What are Economic Rights?
Economic rights are either:
The rights to determine the terms and conditions under which a musical work, performance, or sound recording can be licensed or not for use. - which means the use of a An original musical composition with or without lyrics., In the context of music, when a musical work is played live or on a sound recording. or Typically, the recorded performance of a musical work protected as a phonogram under copyright law. requires the authorization of the A person or company that has Intellectual Property Rights in a musical work, performance or sound recording, therefore the rights holders can determine the terms and conditions under which they agree, or not, to A form of permission given to use copyrighted material, such as a musical work or sound recording, under certain conditions and usually for a fee. the use. Rights holders can manage The rights to determine the terms and conditions under which a musical work, performance, or sound recording can be licensed or not for use. themselves or assign An organization that acts collectively on behalf of the rights holders it represents and collects and pays remuneration to rights holders. to manage some of their exclusive rights on their behalf.
orUnder copyright law, the right to have payment for the use of a musical work, sound recording, or performance under a statutory license. - which means Persons and organizations that engage in commercial or public use of musical works and sound recordings, for example, DSPs, radio and TV stations, and retail businesses. need to pay for a A form of permission given to use copyrighted material, such as a musical work or sound recording, under certain conditions and usually for a fee. from the local CMO, where the musical work or sound recording is used, but they do not require the authorization of the individual rights holders. Only CMOs may manage those rights, not individual rights holders.
This varies from country to country. But the bottom line is economic rights allow Anyone who contributes to creating or performing a musical work, a live performance, or a sound recording. and other rights holders to make money when a musical work, performance, or sound recording is used.
Economic rights include the rights of The process of writing or recording a musical work or performance in a tangible form, such as sheet music or a sound recording., The action or process of copying, for example, making copies of a musical work or sound recordings, Any form of modification or alteration of a musical work or sound recording to create a new musical work or sound recording, The process of delivering sound recordings to DSPs and physical retailers., When a musical work or sound recording is played live or communicated to the public, such as in clubs or restaurants, on radio, television, or streaming platforms., When a musical work or sound recording is played live, made available online or transmitted by any means other than distributing physical copies, for example at concerts, in clubs, on radio or tv, by webcasting or streaming. and When a musical work or sound recording is available to members of the public from a place and at a time individually chosen by them, such as streaming or downloading.
This is the legal terminology, but the music industry uses different terms. We will describe music creators and industry rights based on business terminology and explain how these rights apply to different uses of musical works, performances, and sound recordings under National laws that protect creators' and other rights holders' moral and economic rights in musical works, performances, and sound recordings..
See our Common Music Industry Rights page for more information.
Exclusive rights can be Where the ownership or management of rights has been granted to others in addition to or instead of the original rights owner. or Permission granted to use copyrighted material, such as a musical work or sound recording, under certain conditions and usually for a fee. to other people or companies. For example, if songwriters transfer their rights to a A company that represents songwriters, supporting their career development, monetizing musical works, and protecting copyrights. or authorize the use of their musical works.
Most A payment for the use of a musical work, sound recording or performance under a statutory license cannot be transferred or waived and can only be managed by CMOs.
Learn more about this on the Rights Transfer, Assignment, and Licensing pages.
Which music creators have economic rights?
A person who makes an original contribution to the creation of a musical composition or lyrics. and sometimes music publishers have economic rights with respect to their musical works; In the context of music, a creator playing a musical work live or on a sound recording. have economic rights on their performances; and companies or individuals responsible for the recording, sometimes called The person or company taking the responsibility for making a sound recording., who can be Artists that release their music without the support of a record label., A company that invests in, manufactures, distributes, promotes, and monetizes sound recordings on behalf of the artist. or Not affiliated with any other entity or company. Sometimes called a studio producer or record producer, a person who typically helps a recording artist record a musical work. They are usually responsible for the entire recording process., have economic rights on their sound recordings.
Image credit: Martin Fabricius Rasmussen