How are mechanical royalty rates determined?

The royalties that The MLC collects from digital service providers (DSPs) and distributes to Members are calculated using the statutory royalty rates. The rates vary depending on how the sound recording of the musical work (song) is distributed. For example, the rate is different for permanent downloads (where the rate is a fixed amount per sale) and various types of interactive streaming offerings (where the rate is a formula that results in an amount per play). We have created two documents and a short video to help our Members and others understand the rates. Click here to view the documents and video.