The music business is exciting, but it can also feel like a maze of confusing terms: copyright, publishing, royalties, splits, points… the list goes on. For independent artists, DJs, producers, and songwriters, understanding how music rights work is essential. It’s not just about protecting your art, it’s about making sure you actually get paid for it.

This guide breaks down music rights and royalties into simple concepts, so you can confidently manage your career.

1. Copyright: The Foundation of Music Rights

When you create a piece of music, you automatically own the copyright to it. Think of copyright as a bundle of rights that protect your work and allow you to control how it’s used.

But here’s the key: in music, there are two main copyrights:

1. Composition (Songwriting Copyright)
   Covers the melody, lyrics, and chord progressions.
   Belongs to the songwriter(s) and/or their publisher.
2. Sound Recording (Master Copyright)
   Covers the actual recorded performance of the song.
   Belongs to whoever paid for or produced the recording (often the label, or the independent artist if self-released).

👉 Example: If you wrote a song and recorded it yourself, you own both copyrights. If you write a song for someone else, and they record it, you only own the composition, while they own the master.

2. Publishing Shares: The Business of Songs

Music publishing is about managing and monetising the composition side of copyright. Publishers make sure your songs are licensed and royalties flow back to you.

If you’re an independent songwriter, you’re technically your own publisher until you sign a deal. Many artists today register with performing rights organisations (PROs) to handle at least part of this work.

• Publishing is usually split into two shares:
• Writer’s Share (always belongs to the songwriter, cannot be sold or reassigned)
• Publisher’s Share (can be owned by a publisher or kept if you self-publish)

In most countries this is a 50/50 split, but in some countries the writers get 66.66% of the publishing by default.

👉 Example: If you’re American and your song earns $100 in publishing royalties, $50 goes to you as the writer, and the other $50 goes to your publisher (unless you’re self-published, then you get the full $100).

3. Master Royalties: How Money Flows Back to Artists

Royalties are the payments you receive when your music is used. But not all royalties are the same. Different uses generate different types of royalties.

Here are the major ones:

1. Mechanical Royalties
   Paid whenever your song is reproduced (downloads, CDs, vinyl, streaming).
   Usually collected by publishers or collection agencies.
2. Performance Royalties
   Paid when your song is played in public (radio, TV, concerts, streaming services).
   Collected by Performing Rights Organisations (PROs) like ASCAP, BMI, or PRS.
3. Synchronisation (Sync) Royalties
   Paid when your song is licensed for visual media (films, ads, video games).
   Negotiated case-by-case, often big one-off payments.
4. Master Royalties
   Paid to whoever owns the recording (the label or you, if independent).
   Streaming services, download stores, and physical sales generate both master and publishing royalties, split between the owners.

4. Splits: Sharing Credit and Income

Most music today is made collaboratively by producers, songwriters, and artists who all contribute to a song. To avoid disputes, splits (percentages of ownership) are agreed upon.

• Composition splits: how songwriting royalties are divided.
• Master splits: how recording income is divided.

👉 Example: If three people co-write a song equally, each gets 33.33% of the composition. If one person wrote the lyrics, and another made the beat, they may agree on a 50/50 split.

Important: Splits should be agreed upon in writing, ideally before release, to avoid conflicts later.

5. Points: The Producer Percentage

When working with producers, managers, or labels, you may hear about “points.” Points are a percentage of royalties from the master recording, usually out of 100.

👉 Example: A producer might ask for 10 points, meaning they get 10% of the revenue generated from the recording (master), not the composition (publishing). Please note that the producer may also have a songwriting share on the track that is a different percentage.

6. How It All Comes Together

Let’s break down a real-world example:

• A song earns $1,000 from Apple Music streams.
• Apple Music pays two parties:
  Master owner (record label/artist): roughly 80% → $800
  Publishing side (songwriters/publishers): roughly 20% → $200

Now let’s say:

• The artist self-released the song, so there is no label taking a cut.
• The producer of the track takes 10% of the master royalties, so the producer gets $80. The artist gets $720 of the master royalties.
• The artist and the producer are both writers on the song and split the publishing 50/50: so each gets $100 of publishing royalties.
• If one of those writers had a publisher taking 50% of their share, they’d keep $50, and the publisher would also get $50.

7. Common Pitfalls to Avoid

• Not registering with a PRO → you won’t collect performance royalties.
• No split sheets → disputes over who owns what.
• Signing away publishing too early → publishers may take too much of your rights.
• Confusing master vs. publishing → you could miss income streams if you don’t track both.

Final Thoughts

Music rights and royalties may seem complex, but once you break them down, the system is logical. At its core:

• Composition = songwriting rights
• Master = recording rights
• Publishing = managing compositions
• Royalties = money from different uses

If you learn the basics, protect your rights, and keep good records, you can make sure your creativity actually pays you back.