Introduction: Are You Missing Out on Digital Royalties?
If you’re an independent artist releasing music on Spotify, Apple Music, Amazon, or Pandora, you may be leaving royalties unclaimed—especially if you haven’t registered with SoundExchange or the MLC (Mechanical Licensing Collective).
Distributors like DistroKid and TuneCore may get your music online, but they don’t always collect all your royalties. That’s where these two powerful organisations come in.
This guide explains what SoundExchange and the MLC do, the difference between them, and how to register as an independent artist, songwriter, or rights holder.
What Is SoundExchange?
SoundExchange is a non-profit organisation that collects digital performance royalties for sound recordings when your music is streamed on:
- Internet radio (e.g. Pandora)
- Satellite radio (e.g. SiriusXM)
- Music services that use statutory (compulsory) licences
It pays out two types of royalties:
- Featured Artists: Usually the primary performer or band
- Rights Owners: The label or independent artist who owns the master
- Non-Featured Performers: Background singers, session players (via AFM/SAG-AFTRA fund)
🎤 If you’re a solo artist uploading to digital platforms yourself, you’re both the performer and the rights owner—and can claim both shares.
What Is the MLC?
The Mechanical Licensing Collective (MLC) collects mechanical royalties from interactive streaming services in the United States. These are royalties owed for the underlying composition, not the recording.
Services that trigger MLC payments:
- Spotify
- Apple Music
- Amazon Music
- YouTube Music
- Tidal
The MLC pays self-administered songwriters and publishers directly—so if you’re releasing original songs, you should be registered as a writer and/or publisher with them.
✍️ If you haven’t signed up with a publishing administrator (e.g. Songtrust, CD Baby Pro), you must register with the MLC directly to collect your US mechanicals.
What’s the Difference Between SoundExchange and the MLC?
| Organisation | Collects For | Type of Work | Royalty Type | Who Gets Paid |
|---|---|---|---|---|
| SoundExchange | Non-interactive streaming | Sound recordings | Digital performance | Artists, labels, producers |
| MLC | Interactive streaming | Musical compositions | Mechanical royalties | Songwriters, publishers |
Both are free to register and handle different income streams, so you’ll want to register with both if you’re:
- Releasing music
- Performing on your own tracks
- Writing original material
Step-by-Step: Registering with SoundExchange
Step 1: Create an Account
Go to www.soundexchange.com and create an account.
Choose your role:
- Featured Artist
- Rights Owner (if you own the master)
- You can register as both
Step 2: Submit Repertoire
Once approved, log in and submit your tracks using:
- ISRCs (International Standard Recording Codes)
- Track metadata (artist name, title, album, etc.)
Step 3: Add Payees
Add your banking info, tax details, and anyone entitled to a share (e.g. producers under a Letter of Direction).
📑 If you’re a producer and your name isn’t on the rights registration, ask the artist to submit a Letter of Direction (LOD) to SoundExchange.
Step-by-Step: Registering with the MLC
Step 1: Create a Creator Account
Visit www.themlc.com and create an account in the Creator Portal.
Choose:
- Self-Administered Songwriter if you’re collecting without a publisher
- Publisher if you have a company entity
Step 2: Add Works
Register each composition you’ve written, including:
- Song title
- ISWC (if known)
- Writer shares and splits
- ISRCs for each recording associated with the composition
Step 3: Check for Unmatched Works
Look through the MLC’s database to see if any of your music is already listed without a connected payee—this could be money waiting to be claimed.
🔄 If you’ve used a distributor but never registered as a songwriter, these royalties may be sitting unclaimed.
Bonus: Do You Need Both?
Yes. Most independent artists are:
- Performers who earn from SoundExchange
- Writers who earn from the MLC
For example:
- Your Spotify stream generates money from both the recording (SoundExchange) and the song (MLC)
- If you don’t register with both, you’re only collecting half the income
What If You’re Using a Publishing Administrator?
If you’ve signed up for Songtrust, CD Baby Pro, or Tunecore Publishing Admin, they will:
- Register your works with the MLC and other global societies
- Collect royalties on your behalf
- Deduct a small admin fee (typically 10-15%)
However, you still need to register with SoundExchange separately—they only collect royalties for sound recordings, which publishing admins usually don’t handle.
Final Thoughts: Don’t Let Your Royalties Go Unclaimed
SoundExchange and the MLC are two of the most important royalty collection organisations for independent artists and songwriters today. If you’re writing and releasing original music, registering with both ensures you’re collecting everything you’re owed—without relying solely on your distributor.
It’s completely free to sign up, and once your catalog is registered, the money flows directly into your account with minimal effort.
🔗 Now learn how to make sure you’re splitting that income fairly: Understanding Royalty Splits and Recoupment.
