Music royalties are payments made to rights holders (songwriters, composers, and performers) for the use of their music. There are several types of royalties:
1. Performance Royalties
What Are They?: Performance royalties are paid whenever a song is played in public, such as on the radio, in a live venue, or through streaming services.
How Are They Collected?: Performance rights organizations (PROs) like ASCAP, BMI, and SESAC in the U.S. collect these royalties and distribute them to rights holders.
2. Mechanical Royalties
What Are They?: Mechanical royalties are paid whenever a song is reproduced, whether it's on a physical medium like a CD or a digital platform like Spotify.
How Are They Collected?: These royalties are typically collected by organizations such as the Harry Fox Agency in the U.S. or through digital distribution platforms.
3. Synchronization (Sync) Royalties
What Are They?: Sync royalties are paid when a song is used in synchronization with
visual media, such as movies, TV shows, commercials, or video games.
How Are They Collected?: These are usually negotiated directly between the music publisher (or artist) and the entity seeking to use the music.
4. Print Royalties
What Are They?: Print royalties are earned from the sale of printed music, such as sheet music and songbooks.
How Are They Collected?: Music publishers collect these royalties and distribute them to
songwriters and composers.
5. Digital Royalties
What Are They?: Digital royalties are earned from
streaming services, digital downloads, and other online uses.
How Are They Collected?: These royalties are collected by digital aggregators and PROs.
Music Licensing
Music licensing is the process of obtaining permission to use a piece of music. There are several types of licenses:
1. Master License
What Is It?: A master license grants the right to use a specific recording of a song in a visual or audio project.
Who Issues It?: It is issued by the owner of the recording, typically a record label or the artist.
2. Synchronization (Sync) License
What Is It?: A sync license allows the licensee to use a song in synchronization with visual media.
Who Issues It?: It is issued by the music publisher or the songwriter.
3. Mechanical License
What Is It?: A mechanical license grants the right to reproduce and distribute a song on physical media or digital platforms.
Who Issues It?: It is issued by the songwriter or music publisher.
4. Public Performance License
What Is It?: A public performance license allows the licensee to play a song publicly, such as on the radio or at a live venue.
Who Issues It?: It is issued by PROs like ASCAP, BMI, or SESAC.
5. Print License
What Is It?: A
print license grants the right to reproduce and distribute sheet music.
Who Issues It?: It is issued by the music publisher.
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