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.

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