Songpact – music contract template and agreement platform

Mechanical Royalties

Mechanical Royalties (or 'mechanicals') are the payments made by record companies and digital platforms to songwriters and music publishers whenever a musical composition is reproduced. Historically, this meant physical vinyl or CDs being pressed, but today it primarily applies to digital downloads and interactive streams. These royalties compensate the people who wrote (and own the rights to) the song, entirely separate from the artists who performed it.

Why do Mechanical Royalties matter in music contracts?

Mechanical royalties are generated every time a song is reproduced in almost any format, making them a cornerstone source of income for songwriters and publishers. They are triggered every single time your composition is streamed or downloaded on platforms like Spotify, Apple Music, and Amazon. Because these royalties belong to the song itself rather than the specific audio recording, you are also owed mechanical royalties whenever another artist records and releases a cover version of your material.

The strategic complication is that mechanical royalties are an international business, and every country has its own local society tasked with collecting them. In the UK, they are processed by the MCPS; in Australia, by AMCOS; and in the US, by the MLC and HFA.

Because crossing borders makes tracking this money incredibly complex, songwriters often rely on music publishers or publishing administrators to collect their global share. However, a publisher cannot claim your money if your data is messy. Keeping your co-writing splits documented in writing from day one is the best way to ensure your publishing administrator can accurately register your songs worldwide and protect your income.

Related Music Legal Terms

Attorney Review

Nick Weaser — Music Lawyer & Co-Founder of Songpact

Nick Weaser

Music Lawyer & Co-Founder of Songpact

Dual-Qualified and admitted to practice in England & Wales and Australia. Expert in music industry law and creator rights.

Reviewed and approved by a qualified music rights attorney.
Back to the Dictionary