Mechanical royalties are the monies paid by record companies and Internet music retailers to songwriters or music publishers for the right to reproduce those songs in sound recordings (including permanent downloads).
United States Edit
In the United States, mechanical royalties rates are set by statute. The statutory rate for permanent downloads and CDs is currently 9.1 cents per copy. Different rates apply to subscription services and other forms of distribution. Generally, lower mechanical royalties can be negotiated with the Harry Fox Agency.