Every song you release creates two separate copyrights, and each one earns its own money. Understanding the difference is the fastest way to stop leaving royalties uncollected.
Copyright 1: the master
The master is the recording itself. Whoever owns the master controls what happens with that recording and collects the money it earns.
- Streams and sales. If you're independent, your distributor pays you master royalties when your music is streamed or sold.
- Digital performance royalties. When your recording plays on non-interactive services like internet and satellite radio, SoundExchange collects royalties for the recording owner and for the artists who performed on it.
Copyright 2: the publishing
Publishing covers the composition: the lyrics, melody, and musical elements that make up the song itself, separate from any one recording of it. Publishing money comes in two main forms:
- Performance royalties, collected by a PRO (performing rights organization) such as ASCAP or BMI and paid to songwriters and publishers.
- Mechanical royalties, earned when your composition is reproduced, including on streaming services. In the U.S., The MLC collects streaming mechanicals and pays publishers and self-administered songwriters.
Where independent artists leave money on the table
The most common miss: not collecting the publisher's share. Songwriting income is split between the writer's share and the publisher's share. If you write your own songs and don't have a publisher or a publishing administrator, the publisher's share of your own music can go uncollected. Setting up your own publishing entity or using an admin service fixes that.
The other common misses are not registering with a PRO, The MLC, or SoundExchange at all. Each one collects money the others don't.
Your royalty checklist
- Release through a distributor that pays you your master royalties.
- Register as a songwriter with a PRO.
- Set up your publishing, or use an admin service, so the publisher's share comes to you.
- Register your songs with The MLC.
- Register with SoundExchange as an artist and, if you own your masters, as the rights owner.
This post is general information, not legal or tax advice.