What is a Mechanical License?

Production & Music Industry
Updated on
October 1, 2024
Written by
Unchained Music Team
ARTICLE OVERVIEW
Learn everything about mechanical licensing, including when you need one, how to obtain it, and its importance for legally distributing music and cover songs.

Mechanical licensing refers to the legal permission required to reproduce and distribute a copyrighted song, called mechanical rights. It is crucial for artists and producers when releasing cover songs or distributing music across various platforms.

Understanding mechanical licensing ensures that artists and producers can legally distribute their work while compensating the original songwriters. It protects both creators and copyright holders, making sure that royalties are paid appropriately.

Mechanical licenses cover the reproduction of a song, while other licenses, such as synchronization licenses, are for visual media, and performance licenses are for public play. Each license serves a different function in the music industry.

What is Mechanical Licensing?

A mechanical license allows the legal reproduction of copyrighted music in an audio only format, including digital and physical formats like streaming, CDs, and vinyl. It ensures that the songwriter receives royalties for each reproduction.

The Purpose of a Mechanical License in Reproducing Music

The primary purpose of a mechanical license is to compensate the original songwriter for the use of their composition. It covers any reproduction, whether in physical formats or digital downloads.

Historical Context: The Rise of Mechanical Licensing with Physical Formats

Mechanical licensing became prominent with the rise of physical formats like vinyl records and CDs, where mass reproduction of songs required legal oversight to ensure songwriters were fairly paid for their work. Today, it also applies to digital platforms.

How Does Mechanical Licensing Work?

Explanation of the Process for Obtaining a Mechanical License

To obtain a mechanical license, artists or producers must contact the copyright holder or a licensing agency such as Easy Song Licensing. These organizations grant permission on behalf of the songwriter and set terms for the royalties paid for each reproduction.

Key Players: Songwriters, Music Publishers, and Music Distributors

The key stakeholders in mechanical licensing include the music user, who obtains permission from the copyright owner to release a song in audio-only formats, the songwriter, who owns the composition, music publishers who manage the rights, and distributors who handle the reproduction of the music. All parties work together to ensure that the original creators are compensated.

Importance of Licensing for Physical and Digital Music Reproduction

Whether an artist is reproducing music on physical formats like vinyl and CDs or through digital downloads and streaming, a mechanical license is essential. It ensures the legal distribution of the music and guarantees the original songwriter receives royalties for each play or sale.

Types of Mechanical Licensing

Physical Releases: Vinyl, CDs, and Other Formats

For physical music releases, such as vinyl and CDs, a mechanical license is required for each unit produced. The royalties are calculated based on the number of physical copies sold.

Digital Releases: Downloadable Tracks, Streaming Services

In the digital realm, music licensing, particularly mechanical licenses, applies to downloads and streams. Every time a song is streamed or downloaded, royalties must be paid to the songwriter, which is facilitated through licensing agreements with platforms and agencies.

Interactive vs. Non-Interactive Streaming (Spotify, Apple Music vs. Pandora)

Interactive streaming services, like Spotify and Apple Music, where users select songs on demand, require mechanical licenses. Non-interactive platforms, such as Pandora, function more like radio and also require licensing, but the terms differ due to how users engage with the content.

When Do You Need a Mechanical License?

Scenarios Where a Mechanical License is Required

A music license, specifically a mechanical license, is needed whenever a song is reproduced and distributed, whether in physical formats (like CDs) or digital formats (like downloads and streams). This applies to any artist using a copyrighted song, ensuring the original songwriter is compensated.

Releasing Cover Songs and Derivative Works

When releasing a cover song, obtaining mechanical rights through a mechanical license is mandatory, as the original composition remains protected under copyright law. Derivative works, which modify the original song, may require additional permissions beyond a mechanical license, especially if substantial changes are made.

The Difference Between Live Performance and Recorded Music

Live performances require public performance licenses, typically managed by Performing Rights Organizations (PROs), not mechanical licenses. In contrast, recorded music that is reproduced and distributed, such as through streaming or physical copies, always requires a mechanical license.

Mechanical Licensing for Digital Music Distribution

How Mechanical Licensing Applies to Streaming Platforms

On streaming platforms like Spotify and Apple Music, mechanical licenses are required for every play. Additionally, a master license is necessary to use existing recordings, ensuring that the artist is paid for the rights to their specific recording. Platforms pay royalties to the songwriters through licensing agencies, ensuring that creators are compensated for each stream.

Role of Companies like Easy Song Licensing and Other Licensing Intermediaries

Licensing intermediaries such as Easy Song Licensing handle the complex task of issuing mechanical licenses and collecting royalties on behalf of songwriters. They ensure the correct distribution of payments to rights holders.

How Digital Distributors Handle Licensing for Independent Artists

Digital distributors like Unchained Music manage mechanical licensing for independent artists, simplifying the process by handling royalties and licensing requirements. They act as intermediaries between artists, platforms, and licensing agencies to ensure legal compliance for music distribution.

How to Obtain a Mechanical License

To obtain a mechanical license, you must contact a licensing agency or use a licensing platform. Start by identifying the song's rights holder, often managed by a publisher, and submit a request through a platform that handles mechanical licensing for cover songs or reproductions.

Licensing Platforms and Organizations (Easy Song Licensing)

Platforms like Easy Song Licensing simplify the process of obtaining mechanical licenses for artists. These organizations act as intermediaries, making it easier to acquire the necessary permissions and ensure compliance with legal requirements.

Average Costs Associated with Mechanical Licenses

The cost of a mechanical license is generally determined by the number of reproductions (downloads, streams, or physical copies). The statutory royalty rate in the U.S. is currently $0.091 per song per unit sold or downloaded, but this rate may vary for streaming platforms.

How Mechanical Royalties Work for Songwriters and Publishers

Mechanical royalties are paid to songwriters and publishers each time a song is reproduced, such as in the sale of a CD or when streamed online. These royalties ensure that the original creators are compensated for the use of their work, regardless of the medium.

Breakdown of Royalty Splits and Payment Methods

Typically, royalties are split between the songwriter and the publisher, with each receiving a predetermined percentage. The mechanical royalties are collected by licensing agencies and then distributed to the appropriate parties based on their agreements.

How to Track and Receive Mechanical Royalties

Songwriters and publishers can track and receive their royalties through licensing intermediaries like Easy Song Licensing, which provides detailed reports on streams, sales, and royalties. Many digital distributors also offer tools for independent artists to monitor their mechanical royalty earnings.

Mechanical Licensing vs. Other Music Licenses

Mechanical Licensing vs. Synchronization Licenses for Film and TV

Mechanical licensing covers the reproduction of a song in physical or digital formats, while a synchronization license is required when music is used in visual media, such as films, TV shows, or commercials. Each serves a distinct legal function in the music industry.

Mechanical Licensing vs. Public Performance Licenses

Public performance licenses cover the live or broadcast performance of a song, typically managed by Performing Rights Organizations (PROs) like ASCAP and BMI. In contrast, mechanical licenses only apply to the reproduction of a song for distribution in formats like CDs or streams.

When to Use Each Type of License

A mechanical license is necessary for any form of music reproduction and distribution, such as when selling physical copies or offering a song on streaming platforms. Sync licenses are needed for pairing music with visual content, while public performance licenses apply to live performances or broadcasts of songs in public spaces.

Legal Implications of Not Obtaining a Mechanical License

Failing to secure a mechanical license can lead to copyright infringement, resulting in the removal of your music from platforms or stores. It’s crucial to obtain the appropriate licenses to avoid legal issues.

Potential Legal Action and Financial Penalties

If you distribute a song without a mechanical license, you could face legal action from the original songwriter or publisher. This could lead to financial penalties, including paying damages and lost royalties, which can be costly for independent artists.

Importance of Protecting Yourself Legally When Distributing Music

Securing a mechanical license is an essential step in legally protecting yourself when distributing music. It ensures that you comply with copyright laws, protecting you from lawsuits and safeguarding your reputation as an artist.

Make Sure to Get Your Cover Song License

Mechanical licensing is crucial for legally reproducing and distributing copyrighted songs. It ensures that songwriters are compensated and protects artists from legal issues. Whether distributing physical albums or streaming digitally, securing this license is non-negotiable.

Always verify the licensing requirements before releasing cover songs or reproducing existing works. Utilize platforms like Easy Song Licensing to streamline the process, ensuring all legalities are handled before distribution.

FAQ

1. What is a mechanical license?

A mechanical license grants permission to reproduce and distribute a copyrighted song. It ensures that songwriters are compensated through royalties when their music is used in formats like CDs, digital downloads, or streaming.

2. When do I need a mechanical license?

You need a mechanical license whenever you reproduce and distribute a song that you didn’t write, such as in cover songs, digital releases, physical albums, or streaming platforms. This license is essential to ensure you comply with copyright laws.

3. How do I get a mechanical license?

You can obtain a mechanical license through platforms like Easy Song Licensing. These organizations facilitate the process of getting permission and ensure proper royalty payments.

4. What happens if I don’t get a mechanical license?

If you fail to get a mechanical license, you risk facing copyright infringement claims, legal action, and financial penalties. Additionally, your music can be removed from platforms, leading to reputational damage.

5. How much does a mechanical license cost?

The cost of a mechanical license is typically based on the number of reproductions, such as units sold or streams. In the U.S., the statutory rate for physical or digital copies is currently $0.091 per song per unit.

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