Music licenses and royalties generally fall into the four categories outlined below:
- Performance rights Royalties – These rights deal with live performances or broadcasts. The licensee pays a set fee to a PRO and is generally able to play the entire collection (or in some instances and individual property) covered. Performance royalties are paid to the songwriters and publishers when the song/s are performed live or on radio.
- Mechanical licenses Royalties – These refer to mechanically reproduced music (i.e. CD, Cassette etc.) for public distribution. The publisher grants an allowance for the composition to be reproduced and in turn a royalty is paid to the artist, songwriter and publisher on a per/recording sold basis.
- Synchronization rights Royalties – These licenses are needed for compositions to be reproduced and used in other forms of media such as television, film, video, games, etc… The synchronization royalty is paid to the songwriters and publishers for use as “background music.”
- Print rights Royalties – These are paid to publishers and songwriters based on sales of their printed musical compositions and sheets.
These royalties listed above are the main types in the United States and there may be others in other countries and jurisdictions.
As with all issues in law, there are generally no one clear answer to certain issues and the circumstances are always of vital importance.
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