For the independent artist, understanding music rights is the difference between keeping control of your career and accidentally giving away your income. It's confusing, full of jargon, and often intentionally opaque, but the core concepts are surprisingly straightforward.
This guide simplifies the essentials: the two types of rights in every song, and the four major payment streams that generate your income.
1. The Two Rights in Every Song
Every single piece of recorded music involves two completely separate copyrights. As an indie artist, you typically own both, but you need to know how they function independently.
A. The Composition (The Song Itself)
What it is: The music and lyrics—the intellectual property. Even if you just sing the melody into your phone, the composition exists.
Owner: The Songwriter (or their publisher).
Right Controlled: Mechanical (reproduction/distribution), Performance (radio/streaming), and Synchronization (TV/Film/Ads).
How you register it: Register with a Performing Rights Organization (PRO) like ASCAP or BMI (U.S.), PRS (U.K.), or SOCAN (Canada). You also register with a Mechanical Rights Organization (like The MLC in the U.S.).
B. The Sound Recording (The Master)
What it is: The actual recorded performance—the final audio file that listeners hear.
Owner: The Record Label or, in the case of an independent artist, the Artist themselves.
Right Controlled: The right to duplicate, distribute, and license the specific recording.
How you register it: You don't "register" this with a PRO; you typically assign the ownership and metadata (like the ISRC code) through your Distributor (e.g., DistroKid, TuneCore).
Indie Artist Reality Check: If you wrote and recorded your song, you are the Songwriter/Publisher (Composition Owner) AND the Label/Master Owner (Sound Recording Owner). This means you control 100% of the money and can license both rights independently.
2. The Four Primary Income Streams (Licenses)
Your music generates money every time it is used. These usages require different licenses and are paid out via different organizations.
A. Performance Royalties
These are paid when your composition is performed publicly.
Usage: Terrestrial radio, internet radio (Spotify, Apple Music non-interactive play), bars, venues, and television broadcasts.
License Type: Public Performance License.
Payer/Collector: Your PRO (ASCAP, BMI, etc.).
Action for Artists: Join a PRO and register your songs immediately.
B. Mechanical Royalties
These are paid when your Composition is reproduced (e.g., when a physical CD is manufactured, or when a stream happens, as a stream is considered a digital reproduction).
Usage: Physical sales, digital downloads, and interactive streaming (Spotify, Apple Music, YouTube).
License Type: Mechanical License.
Payer/Collector: The Mechanical Licensing Collective (The MLC) in the U.S. or similar agencies internationally.
Action for Artists: Ensure you are registered with The MLC and that your distribution service is providing accurate metadata.
C. Master Royalties (The Largest Stream)
This is the money paid for the use of your Sound Recording (the master file). This is typically the largest slice of the streaming pie.
Usage: Every stream (Spotify, Apple Music, etc.), every digital sale, and every physical sale.
License Type: No official license, but rather a direct payment for distribution/usage.
Payer/Collector: Your Digital Distributor (DistroKid, TuneCore, CD Baby). They collect from the streaming services and pay you directly.
Action for Artists: This is handled by your distributor—choose one with competitive fees and reliable reporting.
D. Synchronization (Sync) Licensing
This is where your music is synced up with visual media (the "holy grail" for indie artists).
Usage: Placement in Films, TV shows, Video Games, and Advertisements.
License Type: Synchronization (Sync) License. The user (e.g., Netflix) needs a license for both the Composition and the Sound Recording.
Payer/Collector: The fee is paid directly to you, the rights holder (or your licensing agent).
Action for Artists: You need to have clear, unconflicted ownership of both rights to grant a sync license quickly. This is often handled through a Sync Agent or music library.
3. Essential Takeaways for Indie Artists
Always Register Your Songs: As soon as you finish a song, register it with your PRO and with The MLC. This ensures you collect both performance and mechanical royalties globally.
Know Your Splits: If you collaborate, all co-writers must agree on the percentage ownership for the Composition before the song is released. This avoids future royalty disputes.
Use ISRC Codes: Your distributor will assign you an ISRC (International Standard Recording Code). This unique fingerprint tracks your specific sound recording globally and is essential for payment accuracy.
Read Distributor Contracts: Be careful of any distributor or service that asks for a share of your publishing (your Composition right). Most standard distributors only handle the Master side; keep control of your Composition.
0 Comments