What are mechanical royalties?
Mechanical royalties are paid to songwriters and publishers every time a song is streamed or downloaded on digital platforms like Spotify, Apple Music, Amazon Music, YouTube, and others. They are separate from performance royalties (which your PRO collects when songs are played publicly).
In the US, digital mechanical royalties are collected and distributed by the Mechanical Licensing Collective (MLC), a non-profit established by the Music Modernization Act of 2018.
Why do mechanical royalties go unclaimed?
The MLC can only pay mechanical royalties to songwriters whose songs are properly registered. If a song isn't registered, or is registered with incomplete or incorrect data, the royalties it generates accumulate in a pool of unmatched funds. No one receives that money until the song is properly registered and the claim is made.
Common reasons songs go unregistered:
The songwriter isn't aware the MLC exists and that registration is required
The song was registered with a PRO (ASCAP/BMI) but not separately at the MLC
The ISRC or composition data is missing, preventing the MLC from matching the recording to its registration
The songwriter assumed their distributor handled all registrations (distributors handle master recording royalties, not publishing mechanical royalties)
The 3-year redistribution rule
This is the most urgent part. Under the Music Modernization Act, the MLC holds unmatched mechanical royalties for three years. After that three-year window closes, those funds are redistributed (not returned) to publishers and streaming services in proportion to their market share.
This means that if your song has been generating mechanical royalties since 2022 and you haven't registered it, those 2022 royalties expire in 2025. You cannot go back and claim them after the deadline.
How far back can you claim?
Most organizations allow retroactive claims going back 3–5 years depending on the organization and rights type. The MLC's three-year window is the strictest. SoundExchange and some PROs allow slightly longer retroactive claims.
Every month you delay is money that gets closer to expiring permanently.
How Mogul helps
Mogul scans your catalog, identifies which songs are missing mechanical registrations, and submits those registrations on your behalf (on the Register and Concierge plans). The sooner your songs are registered, the sooner you stop losing royalties to the redistribution pool — and the more you can retroactively claim before those windows close.