If I assemble a compilation CD from pieces that I extract from other store-bought CDs and plan to give it away as gifts (say, at a wedding) does this require the same mechanical liscence as CDs for sale would? I have 2 clients that want to do this, and I want to be correct with my info.

EG:
This guy has a great collection that his clients all love, so he wants to give a sampler out as gifts. Does he have to liscence the sampler, since he owns all the original CDs and he is not making money with the deal?

Thanx.