The MLC and mechanicals

Two different royalties, two different doors

When someone streams a song on an interactive service, the composition can earn a public performance royalty and a mechanical royalty. Your PRO is the door for the performance. The Mechanical Licensing Collective is the door for the U.S. digital mechanical under the blanket license. The MLC says membership does not replace a PRO, and that writers, publishers, and administrators still need a PRO for public performance royalties.

The U.S. Copyright Office says the Music Modernization Act’s Title I set up a blanket license for digital phonorecord deliveries, which it describes as permanent downloads, limited downloads, and interactive streams. The Office designated The MLC to collect and distribute those mechanicals. It says that as of 1 January 2021, songwriters and publishers must register with The MLC’s claiming portal to be paid under that blanket license. The MLC’s own FAQ adds the practical version: you, or a publisher, administrator, or collective management organization you authorized, has to be the member.

Who joins, and what it costs

The MLC says there is no cost to become a member. It does not sort members into “writer” and “publisher” the way a PRO does, and it does not pay a separate writer share and publisher share. The member is whoever has the right to collect the mechanical.

A self-administered songwriter can join as an individual. The MLC says you do not need an LLC or other company first. If a company is the publisher of your shares, that company should be the member, and the member name should match the name on the works and on the tax paperwork.

If some songs are administered by a publisher and some are still yours, The MLC says you join and register only the shares you still control. The administrator registers the rest.

Administrators, HFA, co-writers, and other countries

The MLC names TuneCore Publishing Administration, CD Baby Boost, and Songtrust as examples of administrators. If you signed one, that company generally registers the songs and collects. Ask them, and use The MLC’s public work search to see whether your shares were claimed. A distribution deal for the recording is not the same contract as publishing administration.

If you are affiliated with the Harry Fox Agency, The MLC still says you need to be a member for digital mechanicals from services operating under the blanket license. HFA pays other royalties under your HFA agreement. HFA is part of the SESAC group, which is a useful reminder that “mechanical” and “performance” can sit near each other without being the same license.

Co-writers each join and each register their own share when each of them has the right to collect that share. If they assigned the whole song to one company they own together, that company joins and registers the song.

Writers outside the United States should check whether a local collective already collects U.S. digital mechanicals for them. The MLC gives MCPS in the U.K., AMCOS in Australia, and SACM in Mexico as examples. If one of those deals already covers this income, joining The MLC yourself can conflict with it. Read the agreement. If nobody is collecting this share, The MLC says you should join and register.