MECHANICAL ROYALTIES

The current statutory rate for mechanicals is 9.1 cents for recordings of up to 5 minutes in length. For recordings over 5 minutes, the rate is 1.75 cents per minute, or portion thereof. The rate is subject to periodic review by the Copyright Royalty Tribunal, with the most recent review having taken place in January, 1998. Additional bi-annual increases have been negotiated through 2008: