The royalties that The MLC collects from DSPs and distributes to Members are calculated using the statutory royalty rates. The rates vary depending on how the sound recording of the musical work/song is distributed. For example, the rate is different for permanent downloads (the rate is a fixed amount per sale) and various types of interactive streaming offerings (the rate is a formula that results in an amount per play). We have created two documents and a short video to help our Members and others understand the rates.
Explanation of Statutory Rates for Digital Audio Mechanical Uses (PDF)
Click here to view/download a document that explains how the rates are determined and used in calculating royalties.
Statutory Royalty Rate Formula Tables (PDF)
Click here to view/download a document that contains detailed information on the specific rates and values used in the rate formulas.
Explanation Video
Watch the video below for a brief explanation of the statutory royalty rates.
