Rhythm & Brands

Lesson 6: The MLC and Your Mechanical Royalties

Outcome. Register with the Mechanical Licensing Collective and claim the digital mechanical royalties owed on your works.

Mechanical royalties are paid for the right to use a song in phonorecords: physical copies, downloads and interactive streams. For physical and download the rate is a set number of cents per copy.

Section 115 of the Copyright Act creates a compulsory mechanical licence, which means a copyright owner generally cannot refuse it. For digital uses, the Mechanical Licensing Collective is the body designated to collect and distribute those royalties, which it began doing in 2021.

To be paid you need three things true at the MLC: your works registered in its database, those works matched to the recordings being streamed, and you identified as owner or co owner, with your payment and tax details on file.

Registering with the MLC does not stop you affiliating with anyone else. Voluntary licensing continues alongside it under the Music Modernization Act.

What you will produce

A completed MLC registration with your works claimed and matched, and your payment details on file.