17 U.S.C. § 115 - Compulsory Mechanical Licenses

17 U.S.C. § 115: Compulsory Mechanical Licensing

Under Section 115 of the U.S. Copyright Act, a statutory compulsory license exists for the reproduction and distribution of non-dramatic musical works (compositions).

Core Mechanism for Cover Songs Once a musical work has been distributed to the public in the United States under the authority of the copyright owner, any other person may obtain a compulsory license to make and distribute "covers" (phonorecords) of the work without seeking permission from the publisher, provided they: 1. Provide a physical Notice of Intention (NOI) to the publisher prior to distribution. 2. Pay monthly mechanical royalties at the statutory rate (e.g., 12.4¢ per track in 2024). 3. Do not alter the fundamental character, lyrics, or melody of the composition.

Re-design for the Streaming Era The Music Modernization Act (MMA) of 2018 fundamentally updated Section 115 by: - Creating a Blanket Compulsory License covering all digital interactive streaming (Spotify, Apple Music) and digital downloads. - Establishing The Mechanical Licensing Collective (The MLC) to issue this blanket license and collect/distribute streaming mechanicals directly from DSPs. - Eliminating the need for individual digital NOIs. DSPs pay the MLC directly, which in turn pays the copyright owners.