2024 Update:
For all releases after January 1, 2024, the Copyright Royalty Board (CRB) has increased the "per unit" statutory mechanical royalty rate for Physical media and Digital Downloads from 12 cents / 2.31 cents per minute (or fraction thereof) to 12.4 cents / 2.38 cents per minute (or fraction thereof).
How Royalty Rates Are Calculated
|
Royalty rate |
x |
Quantity |
| CDs, vinyl, tapes: $0.124 | Physical product: Quantity made | |
| Digital downloads: $0.124 | Digital releases: Estimated upfront | |
| Ringtones: $0.24 |
Rates for CDs, downloads and all other physical releases are a little higher for songs over five minutes.
Statutory Royalty Rate - How Royalty Rates Are Determined:
Royalty rates are set by the Copyright Royalty Board, and vary by format. The rates for streams and ringtones are the same regardless of song length. Rates for downloads and physical releases are slightly higher for songs over five minutes:
|
5:00 or Less |
5:01 or More |
|
12.4 cents for songs five minutes or less |
2.38 cents per minute (or fraction thereof) over 5 minutes |
|
Example: |
Example: |
|
0:35 = $0.124 |
5:01 to 6:00 = $0.1428 (6 x $0.0238) |
|
2:35 = $0.124 |
6:01 to 7:00 = $0.1666 (7 x $0.0238) |
|
4:55 = $0.124 |
7:01 to 8:00 = $0.1904 (8 x $0.0238) |
|
5:00 = $0.124 |
8:01 to 9:00 = $0.2142 (9 x $0.0238) |
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