Last time I discussed how Mechanical Royalties are moneys a songwriter receives when another artist records their song. When an underlying song (composition) is recorded and reproduced a Mechanical Royalty is owed to the owner of the underlying song (publisher and/or songwriter) for the use of the underlying song. The Mechanical Royalty is typically paid by the record label to the song writer or publisher for use of the underlying song in a recording. The same mechanical royalty applies for digital downloads (internet) or physical (cd or album) reproductions of a song.
If you are recording a song that you wrote, your label owes a Mechanical Royalty to your publisher (more on this in the next issue). If you record a cover version of a song that has already been recorded, you or your label must obtain a mechanical license and pay a Mechanical Royalty to the publisher/songwriter of the underling song.
Harry Fox Agency is a private company that issues mechanical licenses and collects mechanical royalties. Publishers or songwriters sign up with Harry Fox Agency. When a recording artist wants to record a song represented by Harry Fox Agency, the artist or label contacts Harry Fox Agency, who issues the mechanical license. The Harry Fox Agency then collects the Mechanical Royalty, for the use of the underlying song, and pays the publisher or songwriter.
That is how a songwriter gets paid for the use of his/her song when it is recorded. The Harry Fox Agency coordinates issuing Mechanical Licenses and collecting Mechanical Royalties. To record a song not listed with the Harry Fox Agency, a recording artist must contact the publisher or songwriter directly and obtain a mechanical license.
In the next Night Light newsletter I talk about what happens with Mechanical Royalties when you record your own songs.
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