Music Composition Royalties

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Music Composition Copyright

Music composition copyrights protect the musical work, i.e. the melody, rythm, lyrics, etc. The authors are usually the composers, lyricists, and/or songwriters.




The royalties that are available to trade on SOMRE for Music Compositions are listed below. We've grouped them into 3 categories based on industry standards around who collects certain royalties.



Performance Royalties

What are they? Royalties that are generated when a composition or work is played or performed for an audience's consumption.


Who collects them? Performance Rights Organizations (PRO) such as BMI, SESAC, and ASCAP collect the royalties in the United States. They collect them on behalf of the artist or their publishing company.


Who pays them? Anyone that plays the song for an audience: satellite radio, internet radio, terrestrial radio, bars and clubs with live music, shops and restaurants that play music, etc. 




Reproduction Royalties

What are they? Royalties generated when a compositionor work is reproduced and sold, most comonly as an album or downloadable file. Reproduction royalties are most often referred to as Mechanical Royalties.


Who collects them? Mechanical Rights Organizations (MRO) such as Harry Fox Agency collect the royalties on behalf of a publishing company. They do not collect for individuals, so artists need to go through a publishing company in order to obtain these royalties.


Who pays them? Traditionally all of these royalties were paid on the sales of physical copies of albums: CD, vinyl, or cassette. Now, most of the royalties are paid by online music stores and streaming services such as Apple Music or Spotify.




Sync Royalties

What are they? Sync royalties come in the form of licensing fees for use of a composition or work in sync with a visual medium.


Who collects them? These royalties mostly stem from a contract with whoever is using the composition. This contract can be with the artist themselves. It can also be with a publishing company or a sync licensing agent who will initiate the contract and then collect the royalties to pay the artist.


Who pays them? Movie, TV Show, or Video Game producers.




Buy & Sell Music Composition Royalties on SOMRE

If you currently receive royalties for a music composition, read about why it would be even more beneficial to sell royalties on SOMRE.


Interested in collecting royalties? Read about why music royalties are a great investment.


Finally, visit the marketplace and start trading!


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