What Is a Compulsory License in Copyright Law?

Copyright law grants creators various rights, but those rights are not always absolute. In certain situations, the law recognizes that public interest is served by allowing others to use copyrighted material without needing to negotiate directly with the copyright owner. In these cases, the concept of a compulsory license comes into play. Read on and reach out to Lemler IP to speak with a dedicated New Orleans, Louisiana copyright lawyer to learn more about these licenses. Here are some of the questions you may have:

When does a compulsory license apply in copyright law?

A compulsory license most often arises in the music industry, although it can appear in other contexts as well. The idea is that once a work has been released to the public, someone else may use that work in a specific way by following the procedures set out in federal law and paying the required statutory fees.

In the case of music, if an artist records and releases a song, another musician has the right to make a cover version of that song without asking for permission from the original artist, as long as they obtain a compulsory license. Importantly, this does not mean the second musician can use the original recording, but it does mean they can record their own version.

How are compulsory licenses obtained and regulated?

Obtaining a compulsory license is not as simple as downloading a form and checking a box; federal law requires that certain steps be taken, including providing notice to the copyright holder and making timely royalty payments. The amount of those royalties is determined by statute and overseen by government bodies such as the Copyright Royalty Board.

Because the fees are standardized, disputes over prices are avoided, but issues can still arise if notice is not properly given or if payments are late. Additionally, businesses that fail to comply with the rules could face infringement claims, even if they believed they were operating under a valid license.

Ultimately, compulsory licensing is a complex but important mechanism that allows works to be used and reinterpreted while ensuring that the original copyright holder is fairly compensated.

If you have additional questions about how these licenses work or are looking to obtain one, having a knowledgeable intellectual property lawyer in your corner can be invaluable. Lemler IP is here to help. Please don’t hesitate to contact the firm for an initial consultation today.