Are you a beginner musician who is still learning his way around the music industry? Are you wondering what are the different types of royalties in music?
Then stay tuned for the next paragraphs.
What does a royalty do?
Music royalties are payments to compositors, singers, producers and everyone who is producing a musical piece. These royalties are paid for the usage/ license of the artists' song.
It is important to know that there are two types of copyrights: Master and publishing use. Master rights belong to the person who created the music piece, where it can be the artist, record label or the recording studio. The publishing rights are
The royalties payment is usually determined upon as a percentage of gross or net revenues derived from the usage of the song or a fixed price per sold album.
There are four different types of music royalties: Mechanical Royalties, Public Performance Royalties, Synchronization Royalties and Print Music Royalties.
1. Mechanical royalties:
Mechanical royalties are paid from record label companies for sold records which are based on the exclusive to reproduce and distribute copyrighted works.
The Mechanical royalties are paid from record label companies for the physical or digital distribution of copyrighted works. With the mechanical royalty, the music publisher is granting rights to his/her music. Music formats such as Vinyl, CD, digital downloads, cassettes, and even streaming are entitled to mechanical royalties compensation.
2. Public performance royalties:
Public performance royalties are paid by organizations for the usage of songs for the operation of their businesses and broadcasts. The artist is giving the involved company an exclusive right to his copyrighted work to be played publicly.
Companies such as radio, TV, live concerts, festivals, clubs, shops, and music streaming services are required to pay Public performance royalties for the usage of the musicians' work.
Services that collect these royalties are often called Performance Rights Organisations (PROs), where they collect and distribute music revenues to the rightful owners, and arrange licenses for public usage of the tracks.
3. Synchronization Royalties:
Synchronization Royalties (SYNC) are paid by music users for the usage and synchronizing songs with visual media. They are based on the exclusive right to reproduce and distribute copyrighted works and to aid the visual media creation. Movies, games, TV, commercials, YouTube creators or any other types of visuals are required to pay for the usage of the music.
As well as the SYNC license when using a track to aid your visuals, you will also need permission to use the master use license. Master rights belong to the person who created the music piece, where it can be the artist, record label or the recording studio. Obtaining a master use license is an agreement between the master release owner and the user.
4 Print Music Royalties:
Print music royalties are paid when wanting to use print music sheet. Example of print royalties is church music, anthems, and hymns. Print music royalties are giving exclusive right to distribute and use copies of the work.
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