Almost every way music earns money involves a licence: permission to use a copyright, usually in exchange for a fee or royalty. Understanding which licence applies, who grants it and who collects the money is one of the most valuable things a music professional can know.
The two copyrights again
Most licences concern one of two rights - and often both:
- The composition (the song) - owned by songwriters and their publishers.
- The master recording (the specific recording) - owned by the label or artist who paid for it.
The main licences
Performance licences
Needed to play music in public or broadcast it: radio, TV, venues, shops, restaurants, gyms, streaming. Usually covered by blanket licences from collecting societies, which allow use of their entire repertoire for a fee.
- Compositions: PROs - PRS for Music in the UK; ASCAP, BMI, SESAC and GMR in the US.
- Recordings: neighbouring-rights societies - PPL in the UK; SoundExchange in the US for digital radio. In the UK, PPL and PRS jointly license many public venues.
Mechanical licences
Needed to reproduce a composition - on a CD, vinyl, download or interactive stream, or in a cover version.
- In the UK, mechanical rights are generally handled by MCPS (part of PRS for Music).
- In the US, mechanical royalties for streaming and downloads are collected by The MLC, established by the Music Modernization Act. Statutory (compulsory) mechanical licences mean you can release a cover version without the writer's permission, as long as you pay the set rate - though you cannot materially change the song.
Sync licences
Needed to synchronise a composition with moving images: film, TV, adverts, games, online video. Negotiated directly with the publisher. There is no compulsory sync licence - the owner can say no.
Master use licences
Needed to use a specific recording - in sync, in a sample, or in a compilation. Negotiated with the master owner, usually the label.
Print licences
For sheet music and lyrics reproduction, including lyrics displayed on streaming services.
Sampling licences
Clearing a sample needs a master use licence for the recording and permission from the publishers of the composition - often in exchange for a fee and a share of the new song.
How the money flows
- Streaming - platforms pay labels or distributors for the master, and pay publishers and collecting societies for the composition (mechanical and performance).
- Radio and TV - pay collecting societies, which pay writers, publishers, labels and performers.
- Sync - fees are paid directly to the publisher and label, then shared with writers and artists according to their contracts.
Registering correctly
Licensing income only reaches you if your works are registered:
- Songs with a PRO (and a publisher or publishing administrator for mechanicals and worldwide collection).
- Recordings with a neighbouring-rights society, with accurate ISRCs.
- Performers and producers credited correctly on every release.
Do this now
- For one of your songs, list every licence that would be needed for: a cover version, a TV placement, a sample, and radio play.
- Check which of your songs and recordings are registered, and where.
- Look up your local PRO and neighbouring-rights society and what each collects.