Mechanical Royalties Explained: How to Collect What You Are Owed

Every time your song is reproduced, whether pressed onto vinyl, downloaded from iTunes, or streamed on Spotify, a mechanical royalty is generated. For most independent artists, mechanical royalties represent a significant chunk of uncollected income. The Mechanical Licensing Collective (MLC) alone has identified over $400 million in unmatched mechanical royalties since it began operations in 2021.

This guide explains what mechanical royalties are, where they come from, and exactly how to make sure you collect every penny. It connects to our broader royalty coverage including performance royalties from PROs, SoundExchange digital royalties, and our publishing royalty split calculator.

What Are Mechanical Royalties?

A mechanical royalty is a payment made to songwriters and publishers whenever a musical composition is reproduced. The term dates back to the early 1900s when music was reproduced "mechanically" on piano rolls and phonograph cylinders. Today, the concept covers all forms of reproduction:

The key distinction is that mechanical royalties are paid on the composition (the underlying song), not the sound recording. They go to songwriters and publishers, not to the performing artist or label (unless the artist is also the songwriter, which is common for independents).

Mechanical vs. Performance Royalties

These two royalty types are often confused, so here is a clear breakdown:

Mechanical royalties are generated when a song is reproduced or distributed. Every stream, download, or physical copy triggers a mechanical royalty.

Performance royalties are generated when a song is performed publicly. Radio airplay, live concerts, TV broadcasts, and the public performance component of streaming all trigger performance royalties.

Streaming platforms actually generate both types. When someone plays your song on Spotify, you earn a mechanical royalty (collected by the MLC) AND a performance royalty (collected by your PRO). These are separate payments from separate organizations.

How Mechanical Royalty Rates Work

Physical and Download Rates

In the United States, mechanical royalty rates for physical copies and downloads are set by the Copyright Royalty Board (CRB):

So if you sell 1,000 copies of your CD and it contains 10 songs you wrote, you would earn: 10 songs x 1,000 copies x $0.12 = $1,200 in mechanical royalties.

Streaming Mechanical Rates

Streaming mechanical royalties are more complex. They are calculated as a percentage of the streaming service's revenue, allocated based on your share of total streams. The current rate structure (set by the CRB for 2023 to 2027) works out to roughly:

These rates are approximate and fluctuate based on the service's total revenue and subscriber count. Use our streaming royalty calculator to estimate your total per-stream earnings including both mechanical and other royalty components.

The CRB Rate Increase

The Copyright Royalty Board has been gradually increasing streaming mechanical rates. The Phonorecords IV proceedings set rates at 15.35% of streaming service revenue for 2023 to 2027, up from previous levels. This is good news for songwriters, as mechanical royalties from streaming continue to grow.

The Mechanical Licensing Collective (MLC)

The MLC was created by the Music Modernization Act of 2018 and began operations in January 2021. It is the organization responsible for collecting and distributing streaming mechanical royalties in the United States.

What the MLC Does

What the MLC Does Not Do

How to Register with the MLC

- Song titles

- ISWC codes (International Standard Musical Work Code) if available

- Co-writer information and split percentages

- Publisher information

- Associated recordings and ISRC codes

Registration is free and essential for every songwriter. If you are not registered with the MLC, your streaming mechanical royalties are going into an unmatched pool that may eventually be distributed to other registered members proportionally.

Harry Fox Agency (HFA)

The Harry Fox Agency has been a major player in mechanical royalty licensing since 1927. While the MLC now handles streaming mechanicals, HFA still plays an important role.

What HFA Handles

HFA and the MLC

HFA now operates as a service provider for the MLC, handling the backend technology and data processing. However, they maintain separate services for non-streaming mechanical royalties. If you release physical products or your music is sold as downloads, HFA registration may be relevant.

Collecting Mechanicals as an Independent Artist

Step 1: Register with the MLC

This is non-negotiable for any songwriter in 2026. The MLC collects your streaming mechanical royalties. Registration is free and takes about 20 minutes. Make sure to:

Step 2: Register with Your PRO

Your PRO collects performance royalties, not mechanicals, but registering your songs with both your PRO and the MLC ensures complete coverage. See our complete PRO comparison to choose the right one.

Step 3: Consider a Publishing Administrator

If managing registrations across multiple organizations feels overwhelming, a publishing administrator can handle it for you. Services like Songtrust, TuneCore Publishing, and CD Baby Pro collect mechanical royalties (and other publishing income) on your behalf for a commission of 10 to 20 percent.

Pros of using an admin:

Cons:

Step 4: Register for International Mechanicals

If your music is streamed or sold outside the United States, mechanical royalties in other territories are collected by local societies:

Your PRO's reciprocal agreements may cover some international mechanical collection, but gaps are common. A publishing administrator with international reach can fill these gaps.

Payment Timelines

Mechanical royalty payments are notoriously slow compared to distributor payments:

MLC: Distributes quarterly, with a lag of approximately 4 to 6 months after the streaming quarter.

HFA: Payment timelines vary depending on the license type. Physical mechanicals can take 6 to 12 months to process.

Publishing administrators: Typically add an additional 1 to 3 months on top of the source payment timeline.

For reference, your distributor pays streaming royalties on roughly a 2 to 3 month delay. Mechanical royalties from the MLC for the same streams arrive several months later. This means you are paid twice for the same stream, just from different organizations and on different timelines.

Common Mistakes to Avoid

Not registering with the MLC: This is the most costly mistake. If you are not registered, your mechanical royalties accumulate in an unmatched pool. After a holding period, unclaimed funds are distributed to registered members based on market share, meaning large publishers get your money.

Incorrect metadata: The MLC matches songs to recordings using metadata. If your song titles, ISRC codes, or writer information do not match what streaming services report, your royalties go unmatched. Double-check everything.

Forgetting to register new releases: Every time you release a new song, register it with the MLC and your PRO. Do not assume your distributor handles this. Distributors deliver your recordings to platforms, but they do not register your compositions for mechanical or performance royalty collection.

Ignoring co-writer splits: If you co-write songs, make sure everyone agrees on splits before release and that those splits are accurately reflected in MLC and PRO registrations. Disputes over splits can freeze royalty payments.

Frequently Asked Questions

Q: Are mechanical royalties the same as the royalties my distributor pays me?

No. Your distributor pays you the sound recording royalties from streaming services. Mechanical royalties are paid separately for the composition and go through the MLC. If you are both the songwriter and recording artist, you earn both types of royalties for the same stream. Use our streaming royalty calculator to estimate your combined income.

Q: Do I earn mechanical royalties from Spotify?

Yes. Every stream on Spotify generates a mechanical royalty for the songwriter. These are collected and distributed by the MLC, separate from the recording royalties your distributor sends you.

Q: What if I only perform covers?

If you record and distribute cover songs, you owe mechanical royalties to the original songwriters. Services like Easy Song Licensing and the Harry Fox Agency can provide mechanical licenses for cover recordings. You do not earn mechanical royalties for a cover unless you wrote part of the arrangement and it qualifies as a derivative work.

Q: Do I need a publisher to collect mechanical royalties?

No. You can register directly with the MLC as an individual songwriter. However, if you self-publish, registering a publishing entity with your PRO and the MLC ensures you collect both the writer's share and publisher's share of mechanicals. Our publishing royalty split calculator shows how these shares break down.

Q: How do mechanical royalties work for co-written songs?

Mechanical royalties are split according to the agreed-upon songwriter percentages. If you wrote 50% of a song, you receive 50% of the mechanical royalties. Each co-writer should register their share with the MLC independently, or through their respective publishers.

Collect Every Mechanical Royalty You Are Owed

Mechanical royalties are a fundamental part of your income as a songwriter, and the system for collecting them has never been more organized than it is now. The MLC has made registration straightforward, and there is no reason to leave this money on the table.

Register with the MLC today, make sure your catalog is complete and accurate, and set yourself up to collect every mechanical royalty generated by your music on streaming platforms, downloads, and physical sales.

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