What Are Mechanical Royalties?

A Breakdown of Mechanical Royalties

In the world of music creation, understanding how you get paid is crucial. That's where mechanical royalties come in. They compensate songwriters and publishers whenever their music is reproduced in physical or digital formats. Think CDs, vinyl records, and digital downloads or streams.

How Mechanical Royalties Work:

• When a recording artist records a song, they need permission from the songwriter/copyright holder to reproduce the musical composition. This permission comes in the form of a mechanical license.
• When the recording is sold or streamed, a mechanical royalty is paid to the songwriter/publisher for each copy sold or streamed.
• The current rate in the US is 9.1 cents per reproduction for compositions over 5 minutes, adjusted annually.

Who Gets Paid Mechanical Royalties?:

• Mechanical royalties are typically split between:
  • Songwriters: Creators of the melody, harmony, and lyrics.
  • Publishers: Represent songwriters, negotiate licenses, and handle administrative tasks.
  • Split sheets: These documents outline the exact percentage share each party receives.

Important Points about Mechanical Royalties:

• Mechanical royalties are distinct from performance royalties, which compensate creators for public performances of their music (e.g., radio plays, concerts).
• The Harry Fox Agency (HFA) is a major organization facilitating mechanical licensing in the US for digital music.
• In the US, streaming services like Spotify and Apple Music pay mechanical royalties directly to licensing organizations like HFA, who then distribute them to creators based on their agreements.

Understanding mechanical royalties equips you to navigate the music industry confidently, ensuring fair compensation for your creative work.

Additional Resources:

• US Copyright Office: https://www.copyright.gov/
• The Harry Fox Agency: https://www.harryfox.com/index.jsp
• ASCAP (American Society of Composers, Authors and Publishers): https://www.ascap.com/
• BMI (Broadcast Music, Inc.): https://www.bmi.com/