Saturday, October 11, 2014

Royalties and Performance Rights Societies

Understanding how royalties are calculated and distributed by a recording label can seem overwhelming.  Whether you are signed to a label or not, if you are a songwriter and/or composer you need to be affiliated with a Performance Rights Society.

When music is played on such media outlets as radio, television, satellite, digital jukeboxes, at places such as restaurants, nightclubs, bars, hotels, on the internet, and at live concert performances, the Performance Rights Society collects licensing fees and distribute the money as royalties to the artist and publisher affiliated with that society.

In no particular order, the three major Performance Rights Societies are ASCAP (American Society of Composers, Authors, and Publishers), BMI (Broadcast Music, Inc.), and SESAC (Society of European Stage Authors and Composers).
  • ASCAP affiliation requires a nonrefundable processing fee for both songwriters and publishers.
  • At BMI, there is no application fee for songwriters and composers to affiliate, but publishers are required to pay an application fee.  The application fee for an individually owned publishing company is less than the application fee for a publishing company that is owned as a partnership, limited liability company, or a corporation.  
  • SESAC is free, but affiliation is based on whether the applicant is selected. 

Each Performance Rights Society should be evaluated and chosen based on what is most beneficial to you and not strictly on whether the Performance Rights Society requires a processing or application fee.

The information provided should in no way be considered legal advice.  The accuracy of any legal information provided is not guaranteed.  Please seek professional help if there are concerns about specific legal issues.