mechanical royalties
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 ensure that creators are compensated for their work when their songs are used commercially.
These royalties are typically calculated based on a set rate per copy sold or streamed. In the United States, the Copyright Royalty Board determines the standard rate for mechanical royalties, which is then paid by record labels and distributors to the songwriters and publishers involved in the creation of the music.