What are mechanical Royalties?
The term âmechanical royaltiesâ initially referred to royalties paid whenever a song was reproduced by a mechanical device (remember one of a copyright ownerâs exclusive rights is the right to authorize the reproduction of their work).
The term âmechanical royaltiesâ was applied to the reproduction of songs in music boxes, player pianos rolls and, later, phonograph records. This term is still used and âmechanical royaltiesâ now refers to royalties paid for the reproduction of songs on CD, DAT, audiocassette, flexi-discs, musical greeting cards, and other devices sold on a âper unitâ basis. Partners pay and take care of mechanical royalties on behalf of labels by deducting them from each sale.
These deductions are not always paid to you or us as a company directly but instead paid out to a Performing Rights Organization. If you are not registered with a specific PRO, money will be held by a PRO until claimed by the original songwriter/artist. We also provide publishing to artists if you wish to claim your royalties from the U.K., U.S. and other regions.
NOTE: Beatport and streaming companies in particular will withhold a piece of any transaction made outside of the USA and will report directly to the Performing Rights Organization within the country however, if we have a direct deal with a Beatport and/or Traxsource to pay the mechanicals directly to us, we will account them on the report following month that it is being reported in.