The Mechanical Licensing Collective (MLC) and Streaming Royalties for Songwriters

If you have songs on Spotify, Apple Music, or Amazon Music in the U.S, you likely have mechanical royalties that the Mechanical Licensing Collective can pay. The MLC issues blanket mechanical licenses to eligible streaming services in the United States and then collects the royalties generated. You do not pay to use the MLC. Services that use the MLC fund the nonprofit organization.

Understanding the MLC

The MLC is a nonprofit organization designated by the U.S. Copyright Office to administer blanket mechanical licenses to eligible digital service providers. It was created by the Music Modernization Act in 2018 and launched in January 2021. The National Music Publishers’ Association, the Nashville Songwriters Association International, and the Songwriters of North America endorsed its mandate to collect mechanical royalties from streams.

What is the Mechanical Licensing Collective?

The Mechanical Licensing Collective issues blanket mechanical licences for qualified streaming services in the U.S and then pays the songwriter, composer, lyricist, and music publishers owed. It operates a single blanket mechanical system so DSPs report usage once, not title by title. The MLC does not collect performance royalties. It focuses on digital mechanical royalties from interactive stream activity and downloads.

The Role of the MLC in Music Publishing

 

The MLC built a public musical works database and a creator and publisher portal that music publishers and administrators can utilize. You register with the MLC, supply identifiers (IPI, ISWC, ISRCs), splits, and publisher info, and it matches DSP-reported stream data to your songs. It calculates royalties due under those licenses and distributes monthly. This reduces unmatched usage (“black box”) that previously sat with digital service providers.

Process	Details
Registration & Data	Provide identifiers (IPI, ISWC, ISRCs), splits, and publisher information in the MLC portal
Matching & Payment	MLC matches DSP-reported streams to songs, calculates royalties, and distributes monthly, reducing “black box” usage

 

How the MLC Affects Songwriters

The MLC collects and pays mechanical streaming royalties each month to registered members, without charging songwriter members. As of October 2022, it had distributed almost $700,000,000. If you stream in the U.S on Spotify, Apple Music, or Amazon Music, the MLC can collect the royalties for your compositions. If you are outside the U.S, you can still claim via your local collecting society or use UniteSync to streamline registrations and data delivery, as the MLC covers a limited scope.

Mechanical Royalties Explained

Mechanical royalties pay you when your composition is reproduced, not when it is publicly performed. In the U.S, the Mechanical Licensing Collective, a nonprofit organization designated by the U.S Copyright Office, administers blanket mechanical licenses to eligible digital service providers like Spotify, Apple Music, and Amazon Music, then collects the royalties generated and pays songwriters and music publishers monthly.

Types of Mechanical Royalties

Interactive streams in the U.S generate digital mechanical royalties that the MLC collects; downloads and physical sales also generate mechanicals but are outside MLC’s non-U.S/physical scope. Downloads like mp3 sales and physical sales like vinyl also generate mechanical royalties, though the MLC does not collect for physical or non-U.S usages, non-interactive streaming, public performance, audiovisual syncs, or lyrics.

How Streaming Affects Mechanical Royalties

Every interactive stream creates a reproduction, so a mechanical royalty is due. Eligible digital service providers that use the MLC send usage data and royalties each month under the blanket mechanical licences, and the MLC matches that data to works and pays the royalties due under those licenses to the right songwriter or publisher in the U.S.

The Music Modernization Act and Its Impact

The Music Modernization Act of 2018 created the MLC and centralized reporting so DSPs report once, reducing unmatched usage. This centralized reporting means digital service providers report once, not title by title, which reduces unmatched usage and helps the MLC collect and pay mechanical streaming royalties more efficiently to music creators and music publishers each month.

Registering with the MLC

If you have streams in the U.S, register with the MLC or ensure your administrator has registered your works. You can use the MLC Portal’s Member Hub to register songs, supply identifiers like IPI, ISWC, and ISRC, set splits, and confirm publisher details so the MLC can collect the royalties and distribute accurate streaming royalties.

Steps to Register as a Songwriter

 

Create a Member account, register each work, and check the public database for duplicates. If you use Songtrust or TuneCore Publishing, they register with the MLC on your behalf, but you should still verify splits and recordings linked to each composition.

Action	Details
Create a Member account	Register each work and check the public database for duplicates
Using Songtrust or TuneCore Publishing	They register with the MLC on your behalf; verify splits and recordings for each composition

 

Benefits of Registering with the MLC

Registration enables accurate matching and monthly payments; membership is free for songwriters and publishers. Membership is free for songwriters and publishers, includes dashboards with royalty data, and pays monthly, which gives you visibility into royalties generated and what the MLC does not collect.

Collecting Royalties through the MLC

The MLC pays monthly under blanket mechanical licenses from eligible U.S streaming services. It began paying in January 2021 and had distributed almost $700,000,000 by October 2022. If you are outside the U.S, you can claim via your local collecting society through reciprocal agreements or use UniteSync to streamline registrations and monthly payouts.

Streamlining the Process for Foreign Songwriters

Foreign songwriters can collect U.S digital mechanical royalties without moving to the U.S. The Mechanical Licensing Collective, a nonprofit organization designated by the U.S Copyright Office, pays mechanical streaming royalties monthly to Members. You can use reciprocal agreements through your local collecting society or replace slow workflows with an admin tech company for faster data delivery and payouts in the music business.

Reciprocal Agreements with Local PROs

 

Most non-U.S societies have reciprocal agreements that route MLC royalties back to you. In France, SACEM works alongside SDRM, in Japan JASRAC, in Spain SGAE, and in Latin America networks like LATINAUTOR coordinate distribution. You register works, including IPI, ISWC, and linked ISRCs, and your society claims from The MLC via these agreements to ensure that mechanical royalties to rights holders are accurately distributed.

Region/Country	Organization(s) involved in the music business play a crucial role in managing rights and royalties.
France	SACEM and SDRM
Japan	JASRAC
Spain	SGAE
Latin America	LATINAUTOR (network)

Register works with identifiers such as IPI, ISWC, and linked ISRCs so your society can claim from The MLC through these agreements.

 

Replacing Traditional PROs with Admin Tech Companies

Admin tech companies can register directly with the MLC to reduce mismatches and speed payouts, ensuring that all mechanical royalties to rights holders are properly accounted for. You keep your local performance royalties with your society, while music publishers and administrators handle mechanical licenses to eligible streaming services in the United States. This reduces mismatches, shortens lag, and centralizes music publishing data and splits.

Monthly Payouts and Financial Benefits

The MLC’s monthly payouts improve cash flow compared to some societies’ slower cycles. By October 2022, the MLC had paid almost $700,000,000 in blanket royalties to songwriters and music publishers from Spotify, Apple Music, and Amazon Music usage. Direct registration helps you collect the mechanical royalties to rights holders due under those licenses with fewer intermediaries and clearer statements.

Bringing Clarity to Digital Mechanical Royalties

Digital mechanical royalties are triggered by reproductions (including interactive streams), not performances, as defined in the music business. Each interactive stream on Spotify, Apple Music, Amazon Music, or Tidal is a reproduction, so a mechanical royalty is due. Downloads like mp3 purchases and physical sales also generate mechanical royalties, though the MLC does not collect outside U.S interactive streams and U.S downloads.

Understanding Digital Mechanical Royalties

The MLC collects U.S interactive streaming mechanicals; performance royalties are separate and handled by PROs like ASCAP/BMI. A mechanical royalty is paid every time a song is reproduced, including each stream on an interactive platform. The MLC collects and pays mechanical interactive streaming royalties generated by eligible Digital Service Providers, often called DSPs, in the U.S. Downloads also count, while performance royalties are separate and handled by collecting societies like ASCAP, BMI, PRS, or SACEM.

How to Collect Royalties Generated from Streaming

Register your works and identifiers in the MLC Member Hub so reported usage can be matched and paid monthly. The MLC issues and administers blanket mechanical licenses to eligible DSPs in the United States. DSPs report usage and fees each month, and the MLC matches data to your registered works, then pays you or your publisher, ensuring you receive royalties efficiently. You register with the MLC in the Member Hub, add ISWC, ISRC, IPI, titles, and splits, then monitor royalties generated from U.S streams.

The Future of Mechanical Royalties in the Music Biz

The MLC’s data initiatives aim to reduce unmatched usage and speed payments to creators. The MLC was founded to fix unpaid mechanicals by centralizing data and payments. Its Data Quality Initiative, launched in 2020 with four music data companies, and the 2023 Supplemental Matching Network with five firms, aim to reduce unmatched usage. Better matching means more accurate statements and faster routes for independent songwriters to collect and pay mechanical royalties.

Verify your catalog and fill data gaps (ISRC, ISWC, IPI) against the MLC’s public database to ensure U.S streaming royalties flow and that no unclaimed royalties oversight committee is necessary. We can automate the comparison and register gaps so U.S streaming royalties start flowing on the next monthly cycle.