How do you track and report mechanical royalties for instructional materials?

1 Identify the songs

The first step is to identify the songs that you use in your instructional materials and find out who owns the rights to them. You can use online databases, such as the Harry Fox Agency (HFA), Music Reports, or Songtrust, to search for the song titles, writers, and publishers. You can also contact the publishers directly or use a third-party service, such as Easy Song Licensing, to obtain the information for you.

2 Request a mechanical license

The second step is to request a mechanical license from the publishers or their representatives. A mechanical license is a legal agreement that grants you permission to reproduce and distribute a song in your instructional materials. You can request a mechanical license through online platforms, such as HFA, Music Reports, or Songtrust, or by sending a letter of intent (LOI) to the publishers. You should include the details of your project, such as the title, format, duration, and quantity of your instructional materials, and the name, duration, and usage of the song.

3 Negotiate the royalty rate

The third step is to negotiate the royalty rate with the publishers or their representatives. The royalty rate is the amount of money that you pay to the publishers for each copy of your instructional materials that contains their song. The statutory rate, which is set by the U.S. Copyright Office, is 9.1 cents per song or 1.75 cents per minute of playing time, whichever is greater. However, you can negotiate a different rate with the publishers, depending on the nature and scope of your project.

4 Track the sales or usage

The fourth step is to track the sales or usage of your instructional materials that include music. You need to keep accurate records of how many copies of your instructional materials you produce and distribute, and how many times your online or digital instructional materials are streamed or downloaded. You can use tools, such as SoundScan, SoundExchange, or your own analytics software, to track the sales or usage of your instructional materials.

5 Calculate the royalties

The fifth step is to calculate the royalties that you owe to the publishers based on the royalty rate and the sales or usage of your instructional materials. You can use formulas, spreadsheets, or online calculators, such as RoyaltyCalc, to calculate the royalties. You should also deduct any fees or expenses that you incur in obtaining and administering the mechanical licenses, such as service charges, processing fees, or accounting costs.

6 Report and pay the royalties

The sixth and final step is to report and pay the royalties to the publishers or their representatives. You should send them a royalty statement that shows the details of your project, the songs, the royalty rate, the sales or usage, and the royalty amount. You should also send them a check or an electronic payment for the royalty amount. You should report and pay the royalties on a regular basis, such as quarterly, semiannually, or annually, depending on the terms of your mechanical license agreement.