Quick Definition
Mechanical royalties are payments owed to songwriters and publishers whenever a musical composition is "reproduced" mechanically. Today, this includes physical formats (CDs, Vinyl) as well as digital streams and downloads.
Mechanical Royalties Explained
The term "mechanical" dates back to player pianos, but now it primarily applies to interactive streaming (Spotify, Apple Music). Every time a user chooses to play a song, they are technically reproducing the composition. This triggers a mechanical royalty payment, which is separate from the performance royalty.
In the US, these are often collected by the Mechanical Licensing Collective (The MLC) for digital, and Harry Fox Agency (HFA) for physical. In most other countries, a single PRO/CMO (like PRS or GEMA) collects both mechanical and performance royalties.
Why Mechanical Royalties Matter
For songwriters, mechanicals are a major income source. If you write your own songs but only collect performance royalties (via ASCAP/BMI), you are missing out on the mechanical half of your publishing income.
Examples
When a label presses 1,000 vinyl records, they must pay a mechanical royalty fee upfront for each copy. When a user streams that song on Spotify, a fraction of a cent is allocated as a mechanical royalty to the publisher.
How to Collect Mechanicals
Sign up with a Publishing Administrator (like Songtrust, Sentric) or your country's Mechanical Rights Organization (like The MLC in the US or MCPS in the UK). Your standard PRO (ASCAP/BMI) does NOT collect mechanicals.
Related Terms
See also: Performance Royalties, Publishing Rights, The MLC, Split Sheet.
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