The term ‘mechanical royalties’ initially referred to royalties paid whenever a song was reproduced by a mechanical device (remember one of a copyright owner’s exclusive rights is the right to authorize the reproduction of their work). This term is still used and ‘mechanical royalties’ now refers to royalties paid for the reproduction of songs on CD, DAT, audiocassette, flexi-discs, musical greeting cards, and other devices sold on a “per unit” basis.
These deductions are not always paid to you or us as a company directly but instead paid out to a Performing Rights Organization. If you are not registered with a specific PRO, money will be held by a PRO until claimed by the original songwriter/artist. We also provide publishing to artists if you wish to claim your royalties from the U.K., U.S. and other regions.
Previously to us engaging in a direct agreement with Beatport, mechanical transactions would be paid directly to the Performing Rights Organization where the sale or stream took place. As of 2016, Symphonic has a direct agreement with Beatport to pay these mechanicals directly to us.
The "Beatport Mechanicals" also are considered "Beatport Withholding". It was being withheld from your direct statement until we engaged directly with Beatport to pay these mechanicals to us for us to then pay them out to you.
NOTE: Beatport and streaming companies in particular will withhold a piece of any transaction made outside of the USA and will report directly to the Performing Rights Organization, bypassing Symphonic within the country however, if we have a direct deal with a Beatport and/or Traxsource to pay the mechanicals directly to us, we will account them on the report following month that it is being reported in.
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