Learn — By WATMM Desk —
What is a mechanical royalty?
A mechanical royalty is the money owed to songwriters and publishers when their song, the composition rather than the recording, is copied and distributed, whether on CD, vinyl, download or stream. In the US, streaming mechanicals run through The MLC.
Key facts
- Mechanicals pay for copying and distributing a song (the composition), not for performing it and not for the master recording.
- US copyright law (section 115) gives a compulsory licence to make and distribute phonorecords.
- Since 1 Jan 2021, US streaming and download mechanicals are paid through The MLC under a blanket licence.
A mechanical royalty is the payment owed to a song's writers and publishers each time the song, meaning the musical composition rather than a particular recording of it, is reproduced and distributed: pressed on vinyl or CD, sold as a download, or streamed.
Where the term comes from
In the US the right sits in section 115 of the Copyright Act, which the U.S. Copyright Office describes as "a compulsory license to make and distribute phonorecords". Compulsory means a label or service can use the licence on its terms without negotiating with each songwriter. The Copyright Office still takes Notices of Intention for physical formats such as CDs, vinyl and tapes, but no longer takes them for digital phonorecord deliveries after the Music Modernization Act.
Who collects it in the US
Title I of the Music Modernization Act set up a blanket licensing system for digital music providers, and the Copyright Office designated the Mechanical Licensing Collective (The MLC) to collect and distribute those mechanical royalties. As of 1 Jan 2021, songwriters and publishers register with The MLC to get paid.
According to The MLC, streaming and download services send it usage data and royalties, it matches those to registered songs, and it pays members monthly. It says it does not replace SoundExchange or the performing rights organisations (PROs), which handle other income. In June 2026 the Register of Copyrights continued its designation after its first periodic review.
What it is not
- Not a performance royalty. Those come through PROs.
- Not a master royalty. The recording earns separately; mechanicals belong to the composition.
What we think
Mechanicals are the royalty independent writers most often leave unclaimed, because a distributor pays you for the master and nobody tells you the song earns twice. If you write your own songs and they stream in the US, registering with The MLC (directly or through a publishing administrator) is the cheapest money you will ever collect. Treat it as part of release day, not an afterthought.
Sources
- Section 115 compulsory license, U.S. Copyright Office (primary source). Accessed 26 Oct 2026.
- The Music Modernization Act, U.S. Copyright Office (primary source). Accessed 26 Oct 2026.
- How it works, The MLC (primary source). Accessed 26 Oct 2026.
- The MLC, The MLC. Accessed 26 Oct 2026.
Researched with AI assistance, written and checked by WATMM Desk.