A compulsory license is also referred to as a statutory license. According to U.S. law, it is a license to use content under reasonable and non-discriminatory terms, defined by act of Congress.
Compulsory License Example
For example, radio broadcasters need a license to play music published through ASCAP, BMI, and SESAC. They don't need to obtain permission from the copyright holders to play a song but must pay usage fees to the copyright holders based on how often a particular song is played.
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