Understanding Publishing & Royalties

Two copyrights in every release

The musical composition is the song itself — the melody, chords and lyrics. The sound recording, often called the master, is one specific recorded performance of that composition.

Different people can own each one. A songwriter may own part of the composition while a label, investor or the artist owns the master. A cover version is a new recording of a composition someone else wrote.

• Composition: written by songwriters, represented by publishers
• Sound recording (master): the recorded version, owned by whoever funded or was assigned it
• Producers may hold points on the master, a writing share, or both — it depends on the agreement

“A song is two pieces of property. Know which one you own before you sign anything about it.”

Who is who

• Songwriter — creates the composition and holds the writer's share of its income
• Artist — performs the recording; may or may not be a writer on it
• Producer — creates the instrumental or shapes the record; terms are set by contract
• Publisher — administers the composition, registers it, licenses it and collects on it, in exchange for the publisher's share
• Label / distributor — releases and monetizes the master

Writer's share and publisher's share

Composition income is customarily split into a writer's side and a publisher's side. If you have no publisher, you may be able to collect both sides yourself by registering as a writer and as a publisher, depending on the organizations you work with.

Signing a publishing deal usually means giving up some of the publisher's side — and sometimes ownership — in exchange for advances, administration or creative support. Read what you are assigning and for how long.

The main royalty types

One stream can generate money on more than one of these lines at once, paid through different pipes, to different people, on different schedules. That is why two collaborators on the same song can be paid at different times.

• Mechanical royalties — generated when a composition is reproduced, including on-demand streams and downloads
• Performance royalties — generated when a composition is publicly performed: radio, TV, venues, streaming services
• Digital performance royalties for sound recordings — generated by certain non-interactive digital and satellite radio uses in the United States
• Streaming royalties — paid on the recording side through your distributor or label, and on the composition side through publishing channels
• Sync licensing — a negotiated fee to use music in film, TV, advertising, games or online video, normally requiring permission from both the composition and master owners

Organizations that collect for you

Performing rights organizations (PROs) license public performance of compositions and distribute performance royalties to writers and publishers. In the United States, ASCAP, BMI and SESAC are long-established PROs; requirements, eligibility and fees differ, so compare them directly.

Mechanical royalties for digital uses in the United States are administered through a separate mechanical licensing framework, and many independent artists also use an administrator or collection service for territories outside their own. Confirm current registration steps and deadlines on each organization's official site before you rely on them.

Credits, splits and records

Money follows documentation. If a song's writers, producers and percentages are not written down and registered, income can sit unclaimed for years.

Use a split sheet on the day the song is created, while everyone is still in the room and still agrees. Put names, legal names, roles, PRO affiliations, contact details and percentages on it, and have everyone sign.

• Register compositions with your PRO and your mechanical collection route
• Keep consistent artist, writer and publisher names across every platform
• Save split sheets, session notes, invoices and statements in one place
• Reconcile statements against your release list at least twice a year

Before you sign anything

Publishing and master rights are the long-term value of your catalog. Before signing away either, get a clear answer on what is being transferred, for how long, in which territories, and what happens if the deal ends. An entertainment attorney reviewing the paperwork is cheaper than untangling it later.

Official resources

Requirements and rates change. Confirm current details directly with the organizations involved.

• ASCAP
• BMI
• SESAC
• U.S. Copyright Office