
· By Michael Keenan
WHO REALLY OWNS THAT SONG?
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Ever wonder what happens to your favorite artist's music when they die? Or why some musicians seem to make money forever while others don't? The world of music ownership is more complicated than most people realize, but understanding the basics can help you make sense of the industry — and protect your own creative work.
The Two Types of Music Rights
When you hear a song, you're actually experiencing two separate pieces of intellectual property, each with its own copyright:
1. The Composition (Publishing): This includes the melody, lyrics, and chord progression — basically, what you could play on a piano or write down on sheet music. Think of this as the "recipe" for the song. Ownership is typically shared by the songwriters and producers of the song.
2. The Sound Recording (Master): This is the specific version you hear on Spotify, radio, or CD — the actual performance captured in the studio, complete with the artist's voice, instruments, and production. This is traditionally owned by a record label, though independent artists may own their own masters (most notably, Taylor Swift recently made international headlines over this issue).
These can be owned by completely different people or companies, and each copyright totals 100% ownership that can be split among multiple parties.
Who Owns What?
Songwriters and Publishers: The person who writes the song (melody and lyrics) typically owns the composition rights initially. However, many songwriters sign deals with music publishers who help promote their songs and collect royalties in exchange for a percentage of ownership.
Recording Artists and Record Labels: The artist who performs and records the song may own the master recording, but more commonly, their record label owns it. This is especially true for artists signed to major labels, where the label pays for studio time and production costs.
Why This Matters: The Money Trail
Different types of ownership generate different revenue streams.
Composition (Publishing) Owners Get Paid From:
- Performance Royalties: Every time the song is publicly performed (radio, streaming, live shows, background music in restaurants). In the U.S., organizations like ASCAP and BMI track and collect these payments.
- Mechanical Royalties: When the song is reproduced physically or digitally (CDs, downloads, vinyl). Today, this primarily happens when someone chooses to play a specific song on streaming services. In the U.S., this is handled by organizations like The Mechanical Licensing Collective (MLC).
- Sync Fees: When the song appears in movies, TV shows, or commercials. These are negotiated directly and paid as one-time upfront fees.
Master Recording Owners Get Paid From:
- Digital Performance Royalties: When the specific recording is streamed
- Recording Revenues: Sales of physical or digital copies
- Sync Fees: When the specific recording is used in visual media (separate from composition sync fees)
Important Note: Performance royalties are split into "Writer's Share" (paid directly to songwriters) and "Publisher's Share" (paid to publishers or the songwriter's own publishing entity).
The Complex World of Licensing
One of the most lucrative but complicated areas is synchronization (sync) licensing. When you hear a song in a movie, TV show, or commercial, both the composition owner and the master recording owner must grant permission and negotiate separate fees.
Here's what makes sync licensing unique:
- Direct Negotiation Required: Unlike streaming where there are set rates, sync deals are individually negotiated. This is why a Drake song costs the same as an unknown artist on Spotify, but would cost dramatically more for a Super Bowl commercial.
- Double Permission Needed: Licensors must get approval from both the songwriter's representatives AND the recording artist's representatives.
- Upfront Fees Plus Royalties: Beyond the initial licensing fee, songs can also earn performance royalties when the show or ad is broadcast (e.g., for a song used in a TV series that goes into syndication).
International Complications: Outside the U.S., different countries have their own collection societies (called CMOs - Collective Management Organizations) that handle royalty collection. Rights owners often need to affiliate with each one separately, making global royalty collection a complex process.
What Happens When Artists Die?
Just like any other asset, music rights can be inherited. However, the situation gets complex:
- Rights may be split among multiple heirs
- Family members might disagree about how to handle the music
- Professional management may be needed to collect royalties
- Estate taxes could force the sale of valuable catalogs
Protecting Your Musical Legacy
If you're a musician, songwriter, or producer, consider these steps:
Document Everything: Keep clear records of who contributed what to each song. A simple written agreement can prevent disputes later.
Understand Your Contracts: Before signing with labels or publishers, understand what rights you're giving up and for how long.
Plan Your Estate: Include your music rights in your will or trust. Consider:
- Who will manage your catalog
- How royalties should be distributed
- Whether rights should be sold or kept in the family
Consider Professional Help: Music lawyers and estate planning attorneys who understand the industry can help structure deals and plan for the future.
The Digital Age Changes Everything
Streaming services, social media, and digital downloads have created new revenue streams and complications. Rights holders must now track usage across dozens of platforms worldwide, making professional management more important than ever.
Key Takeaways
Music ownership is like owning different parts of a house — one person might own the blueprint while another owns the actual building. Understanding these distinctions helps explain why some artists stay wealthy long after their hits fade, while others struggle despite creating popular music.
Whether you're a casual music fan or an aspiring artist, knowing how these rights work can help you appreciate the complex business behind the songs you love — and make smarter decisions if you ever create music yourself.
Remember, this is general information only. Music law varies by country and situation, so always consult with qualified professionals for specific legal advice about your music rights and estate planning needs.