What is a Compulsory License?

A compulsory license is a type of license that allows someone to use a copyrighted work without needing direct permission from the copyright owner, as long as certain legal conditions are met and the required royalties are paid.

In the music industry, compulsory licenses are most commonly associated with cover songs. Once a song has been publicly released, other artists are generally allowed to record and distribute their own versions of the composition under a compulsory mechanical license. This means the songwriter cannot refuse the use, provided the legal requirements are followed.

To use a compulsory license, the user must comply with rules such as paying the statutory mechanical royalty rate, properly crediting the original songwriter, and not substantially altering the fundamental structure or lyrics of the composition. This system helps ensure that songwriters are compensated while allowing other artists to record new versions of existing songs.