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Compulsory licensing is a process by which a government licenses companies or individuals other than the patent owner to use the rights of the patentto make, use, sell, or import a product under patentwithout the permission of the patent owner.
Songwriters, composers, and music publishers have the exclusive right to play their music publicly and to authorize others to do so under the copyright law. This is known as the Performing Right. This right was designed to enable and encourage music creators to receive compensation for the music they create.
The U.S. copyright law requires those that publicly perform copyrighted music -- including websites and other digital services that transmit music to the public -- to first obtain a license from the copyright owners of the songs performed.
Licensing is the fee that you pay to use someone else's copyrighted music so that you do not get in trouble for copyright infringement. The average cost to purchase rights to a song will be between $50 and $150 for an independent artist. Famous songs can cost $500 to $5000 or more.
In order to obtain a compulsory license, you must (1) serve a timely Notice of Intention to Obtain a Compulsory License (NOI), either on the copyright owner or on the Copyright Office if the identity or address of the copyright owner is unknown; and (2) when the copyright owner is known, make monthly royalty payments
Section 115 of the Copyright Act provides a compulsory license to make and distribute phonorecords, subject to certain terms and conditions of use. A Notice of Intention (NOI) may be filed with the Licensing Division of the Copyright Office under certain circumstances.
The clause in copyright law that grants permission to anyone wishing to re-record a song that has already been commercially released.
To obtain public performance licenses in the United States, please contact the following performing rights agencies: 1-800-952-7227 ASCAP. 212-220-3000 BMI. 615-320-0055 SESAC.
In order to collect these live performance royalties, you have to tell your performing rights organization about the shows you're playing, and the list of songs you play each night. That'd be ASCAP, BMI, or SESAC in the United States, or the appropriate PRO for your country if you're outside of the USA.
A compulsory license lets a musician record (and sell) a rendition of a previously recorded song by paying royalties to the original composition artist who is the legal copyright holder of the work.