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Although a copyright gives its owner the exclusive right to copy and use or permit others to use the copyrighted material, there are circumstances under which material under the protection of a copyright may be used without obtaining the copyright owner’s permission each and every time the material is used.
Fair Use
Compulsory License
Fair Use (17 U.S.C. sec. 107)
Fair use allows certain individuals the privilege of using and distributing copyrighted information without the consent of the copyright owner. To take advantage of the fair use provision of the copyright statute, an individual must use the copyrighted material for the purposes of education, news reporting, criticism, comment, research or scholarship.
The standards for judging whether use of copyrighted material is fair use are as follows:
- whether use is for a commercial or not-for-profit endeavor;
- the type of work that is the subject of the copyright;
- how much of the copyrighted material is being used and whether it is a core element of the copyrighted work; and
- the impact of the user’s endeavor on the value of the copyrighted work or its market
Compulsory License
A compulsory license allows an individual or entity to benefit from the use of copyrighted work without the owner’s permission and without violating the copyright owner’s
exclusive rights in his copyrighted work. (17 U.S.C. sec. 115; Copyright Office Circular 73).
A compulsory license is available only for phonorecords of musical works that are not dramatic in nature. The license may be obtained after the
phonorecords have been lawfully distributed to the public in the United States. Lawful distribution requires the copyright owner’s consent. After this initial distribution with the copyright owner’s consent, an individual or entity may apply for a compulsory license in the Copyright Office. (Copyright Office Circular 73).
A compulsory license holder pays a royalty fee to the copyright owner, which is determined by the Copyright Royalty Tribunal. (Copyright Office Circular 73).
A compulsory license may only be acquired where its purpose is to enable an individual or entity to distribute copies of the phonorecord to the public for individual, personal use. The license may not be utilized to make and distribute phonorecords whose ultimate purpose is for public enjoyment, such as in a jukebox or over a broadcast system. (Copyright Office Circular 73).
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