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How To Get All Your Music Royalties - Ari's Take x MLC Live Webinar

Ari's Take2021-09-30
Ari Herstand#Ari's Take#Independent Musician#How to Make It in the New Music Business#Book#Author#Musician#Music Business#Music Industry#Artist#Singer#Songwriter#Music Professional
45K views|2 years ago
💫 Short Summary

The video explains the distinctions between sound recording copyright and composition copyright in the music industry, emphasizing that covering a song does not grant ownership of the composition copyright. It also discusses the relationship between artists, record labels, and publishing companies regarding ownership and representation of music, as well as revenue distribution from streaming services. Additionally, the segment addresses royalties for artists from terrestrial radio plays, royalties for session musicians, and the importance of registering with organizations like the MLC for proper royalty collection. Overall, it highlights the complexities of royalty collection and the importance of understanding ownership distinctions in the music business.

✨ Highlights
📊 Transcript
Importance of understanding the distinction between sound recording copyright and composition copyright.
02:07
Artists own sound recordings, while songwriters own composition copyrights.
Recording a cover song does not grant ownership of the composition copyright.
Examples with Jimi Hendrix, Bob Dylan, and Dave Matthews demonstrate this concept.
Bob Dylan retains songwriting copyright even if others record his songs.
Ownership in the music industry is divided between recordings and compositions.
03:56
Artists who cover songs own the recording, not the song itself.
Record labels own master recordings, while publishing companies represent songwriters.
Publishing and songwriting are used interchangeably, with publishing being the more important term.
Songwriters are signed by publishing companies, who may also sign artists who don't write their own songs.
Ownership and representation in the music industry.
07:19
Record labels can own master recordings perpetually or license them for a certain period.
Agreements are crucial in determining ownership, regardless of who paid for the recording.
Independent artists often own their masters, while artists signed to labels or publishing companies have different arrangements.
The segment emphasizes the importance of understanding the relationship between artists, record labels, and publishing companies in terms of ownership and representation of music.
Revenue distribution from streaming services to artists.
12:12
Money from streams or downloads goes to distributors like DistroKid or record labels, who then pay the artist based on their contract.
TuneCore and CD Baby are some of the distributors mentioned, stressing the significance of understanding distribution deals in the music industry.
The video explains the flow of income from streaming services to artists, highlighting the crucial role of distributors in managing payments and royalties.
Overview of digital radio royalties, sound recording royalties, and neighboring rights organizations.
13:45
Artist royalties and songwriter royalties are distinct entities in the music industry.
Emphasis on the importance of distinguishing between artists, songwriters, recordings, and songs in legal and contract terms.
Precise language is essential when discussing these entities and their roles in the music industry.
Obtaining sync licensing for music in TV shows or commercials requires a master use license.
17:30
The master use license covers both the sound recording and composition sides of a song.
Neighboring rights organizations such as SoundExchange collect royalties for sound recording performances globally.
SoundExchange in the US only collects royalties from digital radio, not terrestrial radio.
There are ongoing efforts to make terrestrial radio in the US pay master royalties like the rest of the world.
Lack of royalties for artists from terrestrial radio plays in the US.
21:17
Artists and record labels do not receive royalties for master recordings played on terrestrial radio stations.
The law needs to be changed to provide fair compensation for artists.
Artists need to register with organizations like TuneCore, CD Baby, and SoundExchange to collect sound recording royalties.
Session musicians receive royalties from sound exchange for their contributions to recordings.
23:12
Session musicians, also known as non-featured artists, are entitled to a percentage of royalties from digital radio.
It is important for session musicians to collect royalties promptly, as organizations may hold onto the money for several years before distributing it.
The video transitions to discussing songwriter royalties in the United States, highlighting the various types of royalties that songwriters receive from streaming services like Spotify.
Focus on performance and mechanical royalties in the music industry.
26:56
Performance royalties are derived from song streams and public performances, while mechanical royalties are related to song reproduction.
ASCAP, BMI, and CSAC are organizations that handle these royalties.
Viewers are encouraged to participate in a poll regarding their registration with these organizations.
It is important to stay informed about changes in royalty regulations, especially in the United States.
The establishment and role of the Mechanical Licensing Collective (MLC) in the US.
30:13
The MLC was created in 2021 by the Music Modernization Act to collect mechanical royalties from streaming services, replacing organizations like Harry Fox and Music Reports.
It collects mechanical royalties on behalf of songwriters and publishers, emphasizing the importance of registering with the MLC for proper royalty collection.
Viewers are urged to check their registration status with the MLC and to differentiate between independent publishing companies and vanity publishers for royalty purposes.
Self-administered songwriters should register with performing rights organizations like ASCAP, BMI, or C-SEC to collect publishing royalties.
33:25
The MLC handles mechanical royalties and pays out directly to self-administered songwriters.
It is crucial for self-administered songwriters to sign up with the MLC to receive their mechanical royalties.
The relationship between publishing companies and the MLC ensures proper distribution of royalties.
Understanding the difference between performance and mechanical royalties is essential for songwriters to ensure they receive all their entitled earnings.
Importance of Registering with MLC for Mechanical Royalties.
37:39
Registering with MLC.com is crucial for songwriters without a publisher or administrator to receive mechanical royalties.
Checking if you are receiving payment from MLC is essential to ensure proper registration and avoid missing out on royalties.
Incorrect information in song registrations can lead to issues with royalty distribution.
Having a vanity publishing company is important for accurate royalty allocation.
Importance of Checking for Missing Mechanical Royalties
41:48
Emphasis on visiting mlc.com to search for songs and ensure proper collection.
Disappointment in administrators not fulfilling their responsibilities and advice for artists to monitor royalties closely.
Invitation for volunteers to test audio and video settings before participating in the session.
Acknowledgment of trust issues with Songtrust and call for accountability from publishers and administrators in collecting royalties.
Registering works with the MLC for payment.
43:17
Membership with the MLC is necessary for data transfer.
Options include individual registration or using a bulk work template for multiple works.
Process involves signing up on MLC website, providing personal info, and becoming a user before registering as a member.
Importance of membership and steps for registration process are emphasized, with assistance offered.
Overview of Mechanical Copyright Protection Society (MCPS) and Pop-Up Music Publishing.
47:35
Contact support team for ownership issues and consider becoming a member for control.
MCPS membership is free and does not take a commission, passing on 100% of mechanical royalties to the publisher.
Streaming services like Spotify and Apple cover administration costs, ensuring no deduction from royalties.
System benefits creators by providing fair compensation without additional fees or deductions.
International payouts for songwriters and publishers.
49:53
Emphasis on collecting royalties for usages in the U.S. from foreign CMOs.
Role of CMOs like PRS in collecting royalties on behalf of publishers.
Decision between signing up for Songtrust or the MLC, ASCAP, and BMI, based on region of streaming.
Need for clarity on royalty collection methods based on affiliation and market presence.
Importance of Properly Registering Songs with Publishing Companies.
53:31
Reach out to companies like TuneCore and Songtrust to correct any mistakes or missing works in the database.
CD Baby offers distribution and publishing royalties collection services.
Opting into CD Baby Pro Publishing can assist in collecting royalties.
Understanding the distinction between distribution and publishing services is essential for managing music rights effectively.
Overview of digital distribution services for publishing companies.
55:21
Importance of selecting the correct option for MLC registration based on self-administration or representation.
Explanation of vanity publishing companies and ASCAP registration requirements.
Discussion on songwriters' visibility on the MLC platform.
Clarifications on self-administration and publishing rights.
Importance of Collecting Royalties through Organizations like CMRA and SOCAN.
59:35
Understanding the deal with the organization is crucial for proper royalty collection.
Check for missing payments to ensure all royalties are accounted for.
Create a member in the MLC portal if necessary for effective royalty distribution.
Potential issues may arise if works are not registered correctly, causing payment delays.
Claiming royalties for songs through organizations like Songtrust or CDB.
01:02:41
Check with organizations like Songtrust or CDB to ensure your works are registered and claimed.
By becoming a member of these organizations, songwriters can add their information and claim their share of royalties.
Money collected before January 1st will be paid retroactively.
There is a deadline of three to five years for claiming royalties, after which unclaimed funds go to market share.
Discussion on ongoing cleanup exercise and upcoming valuable information.
01:05:30
Reassurance that messy data is being worked on.
Addressing a question about a contract with Sony ATV ending but still being listed as administrators at the MLC.
Emphasis on the importance of accountability in the music industry.
Highlighting the MLC's provision of a public database for visibility and transparency for songwriters.
Speaker shares experience as a songwriter and earnings from platforms like MLC and TuneCore.
01:09:47
Concerns raised about not receiving payments from Songtrust and seeking advice on signal chain for processing.
Importance emphasized of avoiding conflicting publishers like TuneCore and Songtrust to prevent confusion in royalty distribution.
Explanation given on delay in payments from distributors like MLC and ASCAP compared to direct distributors, with processing timeline of up to a year.
Conclusion of the segment.
01:11:54
The speaker thanks the guest and audience for their participation and engagement.
Follow-up resources will be provided, including links to articles for further information.
The speaker expresses gratitude and concludes by wishing everyone a wonderful day.