Collecting royalties is a fundamental aspect for anyone who writes, produces, or participates in the creation of a song. However, the process can be complex, especially for those unfamiliar with the mechanisms of distribution and collection of music revenue. Let's explore together the steps necessary to ensure your royalties are collected and paid correctly.
1. Understand the types of royalties
First of all, it's essential to understand the different types of royalties that can be derived from a song:
- Sound recording royalties (Master): These are generated from the streaming and sale of the song recording. They are paid by the digital distributor or record label.
- Public performance royalties: These are derived from the use of the song on radio, TV, public venues, and digital platforms. They are managed by collecting societies such as ASCAP, BMI, or SIAE.
- Mechanical royalties: These are derived from the reproduction of the song on physical or digital media and are collected by organizations such as The MLC (in the US) or MCPS (in the UK).
- Synchronization royalties: These are derived from the use of the song in films, advertising, and video games.
2. Author-Artist Agreements
If you have written a song that is sung by an artist, you must clearly define the terms of the agreement. The main aspects to consider are:
- Copyright: If you are the author of the lyrics and/or music, you automatically have the copyright on the composition. The artist must officially recognize your share of intellectual property.
- Publishing Agreement: If you work with a music publisher, they will handle the collection of royalties and the registration of the song with the collecting societies.
- Digital Distribution Agreements: The artist distributing the song must register you as a co-author or co-publisher with their digital distributor (TuneCore, DistroKid, CD Baby, etc.) so that you can receive your share of the royalties.
3. Formalize the agreements
It's not enough for an artist to credit you as a contributor on a song. It's essential to formalize all the details to ensure your rights are respected. Here's what you need to do:
- Sign a written contract with the artist or producer to define your ownership share of the song.
- Be added as a contributor by the artist's digital distributor to receive your share of streaming royalties.
- Provide your PRO (Performance Rights Organization) number to ensure you receive public performance royalty payments.
4. Register with the Appropriate Platforms
To collect your royalties effectively, you need to register with the right organizations:
- PRO (Performance Rights Organizations): ASCAP, BMI, SESAC (USA), or SIAE (Italy) for performance royalties.
- The MLC (Mechanical Licensing Collective): for mechanical royalties in the USA.
- SoundExchange: To collect non-interactive royalties (e.g., Pandora, SiriusXM).
- Distribution and publishing platforms: If you're a co-publisher, you may need to use services like Songtrust or TuneCore Publishing.
5. Evaluate Profitability
Not all songs generate significant revenue. For example, with one million streams on Spotify, you can earn around $3,500, after deducting any collection costs and fees. With just 10,000 streams, the profit would be around $14. This means that royalty collection is only worthwhile if the song gets a significant number of plays.
6. Monitor payments and collection times
Royalties are not paid immediately. The waiting time can vary between 8 and 12 months from the release of the song. It is important to constantly monitor your income through royalty collection platforms and, if necessary, contact a debt collection agency for any unpaid amounts.
Protect your music!
Collecting royalties requires in-depth knowledge of the music distribution system and careful management of your intellectual property. I have been working in the music industry for over 20 years and am an expert in publishing management and digital distribution. If you write a song for an artist, you need to ensure your role is legally recognized through clear contracts, registrations with the right organizations, and transparent distribution agreements. Legally managing your music is essential to avoid losing earnings and to be able to claim unpaid royalties. If you have doubts or difficulties in recovering your royalties, I can help you contractually manage your music with publishers and performers. Contact me to schedule a meeting and together we can find the best solution to protect your rights.
