12/14/2022
The Composition and the Recording
Every song is divided into the composition and the recording. The composition is the original idea of the song put in some tangible form. It could be a simple recording you make with your smartphone, or the lyrics and chords of the song written out on paper.
Once you’ve captured or recorded a song — whether on paper or in an audio file — you are considered its rightsholder by default. There are quite a few reasons to register your song with your home copyright office, however.
The other type of copyright every song has is the recording. It refers to a specific recording of a song for release. While there can only be one composition, a song can have multiple recordings (e.g., live versions, alternate takes, or covers of your song by other artists) and grant you multiple recording copyrights.
As the originator of a song, songwriters and their publishers generally hold performance and mechanical publishing rights, referred to collectively as “publishing” or “composition” royalties. Mechanical royalties are generated whenever your song is reproduced in any form, whether it’s a physical format like a CD or LP, a digital download, or an on-demand stream (e.g., Apple Music or Spotify).
Performance royalties are generated anytime your song is performed publicly, including live shows, radio broadcasts, and speakers at a restaurant or retail store. On-demand streaming earns performance and mechanical royalties, as it’s considered both a performance and a reproduction. Performance royalties are collected and paid out by your Performing Rights Organization (PRO) or Collective Management Organization (CMO).
Whoever controls the recording — whether it’s a recording artist self-releasing their work or a proper label — contracts a distributor to get the music into digital stores and services - as well as to collect recording side royalties for streaming and digital downloads. Artists and labels will also be paid for physical copies sold, whether it’s directly through their website, on tour at a merch table, or via a distributor who sells and ships physical copies to retailers.
Another oft-misunderstood royalty is owed to recording rights owners: digital performance royalties (similar to neighbouring rights outside of the U.S.). These royalties are paid to the recording owner and recording artist (not the publisher or songwriter), and are earned whenever it is played on a non-interactive streaming service like Pandora, or streaming or satellite radio. In the U.S., these royalties are collected by SoundExchange; outside of the U.S., many organizations collect and distribute neighbouring rights royalties.