Two of the most important royalty collectors in the United States get confused constantly: The MLC and SoundExchange. They sound similar, both pay artists, and both come up the moment you start chasing uncollected royalties. But they collect entirely different things, for entirely different rights, on opposite sides of the music — and both are free to register with.
Getting this distinction right is one of the highest-value things an independent artist can do. If you’d like a personalized read on which royalty pools you may be missing, run the Publishing Royalty Recovery Diagnostic.
The fundamental split: song vs. recording
Every piece of recorded music actually contains two separate copyrighted works:
- The composition — the underlying song: melody, chords, lyrics. Owned by songwriters and their publishers.
- The sound recording (the “master”) — the specific recorded performance. Owned by whoever made the recording, often the artist or their label.
This split is the key to everything. The MLC and SoundExchange sit on opposite sides of it.
What The MLC collects
The MLC (The Mechanical Licensing Collective) sits on the composition side. It collects and distributes the mechanical royalties generated when your song is reproduced through interactive streaming and downloads in the United States.
If you’re a songwriter whose compositions are being streamed in the US, mechanical royalties are accruing for those streams. The MLC is the body responsible for matching those royalties to the right songwriters and publishers and paying them out.
- Who should register: songwriters and self-published writers (and publishers) whose songs are streamed in the US.
- What you need: your works registered and matched so the system knows the royalties belong to you.
- Cost to register: free.
What SoundExchange collects
SoundExchange sits on the sound recording side. It collects and distributes royalties generated when your recording is played on non-interactive digital services — think internet radio and similar statutory-license platforms — in the US.
These are sometimes called neighbouring rights or digital performance royalties on the master. They’re paid to the recording owner and to the featured and non-featured performers on the track.
- Who should register: owners of master recordings and the performers on them, when those recordings get non-interactive digital play.
- What you need: registration as the rights owner and/or performer.
- Cost to register: free.
Side-by-side
| The MLC | SoundExchange | |
|---|---|---|
| Side of music | Composition (the song) | Sound recording (the master) |
| Royalty type | Mechanical (streaming/downloads) | Digital performance (non-interactive) |
| Who gets paid | Songwriters & publishers | Recording owners & performers |
| Cost to register | Free | Free |
The single most useful takeaway: these do not overlap. Registering with one does nothing for the royalties the other collects. A self-releasing artist who both wrote the song and owns the master generally wants to be registered with both — plus a PRO for performance royalties on the composition side (covered in Choosing a PRO).
Why “free” matters
We stress that both are free because the music-services industry is full of intermediaries, and it’s easy to get the impression you must pay someone to access royalties that are actually yours to claim directly. You don’t need to pay a third party simply to register with The MLC or SoundExchange. A publishing administrator can be genuinely worthwhile for other reasons — especially international collection and Content ID, discussed in Publishing Admin vs. DIY — but the existence of these free, direct collectors should anchor your expectations.
What neither one covers
It’s just as important to know the gaps:
- Performance royalties on the composition (radio, venues, TV, streaming public-performance) come from PROs like ASCAP, BMI, SESAC, or GMR — not from The MLC.
- International royalties are collected by foreign societies (CMOs), and reaching them often requires an administrator or sub-publisher with direct foreign relationships.
- YouTube Content ID revenue typically runs through a distributor or admin, not these collectors.
For the full map of every pool, see the Unclaimed Publishing Royalties Guide.
A simple registration checklist
If you self-release and self-publish, a reasonable free-first sequence looks like:
- Affiliate with a PRO as a songwriter and register your works (performance royalties on the composition).
- Register with The MLC and match your works (streaming mechanicals).
- Register with SoundExchange as the recording owner/performer (digital performance on the master).
- Then decide whether an administrator is worth it for international and Content ID gaps.
Frequently asked questions
Do I need both The MLC and SoundExchange? If you wrote the song and own the recording, very likely yes — they collect different royalties that don’t overlap. If you only own one side, register where your rights are.
Is either of them really free? Yes. Both are free to register with. Don’t pay a third party just for access to them.
Does my PRO handle what The MLC does? No. PROs collect performance royalties on the composition; The MLC collects streaming mechanicals. They’re separate registrations.
What about money I’ve earned overseas? Neither The MLC nor SoundExchange captures most foreign royalties. That typically requires foreign CMO relationships — see Publishing Admin vs. DIY.
How do I know what I’m missing right now? The Publishing Royalty Recovery Diagnostic walks through your situation pool by pool.
Estimates are for informational purposes only and are not financial, investment, tax, or legal advice. Map your royalty gaps with the Publishing Royalty Recovery Diagnostic.