If you’re looking for ways to earn more from your music, you might have heard of mechanical royalties. These royalties are generated from the same streams your distributor is paying you for in the form of recording royalties – you just need to take the right steps to collect them.
In this article, you’ll learn everything you need to do to collect your mechanical royalties.
KEY TAKEAWAYS:
- Mechanical royalties are generated from uses of a song’s composition, such as eligible streams, downloads, and physical copies.
- In the U.S., The Mechanical Licensing Collective (The MLC) collects digital mechanical royalties from eligible streaming and download services.
- CD Baby artists can collect U.S. mechanical royalties by adding CDB Boost to their releases.
What are mechanical royalties?
A song has two forms of copyright: one for the sound recording — the particular recorded performance — and one for the composition — the music and lyrics. Mechanical royalties are payments for reproductions of the composition, including physical copies, downloads, and “interactive, on-demand” streams .
Streaming on platforms like Spotify and Apple can generate more than one kind of royalty. CD Baby automatically pays you recording royalties (for use of the sound recording), but the stream may also generate mechanical and performance royalties for the composition. Each payment goes through a different collection path.
Mechanical royalties are usually paid to the songwriters and/or publisher. If a song has multiple writers, each writer’s share depends on the agreed songwriting splits.
Why are they called mechanical royalties?
The name dates back to a time when music was reproduced by machines. In the early 1900s, player pianos used perforated rolls to reproduce musical compositions. Congress’s 1909 Copyright Act introduced a compulsory mechanical license, allowing certain reproductions of a composition if the license requirements were met. The term stuck as music moved from piano rolls to records, CDs, downloads, and streams.
Who gets paid mechanical royalties?
Mechanical royalties are owed to the people or businesses that own or administer rights in the composition. That could include:
- Songwriters, composers, and lyricists
- Music publishers
- Publishing administrators
- Other composition rights holders
If you wrote and own a song, you’re entitled to its mechanical royalties. If you co-wrote it, you’re generally entitled to your agreed share. Accurate song titles, writer names, ownership shares, and other metadata help collection organizations match reported uses to the right people and works. Before release, double-check your track metadata, then keep it accurate and consistent across your distributor and royalty collection accounts.
If you recorded someone else’s song, the original songwriters and composition rights holders are generally owed the mechanical royalties for that composition. Your recording may earn separate sound recording royalties through your distributor.
How do I collect mechanical royalties?
In the U.S., The Mechanical Licensing Collective (The MLC) administers blanket mechanical licenses for eligible streaming and download service platforms like Spotify and Apple Music. These platforms report usage of songs and pay royalties to The MLC, which pays out royalties to registered members accordingly.
If you’re a CD Baby artist, you can collect mechanical royalties using our add-on service, CDB Boost, which registers your music with The MLC.
Note that CDB Boost’s mechanical royalty collection through The MLC covers eligible U.S. streaming uses. Though CDB Boost is open to songwriters everywhere, it doesn’t include global mechanical royalty collection. If you have substantial streaming numbers outside the U.S., consider using a global music publishing administrator like Songtrust.
Frequently asked questions
Are mechanical royalties included in my distributor’s streaming payment?
Not automatically. Your distributor pays the sound recording share, but mechanical royalties are for the composition and are collected through a different system. In the U.S., eligible digital mechanicals are collected by The Mechanical Licensing Collective. CD Baby artists can collect mechanical royalties with CDB Boost.
Does The MLC collect mechanical royalties worldwide?
No. The MLC administers mechanical licenses for eligible streaming and download services in the United States. Songwriters outside the U.S. can still receive royalties from U.S. services, but international uses may require other collection arrangements.
Do I earn mechanical royalties if I record a cover song?
The composition’s rights holders — the original songwriters and publishers — are generally owed mechanical royalties when their song is reproduced or streamed. As the artist recording the cover, you may earn royalties for your sound recording, but that is a separate copyright and payment.
Do mechanical royalties include radio play and live performances?
Mechanical royalties are different from performance royalties. Public performances of a composition, including many radio broadcasts and live performances, can generate performance royalties. In the U.S., songwriters generally collect those through a Performing Rights Organization (PRO), such as ASCAP, BMI, or SESAC.
How can I help make sure my songs are matched correctly?
Keep your song data current: titles, writer names, ownership shares, and other registration details should be consistent. If you co-wrote a song, confirm that you and your collaborators agree on the splits. Then check your collection accounts and statements for missing or unmatched songs.
Ready to collect your mechanical royalties?
Sign up or log into your CD Baby account today, add CDB Boost to your upcoming or existing releases, and start earning more from your music.