Understanding Mechanical Rights and Royalties in Nigeria

What Are Mechanical Rights?

Mechanical rights grant permission to reproduce and distribute a musical compositionin physical or digital formats, as outlined in Nigeria's Copyright Act 2022. These rights apply when 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 (films, ads)

Mechanical rights focus on the composition (melody, lyrics), unlike performing rights which apply to public performances.

When Rema's “Calm Down” is streamed, mechanical royalties are paid to the songwriters and publishers, separate from master royalties.

What Are Mechanical Royalties?

Mechanical royalties are payments to rights holders for each reproduction or distribution of their composition. Revenue sources include:

1. Physical Sales — CDs, vinyl in stores
2. Digital Downloads — iTunes, Boomplay
3. Streaming — Spotify, YouTube per-stream payouts
4. Sync Licensing — TV, films, commercials

Royalty rates vary by platform with splits between composer and publisher (e.g., 50/50 or 100% if self-published).

How Mechanical Royalties Are Paid

Major digital platforms and record companies pay through specialized collection societies. Here are the key international organizations by country:

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).

• Songwriters: Earn minimum 50% (writer's share), up to 90% based on publishing deals
• Publishers: Receive remaining share, managing licensing
• Self-Published Artists: Can claim 100% if owning both roles

Mechanical royalties typically do not go to performing artists unless they also wrote or co-wrote the song.

Challenges in Mechanical Royalty Collection

• Piracy: Illegal downloads and unauthorized platforms cost millions annually
• Metadata Issues: Incorrect credits hinder proper tracking
• Global Gaps: Inconsistent IP laws abroad limit international earnings
• Under-Crediting: Songwriters often unacknowledged or underpaid

MCSN is addressing these through robust technological systems, international partnerships, and improved rights management services.

How MCSN Protects and Manages Mechanical Rights

MCSN performs five core functions to protect your mechanical rights:

How to Secure Mechanical Rights with MCSN

1. Complete Membership Registration — Individuals or corporate entities can join
2. Register Works via the Works Registration Form
3. Assign Rights to MCSN through Deed of Copyright Assignment
4. Submit Required Documents — Proof of ownership, ID, music files

Best Practices for Members

• Register works immediately after release
• Use Split Sheets to document ownership during collaborations
• Inform MCSN of major work exploitations