December 19, 2017

How Music Publishers And Music Royalties Work

Do you want to know how music publishers and royalties work when you get paid in the music business? You probably know that these two things have to do with making money with your music. But do you know exactly how they work?

 Today we are going to look at two important, but often misunderstood areas of the music business - publishing and royalties.

What Does A Music Publisher Do Exactly? Generally speaking, publishing deals with protecting your rights as a songwriter or composer. The three main duties performed by a music publisher are: song registration, licensing and collecting royalties.

Let's take a quick look at these tasks individually.

Song Registration

One of the publisher's primary tasks is protecting your intellectual rights. The publisher will register your songs for copyright and also with the appropriate performance rights organization (such as ASCAP or BMI in the US).

Licensing

Publishers also take care of the licensing for printed sheet music and may promote your music to performers, TV, radio and others who are looking for music for commercial purposes.

Collecting Royalties

This is a very important task, because this is where you get paid! Royalties are payments made to you as a songwriter for permission (a license) to use your music for commercial purposes. The publisher will track the use of your music to ensure that you are being paid the proper royalties due to you. They will also take action against anyone who is using your music without proper licensing.

The Four Types Of Royalties

1. Mechanical Royalties- Mechanical royalties are royalties paid out by record companies based on the number of records sold. The number of sales is determined by data from record sales reporting systems such as Sound Scan. In the US royalties are calculated at a set amount per song, whereas in other countries royalties are calculated as a percentage of sales.

2. Public Performance Royalties - Public performance royalties are royalties that are paid for permission to publicly perform or broadcast your copyrighted music. In the US these are collected via Performance Royalties Organizations (PRO's) such as ASCAP, BMI or SESAC. In order to receive payment from these organizations you need to join as a member and you (or your publisher) must register your songs with them.

Outside of the US, performance royalties are collected by government owned PRO's. These foreign organizations pay the American PRO’s which then pays the artist (you).

3. Synchronization Fees - Synchronization fees are paid to you for permission to use your music in an audiovisual format, such as movies, TV shows, commercials, etc.

4. Print Music Income - Print music income is paid to you or your publisher by sheet music producers for a license to print and distribute sheet music or songbooks of your songs.

A Final Note

Many musicians underestimate how valuable their publishing rights are. Be careful not to give yours away in a quest for a record deal!

I hope this lesson has helped you to develop a basic understanding of how a music publisher and music royalties work.

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