What are Mechanical royalties?
Mechanical royalties are
fees paid to songwriters and music publishers every time a copyrighted composition is reproduced . This includes physical formats (CDs, vinyl), digital downloads, and interactive streams (e.g., Spotify, Apple Music) where temporary copies are downloaded to a device.
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How They Differ from Performance Royalties
While performance royalties (collected by PROs like ASCAP and BMI) pay you when your music is played publicly or broadcast, mechanical royalties are owed specifically for the
reproduction of the underlying melody and lyrics. Both are distinct income streams, and streams on DSPs (Digital Service Providers) generate both.
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Collecting US Streaming & Download Mechanical Royalties
- The Mechanical Licensing Collective (MLC): This is the primary organization responsible for administering blanket mechanical licenses for eligible streaming and download services in the United States. You must register your musical works with the Mechanical Licensing Collective to claim and collect your digital mechanical royalties. [ 1 , 2 ]
- The Harry Fox Agency (HFA): Before the MLC, the HFA managed physical and download licenses. While the MLC handles digital streaming, the Harry Fox Agency still processes mechanical licenses for physical products like CDs and vinyl, as well as specific digital services.
