The MLC
Mechanical Licensing Collective
Created by the Music Modernization Act; handles US streaming mechanicals.
About The MLC
The Mechanical Licensing Collective (MLC) is a nonprofit organization created by the Music Modernization Act of 2018 and launched in January 2021. It serves as the centralized hub for collecting and distributing mechanical royalties from interactive streaming services in the United States.
Before the MLC, streaming platforms struggled to identify and pay songwriters for mechanical royalties, resulting in billions of dollars in unmatched payments. The MLC was created to solve this by maintaining a comprehensive database of musical works and administering a blanket mechanical license for all digital service providers.
The MLC received an initial pool of $424 million in unmatched royalties from streaming platforms and has been working to identify and pay the rightful owners. It processes mechanical royalties from Spotify, Apple Music, Amazon Music, YouTube Music, and all other interactive streaming services operating in the US.
How The MLC works
DSPs Obtain Blanket License
Streaming platforms like Spotify and Apple Music obtain a blanket mechanical license from the MLC, covering all compositions in their catalogs.
DSPs Report Usage & Pay
Each month, streaming services report detailed usage data (every play) to the MLC and pay the corresponding mechanical royalties based on CRB-set rates.
MLC Matches Works
The MLC uses its database to match reported streams to registered compositions and their rights holders.
Royalties Distributed
Matched royalties are distributed monthly to publishers/admins and quarterly to self-administered songwriters.
Why The MLC matters for songwriters
United States is served by The MLC for mechanical rights organization royalties. Without direct registration, international songwriters rely on reciprocal agreements β which typically add 12β24 months of delay before royalties reach you.
Frequently asked questions about The MLC
Do I need to register with the MLC if I have a publisher?
If your publisher or administrator (like JukeHouse) is registered with the MLC, they handle this for you. Your works should be registered under their publisher account.
Does the MLC cover international royalties?
No. The MLC only covers mechanical royalties from US interactive streaming. International mechanical royalties are collected by societies in each territory. A global admin like JukeHouse covers both.
What happened to the $424M in unmatched royalties?
The MLC has been matching these funds to rightful owners. Unclaimed funds are eventually distributed proportionally to registered members based on their market share.
Does the MLC replace my PRO?
No. The MLC handles mechanical royalties. Your PRO (ASCAP, BMI, SESAC) handles performance royalties. These are separate royalty types requiring separate collection.
How are MLC mechanical rates set?
Mechanical rates for streaming are set by the Copyright Royalty Board (CRB) through proceedings every 5 years. The current rates (Phonorecords IV) cover 2024-2027 and include annual increases.
Collect your United States royalties automatically.
JukeHouse registers your songs directly with The MLC and 60+ other collection societies worldwide.