What the Mechanical Licensing Collective Does

The Mechanical Licensing Collective (MLC) is a nonprofit organization that collects royalties when songs are reproduced — that is, when they are mechanically copied onto recordings, streamed, or downloaded. It was created by the Music Modernization Act, which Congress passed in 2018, and began operating in 2021. The MLC acts as a middleman between the services that use music (Spotify, Apple Music, YouTube, and others) and the songwriters and music publishers who own the rights to those songs.

Before the MLC existed, songwriters and publishers had to register with multiple licensing agencies and track down payments themselves. The MLC centralizes that process. When a streaming service or digital retailer needs permission to reproduce a song, they report the use to the MLC, which then distributes the money to the songwriters and publishers who own the mechanical rights. The MLC does not set the royalty rates — those are determined by the Copyright Royalty Board, a government body — but it handles the collection and distribution.

The MLC maintains a database called the Mechanical Licensing Collective Unclaimed Royalties Database, which is public and searchable. If royalties cannot be matched to a known rights holder, they sit in this database until someone claims them. This is one of the MLC's most visible functions for individual songwriters.

Key Takeaways

  • The MLC collects mechanical royalties from streaming and read services and distributes them to songwriters and music publishers who own reproduction rights.
  • You do not have to register with the MLC to receive royalties, but registration ensures payments reach you rather than sitting unclaimed.
  • The MLC maintains a public database of unclaimed royalties that you can search by song title or songwriter name.
  • Mechanical royalties are separate from performance royalties (which go to ASCAP, BMI, and SESAC) and are based on rates set by the Copyright Royalty Board, not negotiated individually.
  • If you own a song's mechanical rights, you can register directly with the MLC or authorize a music publisher to represent you.

How Mechanical Royalties Differ From Performance Royalties

Many songwriters confuse mechanical royalties with performance royalties, but they are two separate streams of payment. Performance royalties are paid when a song is performed publicly — played on the radio, streamed, performed live in a venue, or broadcast on television. These are collected by performing rights organizations like ASCAP, BMI, and SESAC. Mechanical royalties are paid when a song is reproduced — copied onto a recording, downloaded, or streamed in a way that creates a permanent or semi-permanent copy.

In practice, the line between these two is blurry for streaming services. When you stream a song on Spotify, Spotify pays both a performance royalty (to the performing rights organization) and a mechanical royalty (to the MLC or directly to the publisher). The songwriter receives both payments, but they come through different channels and are calculated differently. Performance royalties are based on blanket licenses negotiated between the streaming service and the performing rights organization. Mechanical royalties are based on statutory rates set by the Copyright Royalty Board.

If you are a songwriter, you should be registered with both a performing rights organization and the MLC (or have a publisher who is). Missing either one means leaving money on the table.

Who Owns Mechanical Rights and How Registration Works

The person or entity that owns the mechanical rights to a song is usually the music publisher, but it can also be the songwriter if they have not signed away those rights. If you wrote a song and have not assigned the publishing to anyone else, you own the mechanical rights. If you signed a publishing deal, your publisher likely owns them, though the contract may specify that you retain a percentage.

To register with the MLC, you go to their website and create an account. You will need to provide information about the songs you own or control — the title, the writers, the publishers, and the International Standard Recording Code (ISRC) if you have one. The MLC will then match your registration to the songs in their database and begin routing royalties to you. Registration is free and takes a few minutes per song, though the MLC's matching process can take weeks.

If you are a songwriter but do not own the publishing, you cannot register directly with the MLC. Instead, your publisher registers on your behalf, and they distribute your share of the royalties to you according to your contract. If you are unsure who owns the publishing to your songs, check your publishing agreement or contact the publisher directly.

Searching and Claiming Unclaimed Royalties

The MLC's Unclaimed Royalties Database is searchable by anyone and contains royalties that the MLC has collected but cannot match to a registered rights holder. This happens when a song is used but the MLC's records do not have current contact information for the owner, or when the owner has not registered with the MLC at all. Unclaimed royalties can sit in this database for years.

To search the database, go to the MLC website and use their search tool. You can search by song title, songwriter name, or publisher name. If you find royalties that belong to you, you will need to register with the MLC and provide proof that you own or control the mechanical rights to that song. The proof usually means a copy of your publishing agreement, a copyright registration from the U.S. Copyright Office, or a statement from your publisher confirming your ownership.

Once you register and submit proof, the MLC will transfer the unclaimed royalties to your account. The process typically takes several weeks. Note that unclaimed royalties do not expire — they remain in the database indefinitely, so there is no rush to claim them, though claiming them sooner means you receive the money sooner.

How Royalty Rates Are Set and What You Receive

The MLC does not negotiate royalty rates with streaming services. Instead, rates are set by the Copyright Royalty Board (CRB), a panel within the Library of Congress that holds hearings every few years to determine what services must pay for mechanical licenses. The current rates, which took effect in 2023, are approximately $0.091 per stream for interactive streaming services like Spotify and Apple Music, though this rate changes periodically and varies slightly by service.

What you actually receive depends on how the royalties are split. If you are the sole writer and publisher of a song, you receive 100 percent of the mechanical royalty. If the song has multiple writers or if you have assigned publishing to someone else, the royalty is divided according to the splits registered with the MLC. For example, if you wrote 50 percent of a song and a co-writer wrote the other 50 percent, you each receive half of the mechanical royalty for that song.

Mechanical royalties are typically paid quarterly, though the MLC may hold back a small percentage to cover administrative costs and to account for disputed claims. The exact payment schedule and any holdback percentage should be detailed in your MLC account settings.

What Happens if You Do Not Register

If you own mechanical rights but do not register with the MLC, the royalties still accumulate — they just sit unclaimed in the MLC's database. Streaming services and digital retailers are required by law to report their use of songs to the MLC and to pay the statutory rate, whether or not the rights holder is registered. The MLC holds the money until you claim it.

The downside of not registering is that you may not know the royalties are there, and you will not receive them until you actively search for them and claim them. Additionally, if your song is used by multiple services over several years, the unclaimed royalties can grow to a significant amount, and you will have to provide documentation to claim them all at once. Registering upfront is simpler and ensures you receive payments automatically as they accrue.

If you are a songwriter whose publisher handles registration, you do not need to do anything — your publisher will register the songs and distribute your share to you according to your contract. However, you should confirm with your publisher that they have registered your songs with the MLC, because some smaller publishers have been slow to do so.

The MLC's Role in the Broader Music Licensing System

The MLC is one piece of a larger system that includes performing rights organizations, record labels, and digital service providers. Understanding where the MLC fits helps clarify what it does and does not do. The MLC handles mechanical licenses only — the right to reproduce a song. It does not handle master recordings (the actual audio files), which are owned by record labels and generate separate royalties paid directly by streaming services.

When you stream a song on Spotify, multiple royalties are generated: a mechanical royalty (paid to the MLC), a performance royalty (paid to ASCAP, BMI, or SESAC), and a master royalty (paid to the record label or distributor). The songwriter receives the mechanical and performance royalties. The artist and label receive the master royalty. These are three separate transactions, and understanding which one the MLC handles is important for tracking your income as a songwriter.

The MLC also does not handle synchronization licenses, which are the rights to use a song in a film, TV show, advertisement, or video game. Those are negotiated directly between the copyright holder and the user, and the MLC has no role in them.

Frequently Asked Questions

Do I have to register with the MLC to get paid mechanical royalties?

No. Streaming services and digital retailers are required to pay the statutory mechanical rate whether you are registered or not. However, if you are not registered, your royalties sit unclaimed until you search for them and claim them. Registering ensures you receive payments automatically as they accrue.

What is the difference between the MLC and my performing rights organization?

The MLC collects mechanical royalties (paid when a song is reproduced or streamed). Your performing rights organization (ASCAP, BMI, or SESAC) collects performance royalties (paid when a song is performed publicly). Both explore to streaming, so you should be registered with both.

Can I search for unclaimed royalties if I am not the songwriter?

Yes, the MLC's Unclaimed Royalties Database is public and searchable by anyone. However, you can only claim royalties if you own or control the mechanical rights to the song. If you are a co-writer or publisher, you can claim your share.

How long does it take to receive royalties after I register with the MLC?

The MLC typically processes registrations within a few weeks, and royalties are paid quarterly. If you are claiming unclaimed royalties, the process may take longer because you will need to provide proof of ownership. Once your registration is complete, future royalties are paid on the regular quarterly schedule.

What if my publisher registered my songs with the MLC but I want to register myself?

Contact the MLC directly to explain the situation. If both you and your publisher are registered for the same song, the MLC will need to resolve the conflict. In most cases, the publisher's registration takes precedence if they own the publishing rights, but the MLC can help clarify who should be registered based on your publishing agreement.