Expert: Terrance Copley - 1/8/2007

Question
I am getting a "compulsory license" for a song. Do I need a separate license to distribute the printed lyrics in the CD tray liner?

Thank you for your time.  

Answer
Hi Brian....

Here's what i know...

I am a BIG fan of the compulsory licensing provision.  I figured there was very little chance that I could get Warner Brothers to grant me a license to publish 20 copies of "Stairway to Heaven" on player piano roll. However, through a conversation with Mr. Roehl at Vestal Press, I learned about the compulsory mechanical licensing provision and Harry Fox. That provision requires the publisher to grant a license to anyone, even us "little guys".

An interesting twist is that the compulsory license only covers sound recordings. Printed lyrics are not covered under the compulsory licensing provision. And, since Harry Fox won't act as a middleman for lyric reprint licenses anymore, I am still forced to go to Warner Bros., (or Hal Leonard, CPP Belwin...) to request the rights to print a license to print 20 copies of the lyrics to "Stairway to Heaven". Some will grant a license, others (most recently, Bruce Springsteen, the Rolling Stones) will not. Also, although the mechanical rate is set out in the copyright law, the lyric reprint rate is not set. So, the publisher can set whatever rate they want to allow you to print the lyrics. Also,Print licensing encompasses a wide range of printed music (for example, sheet music, orchestra arrangements) and lyrics. Some musicians create customized arrangements of standard songs for various types of bands, symphonies, and ensembles. To sell those arrangements either in hard copy or digitally through a Web site, however, the arranger must first obtain permission from the music publisher.

The first step is contacting the music publisher of the song. You may be told that the print rights have been exclusively assigned to another company known as a print publisher, which specializes in transposing, arranging, and distributing sheet music for all types of instruments and ensembles. If that is the case, you can then ask the print publisher about a license for your arrangements. The print publisher will likely want 50 percent of the retail price of whatever you sell, as well as an advance. Depending on the song, the number of units projected to sell, and the agreements the publisher might have with the composer's heirs, that could cost you thousands of dollars.

THE COMPULSORY LICENSING PROVISIONS
The Copyright Act contains compulsory licensing provisions
governing the making and distribution of phono- records of
nondramatic musical works. Section 115 of the law provides
that, once phonorecords of a musical work have been pub-
licly distributed in the United States with the copyright owner’s
consent, anyone else may, under certain circumstances and
subject to limited conditions, obtain a “compulsory license” to
make and distribute phonorecords of the work without express
permission from the copyright owner.
The Copyright Office Regulations set out in detail the
procedures that must be followed, while the Copyright Ar-
bitration Royalty Panels determine the royalty fee that must
be paid by the user under a compulsory license.
COPYRIGHT ARBITRATION ROYALTY PANELS
The Copyright Royalty Tribunal Reform Act of 1993, Public
Law 103-198, eliminated the Copyright Royalty Tribunal
and replaced it with a system of ad hoc Copyright Arbitra-
tion Royalty Panels (CARPs). The panels, administered by
the Librarian of Congress and the Copyright Office, adjust
the copyright compulsory license royalty rates (including
the mechanical rates for making and distributing phonorec-
ords) and distribute the royalties collected by the Licensing
Division to the appropriate copyright owners.
For further information about CARPs, write to:
Copyright Arbitration Royalty Panels (CARPs)
P.O. Box 70977
Southwest Station
Washington, D.C. 20024
Tel: 202-707-8380
Fax: 202-252-3423
Web: www.copyright.gov/carp
DOES THE INTENDED USER HAVE
TO USE A COMPULSORY LICENSE?
No. The person wishing to make and distribute phono-
records of a nondramatic musical work may negotiate di-
rectly with the copyright owner or his or her agent. But, if
the copyright owner is unwilling to negotiate or if the copy-
right owner cannot be contacted, the person intending to
record the work may use the compulsory licensing provi-
sions of the copyright law.
NOTE: The statute defines “phonorecords” as “mate-
rial objects in which sounds, other than those ac-
companying a motion picture or other audiovisual
work, are fixed....Since the compulsory license ap-
plies only to the making and distributing of phono-
records, and soundtracks are not “phonorecords,”
the compulsory license is not available to one wish-
ing to record on a soundtrack.
WHEN MAY A COMPULSORY LICENSE
BE OBTAINED?
A compulsory license is available to anyone as soon as
“phonorecords of a nondramatic musical work have been
distributed to the public in the United States under the au-
thority of the copyright owner.”
UNDER WHAT CONDITIONS MAY A
COMPULSORY LICENSE BE OBTAINED?
It may be obtained only if the primary purpose in making
the phonorecords is to distribute them to the public for
private use. It is not available for phonorecords intended
for use in background music systems, jukeboxes, broad-
casting, or any other public use.
MAY A NEW ARRANGEMENT OF THE COPYRIGHTED
MUSICAL WORK BE MADE FOR THE RECORDING?
Yes. The compulsory license includes the privilege of mak-
ing a musical arrangement of the work “to the extent nec-
essary to conform it to the style or manner of interpretation
of the performance involved.” However, section 115 also
provides that the arrangement “shall not change the basic
melody or fundamental character of the work, and shall not
be subject to protection as a derivative work...except with the
express consent of the copyright owner.”
HOW DOES A PERSON OBTAIN
A COMPULSORY LICENSE?
The first step is to identify the copyright owner of the
nondramatic musical work to be recorded. This may be done
either by personally searching the records of the Copyright
Office or by requesting that the Copyright Office conduct the
Circular
73
United States Copyright Office
Compulsory License for Making
and Distributing Phonorecords
search. (For further information about searching the files of the
Copyright Office, write for Circular 22 “How to Investigate the
Copyright Status of a Work,” and Circular 75, “The Licensing
Division of the Copyright Office.”)
If the Name and Address of the Copyright Owner
Are Found:
• Before or within 30 days after making, and before distrib-
uting any phonorecords of the work, serve a Notice of
Intention to Obtain a Compulsory License on the copy-
right owner by certified or registered mail.
NOTE: A separate Notice of Intention must be filed for
each title for which a compulsory license is needed.
A copy of this Notice of Intention does not have to be filed
in the Copyright Office.
• Make royalty payments, accompanied by a Monthly
Statement of Account, to the copyright owner on or
before the 20th day of each month for every phonorecord
made and distributed in accordance with the license.
Definition of “distributed.” For the purpose of computing
royalties, a phonorecord is considered “volun-tarily distrib-
uted” if the compulsory licensee has voluntarily and perma-
nently parted with possession of the phonorecord.
• File with the copyright owner a detailed Annual Statement
of Account, certified by a certified public accountant.
If the Name and Address of the Copyright Owner
Are Not Found:
• File a Notice of Intention to Obtain a Compulsory License
in the Library of Congress, Copyright Office, Licensing
Division, 101 Independence Avenue, S.E., Washington,
D.C. 20557-6400.
NOTE: A separate Notice of Intention must be filed for
each title for which a compulsory license is needed.
• Submit the statutory fee with each Notice of Intention.
Upon receipt of such a Notice, the Licensing Division will
provide the sender with a written acknowledgment of re-
ceipt and filing. Upon request and payment of an additional
fee for each Notice of Intention, the Licensing Division will
provide a Certificate of Filing.
• Make checks payable to Register of Copyrights.
IMPORTANT: The name and address of the copy-
right owner may appear in the records of the Copy-
right Office at a later time. Since royalty payments
must be made after the copyright owner is identified
in the Copyright Office records, the licensee should
periodically search these records to ascertain if the
copyright owner has been identified. If and after the
copyright owner is identified in the Copyright Office
records, the licensee should make royalty payments
for phonorecords made and distributed after the copy-
right owner is so identified.
The Copyright Office does not provide forms for the Notice
of Intention, the Monthly Statement of Account, or the An-
nual Statement of Account. For detailed instructions con-
cerning the form and content of the Notice of Intention and
Statements of Accounts, write for the Copyright Office
Regulations on Compulsory License for Making and Dis-
tributing Phonorecords, Circulars 96 Section 201.18 and 96
Section 201.19. Address your request to:
Library of Congress
Copyright Office
Licensing Division, LM-458
101 Independence Avenue, S.E.
Washington, D.C. 20557-6400
(202) 707-8150
Library of Congress • Copyright Office • 101 Independence Avenue, S.E. • Washington, D.C. 20559-6000
www.copyright.gov
August 2003—xxxx
Web Rev: August 2003
E
Printed on recycled paper
U.S. Government Printing Office: 2003-xxx

Hope this helps....
Terry