Compulsory License

Definition

A compulsory license is a statutory license that allows the use of a copyrighted work without the copyright owner's permission, typically in exchange for a set royalty fee. It is a mechanism used to balance the interests of copyright owners and the public's access to creative works.

5 Must Know Facts For Your Next Test

1. Compulsory licenses are commonly used in the music industry to allow the recording and distribution of cover songs.
2. The Copyright Act of 1976 in the United States established several compulsory licenses, including for the use of musical works and for the retransmission of broadcast signals by cable and satellite providers.
3. Compulsory licenses help ensure that copyrighted works are widely accessible, while also providing compensation to copyright owners.
4. The terms and royalty rates of compulsory licenses are often set by the government or a regulatory body, rather than being negotiated between the copyright owner and the licensee.
5. Compulsory licenses are considered a limitation on the exclusive rights of copyright owners, but they are intended to serve the public interest by promoting the dissemination of creative works.

Review Questions

• Explain the purpose of a compulsory license in the context of copyright law.
  • The purpose of a compulsory license is to balance the exclusive rights of copyright owners with the public's need for access to creative works. By allowing the use of copyrighted material without the owner's permission, but in exchange for a set royalty fee, compulsory licenses help ensure that copyrighted works are widely available and accessible to the public, while also providing compensation to the copyright owners. This mechanism is intended to serve the greater public interest by promoting the dissemination of creative works.
• Describe the key differences between a compulsory license and a voluntary license for the use of a copyrighted work.
  • The primary difference between a compulsory license and a voluntary license is the way in which the license is granted. A voluntary license is negotiated directly between the copyright owner and the licensee, allowing the owner to set the terms and royalty rate. In contrast, a compulsory license is granted by law, with the terms and royalty rate often set by the government or a regulatory body, rather than being negotiated between the parties. Compulsory licenses are considered a limitation on the exclusive rights of copyright owners, while voluntary licenses are a product of the owner's discretion and negotiation.
• Analyze the role of compulsory licenses in promoting the public interest and the dissemination of creative works.
  • Compulsory licenses play a crucial role in promoting the public interest by ensuring that copyrighted works are widely accessible and available to the public. By allowing the use of these works without the copyright owner's permission, but in exchange for a set royalty fee, compulsory licenses help to balance the exclusive rights of copyright owners with the public's need for access to creative content. This mechanism helps to facilitate the dissemination of creative works, which is essential for the advancement of art, culture, and knowledge. At the same time, compulsory licenses provide compensation to copyright owners, ensuring that they are incentivized to continue creating and producing new works. The careful balance struck by compulsory licenses is a key component of copyright law's efforts to serve the greater public good.

Related terms

Copyright:

The exclusive legal right granted to the creator of an original work to reproduce, publish, sell, or distribute that work for a limited period of time.

Royalty:

A payment made by a licensee to a copyright owner for the right to use the copyrighted work, usually calculated as a percentage of revenue or sales.

Statutory License: A license granted by law, rather than by the copyright owner, that allows the use of a copyrighted work under certain conditions and in exchange for a fee.