In the music industry, mechanical rights and royalties are fundamental to how songwriters, composers, and publishers earn a living from their creative works. As Nigeria’s leading Collective Management Organization (CMO), the Musical Copyright Society Nigeria (MCSN) plays a critical role in ensuring creators are fairly compensated whenever their music is reproduced, distributed, or streamed.
Understanding Mechanical Rights & Royalties: The Role of MCSN in Protecting Nigerian Creators
In this article, we break down everything you need to know about mechanical rights, royalties, the challenges involved, and how MCSN protects and manages these rights for Nigerian creators.
What Are Mechanical Rights?
Mechanical rights grant permission to reproduce and distribute a musical composition in physical or digital formats, as outlined in Nigeria’s Copyright Act 2022. These rights belong to composers, songwriters, and publishers when their music is:
- Pressed onto CDs, vinyl, or DVDs.
- Downloaded on platforms like Boomplay or iTunes.
- Streamed on Spotify, Apple Music, or YouTube.
- Used in ringtones or sync licenses (e.g., films, ads).
Unlike performing rights (for public performances like radio or concerts), mechanical rights focus on the composition (melody, lyrics), not the sound recording.
For example, when Rema’s “Calm Down” is streamed, mechanical royalties are paid to the songwriters and publishers, separate from master royalties for performers and labels.
What Are Mechanical Royalties?
Mechanical royalties are payments to rights holders for each reproduction or distribution of their composition. In Nigeria, they come from:
- Physical Sales: CDs or vinyl sold in stores.
- Digital Downloads: Tracks bought on digital platforms.
- Streaming: Per-stream payouts from Spotify or YouTube.
- Sync Licensing: Music used in TV, films, or commercials.
Royalty rates depend on platform agreements, often split between the composer and publisher (e.g., 50/50, or 100% if self-published). For instance, if Omah Lay co-wrote a song with 1 million Spotify streams, he and his publisher share royalties based on the platform’s rate.
How are Mechanical Royalties paid?
Major digital platforms and record companies pay mechanical royalties through specialized collection societies. Each country has its own mechanical rights organization responsible for local collections:
- Australia – AMCOS (in partnership with APRA)
- Austria – AUSTRO-MECHANA
- Belgium – SABAM
- Brazil – UBC
- Canada – CMRRA
- France – SDRM (in partnership with SACEM)
- Germany – GEMA
- Mexico – SACM
- Netherlands – STEMRA
- Nigeria – MCSN
- Italy – SIAE
- Japan – JASRAC
- Portugal – SPA
- Scandinavia – NCB
- South Africa – CAPASSO
- Spain – SGAE
- Switzerland – SUISA
- UK – MCPS
- USA – MLC and HFA
In Nigeria, MCSN collects mechanical royalties on behalf of its members and distributes them based on verified usage reports from platforms, broadcasters, and distributors.
Who Receives Mechanical Royalties?
Mechanical royalties go to composition owners—songwriters, composers, and publishers—not the master recording owners (labels, performers). For example:
- Songwriters: Earn at least 50% (the “writer’s share”), up to 90% based on publishing deals.
- Publishers: Receive the remaining share, managing licensing.
- Self-Published Artists: Like Asa, can claim 100% if they own both roles.
Important: Mechanical royalties typically do not go to performing artists unless they also wrote or co-wrote the song.
Challenges in Mechanical Royalty Collection
Nigerian creators face hurdles in collecting mechanical royalties:
- Piracy: Illegal downloads and platforms cost millions yearly.
- Metadata Issues: Incorrect credits hinder proper tracking.
- Global Gaps: Inconsistent IP laws abroad limit international earnings.
- Under-Crediting: Songwriters are often unacknowledged or underpaid.
MCSN is actively addressing these challenges through robust technological systems, international partnerships, and improved rights management services.
How MCSN Protects and Manages Mechanical Rights and Royalties
As Nigeria’s approved CMO for musical works and sound recordings, MCSN plays a vital role in safeguarding and maximizing mechanical royalties for Nigerian creators:
1. Licensing the Reproduction of Works
MCSN grants licenses to:
- Record Labels
- Digital Service Providers (DSPs)
- Broadcasters
- Streaming Platforms
- Telecom Operators
Without proper licensing, any reproduction is illegal and subject to infringement penalties.
2. Tracking and Monitoring Usage
MCSN actively tracks the use of members’ works across:
- Radio and Television
- Digital platforms (e.g., iTunes, Spotify, YouTube)
- Physical product sales (e.g., CDs, DVDs)
Through sophisticated tracking systems and global partnerships, MCSN ensures that no usage is left undocumented.
3. Collecting Royalties
MCSN collects mechanical royalties from licensed users based on:
- Number of streams and downloads
- Physical sales reports
- Revenue generated
4. Distributing Royalties Transparently
MCSN distributes royalties fairly to its members using:
- Verified usage data
- International best practices
- Internal audits and verification processes
5. International Representation
Through reciprocal agreements with over 100 international CMOs, MCSN ensures that Nigerian creators receive royalties for their music’s usage abroad — while also administering foreign works exploited in Nigeria.
How to Secure Your Mechanical Rights with MCSN
Becoming an MCSN member is the first step to protecting and earning from your mechanical rights. Here’s how:
- Complete Membership Registration: For individuals or corporate entities.
- Register Your Works: Provide full work details through the Works Registration Form.
- Assign Rights to MCSN: Execute the Deed of Copyright Assignment.
- Submit Required Documents: Proof of ownership, ID, and music files.
Best Practices for Members:
- Register Promptly: Submit new works immediately after release.
- Use Split Sheets: Clearly document ownership splits during collaborations.
- Monitor Your Usage: Inform MCSN of major exploitations of your works.
Conclusion
Mechanical rights and royalties are vital for Nigeria’s songwriters, composers, and publishers. As the trusted CMO, MCSN licenses, tracks, and distributes these royalties with global reach and transparency, paying over ₦500 million recently. Join MCSN, register your works, and let your music’s value resonate. Protect your creativity now!
