The MLC (Mechanical Licensing Collective) Explained

The MLC (Mechanical Licensing Collective) collects digital mechanical royalties from streaming platforms on behalf of songwriters and publishers. If you have released music and are not registered with The MLC, you are leaving money uncollected. The royalties exist. They are sitting in a pool. Without registration, you cannot claim them.

This guide explains what The MLC does, how it differs from other collection organizations, how to register, and why it matters for every artist who writes their own songs.

What Mechanical Royalties Are

Every recorded song involves two copyrights: the composition (the song as written) and the sound recording (the specific recorded version). These generate separate royalty streams collected by different organizations.

Mechanical royalties come from the composition side. They are generated whenever your composition is reproduced: streamed, downloaded, or pressed to physical formats. The name comes from the era when "reproduction" meant mechanical piano rolls and phonograph records.

For the complete breakdown of every royalty type, see Music Royalties Explained: The 6 Types You Earn.

What The MLC Collects

The MLC specifically collects digital mechanical royalties from interactive streaming in the United States. This includes Spotify, Apple Music, Amazon Music, YouTube Music, Tidal, and other on-demand streaming services.

When someone streams your song on Spotify, that stream generates a mechanical royalty on the composition side. Spotify pays this royalty to The MLC. The MLC distributes it to registered songwriters and publishers.

What The MLC Does Not Collect

Performance royalties. Your PRO (ASCAP, BMI, SESAC) handles these. The MLC and your PRO collect different royalty types from the same streams.

Sound recording royalties from streaming. Your distributor (DistroKid, TuneCore, CD Baby) collects these. This is the payment most artists think of as their "streaming income."

Physical mechanical royalties. Royalties from CDs and vinyl are collected through different mechanisms (Harry Fox Agency or direct licensing).

International mechanical royalties. The MLC only handles US collections. International mechanical royalties are collected by foreign societies.

Three Payments From One Stream

When one fan streams your song once:

1. Your distributor collects the sound recording royalty from Spotify and pays you.

2. The MLC collects the digital mechanical royalty (composition) from Spotify.

3. Your PRO collects the performance royalty (composition) from Spotify.

Three separate payments from three separate organizations for one stream. If you are only registered with your distributor, you are collecting approximately one-third of the total royalty generated.

Why The MLC Exists

Before The MLC, digital mechanical royalties were poorly tracked and massively underpaid. Streaming platforms attempted to license songs directly, but identifying songwriters for millions of tracks proved nearly impossible. Royalties went unclaimed. Lawsuits followed.

The Music Modernization Act of 2018 created The MLC to solve this problem. The MLC launched in 2021 with a blanket license that covers all streaming platforms. Platforms pay mechanical royalties to The MLC. The MLC matches those royalties to registered songs and pays out to rights holders.

How Much The MLC Pays

Digital mechanical royalties from The MLC typically add 15-25% on top of what you receive from your distributor. The exact amount depends on streaming volume, platform mix, and the specific rate calculations.

Example: An artist earning $1,000/month from their distributor might receive an additional $150-$250/month from The MLC for mechanical royalties on the same streams.

For context on how this fits into the broader revenue picture, see Music Publishing: How It Works and When You Need a Publisher.

How to Register

Registration is free and takes about 10 minutes.

Step 1: Create an Account

Go to portal.themlc.com and create a member account. You will need your legal name, email address, tax information (SSN or EIN), and payment information for receiving royalties.

Step 2: Claim Your Songs

Once your account is created, register your songs as "works" in The MLC's database. For each song, provide the title, ISWC code (if you have one), ISRC code (from your distributor), songwriter names and splits, and publisher information if applicable.

If you are your own publisher (most independent artists are), you register as both songwriter and publisher.

Step 3: Verify and Wait

The MLC matches your registered works against incoming royalty payments from streaming platforms. Once matched, royalties flow to your account. Initial payments may take 3-6 months as the matching process completes.

The Unmatched Royalty Pool

Here is why registration urgency matters.

When The MLC receives royalties for songs they cannot match to registered rights holders, those royalties go into a pool of "unmatched" money. The MLC holds this money and attempts to find the owners. After a holding period, unmatched royalties are distributed to other registered publishers based on their market share.

In plain terms: your unclaimed mechanical royalties eventually go to bigger publishers who are registered. Every month you are not registered, your money accumulates in a pool that will eventually be given to someone else.

The MLC has distributed hundreds of millions in previously unmatched royalties. Much of that money went to major publishers because independent songwriters never registered. Orphiq helps you track which songs need registration across collection organizations so nothing falls through the cracks.

The MLC vs. PROs: Understanding the Difference

You need to be registered with both The MLC and a PRO to collect all composition royalties from streaming. They collect different royalty types. One does not replace the other.

Common Misconceptions

"My distributor handles this." Your distributor collects sound recording royalties. They do not collect mechanical royalties on the composition. These are separate.

"My PRO handles this." Your PRO collects performance royalties. Mechanical royalties are a different type, collected by The MLC.

"I have a publishing admin service." Some services like Songtrust or CD Baby Pro register your songs with The MLC on your behalf. Verify whether your service does this. If they do, you are covered. If not, you need to register directly.

"The amounts are too small to matter." For artists with 100,000+ annual streams, The MLC royalties can be several hundred dollars per year. For artists with millions of streams, it is thousands. The percentage on top of distributor payments adds up.

Who Needs to Register

If you meet all three conditions, you should register:

1. You wrote or co-wrote any of your released songs.

2. Your music is available on US streaming platforms.

3. You are not already registered through a publishing admin service that handles MLC registration.

Most independent artists who write their own music meet these criteria. Registration is free. The downside of not registering is leaving money uncollected. There is no downside to registering.

Frequently Asked Questions

How long until I receive my first payment from The MLC?

Initial payments typically arrive 3-6 months after registration. Ongoing payments follow The MLC's quarterly distribution schedule.

Do I need to register each song individually?

Yes. Each song needs its metadata (title, ISRC, songwriter splits) registered so The MLC can match incoming royalties to your catalog.

What if I co-wrote a song with someone else?

Register the song with the correct splits. Each co-writer should register independently. The MLC pays each registered party their share.

Does The MLC handle international royalties?

No. The MLC only covers US streaming. For international mechanical royalties, use a publishing admin service or register with foreign societies directly.

Read Next

• Music Royalties Explained: The 6 Types You Earn

• Music Publishing: How It Works and When You Need a Publisher

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