In the US, mechanical royalties for physical sales and downloads are a fixed “Penny Rate” set by the government ($0.127 per song in 2025). Internationally, most countries use a “Percentage Model” based on the wholesale price of the record. Furthermore, while the MLC handles digital mechanicals in the US, you need a global administrator to reach into the “Black Boxes” of foreign territories. Audiobulb acts as your global bridge, registering your works with the MLC for US income and international societies (like MCPS or GEMA) for the rest of the world—all with 0% commission.
1. The Math: “Penny Rate” vs. “Percentage”
The biggest difference lies in how the money is actually calculated.
- The US & Canada (The Penny Rate): The government sets a “Statutory Rate.” As of January 1, 2025, the US rate is $0.127 per track (up from $0.124 in 2024) for physical sales and permanent downloads. If a song is over 5 minutes, it’s calculated at $0.0245 per minute.
- The Rest of the World (The Percentage): Most international territories (Europe, Japan, Australia) calculate mechanicals as a percentage of the PPD (Published Price to Dealer). This is usually around 8.7% to 10% of the wholesale price.
2. Who Collects the Money?
In the US, the system is “fragmented,” whereas international systems are often “centralized.”
| Territory | Primary Collection Entity | Scope |
| United States | The MLC (Mechanical Licensing Collective) | Digital streaming and downloads only. |
| United States | HFA (Harry Fox Agency) | Physical sales and private licenses. |
| United Kingdom | MCPS (Mechanical-Copyright Protection Society) | Physical, Digital, and Broadcast mechanicals. |
| Germany | GEMA | Performance, Mechanical, and Sync (All-in-one). |
| Australia | AMCOS | All mechanical rights for the region. |
3. The “Black Box” Problem
Because every country has its own mechanical society, your royalties can easily get lost. If you are a US artist and your song is a hit in France, the French society (SACEM) will collect the money.
- The Problem: If you aren’t registered directly in France, SACEM doesn’t know where to send the check. After a few years, that money is moved into a “Black Box” and given to the top-earning French artists.
- The Solution: A global administrator like Audiobulb “links” your US registration to these foreign societies, ensuring your name is on the list when the money is distributed.
4. Digital vs. Physical: The Reality
In 2025, most of your mechanical income comes from Interactive Streaming (Spotify, Apple Music).
- In the US: The MLC collects this under a “blanket license.”
- Internationally: Many countries bundle mechanicals and performance royalties together into a “Combined Rights” payment. Without an administrator to separate these, your local PRO might only send you the “Performance” half, leaving the mechanical half behind.
5. How Audiobulb Navigates the Global Map
At Audiobulb, we provide a “Global Passport” for your music. We don’t just register you in the US; we protect your rights everywhere.
- Direct MLC Integration: We are a member of the MLC, ensuring your US digital mechanicals are paid out monthly with 0% commission.
- International Society Links: We use the global IPR (International Property Rights) system to register your works with MCPS, GEMA, SACEM, and more.
- 0% Commission: Unlike traditional publishers who take 15%–25% of your international “win,” we charge a flat $19.99/year. We believe the artist should keep the reward for their global success.
- Metadata Cleaning: We ensure your ISWC (International Standard Musical Work Code) is attached to your songs globally. This is the “ID card” that prevents your money from ending up in the Black Box.
Summary
The US uses a “Penny” system; the world uses a “Percentage” system. The US uses the “MLC”; the world uses “CMOs.” To get paid fairly, you need an administrator who speaks both languages. Audiobulb provides that professional bridge, ensuring your local success turns into global wealth.
Your Next Step: Are you seeing streams from Europe or Asia in your distributor’s dashboard but not in your royalty checks? Join Audiobulb for $19.99/year to start your full-service global administration and rescue your international mechanical royalties.