Legal Question in Entertainment Law in California
Mechanical License
My wife and I are producing a CD. We are in the process of reviewing Mechanical license agreements being that there are other composers participating in this project. Is it standard to require that the royalty rate/payments increase as new laws are in enacted in the future, or should we negotiate for a permanent rate based on the statutory rate at the time of the agreement?
Thanks in advance for your help and guidance.
Asked on 12/30/08, 8:11 pm
1 Answer from Attorneys
Gordon Firemark
Law Offices of Gordon P. Firemark
Re: Mechanical License
Yes... mechanical royalties typically are tied to the Then-current statutory royalty rate at the time the records are distributed.
Answered on 1/13/09, 2:41 pm