A Compulsory License is a license to utilize a copyright (or other intellectual property) without a requirement to first obtain permission from the copyright owner. In the music industry, a compulsory license refers to a mechanical license which, by law, must to be granted to anyone who chooses to digitally stream or record a composition (other than for the first use). The copyright owner is entitled to receive royalties in exchange for the compulsory license as their song is streamed or purchased.
Did this answer your question?