Many musicians leave money on the table because they don’t know the system in place to pay them. Their music may be great and their streaming numbers high, but if their music isn’t in a PRO or the MLC, their money is in a black hole. This is why music copyright law exists. Royalties are what are used to pay musicians for their music whenever and wherever it’s performed and used. In the past, understanding this was the domain of lawyers and label executives; now it is essential knowledge for every artist, songwriter, and producer with a desire to build a career.

I’m writing this guide to help you understand the two major copyrights in music. We will also go over mechanical and publishing royalty streams, and end with the an often overlooked opportunity in licensing called synchronization. Towards the end of this brief, you will learn what these terms mean and how to access the money they represent. Let’s get to it.

Let’s start by asking you a question: do you know what copyright protects? To put it simply, copyright protects the creative expression of an idea. Books, movies, and in our case, music. Music in particular has two types of copyright applying to two separate elements of a recorded song.

The first covers the music work itself. For example, let’s say you right down a song, lyrics and music with a guitar. You have a melody and everything. The composition copyright is what protects your expression here and begins to exist when your song is in a tangible form. Unless you sign away ownership in a publishing deal (we will get into this later), you own this copyright.

The master recording copyright covers what’s known as the “master” recording. This is a specific version of the song recorded. Continuing with our example, after writing your song, you go into the studio to record it. The finished recording released to the public is what’s known as the master recording. This copyright is what generates royalties for downloads, streams, and licensing deals. After a typical record deal, a record label tends to own the masters. As an example, Taylor Swift re-recorded her songs so she could own her masters. Why did she do this? Because whoever owns the master controls how a recording can be licensed through sync deals.

Mechanical royalties are the oldest form of royalty and are generated every time a composition is reproduced in audio form. This means when you buy a physical CD (because you still live in the 80’s and 90’s), a vinyl record, a digital download, or a stream, a mechanical royalty is generated to be sent to the owner of the recording.

Whenever you read an angry article about the low amount paid out to artists by the streamers, this is the mechanical rate. The payout rate, unless you are Drake or Taylor Swift, is fractions of a cent per stream. No one except the streamers and the labels seem to know the exact formula, but it is along the lines of total platform revenue and subscriber numbers. 

Our next order of business is knowing who pays these royalties. All streaming platforms are required by law to pay mechanical royalties for songs streamed and payments go to the publisher, record label, songwriter or whoever the rights-holder of the song is.

In 2018, The Music Modernization Act changed how mechanical royalties from streaming are collected and distributed in the U.S. The act created what is known as the Mechanical Licensing Collective or the MLC. They are now responsible for collecting and paying out streaming royalties to U.S. songwriters and publishers or the owner of the song.

How to Collect Your Mechanical Royalties

If you are in the U.S., register with the Mechanical Licensing Collective (themlc.com) as the direct route to collect royalties owed for your music. You should know, registration is free. The MLC also holds a pool of unclaimed royalties you might be able to claim by registering your work.

If you are selling your music using physical copies and downloads then royalties will be handled by your distributor. Or your publisher. Or The Harry Fox Agency. However, if you are releasing your music as an independent artist without a publisher, you will want to affiliate yourself with a publishing administrator like Songtrust, Materia Music, or Playbutton Publishing Admin. These companies will register your songs and collect them on your behalf after paying a fee.

Publisher royalties are filled with multiple revenue streams generated by your composition copyright. One subset is mechanical royalties, which we went over above. Another is performance royalties which can be a significant income stream for songwriters, producers, and creators of a piece of music. 

A performance royalty is generated every time a composition is publicly performed or broadcast. This includes radio airplay (AM/FM, satellite, internet radio), live performances at licensed venues, background music in bars and restaurants, and TV and film broadcast. Performance royalties are split between the publisher's share and the songwriter's share, and they're collected by Performing Rights Organizations (PROs).

In the United States, the three major PROs are ASCAP (American Society of Composers, Authors and Publishers), BMI (Broadcast Music, Inc.), and SESAC (a private PRO by invitation). Internationally, analogous organizations include PRS for Music (UK), SOCAN (Canada), APRA AMCOS (Australia/New Zealand), and hundreds of others worldwide. You can only affiliate with one U.S. PRO as a songwriter, so research each organization to discover which is the best for your music.

For example, Playbutton Publishing Admin is affiliated with ASCAP, who collects royalties for us and the catalog we represent. While Playbutton works as a traditional publisher in one sense by taking ownership of a catalog of music, we also represent works and collect on behalf of the artist without taking ownership.

Step one: Join a PRO. ASCAP and BMI are both free to join as a songwriter. Once affiliated, register every song you write with your PRO — include co-writers, splits, and ISRC codes. Without registration, your songs cannot be tracked, and royalties will go uncollected.

Step two: Register with a publishing administrator or sign with a music publisher. A publishing administrator (like Songtrust or CD Baby Pro Publishing) doesn't take ownership of your copyrights but registers your songs with PROs and mechanical collection societies worldwide, ensuring you collect royalties in territories you'd otherwise miss. A traditional music publisher may offer advances and active song placement opportunities in exchange for ownership of a portion (or all) of your copyright for a defined period.

Step three: Register your songs with SoundExchange if you record your own music. SoundExchange is a separate organization that collects digital performance royalties for master recordings — specifically from internet radio services like Pandora and SiriusXM. Unlike PROs, which collect for songwriters, SoundExchange pays both the recording artist and the master rights holder. It's free to register, and unclaimed royalties pile up year after year for artists who haven't signed up.

This is what this newsletter is all about: sync deals. A sync deal is the licensing of music to be paired, or synchronized, with visual media. This includes film and television, advertisements, video games, YouTube videos, social media content, podcasts with video components, and streaming platform trailers. A single sync placement can generate more income than months of streaming revenue, and it comes with an additional perk: exposure to audiences who might never have found your music otherwise.

Synchronization is licensing music to be paired and synchronized with some form of visual media. Media includes everything from film and television, to advertisements, video games, YouTube videos, social media content, podcasts, and trailers. In some cases, one single sync placement can generate more income than months of streaming revenue. Plus, your music could be exposed to an audience who might never have discovered you otherwise.

If a music supervisor or content creator wants to use your song in their project, they need to license two things separately — the sync right (from the composition rights holder) and the master license (from the master recording rights holder). If you're both the songwriter and the recording artist who owns their masters, both licenses come from you, which simplifies the process and keeps 100% of the fee in your pocket. This is known as a one-stop licensing deal. This is how Playbutton Publishing and other publishers operate so that making a deal is easier.

Sync fees vary enormously based on the size and type of the project. A small YouTube channel might pay a few hundred dollars for a license. A regional TV commercial might pay several thousand. A national ad campaign for a major brand can pay tens of thousands to hundreds of thousands of dollars — and that's before accounting for backend performance royalties generated every time the ad airs. A major film or prime-time TV placement typically commands fees ranging from $5,000 to $50,000 or more per use, depending on the scope of the rights acquired.

Sync fees vary and are based on the size and type of project. A small content creator on YouTube might pay a few hundred dollars for a license, whereas a Hollywood studio will pay between $5k up to $50k+ for a fast turn around to be used in a trailer. A national ad campaign for a major brand can pay hundreds of thousands of dollars before backend royalties generated every time the ad airs. A song used in a hit TV series can generate publishing royalties for years.

Having music which can be cleared with ease is a competitive advantage for rights holders. When you control both the composition and master rights, a licensing deal is as easy as signing on the dotted line. If you have collaborators, make sure you have split sheets with everyone. And make sure your music is registered with a PRO and the MLC.

The sync market is broad and features music licensing libraries and marketplaces, where you can upload all of your music. If that seems broad, you can try sync licensing agencies. They will pitch your music directly to music supervisors. Or you can be even more direct and build relationships with music supervisors themselves. Finally, there are sync-focused music publishers who will take a piece of your catalog or buy it outright. From here, your best bet is to network with relentless fervor to get your music into the right hands and ears. Both the Guild of Music Supervisors and Taxi Music are known to open doors.

Are you reading to make money with your music? Here is a checklist to help you get started:

•  Research and join whichever PRO is the best fit for you music. This is where your publishing royalties will come from.

•  Next, register your music with The Mechanical Music Collective (themlc.com) to guarantee you will get those mechanical royalties.

•  SoundExchange is next for collecting digital performance royalties.

•  Although you don’t have to, I recommend signing up with a publisher admin company (Songtrust, Playbutton Publishing Admin, CD Baby) to collect royalties outside of the U.S.

•  Every song should have an ISRC (recording code) and ISWC (composition code) so collection is easier.

•  Did you work with other collaborators? Get those split sheets updated and uploaded.

•  Once your songs are uploaded and have the correct metadata, your catalog is sync ready. Now on to the next phase: get out there and start selling it.

The royalty and licensing system is a framework designed for you to get paid for your creative work. Yes it can feel overwhelming. But when used to its fullest extent, it can give you the power you need to build a successful career making music. This is why you are here reading this, right? Because you want to make a living making music? Well this brief opens up many ways for you to make money. It will also give you clarity of what you own and where the income streams are. This newsletter is called the Sync Brief because we want you to have the tools and knowledge necessary to go out and find the highest-paying sync opportunities available. And the first step is to understand where the money comes from.

So if you aren’t signed up with a PRO, the MLC, or SoundExchange, go sign up and register your songs. Go and claim your money.

Need help finding background music that boosts engagement? 🎧 Explore our licensing catalog or work with Playbutton Media to get custom-curated music tailored to your content goals.