In today’s music industry, understanding the legal and financial aspects of your work isn’t just important, it’s essential. Before signing any contract or releasing your track, you need to understand key concepts such as:
- PROs (Performing Rights Organizations)
- ISRC (International Standard Recording Code)
- Copyright (Composition Rights)
- Master Rights (Recording Rights)
- Publishing (Editorial Rights)
This guide is designed to break down these complex terms into simple, practical knowledge. Whether you’re an independent artist or working with a label, understanding how music rights work is crucial to protecting your interests and maximizing your earnings.
What You’ll Learn
This article will cover:
- What PROs (e.g., Buma Stemra, SIAE, PRS) do and how they manage performance royalties
- The role of ISRC codes in tracking and monetizing recordings
- The difference between copyright and master rights and why it matters when signing a contract
- Publishing agreements and how they affect your royalties
- Step-by-step instructions for registering your music to ensure you get paid correctly
1. Understanding CopyrighT
Copyright refers to the ownership of the musical composition, including melody, lyrics, and arrangement.
- Owned by: Songwriters and composers
- Managed by: PROs such as BMI, ASCAP, PRS, and Buma Stemra
- Royalties generated from:
- Live performances (concerts, clubs)
- Broadcasts (radio and TV)
- Streaming platforms (Spotify, Apple Music, etc.)
2. Understanding Master Rights
Master rights refer to the ownership of the actual sound recording, the audio file itself.
- Owned by: The record label or the artist (if self-released)
- Managed by: The label, distributor, or digital service provider
- Royalties generated from:
- Digital streaming and downloads
- Sales and licensing (e.g., synchronization for TV, film, advertising)
3. Understanding IPI and ISRC
IPI (Interested Parties Information)
An IPI is a unique international identifier assigned to you by your PRO. It ensures royalties are properly credited to you as a composer or author.
How to get an IPI:
- Join a PRO and complete the registration process
- Your PRO will issue your IPI number
ISRC (International Standard Recording Code)
An ISRC is a unique code that identifies a specific sound recording.
Purpose: Tracks the usage of your track on streaming platforms, radio, and sync placements.
How to get an ISRC:
- If you’re signed to a label, they will assign it
- If you’re independent, request it from your distributor or apply for a registrant code to generate your own
Summary:
- IPI identifies you as the creator of the composition
- ISRC identifies the specific recording of the track
4. How to Register Your Song with a PRO
Registering your music with a PRO (e.g., Buma Stemra, SIAE, ASCAP) is essential to ensure that you receive royalties as a composer or author.
Step-by-step guide:
- Log into your PRO account or complete the paper form
- Provide the following information:
- Song title
- List of all composers and authors
- IPI numbers of all contributors
- Ownership shares (e.g., 100% for yourself or 50/50 if co-written)
- Date of creation
- Duration of the track
If you’re the sole author, register yourself at 100%.
If you co-wrote the track, include all authors and their IPI numbers, with agreed-upon ownership percentages.
What about the label?
Generally, the label is not involved in PRO registration because they own the master, not the composition.
Exception: If your contract includes a publishing clause, where the label also acts as a publisher, you must include their IPI and ownership share.
Key tips:
- Always review your contract to see if the label claims any publishing rights
- Register your music before releasing it
- Double-check IPI numbers and ownership shares to avoid future disputes
What happens if you don’t register?
- Loss of royalties from streaming, live performances, and broadcasts
- Delays in payments due to unlinked metadata
- Potential disputes if someone else registers similar content
- Missed international royalties due to tracking issues
5. What Labels Usually Request When a Track Is Accepted
When a label agrees to release your music, they typically request several items to complete the process.
Common requirements include:
- Your IPI Number
- Used to credit you for composition rights
- Used to credit you for composition rights
- PRO Membership Confirmation
- You may be asked to provide your PRO name and account ID
- You may be asked to provide your PRO name and account ID
- Proof of Song Registration
- Labels want to ensure your track is registered or will be soon
- Labels want to ensure your track is registered or will be soon
- ISRC Code
- Assigned by the label and required in all metadata and distribution
- Assigned by the label and required in all metadata and distribution
- Ownership Details
- Including splits between all rights holders
- Including splits between all rights holders
- Signed Contracts
- Clearly outlining the split of master royalties and any publishing clauses
- Clearly outlining the split of master royalties and any publishing clauses
Always review contracts carefully to understand what rights you are granting and what percentage of income you’ll receive.
6. How Streaming Royalties Are Split
Streaming services generate two types of royalties each time your track is played:
Master Royalties (Recording Rights)
- Paid to the owner of the recording
- Collected by the label, distributor, or artist (if self-released)
- Covers streaming of the audio file
- Split according to your contract (e.g., 40% to you, 60% to the label)
Copyright Royalties (Composition Rights)
- Paid to composers and publishers via PROs
- Covers usage of lyrics, melody, and arrangement
- If you’re the sole composer, you receive 100% unless there’s a publishing deal
Final Checklist Before Releasing a Track
Use this checklist to ensure you’re fully prepared to release your track, independently or through a label:
- Register with a PRO and obtain your IPI number
- Register the track with the PRO (including title, contributors, IPIs, and ownership percentages)
- Assign an ISRC code via your label or distributor
- Review your contract: check your share of master royalties and any publishing clauses
- Verify your metadata: song title, ISRC, authors, etc.
- Keep a record of all registrations and contracts for future reference
Tip: Share this checklist with collaborators to keep everyone aligned.
8. How and When Royalties Are Paid
Once your track is released, royalties start to accumulate but the timing and methods of payment vary.
Performance Royalties (via PRO)
- Collected from live shows, radio, TV, and streaming
- Paid quarterly or semi-annually, depending on your PRO
- Issued with a royalty statement detailing usage
Master Royalties (via Label or Distributor)
- Collected from platforms such as Spotify and Apple Music
- Labels usually pay quarterly
- Independent distributors (e.g., DistroKid, TuneCore) may pay monthly or more frequently
Note: Payment timelines and percentages are always defined in your contracts. Read them carefully to understand how and when you’ll be compensated.
