What are Mechanical Royalties?

Mechanical royalties are payments made to songwriters and music publishers for the use of their music on physical or digital audio recordings, such as CDs, vinyl, and digital downloads or streams. The term "mechanical" refers to the mechanical reproduction of music on a physical or digital medium.

In the United States, mechanical royalties are governed by the Copyright Act, which sets a statutory rate for each copy of a song that is sold or downloaded. The current statutory rate is 0.12 cents per copy or streams for songs that are 5 minutes or less

Mechanical royalties are typically paid by record labels or digital music services to songwriters and publishers, who are entitled to a share of the revenue generated by the sales or streams of their music. These royalties can be an important source of income for songwriters and publishers, especially as the music industry shifts toward digital distribution.

It's important to note that mechanical royalties are separate from performance royalties, which are earned when a song is publicly performed, such as on the radio, in a live performance, or on streaming services.