How Songwriters, Composers, and Performers Get Paid

There are a lot of dierent ways to get paid for your songs, whether you write

music, write lyrics, sing, or perform an instrument. Copyright law aects each

of these roles dierently, but once you know the basics and how you might

partner with various businesses or organizations, you’re on your way to

getting paid for the use of your music. Whether your music is used on AM/FM

radio, a streaming service like Spotify, a podcast, a Facebook live concert, or in

a TV show or movie—copyright law can aect how licenses are obtained, who

gets paid, and how those royalties are distributed.

As you read this guide, we suggest starting with “Copyright and Music:

Breaking It Down” and then reading the section or sections that apply to you.

You may also want to read “A Note on Song Data” to understand how the

music industry uses unique identiers to better recognize dierent songs,

authors, publishers, and other contributors for licensing or royalty payments.

While this guide is intended to give you some important background

information, it is not intended to be legal advice. As always, it is important to

consult a qualied attorney before signing any contracts.

How Songwriters,

Composers, and

Performers

Get Paid

I’m a Songwriter—How Do I Get Paid? page 4

I’m a Performer—How Do I Get Paid? page 8

I’m a Producer, Mixer, or Sound Engineer—How Do I Get Paid? page 11

A Note on Synchronization Rights (Audiovisual Works) page 12

A Note on Song Data page 12

How to Protect Your Work Through Copyright Registration page 14

Information

provided by:

Sections

Breaking It Down

A musical work is a song’s underlying composition (think

musical notes on sheet music) along with any accompanying

lyrics. Composers and lyricists are both songwriters. If you’re

a songwriter, see the next page on some basics of how to get

paid for your works.

Note: Creative works expressed in words without an

accompanying musical composition, e.g., non-music

spoken word, podcasts, and comedy routines, are

commonly available on streaming and download services.

These works are protectable under copyright, but are not

“musical works” and are subject to dierent licensing rules.

A song involves two distinct works

protected by copyright: a musical work

and a sound recording.

A sound recording is a series of musical, spoken, or other

sounds created by the performer who is being recorded, the

record producer who processes and xes the sounds, both,

or even another entity if the work qualies as a “work made

for hire,” such as if it was prepared for your employer or

specially commissioned for a compilation. Sound recordings

include the audio les exported from your digital audio

workstation or, historically, the audio recorded on magnetic

tape. If you’re a performer who contributed to a sound

recording, see the following pages on how to get paid for

your work. We’ve also added a section for producers, mixers,

or sound engineers who were part of the creative process to

make a sound recording.

Generally, copyright grants authors the rights to:

• reproduce the work (e.g., pressing CDs or vinyl or copying

an MP3);

• prepare derivative works (e.g., interpolations, sampling/

remixes, or “synchronizing” music in audiovisual works,

including movies or commercials);

• distribute copies of the work (e.g., selling or giving away

CDs or downloads to the public );

• publicly perform the work (e.g., performing your song in a

local venue or having your song played on the radio); and

• publicly display the work (e.g., displaying your lyrics online).

But owners of sound recordings do not have all of these

rights. Sound recordings have no public display right and

the public performance right for sound recordings in the

United States is limited to digital audio transmissions, e.g.,

on internet streaming services or on satellite or cable radio.

This means that traditional AM/FM radio stations do not have

to get permission (or pay royalties) to publicly perform sound

recordings. For more information on sound recordings, see

Sound Recordings vs. Musical Works at copyright.gov/music-

modernization/sound-recordings-vs-musical-works.pdf

and Copyright Registration for Sound Recordings (Circular 56) at

I’m a Songwriter—How Do I Get Paid?

In the United States, songwriters can license their

musical works (music and lyrics) themselves or,

more commonly, assign the rights in their works

to publishers and license their public performance

rights (including their share of such rights) to

performing rights organizations (PROs). The most

popular U.S. PROs are ASCAP, BMI, SESAC, and GMR.

Aliate with a Publisher or Publishing Administrator

Often, songwriters partner with music publishers to help get paid for the use

of their songs. Music publishers can license a songwriter’s works, register the

songwriter’s songs with performance and mechanical rights organizations,

monitor use of the works, and collect and distribute royalties. These music

publishing licenses can include using musical works in sheet music, in

recorded music, in commercials, television and movies, video games, bars

and restaurants, and many other possibilities. Publishers may also help a

songwriter with other matters, including advances, securing commercial

recordings of the songwriter’s music with recording artists, providing career

advice, and enforcing the songwriter’s rights when their works are infringed.

Songwriters and publishers use contracts to establish the specics of their

relationship. The question of which publisher to use and what the contract

should include are very important choices in a songwriter’s career.

(continued)

In a traditional publishing arrangement, the songwriter assigns the copyright

interest in a song to the publisher, who distributes a portion of royalties to the

songwriter (the “songwriter’s share”) and retains a portion as compensation

(the “publisher’s share”). In addition to traditional songwriter-publisher

agreements, songwriters may engage in other types of agreements, including

co-publishing, administration, or sub-publishing agreements to license their

works and collect their royalties.

A co-publishing agreement is an arrangement by which songwriters do

not assign the entirety of their copyrights to a publisher and instead retain a

percentage of the copyright for their own publishing company. This relationship

allows the songwriter to keep a greater share of royalties as they are able to

retain a portion of the publisher’s share.

A sub-publisher agreement typically involves using a foreign publisher

to represent and exploit a songwriter’s musical works in a foreign country.

The sub-publisher will engage in all of the services that a domestic publisher

provides including collecting and licensing performance, mechanical,

synchronization, and print income rights.

An administration agreement is an arrangement by which a publisher or

publishing administrator is not assigned the songwriter’s copyrights, but

performs administrative duties (e.g., registration, licensing, royalty collection, and

income distribution) for a fee, usually measured as a percentage of the royalties

collected. With traditional publishers, an administration agreement is also more

commonly available to commercially successful songwriters, but can be entered

into by any songwriter with a willing publisher or administration company.

A songwriter may self-administer and perform the functions a publishing

administrator would typically manage.

Aliate with a PRO

PROs help both songwriters and publishers by licensing, on

a non-exclusive basis, musical works’ public performance

rights. PROs most commonly bundle performance rights from

dierent songwriters and license all of those rights together

to AM/FM radio stations, television, streaming services, bars

and restaurants, arenas, and to other users who want to

publicly perform musical works. For a songwriter or publisher

to get paid by a PRO, they must sign an agreement that

allows the PRO to license their musical works (or musical

work share) and collect and distribute that share of musical

work performance royalties. PROs typically pay songwriters

and publishers their royalties directly, as opposed to the

publisher collecting the full amount of royalties and then

paying the songwriter. Note that, because PROs are only

granted performance rights on a non-exclusive basis,

with users. The most-often used U.S. PROs are ASCAP, BMI,

and the invitation-only SESAC and GMR.

In addition to voluntary licenses, U.S. copyright law also has

compulsory licenses, which means that the license is governed

by statute, not contract, and songwriters or publishers

cannot normally decline the license request. In the United

States, the “mechanical” compulsory license under section

115 of the Copyright Act, allows others to reproduce and

distribute musical works via audio only distribution (e.g., a CD,

download, or interactive stream). It does not include the rights

to reproduce or distribute sound recordings of a composition,

which must be licensed separately). For digital uses of the

mechanical license, such as interactive streaming and digital

downloads, the government has designated the Mechanical

Licensing Collective (MLC) as the nonprot collective that will

collect and distribute digital mechanical royalties under the

mechanical compulsory license, starting in 2021.

Information on these PROs can be found at:

ASCAP, ascap.com BMI, bmi.com

SESAC, sesac.com GMR, globalmusicrights.com

(continued)

To get paid under the mechanical compulsory license for

digital uses of musical works, including for interactive

streaming and digital downloads, you must make sure that

the MLC has identied your songs in its database, matched

those songs to recordings being streamed or downloaded,

has identied you as the work’s owner (or co-owner), and

has your payment and tax information. You can do this by

registering with the MLC using its online claiming portal.

Registering with the MLC does not prevent you from

aliating with other services to facilitate mechanical (or

other) licensing, as voluntary licensing remains permitted

under the MMA. Subscribe to the Copyright Oce’s MMA

newsletter to keep track of MLC updates.

Registering your works with the MLC does not mean you

have registered your work with the Copyright Oce. That

is a dierent process that has a number of other benets.

Importantly, for all domestic works, registration is required

for U.S. authors to go to court to enforce their rights and to

be eligible for statutory damages and attorneys’ fees. Learn

more in our Copyright Registration circular at copyright.gov/

circs/circ02.pdf.

While record labels or mechanical licensing agents, such as

the Harry Fox Agency (HFA) or Music Reports, frequently

engage in direct licensing or “clearance” of uses of musical

works, to ensure that you are due a royalty under the

mechanical compulsory license for non-digital uses of musical

works, such as for pressing vinyl records or CDs, you must

be identied in the registration or other public records of the

and other recorded documents. While the MMA updated the

mechanical compulsory license system for digital uses, the

system for physical uses did not substantially change.

The MLC’s website can be found at TheMLC.com.

For more information about the MLC and to sign up

for the Oce’s MMA newsletter, visit copyright.gov/

music-modernization/.

Record your musical works here: copyright.gov/

recordation/domw/

I’m a Performer—How Do I Get Paid?

Sign with a Record Label or Use an Aggregator

or Distributor

In the United States, sound recordings are created by a record label,

performer, or record producer, but no matter who originally authored

the sound recording or “master,” it is commonly the record label that

ends up in charge of licensing the work. Record labels promote the

recorded song, engage in licensing, monitor the recording’s use, and

collect and distribute royalties. These licenses can include use in records,

MP3s, CDs, digital streaming services, commercials, television and

movies, video games, and many other possibilities. Record labels may

also help performers with other matters, including providing advances,

providing career advice, and enforcing artists’ rights when their works

are infringed. Performers and record labels use contracts to establish

the specics of their relationship.

As noted above, sound recordings have dierent rights than

musical works. The public performance right for sound recordings

is limited to digital audio transmissions like on Spotify, Apple Music,

or Sirius XM. This means that AM/FM radio stations, bars and

restaurants, and other live venues do not have to get permission

(or pay royalties) to publicly perform sound recordings.

(continued)

Performers can either be a featured artist, non-featured vocalist (e.g., backup

singer), or non-featured musician (e.g., a session musician). As discussed

below, under the sound recording compulsory license, a “featured” artist

is the artist who is most prominently highlighted on a song, i.e., the “main”

or “primary” artist. Under this compulsory license, other performers are

considered “non-featured.” For example, in the song “Juice” by Lizzo, the

featured artist is Lizzo, a non-featured vocalist is Theron Thomas, and a non-

featured musician is Ricky Reed.

Some copyright owners, often independent or DIY sound recording creators,

use music aggregators or distributors to distribute their music to digital music

providers, such as iTunes, Amazon Music, and Spotify. These distributors

may provide other services, such as registering works with SoundExchange

or foreign “neighboring rights organizations”

and helping obtain unique

identiers (e.g., ISRCs, UPCs, etc.). Like record labels, aggregators and

distributors use contracts to establish the specics of their relationship with

a recurring fee, or a percentage of your royalty income for their services.

the AFM and SAG-AFTRA Intellectual Property Rights

Distribution Fund (as a non-featured artist)

In addition to voluntary licenses, U.S. copyright law also has compulsory

licenses, which means that the license is governed by statute, not contract,

and performers or labels cannot normally decline the license request. In the

United States, there is a compulsory license for using sound recordings in

non-interactive webcasting and for certain satellite and cable radio streaming

under section 114 of the Copyright Act.

Rights governing sound recordings may be called “neighboring rights” in foreign countries.

(continued)

When a service takes advantage of this compulsory license, royalties

are paid to SoundExchange, a collective management organization (CMO)

designated by the government to collect and distribute royalties via a

predetermined statutory split. Copyright owners (often record labels) receive

50 percent of these royalties, while featured artists receive 45 percent, and

non-featured musicians and non-featured vocalists receive 2.5 percent

each. Note that non-featured musicians and vocalists are paid through the

American Federation of Musicians (AFM) and Screen Actors Guild – American

Federation of Television and Radio Artists (SAG-AFTRA) Intellectual Property

Rights Distribution Fund. Also note that SoundExchange collects royalties for

some non-music sound recordings, such as comedy routines.

To get paid under the sound recording compulsory license as a copyright

owner or featured artist, you must register with SoundExchange, the

nonprot collective designated by the government to collect and distribute

royalties under this compulsory license. SoundExchange will ask you for

information about your work, co-performers, proof of identication, and

payment, bank, and tax information.

If you are a non-featured vocalist or musician, you should register with the

AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund to get paid

any statutory royalties due. Note that you do not have to be a member of

AFM or SAG-AFTRA to be entitled to receive royalties from the Fund.

Distribution Fund at afmsagaftrafund.org

I’m a Producer, Mixer,

or Sound Engineer—

How Do I Get Paid?

In the United States, producers, mixers, or sound engineers

who are not copyright owners, but who were part of the

creative process to make a sound recording, get paid

according to their contract. They may also get royalties for

their contributions through the sound recording compulsory

license, if either:

1. the featured artist directs SoundExchange to pay a portion

of their royalties to the producer, mixer, or engineer via a

“letter of direction”; or

2. for sound recordings xed before November 1, 1995,

if both the qualied contributor and SoundExchange

attempt to obtain a letter of direction through a formal

process and the featured artist does not make an

armative objection.

For more information on the letter of direction process,

contact SoundExchange at soundexchange.com.

A Note on Synchronization Rights

(Audiovisual Works)

When someone incorporates a musical work or sound

recording into an audiovisual work—such as a lm, television

program, advertisement, or video game—they have to obtain a

separate license for those rights. A license to the composition

is commonly referred to as a “synchronization” license, often

shortened to a “sync” or “synch” license. A corresponding

license to the sound recording is often referred to as a “master

use license.” Synchronization refers to the use of music in

“timed-relation” to visual content. There is no synchronization

or master use compulsory license. The mechanical compulsory

license does not apply to audiovisual works, including movies,

television, and even online video streaming, because it only

applies to making and distributing “phonorecords.” Under the

or MP3s, but, by denition, exclude any sounds “accompanying

a motion picture or other audiovisual work.”

owners or their representatives will negotiate voluntary

synchronization licenses directly in the free market.

Note: Some online platforms that host user-uploaded

video content will rely on copyright law’s “safe harbor”

provisions to insulate themselves from copyright

infringement liability. For more information on this law,

Title 17,” at https://www.copyright.gov/policy/section512.

A Note on Song Data

When tracking how songs are used on streaming services to

make sure creators are paid accurately, everyone appears to

agree that using unique identication numbers to recognize

both musical works and sound recordings is essential to an

ecient licensing system. Two of the most common unique

identiers for music are the International Standard Musical

Work Code (ISWC) for musical works and the International

Standard Recording Code (ISRC) for sound recordings.

Other identiers include the Interested Parties Information

(IPI) code for musical work creators and publishers and the

International Standard Name Identier (ISNI) for creators of

all types.

17 U.S.C. §§ 101, 115(e) (denitions of “phonorecord” and “digital phonorecord delivery”).

(continued)

ISWCs for Musical Works: An ISWC is used to identify a

musical work and its composers, authors, and arrangers.

Musical work owners get ISWCs through local or regional

issuing agencies, e.g., PROs. The regional issuing agency for

the United States and Canada is operated by ASCAP. You do

not have to be aliated with ASCAP to get an ISWC, but you

must be registered with a PRO and will need the following

information:

1. the title of the work;

2. whether the work is a derivative work (a work based on or

derived from one or more already existing works, e.g., an

arrangement of a preexisting musical work);

3. the work classication code

(assigned by your PRO); and

4. the identication of all composers, authors, and arrangers

of the work and their Interested Parties Information (IPI)

codes.

IPIs for Musical Work Creators and Publishers: An IPI code

is used to identify the individuals or entities associated with

particular musical works. Your IPI code can be obtained from

your PRO. Once a writer’s or a publisher’s membership in a

PRO is accepted, the PRO will obtain an IPI for that member.

Note that a writer who uses multiple pseudonyms will have

multiple IPI codes.

ISNIs for Creators: An ISNI code is similar to the IPI in that it

identies contributors to creative works, but it is not limited

to musical work composers, authors, and arrangers. An ISNI

code can also be used to identify performers, producers,

publishers, visual creators, aggregators and more. It can

be obtained from several registration agencies, including

SoundExchange, YouTube, and Soundways. To obtain an ISNI,

you will need to provide:

1. a “public identity” or name;

2. date and place of birth and or death (for people);

3. class (type of work) and roles (author, performer,

publisher, etc.),

4. title; and

5. a link to more detailed information about the public entity.

ISRCs for Sound Recordings: An ISRC is used to identify a

sound recording or music video and its artist. Record labels

or “ISRC Managers” (e.g., music distributors, aggregators, or

sound engineers) commonly assign ISRCs to recorded music.

To obtain an ISRC, you will need to provide your label or ISRC

Manager with:

1. a track title; and

2. the name of the featured artist.

ISWC work classication codes indicate the type of work, including if the work is a

composite (incorporates another work), version (original or based on another work), or

excerpt (part of a larger work).

How to Protect Your Work

Through Copyright Registration

If you want to protect your work, you should consider the benets of

their rights in a domestic work, they must register the work with the U.S.

three months after publication of a work, a copyright owner is eligible

for statutory damages, attorneys’ fees, and costs. For more information,

see Circular 2: Copyright Registration and Circular 56A: Copyright

Registration of Musical Compositions and Sound Recordings.

United States Copyright Oce 101 Independence Avenue SE

Library of Congress Washington, DC 20559-6003 copyright.gov

Revised: July 2022