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Module 3 · Mechanical Royalties (The MLC) · Lesson 1

Understanding The MLC

By PMApub Academy · Last reviewed 2026-10-13 · About 7 min read

Educational information only. This lesson is not legal, tax, accounting, financial, investment, or other professional advice, and it does not create an attorney-client or any other professional relationship. Laws, rates, and organization policies change and differ by location and situation, and we do not guarantee that anything here is accurate, complete, or current, or that it will produce any result. Consult a qualified professional before acting. PMApub offers products mentioned in these lessons, and pages may display advertising. Read the full Disclaimer.

If you write songs and your music is on Spotify, Apple Music, or Amazon Music, there is a royalty stream that many independent songwriters never collect: the streaming mechanical royalty. It is paid for the song itself, not the recording, and it does not flow through the same channels as the money from your distributor or your performing rights organization.

The Mechanical Licensing Collective, usually called The MLC, exists to collect and distribute that money in the United States. This article explains what The MLC is, what it does and does not pay, who needs to register, and a practical way to get your catalog set up. This article is general education, not legal or financial advice, so talk with a qualified music attorney or accountant about your own situation.

What The MLC Is and Why It Exists

The MLC is a non-profit organization created under the Music Modernization Act, a US law passed in 2018. The Copyright Office designated it as the collective in 2019, and the blanket license became available on January 1, 2021. The law changed how streaming services license the compositions behind the songs they offer, and it designated one collective to administer that licensing.

Before this, a streaming service had to find and license each song individually, which was slow and error prone. Now, services that offer on-demand streams and downloads can use a blanket mechanical license. The MLC administers that license, receives royalty payments and data from the services, and passes the money on to the people who own the song.

What The MLC Collects and What It Does Not

The MLC collects digital audio mechanical royalties from licensed digital services in the United States. The covered uses are interactive streams (the listener chooses the exact song, as on Spotify, Apple Music, Amazon Music, or Tidal), limited downloads, and permanent downloads. It covers musical works that fall under the blanket license, so a song a publisher licenses to a service directly outside that system is handled under that deal instead.

Just as important is what it does not handle:

A good rule of thumb: The MLC pays the songwriter and publisher side for US streams and downloads under the blanket license. A performing rights organization membership does not replace it.

Who Needs to Register

The people who own a share of the composition are the ones who get paid. That usually means songwriters and music publishers. If you write your own songs and have no publishing deal, you are in effect your own publisher, and you can join The MLC directly as a self-published songwriter. If a publisher or an administrator represents your songs, they may register them for you, so confirm who is doing what.

The MLC states that connecting with it is free, and it publishes its current membership terms on its website. Check those terms yourself before you sign up, because processes and options can change.

A Simple Example: Maya Releases a Single

Maya writes and records a single called Night Bus and releases it through a distributor. Her distributor delivers the recording to the streaming services, and she has joined a performing rights organization as a songwriter. She assumes she is set.

She is not quite. The distributor pays her for the recording, and her PRO collects the performance side of the composition. But the mechanical royalty for the composition, generated by each on-demand stream, is a separate right. If Maya never registers Night Bus with The MLC, the services may have trouble matching the streams to her and her share could sit unpaid. Registering the work, with the correct songwriters and splits, is how she gets it in front of the right payee.

How to Get Set Up Step by Step

  1. Gather your data. For each song, collect the title, all songwriters and their ownership percentages, and any publisher information.
  2. Collect identifiers. Find the ISRC for each recording your distributor assigned. If you have an ISWC for the composition, keep that too. These codes help match recordings to works.
  3. Join as a member. Create an account as a songwriter or publisher and follow the verification steps.
  4. Register your works. Enter each composition and link the recordings that use it. Splits across writers must total 100 percent.
  5. Check for conflicts. If another party has claimed part of a song, resolve it with your co-writers rather than waiting.
  6. Review statements. After payments begin, compare statements to your own records and report mismatches.

Keep a simple spreadsheet of every song, writer split, and registration status. The Music Monetization Plan Template in PMApub Academy is a handy place to track which societies each song is registered with, and ReleaseReady can help you keep release details organized so the metadata you give each organization stays consistent.

For labels, managers, and teams

When you represent more than one songwriter, the MLC stops being a one-time signup and becomes a catalog-hygiene job. Payment follows data, and data degrades quickly across several artists, producers, and releases.

Start with ownership. For every song, decide who the registrant is: the writer as a self-published songwriter, a publishing company you control, or a third-party publisher or administrator. Do not let two accounts claim the same share. Overlapping or conflicting claims can hold up payment for everyone on the song.

Make a signed split sheet part of the release checklist, collected before the song is delivered to any service. It should list every writer, each percentage, each writer's publisher and PRO, and the agreed song title. That one document then feeds your MLC registration, your PRO registrations, and your distributor metadata, so the three stay consistent.

Keep a catalog register with one row per song: title and alternate titles, writers and splits, ISWC if assigned, linked ISRCs, registration status at each organization, and date registered. Review it on a schedule, and search the MLC public database for new unmatched or partially claimed works.

If you or an administrator collect on behalf of writers, put the terms in writing: the administration fee, how income is accounted for, how often statements go out, and whether the writer can audit your records. Have an attorney draft or review those terms.

Finally, control account access. Use a shared company email for logins, record who holds credentials, and remove access when a team member leaves.

Common mistakes to avoid

Action checklist

  1. List every song you wrote or co-wrote, with alternate titles and all names you have written under.
  2. Confirm who owns each share and get split sheets signed by every writer.
  3. Decide whether you register as a self-published songwriter, a publisher, or through an administrator.
  4. Gather ISRCs from your distributor and any ISWCs for the compositions.
  5. Create your MLC account and complete verification.
  6. Register each work with exact writer names and shares totaling 100 percent, and link the recordings.
  7. Search the public database for each song and fix missing or misspelled data.
  8. Resolve any conflicting claims directly with co-writers.
  9. Record each registration in your catalog register with the date.
  10. Review statements when they arrive and compare them with your own records.

Key terms

Key takeaways

  • The MLC administers the blanket mechanical license for US digital services, covering interactive streams and limited and permanent downloads.
  • It collects streaming mechanical royalties for compositions, paid to songwriters and publishers.
  • PROs such as ASCAP and BMI handle performance royalties, so you generally need both.
  • Self-published songwriters can usually register directly; confirm with your publisher or administrator if you have one.
  • Accurate titles, writers, splits, and identifiers make matching and payment far easier.

Test your knowledge

Five questions to check what you learned. Open each answer after you decide. The interactive course scores your answers and tracks progress.

1. Which US law created the blanket mechanical license that The MLC administers?

  1. The Copyright Act of 1909
  2. The Audio Home Recording Act of 1992
  3. The Music Modernization Act of 2018
  4. The Digital Millennium Copyright Act of 1998
Show answer

Answer: C. The Music Modernization Act of 2018 set up the blanket license and the collective. The older laws shaped copyright and digital media, but none created the MLC.

2. Who does The MLC pay?

  1. Owners of the musical composition, such as songwriters and publishers
  2. Owners of the sound recording, such as labels
  3. Featured performers on the recording
  4. Distributors that deliver the recording to services
Show answer

Answer: A. Mechanical royalties belong to the composition side. Recording owners and performers are paid through distributors, labels, or SoundExchange, not The MLC.

3. Maya searches the MLC public database and finds her song matched to her, but with a misspelled title. What is the best next step?

  1. Do nothing, because a matched song means all data is correct
  2. Delete the song and rerelease it under a new title
  3. Wait for the streaming service to correct it
  4. Submit a correction through her MLC account so the data stays consistent with her other registrations
Show answer

Answer: D. Matched does not mean the data is clean, and inconsistent titles cause problems elsewhere. Maya can update her own registration data rather than waiting on others.

4. Nightshift Records signs a split sheet showing two writers at 60 and 40 percent. What should it enter at The MLC?

  1. 100 percent to Nightshift for simplicity
  2. 60 and 40 percent, matching the signed split sheet, with the same title used elsewhere
  3. 50 and 50 percent because the MLC requires equal splits
  4. No percentages, so The MLC assigns them
Show answer

Answer: B. Registrations should reflect what the owners agreed in writing, and shares must total 100 percent. The MLC does not require equal splits or assign shares for you.

5. A friend says that the MLC covers streams only, so purchased downloads are paid somewhere else. Under the US blanket license, what is accurate?

  1. Only interactive streams are covered
  2. Only permanent downloads are covered
  3. Interactive streams plus limited and permanent downloads from licensed services are covered
  4. Downloads and streams are covered, but physical CDs and vinyl are too
Show answer

Answer: C. The blanket license covers digital phonorecord deliveries: interactive streams and both kinds of downloads. Physical products are outside it.

Frequently asked questions

Does The MLC pay me for the recording or the song?

The MLC pays for the song, meaning the musical work and lyrics. Money for the recording typically comes through your distributor or label, and some digital radio money comes through SoundExchange.

If I am in ASCAP or BMI, do I still need The MLC?

Generally yes. PROs collect public performance royalties, while streaming mechanical royalties for on-demand services in the US are administered by The MLC. They are separate rights with separate registrations.

Does it cost money to register with The MLC?

The MLC states that connecting with it is free. Terms can change, so confirm on its website before you register.

Does The MLC collect royalties from outside the United States?

No. It handles US interactive streaming. Foreign streams are generally licensed and paid through collection societies or publishing administrators in those territories.

Further reading from official sources

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Educational information only. This lesson is not legal, tax, accounting, financial, investment, or other professional advice, and it does not create an attorney-client or any other professional relationship. Laws, rates, and organization policies change and differ by location and situation, and we do not guarantee that anything here is accurate, complete, or current, or that it will produce any result. Consult a qualified professional before acting. PMApub offers products mentioned in these lessons, and pages may display advertising. Read the full Disclaimer.