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MP3 ==> Other Questions

Licensing (response from Harry Fox Agency)
Through my organization, I have a BMI/ASCAP license. Suppose I purchase a 45 rpm record for use in my activity. I then decide that this 45 is becoming hard to replace, so I digitize it and use it now as an MP3 or on a CD. Do I need to purchase a separate license for this?

If this MP3 or CD is being used for your personal use, then no license is required. However, if you are producing additional units and distributing these, then you would be required to obtain a mechanical license.

A mechanical license grants the rights to reproduce and distribute copyrighted musical compositions (songs), including uses on phonorecords (i.e. CDs, records, tapes, and certain digital configurations). The Harry Fox Agency was established to license, collect, and distribute royalties on behalf of U.S. publishers that own and/or control the rights to musical compositions. Simply stated, if you want to record and distribute a song that was written by someone else, or if your business requires the distribution of music that was written by others, you must obtain a mechanical license.

Mechanical rights should not be confused with "master rights" that are granted by a record company in order to use an existing recording, or with "performance rights" that are granted by publishers or societies for the public performance of a song. Depending on the use, one may also have to obtain these rights in addition to the mechanical license.

The Harry Fox Agency issues mechanical licenses for phonorecords manufactured and distributed in the United States (including territories and possessions) only. Our mechanical licenses are only available to United States manufacturers or importers with a United States address.

The royalty rate (what gets paid to the music publisher) is set by law, and is known as the "statutory rate." Until December 31, 2003, the statutory rate is .08 or .0155 per minute or fraction of a minute, whichever is greater. After January 1, 2004, the statutory rate is .085 or .0165 per minute or fraction of a minute, whichever is greater.

Forms for mechanical licensing are available at our website: (http://www.harryfox.com/mechanical_forms.html)

If you have any further questions please feel free to contact Client Relations through the information provided below. Thank you for your inquiry and we wish you all the best.

Sincerely,

Client Relations Department
Harry Fox Agency
711 3rd Avenue 8th Floor
New York, NY 10017
(212) 834-0100
(646) 487-6779 (Fax)


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