Songwriters Miss Out on $3.5 Billion in Royalties
Beatintel Staff · March 31, 2026 · 2 min read
Key Takeaways
- →The MLC has distributed over $3.5 billion in royalties.
- →Many songwriters are still not collecting their owed royalties.
- →The MLC offers a free registration process for songwriters.
Over $3.5 billion in digital mechanical royalties have been distributed to songwriters by the Mechanical Licensing Collective (The MLC) since it began full operations in 2021. The organization, born out of the 2018 Music Modernization Act, aims to ensure that songwriters and composers receive fair compensation from digital streams on platforms like Spotify and Apple Music.
For those who create music, the importance of collecting these royalties is clear: it's money they've earned but might not be receiving. The MLC's database and portal allow creators to register their works and track payments, streamlining the often opaque process of royalty collection. Yet, despite the significant sum already distributed, many songwriters are still missing out on their due payments.
Navigating the Royalties Maze
The MLC simplifies what has traditionally been a complex process. Before its creation, songwriters often struggled to claim digital mechanical royalties, leaving many without a significant portion of their income. The MLC offers a free registration process, ensuring that all earnings go directly to the rightsholders without unnecessary middlemen.
Ron Hart, writing for Spin, highlights the role of The MLC in modernizing royalty collection. With over 80,000 members, the collective is a vital resource for anyone involved in songwriting, whether they're self-administered or part of a larger publishing entity.
Who's Missing Out?
Despite the progress, not everyone is on board. Many songwriters, particularly those without publishers or administrators, remain unaware of the royalties they're entitled to. The MLC provides step-by-step guidance to help these creators navigate the system, but the onus is still on the songwriters to take action.
The MLC's efforts are crucial in a digital age where streaming dominates music consumption. It's a wake-up call for songwriters to ensure they're not leaving money on the table. While $3.5 billion is a staggering figure, it also serves as a reminder of what might still be unclaimed. For those in the music industry, ignorance is not bliss when it comes to royalties.
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