Vinyl & CD Royalties 2026: Who Pays the 13.1¢?

Vinyl is having a long, loud moment, and CDs and cassettes keep hanging around at merch tables like they pay rent. If you sell physical copies of your music, you are touching a corner of the royalty system that almost nobody explains well: physical mechanical royalties.

Here is the weird part. Almost everything you read about mechanicals these days is about streaming and the MLC. But the MLC only handles digital. Vinyl, CDs, cassettes, and even permanent downloads run on a completely different track, with their own rate, their own license, and their own way of getting paid (or not getting paid). If you press records, this is the money trail you need to understand.

This guide covers the 2026 rate, when you actually owe a mechanical license, who collects physical royalties, what is happening with the next rate-setting proceeding, and a simple checklist so nothing slips through. We will also point out where a tool like RoyaltyCoPilot.ai helps and where it honestly can't.

The 2026 Physical Mechanical Rate, in Plain English

For physical products and permanent downloads in the US, the statutory mechanical rate is set by the Copyright Royalty Judges. On December 8, 2025, they announced the 2026 numbers, effective January 1, 2026:

• 13.1 cents per song (up from 12.7 cents in 2025)
• 2.52 cents per minute (or fraction of a minute) for longer songs, whichever total is larger

This is a cost-of-living adjustment under the Phonorecords IV rate period (2023–2027). It applies to each physical copy made and distributed, not each copy sold, which matters a lot (more on that below).

What the rate looks like on a real record

So a 10-track, 3-and-a-half-minute-per-song album owes $1.31 per copy in mechanical royalties if every track is a song you didn't write. Press 300 copies and that is $393 in mechanicals on top of your manufacturing bill. That number surprises a lot of first-time vinyl labels.

Do You Actually Owe a Mechanical License?

This is where people either panic or ignore the problem. The answer depends on whose songs are on the record.

Scenario 1: You wrote every song yourself

You own the composition, so you don't owe anyone a mechanical license. You are, in effect, paying yourself. The practical catch is that you still need to register your songs so the money has somewhere to land when other people use them. (If you have co-writers, you owe them their share, and a signed split sheet is how you avoid arguments later.)

Scenario 2: You recorded a cover

You need a mechanical license for every cover on the record. Once a song has been released in the US with the owner's permission, the compulsory license under Section 115 lets you record and distribute your own version without asking, as long as you pay the statutory rate and follow the rules. Skipping this is the number one way indie vinyl projects accidentally become infringement.

You can get these licenses from the publisher directly or through a licensing service. Options in this space include the Harry Fox Agency's Songfile and Easy Song Licensing. Check each service's unit limits and fees before you commit, because the rules vary and change.

Scenario 3: Your record includes a sample or interpolation

Samples are a separate negotiation (the master owner and the publisher both get a say), so the compulsory license does not cover them. We broke that down in our sample clearance guide. Don't assume a mechanical license makes a sample legal. It doesn't.

Scenario 4: Your distributor or pressing plant handles it

Some plants and DIY manufacturing platforms will ask for proof of licensing; others won't ask a single question. Not being asked is not the same as being cleared. The legal obligation sits with whoever is making and distributing the copies, which is usually you.

Who Collects Physical Mechanical Royalties?

Here is the part that trips up even experienced songwriters.

The MLC does not collect physical mechanicals. Its job is limited to digital audio services (Spotify, Apple Music, Amazon, and so on). If you register your songs with the MLC and think that covers your vinyl sales, it doesn't. Same goes for permanent downloads: those are paid outside the MLC's blanket license too.

Physical royalties are paid by whoever makes the copies, directly to the songwriter or publisher (or their representative). In practice that means a few possible paths:

1. The label pays the publisher directly. If a label presses your record, your publishing contract (or your admin) should be receiving quarterly or semiannual statements.
2. A licensing agent collects. Agents such as the Harry Fox Agency represent many publishers and collect on their behalf for licensed uses.
3. You license it yourself. If you're the publisher, you can issue and collect your own licenses, which means keeping your own paper trail.
4. Nobody collects. This happens more than anyone admits. A small label presses 500 copies of a cover record, never licenses it, and the songwriter never knows it existed.

That last path is the black hole. There is no central database that automatically tracks every vinyl run, which is a big difference from streaming. Physical royalties happen through contracts, statements, and good faith.

Physical vs. Streaming vs. Downloads: Know Which Pot Is Which

One of the most useful things you can do is simply keep these revenue streams straight in your head.

If you want a refresher on how the digital side works, our posts on mechanical royalties basics and the MLC cover it. The key takeaway for this post: registering with the MLC is necessary, but it is not the whole job.

The Physical-Release Gotchas Nobody Warns You About

"Made and distributed," not "sold"

The compulsory license is owed on copies made and distributed, not just copies that sell through. If you press 500 records, give away 100 to friends, and still have 150 in your closet, you still owe on the ones that left your hands. Consign copies to a shop and you generally owe on delivery under most deals, not at eventual sale. Read your license terms.

Long songs cost real money

That per-minute rule hits prog, jam bands, ambient, and DJ-style projects hard. A 20-minute side-long track owes 20 x 2.52¢, or 50.4¢ per copy. Always run the math before you decide on a tracklist for vinyl.

Hidden covers

It is easy to forget a cover when it's an interlude, a hidden track, or a live recording. The license applies to the composition, regardless of how short or buried it is.

Your streaming metadata won't fix a physical mistake

If a record shows up on streaming with wrong songwriter credits, the MLC may hold or misdirect that money. That is a digital problem. A physical release that was never licensed is a separate problem, and fixing one doesn't fix the other. We cover the metadata side in our guide to fixing wrong song credits.

What's Happening With the Next Rate Cycle (Phonorecords V)

Physical and download rates are always set years ahead, and the next round is already in motion. Phonorecords V will set mechanical rates for 2028 through 2032.

In late June 2026, the major labels (Sony Music, UMG Recordings, Warner Music) and trade groups including A2IM, the NMPA, NSAI, and the Music Artists Coalition filed a proposed settlement for the physical and download side. As reported by Music Business Worldwide, it would keep the current rate structure and apply only continuing annual inflation adjustments, instead of a bigger bump.

Not everyone signed on. Songwriters Guild of America and Word Collections objected to the proposal, arguing songwriters deserve more than another inflation-only rate. Participants also filed direct statements on the unsettled pieces in early October. Streaming rates are a separate fight and are not part of this settlement.

As of this writing, the Copyright Royalty Judges are still working through the objections, so treat the 2028–2032 numbers as proposed, not final. What it means for you today:

• Your 2026 and 2027 physical rate stays inflation-adjusted under Phonorecords IV.
• If you plan vinyl pressings in 2028 or later, budget for rates that may rise only with the CPI.
• If you are a member of an organization that files comments, now is the time to make your voice heard.

This is the type of slow, technical proceeding that quietly decides how much indie songwriters make for the next five years, and it rarely gets a headline. We keep tabs on it so you don't have to.

A Simple Checklist for Your Next Vinyl or CD Run

Before you send files to the plant, run through this list:

1. List every composition on the record with its writers, publishers, and run time.
2. Mark which songs you wrote and which are covers or samples. Be ruthless here.
3. Get mechanical licenses for every cover before you manufacture, not after.
4. Clear any samples separately with both master and publishing owners.
5. Do the per-copy math using 13.1¢ (or 2.52¢ per minute for long tracks) and add it to your budget.
6. Sign split sheets with every co-writer so the shares you owe and the shares you receive are in writing.
7. Register your own songs with your PRO and the MLC so streaming and performance money flows once the record is out.
8. Keep the paper. Save every license, invoice, and statement for at least a few years.
9. Track units made and distributed, including giveaways and consignment.

Where RoyaltyCoPilot.ai Fits (and Where It Doesn't)

We are going to be straight with you. No software can magically detect a vinyl run that was never reported, because there's no central registry for physical manufacturing. Anyone who tells you otherwise is selling something.

What RoyaltyCoPilot.ai can do is help with everything around the physical release that quietly makes or loses you money. When you run a free catalog audit, the platform checks whether your songs are registered correctly with the MLC, your PRO, and SoundExchange, flags missing or mismatched writer splits, and surfaces unmatched digital royalties tied to your catalog. A new vinyl pressing often drives fresh streaming and performance activity, and if your metadata is wrong, that new attention can flow into the unclaimed pool instead of into your account.

Think of it this way: the physical side is about contracts and paperwork you control. The digital side is about metadata you can audit. RoyaltyCoPilot.ai handles the audit part so you can focus on getting the paperwork right.

Frequently Asked Questions

Do I need a mechanical license to sell my own original music on vinyl?

No, not if you wrote and own all the compositions yourself. You owe mechanical royalties only on songs written by other people. If you have co-writers, you owe them their share based on your split sheet.

Does the MLC pay me when I sell vinyl?

No. The MLC covers digital interactive streaming and limited downloads on its blanket license, not physical products. Physical royalties flow through licensing agents, publishers, or label statements.

What is the physical mechanical rate in 2026?

13.1 cents per song, or 2.52 cents per minute (or fraction of a minute) for longer songs, whichever is greater. The rate is adjusted for inflation and changes each January 1 during the current rate period.

Can a distributor or pressing plant license my covers for me?

Some offer help or partner services, but the responsibility stays with you as the person making and distributing the copies. Always confirm in writing who is handling the license.

Is the rate going to change?

A proposed Phonorecords V settlement would keep the current structure for 2028 through 2032 with continued inflation adjustments, but it is not final, and some songwriter groups have objected.

The Bottom Line

Physical releases are the one part of the royalty world where the paperwork matters more than the technology. Get your licenses before you press, do the math per copy, keep your splits in writing, and register your songs everywhere digital money can land. Do that, and your vinyl run becomes a clean revenue stream instead of an accidental legal headache.

Want to see what else might be slipping through? Run a free catalog audit at RoyaltyCoPilot.ai and find out where your registrations and metadata stand before the next release.

This article is educational and not legal advice. Rates and proceedings change, so confirm current details with the Copyright Royalty Board or a music attorney before relying on them.