What Is a Mechanical Royalty and How Do I Collect It?
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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
-
Register with The MLC (if you're in the U.S.)
→ Free and easy at themlc.com -
Register your songs accurately
→ Include titles, writer splits, ISWC codes, and publisher info -
Use a publishing admin (e.g., Songtrust, CD Baby Pro)
→ They collect mechanicals globally, including physical and foreign royalties -
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.