Full Text Available of Settlement on Mechanical Royalties, as Copyright Royalty Board Seeks Comments

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Last month, we wrote about the proposed settlement on "mechanical royalties" under Section 115 of the Copyright Act. These royalties are paid when "reproductions" are made of a musical composition.  In the analog world, these were most commonly paid by a record company to a music publisher for the rights to use a musical composition when one of its bands records the song controlled by the publisher. The recent settlement, entered into between the music publishers' representatives, the recording industry, and a digital media industry association, covers everything from physical recordings, to digital downloads, ringtones, and other "digital phonorecord deliveries" made by on-demand and other digital music services.  The text of the settlement agreement, giving all of the details of the proposed rates for the various types of digital services, is now available for public review, as it has been published in the Federal Register as part of the request for comments by the Copyright Royalty Board.  Comments on these proposals are due on June 18.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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