AllTrack Launches Mechanical Rights Division
Written by djfrosty on November 21, 2024
AllTrack, a U.S.-based collection society founded in 2017, has announced the launch of a mechanical rights division. Now, AllTrack members can opt-in to get their mechanical royalties collected along with performance royalties, making AllTrack the only U.S. performance rights organization (PRO) to collect both through a single platform.
With the move, AllTrack tells Billboard it hopes to become a competitor of DIY publishing administrators like SongTrust or TuneCore Publishing which offer short-term deals for small independent songwriters, who are often looking for a stopgap solution to collecting royalties before they sign larger publishing deals.
The AllTrack mechanical collection service will charge a 15% administration fee for all royalties collected, and writers using the service must sign a 2 year agreement.
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Around the world, it is customary for collection societies to collect both performance and mechanical royalties on behalf of writers, but these have always been separate services in the United States, adding to the complexity of the royalty collection process for songwriters. Since the passage of the Music Modernization Act (MMA) in 2017, the legislation that simplified the mechanical royalty collection process for the streaming age, mechanicals for interactive streaming have been collected by the MMA-mandated Mechanical Licensing Collective (The MLC).
The MLC is open for any songwriter who wants to sign up. Unlike PROs, it does not charge an administration fee to any songwriter or publisher for collecting, matching and processing royalties, given the MMA ordered the streaming services to pay for the MLC’s operations. When a songwriter signs up for AllTrack’s mechanical service, those mechanicals still go through processing with the MLC, but AllTrack becomes the liaison that ensures the writer is properly registered and collecting royalties from the MLC. Essentially, the firm wants to offer a one-stop shop for independent writers who find the multi-society system of royalty collection to be too cumbersome.
AllTrack will also collect mechanical royalties for its clients in areas that don’t fall under the domain of the MLC, including social media services like TikTok, YouTube and Meta, as well as fitness and gaming applications.
“We’re thrilled to expand our services to include mechanical rights, which typically represent a significant portion of a music creator’s publishing income,” says Hayden Bower, founder and CEO of AllTrack. “Our integrated approach addresses the independent sector’s long-standing need for a simplified royalty collection process. AllTrack members can now receive the compensation they’re entitled to faster and more efficiently than ever before.”
The news comes just months after AllTrack announced that it had been accepted into CISAC (International Confederation of Societies of Authors and Composers) and after the U.S. PRO system has come under more scrutiny. In September, Billboard broke the news that the House Judiciary Committee had sent a letter to the Copyright Office asking for further examination into PROs, citing “difficult to assess” royalty collections and the “proliferation of PROs.”