If you ever wondered how songwriters get paid from their streams, look to The Mechanical Licensing Collective (MLC).
The MLC is the organization in the United States responsible for handling digital mechanical royalties for streaming services. Born from the passing of the Music Modernization Act in 2018, its creation was a huge step in the right direction in correcting a major problem in the music industry: where songwriters weren’t getting paid correctly for streams and digital downloads of their music.
What does The MLC do?
Issue mechanical licenses to streaming platforms so they can legally use music.
Collect and pay out mechanical royalties to songwriters, composers, lyricists, and publishers.
Maintain a public database that shows who owns what, so that payments go to the right people
The MLC is free for songwriters and publishers, as it is funded by the streaming platforms themselves. Companies like Spotify, Apple Music, and Amazon Music are required by law to fund the MLC’s setup and daily operations, which administers the songwriter royalties on behalf of those streaming platforms.
How songwriters can get the most out of the MLC:
Sign up for a free MLC account. If you self-administer your publishing, this is how you receive your streaming mechanical royalties. If you have a publisher, they will do this on your behalf.
Register your songs correctly. Make sure titles, splits, writers, publishing info, and ISRCs are accurate. Mistakes create delays.
Check for unmatched royalties. The MLC sometimes holds money when it can’t find the right owner. If you have music released to the streaming services, you might be owed some.
Update your info often. New songs, new splits, or catalog changes need to be added.
Remember: The MLC only pays digital mechanical royalties. You still need ASCAP, BMI, or SESAC for performance royalties, and the record labels are still responsible for physical mechanical royalties.
