Why indie songwriters should know about The Mechanical Licensing Collective

The process of collecting royalties, especially as an independent songwriter, can be difficult to navigate. With the rise of digital streaming platforms (DSPs), songs have the ability to reach so many more listeners than they ever had before. The rise of DSPs has also created a new category of royalties — digital audio mechanical royalties. Here’s what independent musicians need to know about royalty payments and how The Mechanical Licensing Collective (The MLC) can help.

Royalties are payments made to rightsholders when their copyrighted music is used. There are different types of royalties, depending on how a song or recording is used.

Songwriters can earn different types of royalties, including performance royalties when their songs are performed publicly and mechanical royalties when their songs are reproduced, including through eligible streams and downloads.

Performing rights organizations (PROs), such as BMI, ASCAP and SESAC, collect performance royalties for songwriters and music publishers. The MLC collects and distributes U.S. digital audio mechanical royalties on streaming services, such as Spotify and Apple Music, when music is streamed or downloaded.

Naturally, that raises some questions, like, “What is The MLC?" and "How do they make sure I get paid for streams or downloads through digital platforms?"

Since January of 2021, The MLC collects and distributes royalties from digital music platforms by matching data on music usage and listening activity with rightsholders and distributing royalties to said rightsholders.

To make sure you get these royalties for all digital use of your music, you can become a Member of The MLC. Becoming a Member is free, and The MLC will give you 100% of the royalties you deserve without charging extra fees.

Songwriters have two options depending on how their music is managed:

1. If you administer your songs independently, your membership at the MLC will allow you to review your ownership shares and register songs that are not already in The MLC’s database.

One important note: Take a moment to check that your name, IPI number and other song information are accurate and up to date. Keeping this information current helps The MLC identify your songs and match royalties to the correct rightsholders based on the information reported by digital services.

Connecting with The MLC allows you to review recordings associated with your songs, suggest potential matches for unmatched recordings, and claim your ownership shares in songs.

2. If you work with a publisher or an administrator, you can manage your song data through the Songwriter Hub. The Songwriter Hub allows you to view and organize your song catalog so you can review it with your publisher or administrator. It also lets you review ownership information and identify potential issues with your song registrations. You can also use available tools to help identify recordings that may match your songs and review your information, including your IPI number.

Another important note: If your song’s ownership information is missing or incomplete, The MLC might not be able to help you match listening activity data to your songs.

Whether you are administering your music yourself or you are working with a publisher, it’s critical to understand where all of your royalties go. If you do not claim all your royalties, or your royalties are unmatched, The MLC will do what they can to ensure digital mechanical royalties are matched with the correct rightsholder.

However, if royalties remain unmatched or unclaimed, they may be included in future market share distributions. The MLC's monthly market share distributions will begin in April 2027, starting with royalties from 2021, and will continue on an ongoing basis. To learn more about market share distributions and the steps you can take today, visit The MLC's Market Share page.