The MLC (Mechanical Licensing Collective)

The Mechanical Licensing Collective (The MLC) is a nonprofit organization designated by the United States Copyright Office under the Music Modernization Act (MMA) of 2018 to administer blanket mechanical licenses to digital service providers (DSPs) in the United States. Founded in 2021 and headquartered in Nashville, Tennessee, The MLC collects mechanical royalties from interactive streaming and download services and distributes them to songwriters, music publishers, and other rightsholders at no cost. As of March 2026, The MLC has enrolled more than 85,000 Members, completed 60 royalty distributions, and surpassed $4 billion in total royalties processed. It is best suited for any songwriter, composer, lyricist, or music publisher entitled to receive US digital audio mechanical royalties from streaming and download services.

How The MLC Works

Before The MLC was established, there was no centralized system for collecting and distributing mechanical royalties from digital streaming services in the United States. Songwriters and publishers had to negotiate individual licenses with each DSP or rely on the Harry Fox Agency (HFA) and other agents. The Music Modernization Act of 2018 changed this by creating a blanket compulsory mechanical license covering the use of musical works by eligible US digital audio services. The US Copyright Office designated The MLC to administer this blanket license.

As of January 1, 2021, The MLC began collecting mechanical royalties from DSPs operating under the blanket license. Eligible DSPs include Spotify, Apple Music, Amazon Music, YouTube Music, Tidal, and other interactive streaming and download services. These DSPs send mechanical royalty payments and usage reports to The MLC on a monthly basis.

DSPs have two payment options. They can send payments and usage reports within 15 days after the end of a month if they want The MLC to send them an invoice showing the royalties owed. Alternatively, DSPs that choose not to receive an invoice must calculate the royalties themselves and submit both payment and usage report by the 45th day after the end of the usage period.

The MLC then matches the reported sound recording uses to the musical works data in its public database. When a match is found, the royalties are distributed to the registered rightsholder. When no match is found, the royalties are held as unmatched and reserved for future distribution.

Historical Royalties

The MLC also handles historical royalties from streaming activity that took place between 2007 and 2020, before the blanket license went into effect. DSPs transferred these historical unmatched royalties to The MLC, which continues to match and distribute them. As required by the MMA, The MLC will eventually distribute any remaining unmatched royalties through an "equitable market share" distribution process, though this process has not yet begun as of 2026.

Membership and Fees

Who Can Join

Anyone entitled to receive US digital audio mechanical royalties can become a Member of The MLC. This includes:

• Songwriters
• Music publishers and administrators
• Composers
• Lyricists
• Collective management organizations (CMOs)
• Self-administered songwriters, composers, and lyricists

The MLC has enrolled more than 85,000 Members as of 2026.

Cost

There are no costs associated with becoming a Member of The MLC, nor are there costs for registering a musical work. The MLC is funded by DSPs (such as Spotify, Apple Music, and Amazon Music) as prescribed in the MMA. The MLC's budget process is a collaborative effort among all stakeholders, including a budget advisory committee with members representing both DSPs and music copyright owners.

Because operating costs are covered by DSPs, The MLC is able to distribute 100% of the royalties it collects to rightsholders, without deducting a commission or an administration fee. This is a significant advantage over traditional PROs and mechanical rights organizations, which typically retain 10% to 15% of collected royalties as overhead.

How to Join

1. Create a free account at themlc.com.
2. Register as a Member (songwriter, composer, lyricist, publisher, administrator, or CMO).
3. Register each musical work with title, writer splits, and publisher information.
4. The MLC matches your registered works to usage reports from DSPs.
5. Royalties are distributed monthly to your account.

Overhead Rate

The MLC's overhead rate is 0% to its Members. The MLC is funded by DSPs, not by rightsholders. This means 100% of the royalties collected from DSPs are distributed to Members. This is unique among US rights organizations. ASCAP and BMI retain approximately 10% to 12% of collected revenue as operating costs. The Harry Fox Agency charges commission on mechanical royalties it collects. The MLC's zero-commission model is a direct result of the MMA's funding structure, which requires DSPs to cover the organization's operating costs.

Royalty Distribution Schedule

The MLC distributes royalties to Members on a monthly basis, approximately 75 days after the end of each monthly period. For example, royalties for usage during January are distributed to Members in mid-April.

In 2025, The MLC completed all 12 royalty distributions on time or early. As of March 2026, the organization had completed 60 royalty distributions since its inception, all on time or early.

Reciprocal Agreements

The MLC administers the blanket mechanical license for digital audio services in the United States only. It does not have reciprocal agreements with foreign societies in the same way that performance rights organizations do. Mechanical royalties from streaming services in other countries are collected by the local mechanical rights organization in each territory (e.g., GEMA in Germany, MCPS/PRS in the UK, SACEM in France).

For US-based songwriters whose music is streamed internationally, mechanical royalties are typically collected by the local society and transferred to the songwriter's publisher or mechanical rights administrator (such as HFA or a publishing administrator). The MLC does not handle international mechanical royalty collection.

Notable Members

The MLC does not publicly disclose its full membership roster. With over 85,000 Members, the organization represents a broad cross-section of the music publishing industry, from self-administered independent songwriters to the largest music publishers in the world (Sony Music Publishing, Universal Music Publishing Group, Warner Chappell Music).

The MLC was built by the music industry for the music industry. Its board includes representatives from both music publishers and DSPs. The organization was designated by the US Copyright Office after a competitive selection process, with the National Music Publishers Association (NMPA) and the Nashville Songwriters Association International (NSAI) leading the effort to create The MLC.

PRO Comparison Table

Real-World Example

An independent songwriter registers with The MLC in 2026. They are self-administered, meaning they handle their own publishing. They register their catalog of 30 songs, listing themselves as both writer and publisher with 100% splits.

Their songs generate 500,000 streams on Spotify in January 2026. Spotify reports this usage to The MLC along with the mechanical royalty payment. The MLC matches the usage to the songwriter's registered works. In mid-April 2026 (approximately 75 days after January), the songwriter receives their mechanical royalty payment for January's usage. The full amount is distributed with zero commission deducted.

Without The MLC, this same songwriter would have had to negotiate individual mechanical licenses with Spotify, Apple Music, Amazon Music, and every other DSP. Or they would have to hire a publishing administrator or HFA to collect on their behalf, paying a commission of 10% to 15%. The MLC's blanket license and zero-commission model means the songwriter receives 100% of the mechanical royalties owed.

Why It Matters for Independent Artists

If you write original songs and your music is streamed on any interactive service (Spotify, Apple Music, Amazon Music, YouTube Music, Tidal), you are owed mechanical royalties. The MLC is the organization that collects and distributes those royalties in the United States. If you are not registered with The MLC, your mechanical royalties are sitting in an unmatched account, waiting to be claimed.

Registration is free, takes about 30 minutes, and ensures you receive 100% of the mechanical royalties owed to you from US streaming services. There is no reason for any songwriter or publisher to skip this step.

If you are also a recording artist, you should register with SoundExchange to collect neighboring rights royalties for digital performances of your sound recordings. And you should join a PRO (ASCAP, BMI, SESAC, or AllTrack) to collect performance royalties for public performances of your compositions. The MLC handles only mechanical royalties from digital services, not performance royalties or neighboring rights.

For a complete guide to registering your music with rights organizations, read our guide on how to register music with a PRO. For a comparison of all US PROs, read our PRO comparison guide. Use our Streaming Royalty Calculator to estimate your streaming earnings.

Drawbacks and Things to Consider

• US digital mechanicals only: The MLC collects mechanical royalties from US-based digital streaming and download services. It does not collect physical mechanicals (CDs, vinyl), international mechanicals, or performance royalties.
• No physical or download mechanicals: For physical formats and permanent downloads, you still need HFA or a publishing administrator. (Note: some download services operate under the blanket license, but physical formats require separate licensing.)
• No international collection: The MLC does not collect mechanical royalties from streaming services outside the US. You need a publishing administrator or international society for that.
• Matching depends on metadata: If your works are not properly registered with correct metadata (ISRCs, ISWCs, writer splits), The MLC may not be able to match your usage to your account. Your royalties will sit in an unmatched account.
• 75-day delay: Royalties are distributed approximately 75 days after the end of each monthly usage period. This is faster than most PROs (which distribute quarterly) but still involves a delay.
• Historical unmatched royalties: If your music was streamed between 2007 and 2020 and you were not registered with a mechanical rights administrator at the time, those royalties were transferred to The MLC as historical unmatched royalties. You may be able to claim them, but the process is ongoing.
• New organization: The MLC has only been operating since 2021. While it has processed over $4 billion in royalties, the organization is still developing its tools and processes.

Compare The MLC with Other PROs

• ASCAP - US performing rights organization
• BMI - US performing rights organization, largest by membership
• SESAC - US invitation-only performing rights organization
• SoundExchange - US digital performance rights (neighboring rights) organization
• Harry Fox Agency (HFA) - US mechanical licensing agency for physical and downloads
• Full PRO Directory - Browse all performing rights organizations

Related Resources

• PRO Directory - Browse performing rights organizations worldwide
• PRO Comparison Guide - Compare US and international PROs
• Best Royalty Collection Services for Independent Artists - Compare collection options
• Streaming Royalty Calculator - Estimate your streaming earnings
• The MLC Official Website - Register and manage your account
• The MLC Blanket Royalties Dashboard - View collection and distribution data
• The MLC FAQ (PDF) - Frequently asked questions