Every time your song is streamed, downloaded, or pressed to vinyl, a royalty is generated for the songwriter and publisher. This is called a mechanical royalty — and if you're an independent artist, there's a good chance you're not collecting yours.
This guide explains what mechanical royalties are, where they come from, and exactly how to collect them as an independent creator.
What Are Mechanical Royalties?
Mechanical royalties are payments made to songwriters and publishers when their compositions are reproduced. The term comes from the era of player pianos, when music was “mechanically” reproduced on perforated rolls. The name stuck even as the technology changed.
Today, mechanical royalties are generated by:
- On-demand streaming (Spotify, Apple Music, Tidal, Amazon Music on-demand)
- Permanent digital downloads (iTunes purchases)
- Physical reproductions (CDs, vinyl, cassettes)
- Ringtones and other licensed reproductions
Every time someone streams your song on Spotify, Spotify owes a mechanical royalty to the songwriter and publisher of the composition. This is separate from the performance royalty collected by your PRO (ASCAP, BMI, SESAC) and separate from the recording royalty earned by whoever owns the master.
Who Collects Mechanical Royalties?
In the United States, most streaming mechanical royalties are collected by the Mechanical Licensing Collective (MLC). The MLC was established by the Music Modernization Act of 2018 and began operating in 2021. It's the central body that receives mechanical royalty payments from streaming services and distributes them to songwriters and publishers.
International mechanical royalties are collected by mechanical licensing societies in each country — MCPS in the UK, SOCAN-RE in Canada, GEMA in Germany, and so on.
How to Collect Your Mechanical Royalties
If you write your own music and release it independently, you need to register with the MLC to collect your US streaming mechanical royalties. Here's how:
Step 1: Create an Account with the MLC
Go to themlc.com and create a free account as a copyright owner. Registration is free and open to any songwriter or publisher who holds rights in musical compositions.
Step 2: Register Your Works
Once your account is active, register your songs in the MLC's database. You'll need basic information: song title, writers, ISWC code (if you have one), PRO affiliation, and split percentages for any co-writers.
Step 3: Set Up Banking
Provide your banking information so the MLC can send payments. Royalties are paid quarterly.
Step 4: Claim Unmatched Royalties
The MLC maintains a pool of royalties that couldn't be matched to registered songs — often because the songs weren't registered, or the registration data was incomplete. If you have registered works, periodically check the MLC's royalty match tool to claim any unmatched royalties associated with your songs.
Mechanical Royalties and Co-Writers
When a song has multiple co-writers, mechanical royalties are divided according to each writer's publishing share. If you wrote a song 50/50 with a collaborator, each of you receives 50% of the mechanical royalties generated by the composition.
This is why having a signed split sheet matters for mechanical royalties. When you register a co-written song with the MLC, you'll need to declare each co-writer's percentage. If there's a dispute about those percentages — or if a co-writer registers the song with different splits — royalty payments can be delayed or disputed.
A split sheet, signed by all collaborators before the song is released, establishes the agreed-upon splits and makes registration straightforward.
What About Mechanical Royalties from Physical Sales and Downloads?
For physical reproductions (CDs, vinyl) and permanent digital downloads, mechanical royalties are typically collected by mechanical licensing agents or directly through a music publisher. If you're self-releasing physical product, you may need to work with a mechanical licensing agent like Harry Fox Agency (now operated by SESAC) to handle clearances and royalty collection.
For most independent artists focused on streaming, the MLC is the primary collection vehicle for US mechanicals.
How Much Are Mechanical Royalties?
The mechanical royalty rate for on-demand streaming is set by the Copyright Royalty Board and is updated periodically. The exact rate depends on the streaming service, the type of stream, and the service's revenue model, but in practice, mechanical royalties from streaming are small per-stream — fractions of a cent.
They add up significantly at scale, and for songs that achieve consistent streaming volume over years, the accumulated mechanical royalties can be substantial. The key is to be registered so you're collecting them.
Don't Leave Mechanical Royalties on the Table
The MLC estimates that hundreds of millions of dollars in unmatched royalties exist for songs that were streamed but not properly registered. If you've released music independently and haven't registered with the MLC, you may have unclaimed mechanicals sitting there.
Registration is free and takes about 15 minutes. There's no reason not to do it.
Once you're registered with the MLC, make sure your co-written songs have documented splits on file. A split sheet signed by all collaborators is the cleanest way to establish those percentages. At musicsplitsheets.com, you can generate a complete split sheet PDF for $3 in two minutes. The $5 bundle includes a Letter of Direction for SoundExchange, covering the master-side royalties too.