to record one of your songs for an album/single, he needs to pay you "mechanical royalties"...

If you want to record spmebodies song for am album/single, you have to pay him a "mechanical royalty"...

You can pay the "statutory rate" (which is about 9 cents per copy made) through "The Harry Fox Agency"...

Or you can negotiate with the copyright holder for a "reduced rate"... Like a 3/4 rate... Or a 1/2 rate...
 
New to the forum, but thought I could offer some help here. I work for RightsFlow, a licensing and royalty service provider representing artists, labels, distributors and online music companies. We help our clients to license, account and pay songwriters and publishers. We're also a company made up of musicians dedicated to creating simple services for other musicians.

If you're covering a song for sales or distribution in the U.S. via physical (CD or vinyl), digital download, ringtone or interactive streaming, you will need to secure a mechanical license from the the rights holder (publisher or songwriter). A separate license is needed for each cover song or third party composition, and for each configuration.

At RightsFlow we've launched an online utility called Limelight (songclearance.com) that makes it easy to do. It's a simple way for any artist, band, choirs, or other musical group to obtain the mechanical license for ANY cover song legally and to ensure that 100% of royalties due are paid.

Limelight allows you to be copyright compliant in a few simple steps with licenses that never expire, volume discounts and extensive customer support channels via phone, email, live chat, and social networks.

Our most frequently asked questions about mechanical licensing are answered on the FAQ page and video FAQ pages on our Limelight site too. You'll find more helpful information there too.

Keep making music. Cover any song your way.

Warmly,
Michael Kauffman
RightsFlow
 
New to the forum, but thought I could offer some help here. I work for RightsFlow, a licensing and royalty service provider representing artists, labels, distributors and online music companies. We help our clients to license, account and pay songwriters and publishers. We're also a company made up of musicians dedicated to creating simple services for other musicians.

If you're covering a song for sales or distribution in the U.S. via physical (CD or vinyl), digital download, ringtone or interactive streaming, you will need to secure a mechanical license from the the rights holder (publisher or songwriter). A separate license is needed for each cover song or third party composition, and for each configuration.

At RightsFlow we've launched an online utility called Limelight (songclearance.com) that makes it easy to do. It's a simple way for any artist, band, choirs, or other musical group to obtain the mechanical license for ANY cover song legally and to ensure that 100% of royalties due are paid.

Limelight allows you to be copyright compliant in a few simple steps with licenses that never expire, volume discounts and extensive customer support channels via phone, email, live chat, and social networks.

Our most frequently asked questions about mechanical licensing are answered on the FAQ page and video FAQ pages on our Limelight site too. You'll find more helpful information there too.

Keep making music. Cover any song your way.

Warmly,
Michael Kauffman
RightsFlow

Hi Michael,

There is one thing I am a little unclear on here...

It seems that your songclearance service essentially offers the same service as The Harry Fox Agency (HFA Songfile Home Page)... is this correct?


But the thing I am unclear on is how you offer "licenses that never expire".

Since the licenses are calculated on a per song rate (currently 9.1¢/song) as opposed to a term/time based license, your license would "expire" when you reach the number of units licensed... at which time you'd have to update your license... no? (probably more of an "it's time to obtain additional licenses" rather than an "expired" situation)

...or are you saying that they don't expire in the sense of having as long as necessary to sell the allotted units? Or that they don't expire in the sense that you will not have to "recall" your records that contain the cover at some time when the license would have expired? (since mechanical licenses, in general, don't "expire" in that manner)

...or something completely different?

I am just wondering because I don't typically hear "expiration" relating to mechanical licenses.

Thanks for clearing this up.
 
dvyce,

Yes, the service is similar to HFA's service, but Limelight has a few advantages:
1) We address 100% of the publishing market including HFA-member publishers and the thousands of indie publishers to ensure that you'll secure the mechanical for ANY cover song.
2) Our pricing is more cost-effective because it includes volume discounts on the $15 service fee for multiple licenses or configurations (starting at three) and we often provide discount codes via our social networks.
3) We produce extensive educational and marketing pieces to drive awareness and adoption in the market. We also have simple written + video FAQs and tutorials to help answer most questions.
4) Responsive customer service is available via email, phone, online chat (during ET business hours), and social channels to provide quick helpful support.
5) Through HFA's Songfile, DPD licenses "expire" and must be renewed after a year; we don't require renewal after a period of time so a mechanical license acquired through Limelight doesn't automatically expire after a period of time, but is valid until you sell the allotted units. When you do sell the units that you've selected (from 25 to 5,000), the renewal process is simple to renew the license for additional units.

Hope that helps.

Best,
Michael Kauffman
 
5) Through HFA's Songfile, DPD licenses "expire" and must be renewed after a year; we don't require renewal after a period of time so a mechanical license acquired through Limelight doesn't automatically expire after a period of time, but is valid until you sell the allotted units. When you do sell the units that you've selected (from 25 to 5,000), the renewal process is simple to renew the license for additional units.




This is where you lose me...


Are you saying:

In a situation where I license a song for distribution as a digital download (let's say I paid for 2,500 units)...

and I only sell 10 units over the course of a year...

=if I licensed through Harry Fox, at the end of that year, the remaining 2,490 downloads I prepaid would be disregarded and I would need to renew my license and "re-buy" the licenses thereby paying twice for those same units that I had already bought but were never sold?




From the Harry Fox site:
"
Digital Licensing
How do I pay? When do I pay? How long do I have to pay?

If you obtained your license through HFA’s Songfile, you do not need to pay anything more (unless you exceed the quantity of downloads on the license and need to apply for more)."
Thanks

---------- Post added 05-21-2011 at 11:59 AM ---------- Previous post was 05-19-2011 at 11:30 AM ----------

(still there?)
 
It seems as copyrights to me. So in other words, if I create and owner the copyrights on a song that another band wants to perform, they would pay me a mechanical royalty. Is this accurate? Who is responsible for tracking this royalty?
 
It seems as copyrights to me. So in other words, if I create and owner the copyrights on a song that another band wants to perform, they would pay me a mechanical royalty. Is this accurate? Who is responsible for tracking this royalty?

Mech royalties are not about "performance"... They are about a royalty paid per CD/record/cassette/etc manufactured (regardless of whether or not you sell them)... And with digital sales, you pre pay the number you estimate you will sell.
 
how is this royalty distributed? threw what companies?

it gets paid by the record company pursuant to the recording agreement...

or it gets paid directly by the artist to the copyright holder when he does a cover...

or it gets paid by the "middle man" company like Harry Fox who is the liaison between the copyright holder and the person doing the cover...
 
Thank you! Very useful information:) Greetings from Russia)))
 
dvyce,

Sorry about the delay in response. As I understand it, you would indeed need to "re-buy" through Songfile (from HFA site: "License for physical goods has an indefinite term, PDD, ringtone and interactive streaming licenses are valid for only one year."). You would need to clarify with HFA in regards to this.

There is no such expiration set on licenses secured through Limelight.

Best,
Michael Kauffman
 
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