5 KiB
5 KiB
revenue 02: publishing
- Links
- notes
- Master Copyright vs. Publishing Copyright in Music
- Mechanical Royalties & Streaming Royalties (Quick Overview)
- Sync Placement (Synchronization Licensing)
Links
notes
Master Copyright vs. Publishing Copyright in Music
In the music industry, there are two main copyrights for every song:
1. Master Copyright (Sound Recording Copyright)
- Covers the actual recorded version of the song.
- Owned by the artist, label, or producer who funded the recording.
- Example: The recording of "Thriller" by Michael Jackson.
- Pays mechanical royalties, streaming royalties, and sync fees when used.
2. Publishing Copyright (Composition Copyright)
- Covers the lyrics, melody, and composition of the song.
- Owned by songwriters and music publishers (not the artist unless they wrote it).
- Example: The chords and lyrics of "Thriller", regardless of who sings it.
- Pays performance royalties, mechanical royalties, and sync fees when used.
Key Differences
| Aspect | Master Copyright (Sound Recording) | Publishing Copyright (Composition) |
|---|---|---|
| What it protects | The actual recorded version | The melody, lyrics, and structure |
| Who owns it | Artist, label, or producer | Songwriters & publishers |
| Where it earns money | Streaming, downloads, CDs, sync | Radio, performances, sync, covers |
| Main royalties | Mechanical, streaming, sync fees | Performance, mechanical, sync |
Example Usage If a company wants to use "Thriller" in a movie:
- They pay for the Master Recording (to the record label).
- They pay for the Composition (to the songwriters & publisher).
Important!
- register your LLC
- register your assets under the LLC
Mechanical Royalties & Streaming Royalties (Quick Overview)
1. Mechanical Royalties
- Paid to songwriters & publishers when a song is reproduced or distributed (physical or digital).
- Applies to CDs, vinyl, downloads, and interactive streaming (Spotify, Apple Music).
-
Collected by Mechanical Rights Organizations (MROs) like:
- U.S.: Harry Fox Agency (HFA), The MLC (Mechanical Licensing Collective)
- U.K.: MCPS
- Europe: SACEM, GEMA
2. Streaming Royalties (Broken Down)
- Mechanical Royalties (for the composition)
- Performance Royalties (for public playbacks)
- Master Royalties (for the sound recording, paid to labels & artists)
Who Gets Paid for Streaming?
| Type of Royalty | Who Gets Paid? | Collected By |
|---|---|---|
| Mechanical Royalties | Songwriters, Publishers | MLC, HFA, MCPS |
| Performance Royalties | Songwriters, Publishers | ASCAP, BMI, SESAC |
| Master Royalties | Labels, Artists, Producers | Spotify, Apple Music (via distributors) |
Example If a song gets 1 million streams on Spotify:
- Songwriters & Publishers get mechanical + performance royalties.
- Artists & Labels get master royalties.
Sync Placement (Synchronization Licensing)
What is Sync Placement?
Sync placement (short for synchronization licensing) is when a song is licensed to be used in visual media, such as:
- TV shows
- Movies
- Video games
- Commercials
- YouTube videos
- Corporate videos
- Trailers
- Podcasts
How It Works
A sync license allows a company, filmmaker, or content creator to legally use a song with their video content. The music creator (artist, producer, or rights holder) gets paid for the usage.
Types of Sync Placements
TV & Film Sync Placements
- Songs placed in movies, Netflix series, Hulu, etc.
- Usually high-paying, but competitive.
Commercial Sync Placements
- Used in advertising (Nike, Apple, car commercials, etc.).
- Can be huge payouts if the brand is big.
Video Game Sync Placements
- Songs placed in game soundtracks (GTA, FIFA, NBA 2K, etc.).
- Can be recurring royalties if the game sells well.
YouTube & Online Content Sync
- Used in vlogs, influencer content, indie films, etc.
- Lower payouts, but can add up over time.
How to Get a Sync Placement
- ✅ Work with a Sync Agency or Music Library (e.g., MusicBed, Epidemic Sound, Artlist)
- ✅ Submit Music to Music Supervisors (people who pick songs for shows & movies)
- ✅ Register with a PRO (Performance Rights Organization) (like ASCAP, BMI) to collect royalties
- ✅ Make High-Quality Instrumentals & Vocals (instrumental versions increase your chances)
- ✅ Network with Video Creators & Ad Agencies
Why Sync Placements Are Valuable
- ✔ Can Pay Large One-Time Fees ($500 – $100,000+)
- ✔ Gives Exposure & Can Boost a Song’s Popularity
- ✔ Earns Royalties Every Time It Airs (Performance Royalties)