The New Music Business with Ari Herstand cover image

Understanding How Digital & Physical Mechanical Royalties Work

The New Music Business with Ari Herstand

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Understanding Mechanical Royalties and the Mechanical Licensing Collective (MLC)

The chapter explores the intricacies of mechanical royalties in the music industry, detailing how royalties for sound recordings are calculated and distributed using a four-part formula. It delves into the role of the Mechanical Licensing Collective (MLC), a nonprofit organization that manages compulsory mechanical licenses for streaming services. The chapter also explains the process of splitting song royalties among songwriters and producers, covering aspects such as ownership percentages, registering as a publisher with the MLC, and ensuring proper allocation of royalties.

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