Mechanical royalties are payments made to songwriters and music publishers whenever their music is reproduced or distributed. This includes physical formats like CDs and vinyl, as well as digital downloads and streaming services. The royalties compensate creators for the use of their compositions. In the music industry, mechanical royalties are typically collected by organizations such as ASCAP or BMI and then distributed to the rights holders. The rate for these royalties is often set by law, ensuring that artists receive fair compensation for their work when it is reproduced in various formats.