Saturday, April 7, 2012

Types of Royalties 04/07/12

        In the last post, I have talked about the distribution of any profits made by the song to the owners or co-producers and any one who laid hands on making the music published. However, I was surprise to know, during my research of music royalties, that there are several different types of royalties.
        First of all is the mechanical royalty. Mechanical royalty is when a song sells and the profits made is  sent to the recording company and the company sends portion of the profits to the songwriter, recording artists and publisher of the music. Which is suffice to say that mechanical royalties pays for songwriters, publishers, and recording artists.
        Another form of royalty is called performance royalty. Performance royalty is when a song receives a public performance, the copyright holder receives the profit. However, not all songwriters hold their rights to the song and generally sells the copyright to the recording company. On the other hand, if the songwriter holds his or her copyright he or she will get performance royalty. Nonetheless, the publisher would not get any profit nor the recording company because the copyright is solely the songwriters property.
        Third form of royalty is called Synchronization royalty. Synchronization royalty is when the song is played as part of a film, voice-over, commercial or television show and the profit goes to the songwriter and publisher. This royalty counts when the song is not the main feature of the show and used as a background. On the other hand, when the song is played in a movie or a television show and the the song is later included in an album film score, the recording artist, publisher and songwriter receive synchronization royalties.
        More types of music royalties will be posted...

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