What Are Music Royalties?

Music royalties are payments made to creators and rights holders when their music is used commercially. They act as both income for artists and a legal protection for their work, ensuring that the people behind the music benefit financially from its success.

The Two Main Music Rights

Before diving into royalties, it’s important to know the two primary rights in music:

1. Copyright in the Composition

• Covers the melody, lyrics, and structure of the song.

• Owned by the songwriter(s) and usually administered by publishers.

• Example: If you write the lyrics and chord progression for a pop song, you hold composition rights.

2. Copyright in the Sound Recording (or Master Rights)

• Covers the actual recorded performance of the song.

• Usually owned by record labels, producers, or independent artists who self-release.

• Example: Beyoncé singing Halo, her performance recording is separate from the songwriter’s composition rights.

Types of Music Royalties

1. Performance Royalties

• Earned when music is played in public—on radio, TV, live concerts, streaming platforms, or even in a café.

• Collected by Performance Rights Organizations (PROs) like ASCAP, BMI, or PRS.

• Example: If a coffee shop plays Ed Sheeran’s Shape of You, royalties are owed to the songwriters.

2. Mechanical Royalties

• Paid when music is reproduced—whether as physical copies (CDs, vinyl) or digital downloads/streams.

• Collected and distributed through publishers and licensing bodies.

• Example: Every time Bohemian Rhapsody is streamed on Spotify, mechanical royalties go to the songwriters.

3. Synchronization (Sync) Royalties

• Generated when music is licensed for use in films, TV shows, ads, or video games.

• Requires a sync license negotiated directly between rights holders and producers.

• Example: When a Netflix series uses Fleetwood Mac’s Dreams in a soundtrack, sync royalties are paid.

4. Print Royalties

• Earned from sales of sheet music and lyric reprints.

• Example: When a choir purchases sheet music for Adele’s *Someone Like You*, print royalties are owed.

5. Neighboring Rights Royalties

• Paid for the public performance of sound recordings, benefiting performers and labels.

• More common internationally than in the U.S.

• Example: When a radio station in France plays a recording by Coldplay, the band and label receive neighboring rights royalties.

Why Rights and Royalties Are Important

• Fair Compensation: Without royalties, artists and songwriters would lose income even if their music reached millions of people.

• Sustaining Creativity: Royalties give musicians the financial freedom to create more music.

• Encouraging Industry Growth: Royalties support not just artists but also producers, engineers, and publishers.

• Protecting Intellectual Property: Rights ensure that creators maintain control over how their music is used.

• Real-world example: Taylor Swift’s public dispute over ownership of her master recordings highlights why rights matter. By re-recording her albums (Taylor’s Versions), she reclaimed control and royalties that would have otherwise gone to the owners of her original masters.