What Are Mechanical Royalties?

Mechanical royalties are a type of music royalty paid to the songwriter and music publisher whenever a song is reproduced or 'mechanically' copied. The term comes from the early 1900s when music was reproduced on player piano rolls — a mechanical process.

Today, mechanicals apply to: physical sales (CDs, vinyl), permanent digital downloads (iTunes purchases), and on-demand streaming (Spotify, Apple Music, Tidal). Every time someone streams your song, a mechanical royalty is generated in addition to the performance royalty.

In the United States, the statutory mechanical rate for physical and download reproductions is set by the Copyright Royalty Board. For streaming, the rate is calculated using a complex formula based on total streaming revenue. In 2024, the on-demand streaming mechanical rate is approximately 15.1% of total content costs.

Mechanicals are separate from performance royalties. Performance royalties (collected by PROs) cover public performance. Mechanical royalties cover reproduction. If you wrote the song and recorded it, you are owed both types.

The Mechanical Licensing Collective (The MLC) administers mechanical royalties for digital streaming in the US. Publishers and self-published songwriters must register their works with The MLC to receive these payments.