Mechanical Royalties Explained
The royalties paid when your song is reproduced — and how to collect them.
What Mechanicals Are
Mechanical royalties are payments made to songwriters and music publishers whenever a song is reproduced — physically manufactured, digitally streamed, or downloaded. Every time someone presses your song to vinyl, burns a CD, streams it on Spotify, or downloads it from iTunes, a mechanical royalty is owed.
The royalty flows from the entity reproducing the song (record label, streaming service, manufacturer) to the songwriter/publisher. It's separate from performance royalties, which are collected when songs are performed publicly (radio, live venues, background music services).
Statutory Rates
Mechanical rates are set by the U.S. Copyright Office and adjusted periodically. As of 2026:
- Physical reproduction: approximately 9.1¢ per song on CDs and vinyl
- Streaming: rates vary by platform but average 0.003–0.004¢ per stream
- Downloads: approximately 9.1¢ per song (capped at the physical rate)
These are statutory minimums — you can negotiate higher rates directly with record labels or distributors, but most independent artists receive statutory rates.
The MLC
The Mechanical Licensing Collective (MLC) is the official U.S. agency responsible for administering mechanical licenses and collecting royalties from digital services. If you own your publishing, you must register your works with the MLC to collect mechanical royalties from streaming.
- Register your compositions at themlc.com
- The MLC issues licenses to Spotify, Apple Music, Amazon, YouTube and distributes royalties quarterly
- Without MLC registration, your mechanical royalties go unclaimed
Claiming Unclaimed Royalties
The MLC holds millions in unmatched mechanical royalties. To claim yours:
- Register all your compositions on themlc.com with accurate metadata (title, writers, ownership splits)
- Match them to ISRCs (International Standard Recording Codes) of your releases
- Ensure your recordings are registered with SoundExchange for additional claims
- Check your collection history — many services track back 3–5 years
Key Takeaways
- Mechanical royalties are composition royalties for reproductions and distributions, including many digital uses.
- In the United States, the MLC administers the blanket license for eligible digital audio services.
- Mechanical royalties are separate from master royalties paid through distributors or labels.
Action Checklist
- Register eligible works with the MLC if you control publishing or self-administer.
- Make sure songwriter splits and publisher data match your PRO and distributor records.
- Check whether a publisher or administrator already handles mechanical collection for you.
- Use current statutory and platform-specific information rather than relying on old rate assumptions.
Common Pitfalls
- Thinking a PRO collects U.S. digital mechanical royalties.
- Confusing mechanical royalties with master streaming payouts.
- Failing to update works when splits or publisher information changes.
Sources
References checked for the current version of this guide.