Mechanical License Explained

A mechanical license is permission to reproduce and distribute a musical composition in audio form, for example on vinyl, CD, as a download or as an on-demand stream. You need one whenever you release your own recording of a song someone else wrote, such as a cover. It covers the song only, not an existing recording and not use in video.

What a mechanical license covers

Every recorded song has two copyrights. One is the composition (melody and lyrics). The other is the sound recording, or master. A mechanical license deals only with the composition.

The name goes back to "mechanical" reproduction on piano rolls and records. Today it covers audio copies in any format:

• Physical products such as vinyl, CDs and cassettes.
• Permanent downloads.
• Interactive (on-demand) streams and limited downloads.

The songwriters and their publishers earn mechanical royalties each time their song is reproduced in this way.

Mechanical licensing in the US

The Section 115 compulsory license

US law makes mechanical licenses compulsory under 17 U.S.C. §115. Once a nondramatic musical work has been "distributed to the public in the United States... under the authority of the copyright owner," anyone may make and distribute their own audio recording of it, as long as they follow the rules and pay the statutory rate. The owner cannot refuse.

Key rules, as summarized by the US Copyright Office in Circular 73:

• Song must already be released. The first US recording release needs the owner's permission. After that, the compulsory license is available.
• Notice of intention (NOI). For uses outside the blanket license, such as physical products, you must serve an NOI on the copyright owner before, or within 30 days after, making the recordings, and before distributing them. If the owner cannot be identified, the NOI is filed with the Copyright Office.
• Limited arrangement rights. You may arrange the song "to the extent necessary to conform it to the style or manner of interpretation of the performance involved." You may not change the basic melody or fundamental character of the work.
• No master rights. Section 115 covers the composition. It does not cover anyone else's sound recording.

Many people skip the formal NOI process and get a direct license from the publisher or through an agency instead. Direct licenses often follow the statutory rate but can have their own terms.

The MLC blanket license for digital services

The Music Modernization Act of 2018 created a blanket license for digital music providers. It became available on January 1, 2021. The Mechanical Licensing Collective (The MLC) administers it.

According to the US Copyright Office, the blanket license covers digital phonorecord deliveries: permanent downloads, limited downloads and interactive streams. A digital music provider that takes the blanket license is licensed for all musical works available under the compulsory license. The MLC collects the royalties from those services and pays them to songwriters and publishers.

Important for artists: the blanket license is taken by the services, not by you. It does not cover physical products. CDs and vinyl still use the song-by-song NOI system or a direct license. Some distributors also have their own rules for covers, especially for downloads, so check their requirements before you upload.

Songfile and direct licenses for physical and downloads

For physical releases and some download or streaming uses, many independent artists use Songfile, a service of The Harry Fox Agency, to license cover songs. Songfile describes its service as licensing covers for "physical and digital formats such as CDs, downloads, ringtones and streams." Not every song or publisher is available there.

You can also contact the publisher directly. This is often the route for larger runs, unusual formats or songs not available through an agency.

The current US statutory rate (2026)

The Copyright Royalty Board (CRB) sets US mechanical rates. Its cost-of-living adjustment published in the Federal Register on December 1, 2025 sets the 2026 rate for physical phonorecords and permanent downloads at:

• 13.1 cents per song, or
• 2.52 cents per minute of playing time or fraction thereof,

whichever is larger. These figures apply from January 1 through December 31, 2026. The rate is adjusted for inflation each year, so check the CRB for later years.

Interactive streaming uses a different, more complex formula based on a share of service revenue with minimums and other calculations. Under the Phonorecords IV settlement accepted by the CRB, the headline rate is 15.3% of service revenue in 2026, rising to 15.35% in 2027. Individual artists do not calculate or pay this. The services do, through The MLC.

Rates for the period from 2028 are being decided in a new CRB proceeding (Phonorecords V). As of this writing, a proposed settlement for physical and download rates for 2028 to 2032 has been published for comment but not adopted.

Mechanical licensing outside the US

In the UK and Germany, mechanical rights are in practice licensed through collecting societies on behalf of their members, rather than through a US-style statutory notice process.

Germany: GEMA

In Germany, GEMA manages the reproduction and distribution rights in its members' works (§§ 16 and 17 of the German Copyright Act, UrhG) for audio products. Labels and self-releasing artists license these through GEMA. Collecting societies in Germany are generally required to grant licenses on reasonable terms.

GEMA's licensing guide is clear about what it does not grant:

• Consent to arrange, adapt or change a protected work (Bearbeitung or Umgestaltung).
• The right to combine music with film or images, which the author or publisher usually grants directly.
• Consent for use in advertising.
• Rights in sound recordings and performances. These come from the label or performers.

UK: MCPS through PRS for Music

In the UK, the Mechanical-Copyright Protection Society (MCPS), operated through PRS for Music, licenses mechanical rights for its members' works. PRS for Music offers licenses for releasing music products, including a limited manufacture license for small runs and licenses for retail audio products. Terms and coverage depend on the license type, so read the conditions for your release.

Other countries

Most countries have a collecting society that handles mechanicals, sometimes the same organization that handles performance rights. If you release worldwide, your distributor, a publishing administrator or the local society may handle collection in each territory. The licensing rules for physical copies are local to where they are made and sold.

What a mechanical license does not cover

A mechanical license is narrow. It does not cover:

• Video. Any use with moving images needs a sync license from the publisher. This includes music videos, YouTube content and ads.
• The original recording. Sampling, remixing or reusing a master needs a separate license from the master owner.
• Changed lyrics. New or altered lyrics usually change the work's character. You need the publisher's permission.
• Major changes to the music. In the US, arrangements that change the basic melody or fundamental character fall outside §115. In Germany, a Bearbeitung needs the author's consent, which GEMA does not grant.
• Public performance. Playing the song live, on radio or in venues is licensed separately through performing rights organizations such as ASCAP, BMI, GEMA or PRS for Music.
• Print. Sheet music and printed lyrics need a print license.

Quick checklist for a cover release

1. Confirm the song has been released before (for the US compulsory license).
2. Identify the publishers and their shares.
3. Get a mechanical license through the right channel for each format and territory.
4. Keep the melody and lyrics as written, unless you have permission.
5. Get a sync license before making a video.
6. Credit the songwriters correctly in your distribution metadata.

Licensing beyond mechanicals

For uses that a mechanical license does not cover, such as sync or altered versions, you have to negotiate directly with the rights holders. Clearhly is a marketplace in private beta where verified rights-holder businesses list music they control and licensees can request, negotiate, e-sign and pay for a license through Stripe. The rights holder confirms, for every listing and share, that they own or control the rights they grant, and your license is a contract directly between you and the rights holder. The full legal terms are in the Terms of Service.