There are four different types of music royalties. Each music royalty type also has separate and distinct copyrights:

i. MECHANICAL ROYALTIES

Royalties generated for the physical or digital reproduction and distribution of copyrighted works. This applies to all music formats such as vinyl, CD, cassette, digital downloads, and streaming services. For example, a record label pays a mechanical royalty to a songwriter every time they produce/print CD of their music.

ii. PUBLIC PERFORMANCE ROYALTIES

Royalties generated for copyrighted works performed, recorded, played or streamed in public. This includes radio, television, bars, restaurants, clubs, live concerts, music streaming services, and anywhere else the music is played in public.

Performance Rights Organizations known as PROs often collect performance royalties. PRO organizations such as ASCAP, BMI, and SESAC negotiate licenses for public performances and tracks their usage. They also collect and distribute the royalties generated to the rights holders.

iii. SYNCHRONIZATION ROYALTIES (SYNC)

Royalties generated for copyrighted music paired or ‘synced’ with visual media. Sync licenses allow the right to use copyrighted music in films, television, commercials, video games, online streaming, advertisements, and any other type of visual media.

However, a synchronization license does not include the right to use an existing recording with audiovisual media. A licensee will also need a master use license before using copyrighted music with a new audiovisual project. This is an agreement between the master recording owner such as a record label and the person seeking permission to use the recording. Any use of protected music in an audiovisual project, whether it’s a full song or short sample, will need a master license as well as a sync license. For example, you need both a sync and master agreement before syncing up the latest Burna Boy track with your creative video on YouTube.

iv. PRINT MUSIC ROYALTIES

Print royalties are the least common form of payment a copyright holder receives. This type of royalty applies to copyrighted music transcribed to a print piece such as sheet music and then distributed. Additionally, these fees are often paid out to the copyright holder based on the number of copies made of the printed piece.