Mechanical Income

•Mechanical rights are the rights to include a composition in a sound recording. Usually this involves CD uses.

•As of January 1, 2012, the statutory rate is 9.1 cents per composition or 1.75 cents per minute for songs over 5 minutes.

Digital Income

•The use of a composition in a permanent digital download is recognized as a mechanical right. The Copyright Royalty Board has established that the current statutory rate for the mechanical reproduction of a composition in a permanent digital download is 9.1 cents per composition or 1.75 cents per minute for compositions over 5 minutes in length (the same statutory rate that applies to mechanical reproduction in physical CD’s).

Synchronization Income

•Synchronization (“synch”) rights are the rights to include the composition in an audio-visual production, such as a motion picture, television program, television commercial, home video, and DVD.

•Fees are generally in the form of one-time payments, although the arrangement can be a “stepped” deal (e.g., one fee for motion picture use and an additional payment for video rights).

Performance Income

•Performance income includes performances of compositions over television, radio, and other electronic devices; online transmissions; and non-dramatic live performances.

•Performance rights are administered by the performing rights societies (PROs). In the United States, these societies are ASCAP, BMI, and SESAC.

Print/Miscellaneous Income

•Print rights are the rights to issue licenses for printed versions of the compositions, including single-song sheet music and folios. There are also a number of “Miscellaneous Income” types that varies from ringtones to lyrics on a t-shirt.