Songwriters and Composers to earn more on physical and digital sales
To adjust with the cost of living, the US statutory Mechanical Royalty rate is set to rise, meaning songwriters will receive more for their songs being downloaded or sold.
On Tuesday (December 12th), the US Copyright Royalty Board increased the statutory mechanical royalty rate of 12 cent to 12.4 cents when a song is 5 minutes or less (if the song is longer, you’ll receive 2.39 cents per minute).
This is a publishing royalty that is paid to composers and publishers for the sale of their physical compositions (such as Vinyl, CD and Tape) as well as digital downloads. This does not include streaming.
In 2022, the US statutory mechanical royalty rate was 9.1 cent and increased to 12 cent in January 2023 – which is a 32% increase.
Originally, this payment was not set to increase until 2027 after a 5 year term. The rise in royalties is mostly thanks to the National Music Publishers’ Association (NMPA) with the NMPA president/CEO David Israelite, saying:
“We are pleased that the Copyright Office has approved a Consumer Price Index (CPI). While these forms of consumption are not top revenue streams in the current market they still represent a meaningful piece of the music industry and it is important that they continue to grow.”
How can RouteNote Publishing help collect these royalties?
At RouteNote Publishing, we collect US Mechanical Royalties directly from The MLC. This means any royalties gained from the download and digital purchase of your compositions will be collected along with your streamed mechanical royalties.
We also provide worldwide publishing royalty collection, so no matter where your music is played you will be getting paid!