Unlocking The World Of Music Publishing And Royalties

In the dynamic realm of music, where every note and lyric carries its weight in emotion and creativity, there's an often-overlooked aspect: the financial side of things. Music publishing royalties, the lifeblood of artists, composers, and labels, have been on the rise in recent years. However, there's a widespread lack of understanding, particularly among independent labels, authors, composers, background composers, and regional labels, about how to navigate the complex world of music royalties effectively. As a result, many of them are missing out on their rightful earnings.

The Two Facets of Music Publishing Royalties.

To demystify the landscape, we can broadly divide music publishing royalties into two major subcategories:

-Underlying Rights Royalties (Performance Royalties): These royalties stem from the underlying works of a musical composition, including its composition and lyrics, when performed individually or as part of a sound recording.

There are two types of royalties within this category:

1.Performance Royalties: These royalties are generated when the underlying work is performed. For instance, when a song is streamed on platforms like YouTube or Spotify or broadcast on TV or radio, performance royalties come into play.

2.Mechanical Royalties: These royalties are generated when a song is reproduced or copied. In the past, they were primarily associated with physical copies, but now they apply to digital downloads as well.

Collecting Performance Royalties:

In India, performance royalties are typically collected through the copyright society IPRS, while international organizations like PRS for Music UK, APRA, and BMI handle collections globally. Notably, different societies may specialize in collecting specific types of royalties. For example, PRS for Music primarily collects performance royalties, while mechanical royalties require authors, composers, and publishers to collect them through MCPS in the UK. In India, IPRS manages both performance and mechanical royalties.

An interesting contrast is that in India, mechanical royalties are equally shared between publishers and author-composers. In contrast, outside India, labels can claim 100% of mechanical royalties.

Major Revenue Sources:

The primary sources of performance and mechanical royalties include:

• Digital Streaming Platforms: Leading platforms like YouTube, Spotify, Amazon, and Apple play a significant role, although some Indian platforms have yet to embrace publishing royalties fully.
• TV Broadcasters: Major broadcasters like Viacom 18, Sony, Zee, and Star are licensed by IPRS, but regional players and smaller music channels often neglect publishing royalties.
• Radio Stations: Despite legal mandates, many Indian radio stations still resist paying IPRS for publishing royalties.
  
• On-Ground Performances and Live Events: This category covers music played in various venues, from shops and establishments to concerts, hotels, clubs, and gyms. While organized chains and large hotels pay royalties, others remain inconsistent in doing so.
  
• Other Revenue Streams: Societies also generate income from airlines, gyms, music in commercials, caller ring back tones (CRBT), ringtones, and more.
  
• Synch Royalties: These royalties arise when audio is synchronized with video content different from the original. Users must obtain licenses from labels and pay the respective society for usage.
  

Neighbouring Rights:

Neighbouring rights revolve around sound recordings and are typically collected by labels. In India, major organizations handling neighbouring rights include:

• PPL India: While not a society but a private company, PPL India collects royalties for sound recordings, with a significant portion originating from on-ground events.
• Novex Communications: Similar to PPL India, Novex is a private company collecting royalties from ground events, retail outlets, hotels, gyms, clubs, and more. It represents labels like Zee Music, Yash Raj Music, and Tips.
• Recorded Music Performance Ltd. (RMPL): Granted society status by the Indian government for sound recording royalty collection, RMPL primarily collects from radio stations, ground events, retail outlets, and hotels, although major labels have yet to join.
• PPL UK: Serving as the international counterpart of PPL India, PPL UK operates globally.

Singer Royalties:

The Indian Singer Rights Association (ISRA) has been advocating for singer royalties, although progress has been slow. However, recent victories, such as ISRA's agreement with PPL India to share royalties, signify a positive step forward. Approximately 160 crore will be distributed among the singing community in India over the next three years.

In the intricate world of music publishing and royalties, understanding these various facets is crucial for artists, composers, labels, and all stakeholders. As the music industry evolves, a comprehensive grasp of royalties will ensure that every note and lyric receives it’s due recognition and compensation.

(By-Sanjay Chhabria,Founder Everest Entertainment)