What Is a Mechanical Royalty and How Do I Collect It?

When Are Mechanical Royalties Generated?

You earn mechanical royalties when your song (composition) is:

Usage Type

Earns Mechanical Royalties?

Streamed on Spotify or Apple Music

 Yes

Downloaded on iTunes, Amazon, etc.

 Yes

Manufactured on CD/vinyl/cassette

 Yes

Covered by another artist

 Yes (if properly licensed)

Played on the radio or TV

 No (that’s performance royalties)


Remember: Mechanical = reproduction of a song, not just hearing it.


 Who Pays Mechanical Royalties?

Territory

Collected By

Paid To

U.S. (Digital)

The MLC (Mechanical Licensing Collective)

Publishers or admin partners

U.S. (Physical)

Labels or manufacturers

Publishers

Outside U.S.

Foreign CMOs (via sub-publishers)

Publishers or admin partners


Songwriters must register with The MLC (if in the U.S.) to collect digital mechanicals from streams/downloads.


 How to Collect Mechanical Royalties

  1. Register with The MLC (if you're in the U.S.)
    Free and easy at themlc.com
  2. Register your songs accurately
    Include titles, writer splits, ISWC codes, and publisher info
  3. Use a publishing admin (e.g., Songtrust, CD Baby Pro)
    They collect mechanicals globally, including physical and foreign royalties
  4. Track and claim cover versions
    You still earn mechanicals when others cover your song


 U.S. Mechanical Royalty Rates (Digital Streaming)

Platform Type

Royalty Source

Who Gets Paid

Interactive streaming

Mechanical + performance

Songwriters & publishers

Downloads

Mechanical only

Songwriters & publishers



 Pro Tips

  • Streaming = performance + mechanical royalties—you need to register with both a PRO and The MLC
  • Use a publishing admin to avoid missing out on global mechanicals
  • If someone covers your song, ensure they get a mechanical license (often via platforms like Harry Fox Agency or Songfile)
  • Metadata accuracy is crucial—mistakes = missed money


Bottom Line:
Mechanical royalties are a vital part of your income from streams, downloads, and covers. To collect them, you must register with The MLC and/or use a publishing administrator—or your money could go unclaimed.

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