Mechanical Royalties
Mechanical royalties are payments to songwriters and music publishers for the reproduction of a musical composition — pressing vinyl or CDs, selling downloads, and the reproduction share of interactive streams. They are separate from performance royalties and from recording revenue: mechanicals always follow the composition, regardless of who recorded it.
How mechanical royalties work
Every reproduction of a composition generates a mechanical royalty for its writers and publishers. That covers physical formats like vinyl and CD, permanent downloads, and the reproduction component of every interactive stream. Collection runs through societies and licensing agencies: in Germany, GEMA administers mechanical and performance rights together, so one membership covers both; other territories split the two across separate organisations. Licensing responsibility depends on the channel: for physical formats and downloads, the label releasing the recording must make sure the composition is licensed, while streaming services license compositions themselves through societies and agencies. Releasing a cover still means confirming the mechanical side is cleared before delivery. The money always flows to the composition side, no matter who owns the master.
Mechanical vs performance royalties
The two are easy to mix up because a single stream generates both. Mechanical royalties pay for the act of reproducing the composition: a copy is made, whether on vinyl or on a server. Performance royalties pay for performing or transmitting it publicly — radio play, live shows, in-store playback, and the performance component of streaming. The split matters in practice: the same song earns through two channels, often administered by different departments or even different organisations, and each needs its own registration. Register your works completely and both channels pay into the same member account, the performance share and the mechanical share together.
Who needs to think about mechanicals
Songwriters, publishers, and any label that releases compositions it doesn't fully control. If you write and release your own songs, joining a collecting society and registering each work makes sure the mechanical share of your streams and sales reaches you on top of your recording revenue. If your label signs artists who record outside writers' songs (covers, co-writes, sampled works), clearing the mechanical side belongs before the release date. For labels that administer publishing, work registration becomes a routine part of every release cycle, alongside delivery and royalty accounting. Master-only labels can keep it simple: their artists' societies handle the composition income directly.
Frequently asked questions
Do streams pay mechanical royalties?
Yes. Interactive streams carry both a mechanical and a performance component for the composition. The mechanical share reaches writers and publishers through collecting societies and licensing agencies, separate from what the recording itself earns.
Who collects mechanical royalties in Germany?
GEMA. It administers mechanical and performance rights together, so a single membership and one work registration cover both income streams for writers and publishers in Germany.
I wrote and recorded the song myself — do mechanicals still apply?
Yes. The composition earns mechanicals independently of the recording. Register the work with your collecting society and the mechanical share arrives on top of your distribution payouts.