If you want to be a professional songwriter, you need to know how to get paid. To do that, you have to learn to navigate the intricacies of copyrights and royalty payments. An essential element of the copyright landscape is mechanical rights, which basically means the right to make copies of a song you wrote.
By understanding these rights, you can ensure the legal protection of your music and that you receive the royalties you deserve. In this article, we'll break down what mechanical rights are and explain why they are important to your music career.
What Are Mechanical Rights?
In the simplest terms, mechanical rights refer to the legal clearance to reproduce a song or musical composition. Whenever a song you wrote gets reproduced and sold, you're owed a piece of the profits, called a royalty payment.
Mechanical rights must be secured when reproducing music in both physical and digital formats. For example, you are owed royalties when:
- A record label presses CDs or vinyl records of your music
- Platforms like Spotify stream your music
- Another artist samples or covers your song
Mechanical royalties are one of the primary ways songwriters and composers earn money. While it may not be life-changing cash at first, this passive income can add up over time. It’s your money, and it’s worth collecting. Take the time to figure it out.
The Evolution of Mechanical Rights
The concept originated in the early 20th century with the rise of physical music formats like piano rolls and phonograph records. The term “mechanical” referred to the mechanical reproduction of music for these devices. To protect composers and songwriters, laws were established to ensure payment whenever their work was reproduced.
Today, mechanical rights have evolved to include digital formats, dedicated streams, and downloads. The 2018 Music Modernization Act (MMA) officially brought digital music under the umbrella of mechanical rights. As technology evolves, expect the definition of mechanical rights to continue expanding to include new forms of audio media.
Mechanical Rights vs. Performance Rights
It’s important not to confuse mechanical rights with performance rights. Mechanical rights specifically relate to reproducing your work, while performance rights apply to situations like:
- Playing your song on the radio
- Performing your song at a concert
- Broadcasting your music in clubs or restaurants
You can learn more about performance rights in this post.
Mechanical Rights Organizations
As an individual artist, you can't track every reproduction of your song. Fortunately, Mechanical Rights Organizations (MROs) specialize in this task. These organizations:
- Negotiate licensing deals with companies that reproduce your music
- Collect usage reports and royalties
- Distribute royalties to you or your publisher
In the US, the primary MRO is the Harry Fox Agency (HFA). The 2018 MMA also created the Mechanical Licensing Collective (MLC), which focuses specifically on digital music and streaming royalties.
When Spotify streams your music or iTunes sells a digital download, the MLC ensures you receive the appropriate royalties. For international distribution, other MROs collaborate with the MLC to streamline global royalty collection.
Emerging Platforms
New platforms like TikTok are reshaping how music is used and monetized. For example, if your song becomes a viral trend on TikTok, the platform must secure mechanical rights and pay royalties
AI-generated content also introduces new challenges for copyright holders, making it essential to stay informed about how your work is protected.
Mechanical Rights and Publishing
Keeping track of royalties can be overwhelming. Most professional songwriters partner with experienced publishers to handle this process. When you sign with a publisher, they become the mechanical rights holder of your work. This allows them to:
- Register your songs with MROs locally and globally
- Negotiate licensing agreements
- Track your music
- Ensure you're paid royalties owed
Most publishing deals include a 50/50 revenue split between the artist and the publisher. Always read contracts carefully to understand how rights and revenue will be managed. Partnering with a trustworthy publisher can be one of the most important steps in your music career.
Calculating Mechanical Royalties
The royalty amount owed depends on the audio format used. For physical media (like CDs) and digital downloads, copyright holders receive 12.4 cents per use or 2.38 cents per minute of playing time, whichever is larger.
Streaming platforms calculate royalties differently. Platforms like Spotify and others pay the MLC a percentage of their revenue, and then the MLC calculates and distributes royalties based on usage data. While streaming royalties are often lower per use, they can add up significantly over time with consistent plays.
Final Word
Mechanical rights are a crucial part of the music industry’s royalty system. While the topic may seem complex at first, understanding these rights is essential for protecting your work and maximizing your income. Whether your music is being streamed online, pressed onto CDs, or covered by other artists, mechanical rights ensure you’re paid what you’re owed.
If you’re an aspiring artist seeking help with publishing and distribution, Sugo Music Group is here to help. With over 40 years of experience, Sugo has been helping artists publish and distribute music worldwide. By partnering with us, you can get your music the exposure it deserves and build the career you’ve always envisioned.
