Mechanical Licensing & The MLC: The Digital Royalty Revolution
In the physical world, a mechanical license was simple: a label paid a songwriter for every CD or Vinyl manufactured. But in the streaming world, where millions of songs are played every second, how does the money find its way to the right composer? Enter Mechanical Licensing and the MLC.
1. What are Mechanical Royalties?
Mechanical royalties are paid to songwriters and publishers for the reproduction of a musical work. Every time your song is streamed on Spotify, Apple Music, or Tidal, a digital "reproduction" occurs, and a mechanical royalty is due.
2. What is The MLC?
The Mechanical Licensing Collective (The MLC) is a nonprofit organization designated by the U.S. Copyright Office to collect and distribute digital mechanical royalties. It was created by the Music Modernization Act of 2018 to solve the problem of "unmatched" royalties—money that was sitting in bank accounts because labels couldn't find the songwriters.
3. The MLC vs. PROs (ASCAP/BMI)
This is a common point of confusion. Here is the split:
- PROs (ASCAP/BMI): Collect Performance Royalties (radio, live venues, background music).
- The MLC: Collects Mechanical Royalties (streaming, downloads).
Crucial: To get all your money, you must be registered with BOTH.
4. How to Register with The MLC
If you are a self-published songwriter, you can register directly at themlc.com. You will need to provide your song metadata, including ISWCs and songwriter shares. If you use a publishing administrator like Songtrust or TuneCore Publishing, they usually handle this for you.
Conclusion
The MLC has revolutionized how independent songwriters get paid. By understanding how mechanical licensing works, you ensure that every stream of your music contributes to your income. Don't leave your royalties "unclaimed"—get registered today.