Reader answer checklist
This guide is structured to answer the practical questions a reader should resolve before relying on the topic.
- Direct answer
- A controlled composition clause may reduce physical mechanical royalties for artist-controlled songs or cap payable tracks; it is a negotiated term, not the statutory default or a streaming formula.
- Who this is for
- Artist-songwriters and managers reviewing a recording agreement that includes mechanical royalty language.
- Practical example
- At the 2026 13.1-cent per-work baseline, a hypothetical 75% physical-copy clause produces 9.825 cents per controlled song before any contract track cap.
- Limits and exceptions
- The outcome depends on the contract wording, format, applicable law, catalog ownership, co-writers, and current statutory schedule; digital deliveries require a separate section 115 analysis.
- What to do next
- Mark the rate, format coverage, track cap, controlled-composition definition, co-writer treatment, overage language, and recoupment terms for entertainment counsel to review.
Evidence records
verified- United States Code, Title 17 — Copyrights — U.S. Copyright Office · Title 17, Chapter 1
- 37 C.F.R. Part 385 — Phonorecords IV — Electronic Code of Federal Regulations · Part 385
Source records identify the evidence to review; they do not replace a claim-by-claim legal review. See the source index for the audit trail.
Editorial record
verified- Last edited
- 2026-08-08
- Reviewed
- 2026-08-08
- Reviewer
- Michael Ruiz
Reviewed by Michael Ruiz on 2026-08-08. Recheck date-sensitive rules and contract terms for a specific matter. See the editorial policy for the review process.
The Controlled Composition Clause: A Physical-Release Contract Example
A controlled composition clause is a negotiated recording-agreement provision covering songs written, owned, or controlled by the recording artist. Depending on its wording, it may state a reduced mechanical rate for physical copies, cap the number of payable songs on an album, or address overages and outside co-writers. It is not the statutory default, and the signed clause—not a generic industry example—controls the contract analysis.
For 2026, 37 C.F.R. § 385.11 sets the compulsory rate for each work embodied in a physical phonorecord or permanent download at 13.1¢ per work or 2.52¢ per minute or fraction, whichever is larger. Digital deliveries need a separate legal check: under 17 U.S.C. § 115(c)(2)(A), CRB rates generally displace contrary reduced rates in artist contracts for digital phonorecord deliveries entered after June 22, 1995, subject to the statute's stated exceptions. The reduction below is therefore a simplified physical-copy contract scenario, not a streaming or permanent-download estimate.
1. Illustrative Rate Cap (75%)
If a physical-copy clause uses 75% of the current per-work statutory baseline:
- *2026 statutory baseline:* $0.131 per physical copy for a work up to five minutes.
- *Illustrative controlled rate:* $0.131 \times 0.75 = \$0.09825$ (9.825¢) per controlled song.
2. Illustrative Album Track Cap
Some agreements also state a maximum number of controlled songs payable per album. If the example contract caps payment at 10 tracks:
- *Illustrative album cap:* $10 \times \$0.09825 = \$0.9825$ (98.25¢) per physical album copy.
3. Overages and Outside Co-Writers
On a 12-track album, a 10-track cap does not by itself answer who bears the two-track overage. Outside co-writers who are not parties to the artist's recording agreement may not be bound by its reduced rate or track cap. Some agreements charge an overage back to the artist's royalty account; others allocate it differently. Mark the exact definitions, co-writer language, track cap, overage clause, format coverage, and recoupment provision for entertainment counsel to review.