In the music industry, understanding publishing royalties requires a key distinction: the two separate copyrights that exist for every song.
The Musical Composition:
This is the underlying intellectual property—the lyrics, melody, and rhythm created by the songwriter(s).
The Sound Recording (Master):
This is the specific recorded version of that musical composition, created by the recording artist(s) and typically owned by a record label.
Publishing royalties are tied to the musical composition. The rights to this are owned by the songwriter and/or their music publisher.
Other types of royalties, most notably master royalties, are tied to the sound recording. These are paid to the record label and the performing artist.
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Here is a detailed comparison of music publishing royalties to other types of music royalties:
Music Publishing Royalties (from the composition)
These royalties are paid to songwriters and music publishers. They are generated from the use of the song itself, not a specific recording of it.
- Performance Royalties: These are earned whenever a song is performed in public. This includes:
- Radio airplay (AM/FM and digital radio like Pandora).
- Live performances (concerts, bars, etc.).
- Plays on streaming services (Spotify, Apple Music, YouTube).
- Broadcasts on TV and in films.
- Music played in public spaces (stores, restaurants, gyms).
Collection:
Performance Rights Organizations (PROs) like ASCAP, BMI, and SESAC in the US, and PRS for Music in the UK, collect these royalties from broadcasters and venues and then distribute them to the songwriters and publishers.
Mechanical Royalties:
These are generated whenever a song is “mechanically” reproduced. Historically, this meant physical copies like CDs, vinyl, and cassettes. Today, it also includes:
- Digital downloads.
- Interactive streams (on-demand streaming services where the user chooses the song, like Spotify or Apple Music).
Collection: These are collected by mechanical rights organizations, like The Mechanical Licensing Collective (MLC) in the U.S.
Synchronization (Sync) Royalties:
A sync royalty is paid when a musical composition is “synchronized” with a visual medium. A separate sync license is required for the use of the song’s composition in a:
- Film or television show.
- Commercial or advertisement.
- Video game.
- YouTube video.
Collection: These are typically negotiated directly with the publisher on a case-by-case basis.
Print Royalties:
This is earned from the sale of sheet music or songbooks that contain the copyrighted composition.
Master Recording Royalties (from the sound recording)
These are paid to the owner of the specific recording (the record label) and the recording artist. They are generated from the use of the master recording.
Streaming Royalties:
This is the primary form of master royalty today. When a song is streamed on a service like Spotify or Apple Music, a portion of the revenue goes to the record label, who then pays a negotiated percentage to the performing artist. This is distinct from the publishing mechanical and performance royalties generated by the same stream.
Sales Royalties:
These are paid when a physical copy (CD, vinyl) or digital download of the specific sound recording is sold. This is paid by the retailer or distributor to the record label, who then pays the artist a royalty based on their contract.
Neighboring Rights Royalties:
These are a type of performance royalty for the sound recording itself, earned when a recording is played on non-interactive digital radio (e.g., satellite radio, internet radio). In some countries, they also apply to over-the-air radio.
Collection: In the U.S., SoundExchange collects and distributes these royalties to record labels and performing artists.
Master Use License Fees:
This is the master-side equivalent of a sync fee. When a specific recording is used in a visual medium, a fee is paid to the owner of the master recording (usually the record label). This is often negotiated alongside the sync license for the composition.
Key Takeaway
The central difference is what the royalty is based on:
Publishing Royalties: The songwriter’s work (the song itself).
Master Royalties: The performer’s work (the specific recorded version of the song).
A single stream of a song on Spotify generates both publishing royalties (for the songwriter) and master royalties (for the artist and record label). For this reason, an artist who writes and performs their own music is eligible to earn from both sides.
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