Common use of Mechanical Royalties Clause in Contracts

Mechanical Royalties. When a copy of a master recording like the New Recording is sold (either on a CD, or when someone buys it on a service like iTunes) or streamed (e.g., on a service like Apple Music or Spotify), copyright law requires that the songwriters get paid a royalty called a mechanical license. You agree to make sure that Producer is paid mechanical royalties for Producer’s 50% songwriting share of the New Composition, at the minimum statutory rate.

Mechanical Royalties. When a copy of a master recording like the New Recording is sold (either on a CD, CD or when someone buys it on a service like iTunes) or streamed (e.g., on a service like Apple Music or Spotify), copyright law requires that the songwriters get paid a royalty called a mechanical license. You agree to make sure that the Producer is paid mechanical royalties for the Producer’s 50% songwriting share of the New Composition, at the minimum statutory rate.