Anyone who buys or listens to a The term "song" does not have a legal definition. It is frequently used to mean "musical work” – the composition and lyrics (if any) created by songwriters and composers. However, it could also refer to a “sound recording” (a specific recording of a musical work), or a “performance” (a live performance of a musical work). through Digital Service Provider: an online platform that provides streaming or download services to consumers., physical music stores, radio, video, film, TV, live or non-live venues, for example, nightclubs and bars, will usually generate income for its Anyone who contributes to creating or performing a musical work, a live performance, or a sound recording.. This could be directly via a payment from the listener, via other income coming from advertisers, for example, who pay DSPs for exposure to listeners on their sites, or via Money paid for a license that allows the use of copyrighted material, such as a musical work or sound recording. paid for the use of the songs, for example, from broadcasters or live and non-live venues. It is the catalyst for a process that sees money flow back through the ecosystem to the creators.
In order to be compensated, creators must input the appropriate Data that describes other data, for example, information that describes creators, other rights holders, musical works, and sound recordings. about who did what, where, and when on the An original musical composition with or without lyrics. and the Typically, the recorded performance of a musical work protected as a phonogram under copyright law. and To submit information relating to musical works and sound recordings to an appropriate registration body, for example, copyright ownership information submitted to a Collective Management Organization or copyright office. all of the relevant key Unique alphanumeric codes used to identify creators, rights holders, musical works, and sound recordings. required for getting To be publicly acknowledged for a contribution to the creation of a musical work, a live performance, or sound recording, for example, listing a songwriter's or performer's name. and paid.
Once a song is Permission granted to use copyrighted material, such as a musical work or sound recording, under certain conditions and usually for a fee. and then streamed, listened to, or purchased, the income journey from the listener back to its creators follows different income streams.
A person who makes an original contribution to the creation of a musical composition or lyrics. and A company that represents songwriters, supporting their career development, monetizing musical works, and protecting copyrights. - for the use of their musical work.
In the context of music, a creator playing a musical work live or on a sound recording. and A company that invests in, manufactures, distributes, promotes, and monetizes sound recordings on behalf of the artist. - for the use of their sound recording.
There are then many different ways Money paid for the right to use a musical work, performance, or sound recording, typically, but not always, in the form of recurring payments. will be earned and paid;
When a song is streamed or downloaded online, A person or company that has Intellectual Property Rights in a musical work, performance or sound recording will receive payments in the form of royalties, shared by music publishers and songwriters, record labels, and performers.
When a song is played on the radio or in a public venue like a supermarket or cafe, rights holders typically receive compensation through An organization that acts collectively on behalf of the rights holders it represents and collects and pays remuneration to rights holders.. CMOs make payments in the form of remunerations or royalties, which are shared by publishers and songwriters.
Depending on the region, Usually, the main artist or performer who performed on a sound recording. and other performers may also receive compensation in the form of , or neighboring rights, royalties. Or they may receive no compensation for these rights in certain countries. Find out more about these royalties on our Related Rights page.
When the sound recording is purchased in a physical store, the flow of income goes to the record label. The label is responsible for compensating the recording artist and other performers, and paying Money paid to the copyright owners of musical works whenever their musical works are reproduced, usually as a sound recording, in a digital or physical format. to the publisher and songwriter for the physical copies manufactured – not necessarily purchased by consumers.
For live performances, recording artists are paid directly for their performance, and Money paid to the rights holders of musical works or sound recordings whenever they are performed publicly. This can be a live performance or a broadcast of a sound recording. are paid to songwriters and publishers through CMOs. It is very important that all musical works that are performed live are reported, via a so-called The list of musical works publicly performed by an artist at an event such as a concert., to the Performing Rights Organization: a type of Collective Management Organization that administers rights and collects royalties on behalf of songwriters and music publishers when their musical works are publicly performed or broadcast. with whom the concert organizer has a license agreement, so that the songwriters and music publishers receive their proper compensation.
If the musical work and/or the sound recording reaches listeners as a featured element in a film, television show, video game, or advertising campaign, A license to use a musical work with visual media in a so-called audiovisual work, such as movies, videos, TV shows, commercials, video games, or websites. apply. Income from sync royalties will reach songwriters through their music publisher or CMO, and performers through their record labels.
Read more about royalties in our Getting Credited and Paid topic.
It's important to remember that CMOs and other organizations can only find creators and compensate them if key song and creator Unique alphanumeric codes used to identify creators, rights holders, musical works, and sound recordings. and Data that describes other data, for example, information that describes creators, other rights holders, musical works, and sound recordings. are input and maintained correctly. It can seem that royalty flows from listeners, users, or consumers back to creators can be complex if you don't know how it all works. But don't worry; we have a whole topic on Getting Credited and Paid that will tell you more.
Animation credit: Jacob Vidkjær, Playminds