How Music Royalties Work – Most Musicians know or have heard about music royalties but do not have the ideal knowledge of how it works, how it’s calculated or how to retrieve their monies from agencies that used their music!
What Is Music Royalty?
Music royalty is the payment made to the composer, songwriter, and other music creators for their work used in a particular piece of music.
Royalties are usually a percentage of the sale price of the music, but can also be paid in other forms of compensation such as cash or goods.
Music royalties are the monies received by right owners (song writers, music producers, Composers, recording artists and other stakeholders) for the use of their intellectual music works.
These payments are monies collected from individuals and companies for the licese use of artists’ songs.
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Why are royalties important?
Music royalties are important because they help to ensure that the creators of music receive a fair share of the profits that are generated from the use of their work.
This money is often used to help finance the creation of new music, and to provide financial support to the music creators themselves.
How are music royalties calculated?
Royalties are usually calculated based on the percentage of the sale price of the music that is attributable to the music creators. This is generally done using an equation that takes into account a number of factors, including the length of the music, the type of music, and the country of origin.
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Who Collects Music Royalty For Artists?
Mainly, music royalties are collected from institutions like TV channels, radio stations, streaming platform such as itunes, tidal, google play, spotify, pandora, shazam, audiomack, boomplay, deezer and many others.
The music royalty payments are mostly collected by intermediary bodies and music aggregators that have had agreements with artists to hold some level of rights, that permits them to collect payments on their behalf.
In some cases, music royalties are paid directly to the Musicians themselves, mostly, indie or independent artists.
There are about six (6) different types of music royalties, and we would be discussing in our next lesson.
But before that, let me take you through the concept of music rights.
What Is Music Rights?
Music Rights means any music recording masters, musical arrangements, copyrights, lyrics, songtitles, artwork, graphics, song rights or other formsof music-related intellectual property rights orlicenses thereto whether on an exclusive or nonexclusive basis.
Types Of Music Rights
In every music ever recorded, two types of music rights exist, that is Composition and Master right.
Composition Right
It is the kind of right owned by songwriters and their music publishers.
This type of music right covers the melody, lyrics and harmony in the song.
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Master Right
It is the copyright for the particular expression of a composition, created when the composition is turned into a sound recording, and owned by recording artists and sometimes record labels.
Conclusion
I hope at this point you would be able to briefly explain the concept of music royalties and the parties eligible to collect royalties.
Again you should be able to define music right and the two types.
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