The core difference lies in their nature: publishing refers to the ownership and management of the musical composition itself, while royalties are the payments generated from the use of that composition or its recorded version.
Understanding this distinction is fundamental to navigating the music industry, as it dictates how income is generated and distributed.
Understanding Publishing in Music
Publishing in the music context refers to the copyright of the underlying musical composition. This includes the intellectual property that constitutes the song itself, such as:
- Notes and melodies: The sequence of musical tones.
- Lyrics: The words sung in the song.
- Chords and rhythm: The harmonic and rhythmic structure.
The provided reference highlights this succinctly: "Publishing rights refer to the actual music composition (e.g., the notes, melodies, lyrics, etc.)." These rights are typically owned by the songwriter(s) and often administered by a music publisher.
Key Aspects of Publishing:
- Ownership: Songwriters and composers are the initial owners of publishing rights. They can then assign these rights to a music publisher to manage and monetize them.
- Monetization: Publishers work to generate income from the composition through various licenses, including:
- Performance Licenses: For when a song is played publicly (radio, TV, venues, streaming).
- Mechanical Licenses: For reproducing a song (CDs, vinyl, digital downloads, streaming).
- Synchronization (Sync) Licenses: For using a song in visual media (film, TV shows, commercials, video games).
- Collecting Societies: Organizations like ASCAP and BMI (in the U.S.) or PRS for Music (in the UK) are Performance Rights Organizations (PROs) that collect performance royalties on behalf of songwriters and publishers.
Understanding Royalties in Music
Royalties are simply the payments made to copyright holders for the use of their intellectual property. In music, royalties are generated whenever a song (either its composition or its recording) is exploited commercially.
There are primarily two main categories of music royalties, each stemming from different copyright ownership:
-
Publishing Royalties (Compositional Royalties): These are generated from the use of the musical composition itself.
- Performance Royalties: Paid when a song is publicly performed (radio, TV, live concerts, streaming services).
- Mechanical Royalties: Paid when a song is reproduced (physical sales, digital downloads, on-demand streaming).
- Synchronization Royalties: Paid when a song is used in conjunction with visual media.
- Print Royalties: Paid for sheet music and lyric books.
-
Master Recording Royalties (Sound Recording Royalties): These are generated from the use of the specific recorded version of a song. The reference states: "An artist, record label, or recording studio who owns the master rights will receive royalties any time the recorded song is played."
- Master Use Licenses: Required for using a specific recording in a film, commercial, or other media.
- Digital Performance Royalties: Paid when a sound recording is played on non-interactive digital radio (e.g., Pandora, SiriusXM). These are collected by organizations like SoundExchange in the U.S.
- Streaming Royalties: A significant portion of revenue from interactive streaming services (like Spotify, Apple Music) for the master recording.
Key Distinctions at a Glance
The following table summarizes the primary differences between publishing and royalties:
| Feature | Publishing | Royalties |
|---|---|---|
| Nature | The intellectual property of the musical composition itself. | The payments received for the use or exploitation of intellectual property. |
| What it is | The song's notes, melody, lyrics, chords. | Money earned from the use of a composition or its recording. |
| Primary Owner | Songwriters, Composers, Music Publishers. | Songwriters, Composers, Artists, Record Labels, Recording Studios. |
| Origin | The act of creating the song. | The act of exploiting (using or playing) the song or its recording. |
| Purpose | Protects and manages the composition. | Compensates rights holders for usage. |
Practical Implications and Examples
Consider a popular song:
- When a songwriter creates a new song, they own the publishing rights to that original musical composition. They might then sign a deal with a music publisher to manage these rights.
- When an artist records that song in a studio, a master recording is created. The artist, record label, or studio typically owns the master rights.
- If the recorded song is played on the radio:
- The songwriter and publisher receive performance royalties for the composition.
- The record label and performing artist receive digital performance royalties for the master recording (from non-interactive digital radio).
- If the song is streamed on Spotify (an interactive streaming service):
- Mechanical and performance royalties are paid for the composition.
- Master recording royalties are paid for the recorded version.
- If the song is used in a movie soundtrack:
- A synchronization license fee is paid, which then generates publishing royalties for the composition.
- A separate master use license fee is paid, generating master recording royalties for the specific recorded version.
Conclusion
In essence, publishing is about the "what" – the creative work itself and its legal protection – while royalties are about the "how much" – the financial compensation generated when that creative work is utilized. Both are critical components of the music business, ensuring creators and investors are compensated for their contributions.
