Music Copyright Explained: Understanding the Dual Copyright System

Audience: All Audiences | Read time: 8 min | Last updated: January 2026
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Every commercial song generates two separate copyrights that produce distinct revenue streams. Artists who understand this system collect significantly more money than those who don't. Industry data suggests nearly $1 billion in music royalties goes unclaimed annually, with many independent artists missing out on publishing income entirely.
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This guide explains how the dual copyright system works, which registrations you need, and how to ensure you're collecting all the royalties your music generates.

Music copyright law recognizes two distinct intellectual properties within every recorded song: the composition (the underlying song itself) and the sound recording (the specific recorded performance). Each copyright generates separate revenue streams and requires separate registration with different organizations.
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The composition copyright covers the underlying musical work: the melody, harmony, rhythm, and lyrics that make up the song. This copyright exists the moment you write the song, even before any recording takes place.

Who owns the composition: The songwriter or songwriters who created the work, along with their music publisher if they have signed a publishing agreement.
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Revenue sources from composition rights:

The composition generates several distinct income streams. Performance royalties are paid when the song is played publicly, including on radio, in streaming services, at live venues, or in television broadcasts. These royalties are collected by Performing Rights Organizations (PROs) such as ASCAP, BMI, or SESAC in the United States.
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Mechanical royalties are generated each time the composition is reproduced, whether through streaming, digital downloads, or physical formats like CDs and vinyl. In the US, the Mechanical Licensing Collective (MLC) collects digital mechanical royalties from streaming platforms.

Synchronization fees are one-time payments negotiated when a song is licensed for use in visual media such as film, television, commercials, or video games. These fees can range from a few hundred dollars for independent productions to six figures for major advertising campaigns.
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Print royalties, though a smaller revenue stream, are generated from sheet music sales and songbook inclusions.
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The sound recording copyright covers the specific recorded performance of the composition. The same composition can have many different sound recordings. Consider how many artists have recorded distinct versions of classic songs. Each unique recording constitutes a separate copyright.
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Who owns the sound recording: The recording artist and/or the record label that funded or owns the recording.
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Revenue sources from master rights:

Streaming and download revenue flows to master rights holders when listeners stream or purchase the recorded track. This is typically paid by digital service providers through your distributor.
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Neighboring rights royalties are performance royalties paid to the owners of the sound recording when it is broadcast or played publicly. In the United States, SoundExchange collects these royalties from non-interactive digital platforms like Pandora, SiriusXM, and internet radio.
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Master sync fees are separate payments from synchronization licensing, representing the label or master owner's share for the use of the specific recording in visual media.

If you wrote and recorded a song yourself, you own both copyrights and are owed money from both sources. However, the collection infrastructure for each copyright is entirely separate. Many independent artists register with a distributor and receive their streaming payments, but fail to register their publishing and leave significant money unclaimed.
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According to the Mechanical Licensing Collective, over $424 million in mechanical royalties from streaming platforms has accumulated as unclaimed funds. Much of this money belongs to independent artists who released music without establishing proper publishing administration.
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Record deals and publishing deals address different copyrights entirely. A record contract covers your master rights, meaning the ownership and commercial exploitation of your recordings. A publishing deal covers your composition rights, meaning your royalties as a songwriter.
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Signing a record deal does not automatically affect your publishing rights, and vice versa. However, some contracts attempt to bundle both rights, and artists who don't understand this distinction may sign away more than they intend.
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When you co-write with another artist, you're dividing ownership of the composition copyright. Each writer's percentage must be documented through split sheets, and each writer must register their share with their respective PRO.

When you feature another artist on a recording, you may need to address master ownership, specifically whether they receive a percentage of the sound recording or a flat fee as a work-for-hire arrangement. These are separate considerations that affect different copyrights.

Establishing proper registration ensures you receive all royalties your music generates. The requirements differ for each copyright type.
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Step 1: Join a Performing Rights Organization (PRO)

Your PRO collects performance royalties when your songs are played publicly, including on radio, in streaming services, at venues, and in broadcasts. In the United States, you can join ASCAP, BMI, or SESAC.
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ASCAP operates as a member-owned nonprofit with no upfront membership fees for writers. BMI also charges no writer fees and is known for strong digital monitoring capabilities. SESAC operates on an invitation-only basis, offering personalized service and often higher per-play rates for those who qualify.

You can only belong to one PRO at a time, and your choice determines which organization monitors and collects your performance royalties. Research each organization's payment schedules, monitoring technology, and member services before deciding.
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Step 2: Establish Publishing Administration

Your PRO collects performance royalties, but mechanical royalties require separate collection. A publishing administrator registers your songs with mechanical collection societies worldwide and ensures you receive royalties from digital streaming platforms, international sources, and other mechanical uses.
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Services like Songtrust, CD Baby Pro, and similar platforms provide publishing administration without requiring you to sign away any ownership. These services typically charge 10-20% commission on collected royalties. Without publishing administration, your mechanical royalties may go unclaimed.
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Step 3: Register with the Mechanical Licensing Collective (US)

The MLC collects mechanical royalties from digital streaming platforms in the United States. Even if you have a publishing administrator, you can also register directly with the MLC at no cost to claim any unmatched royalties associated with your works.
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Step 1: Distribute Your Music

Your distributor delivers your recordings to streaming platforms and digital stores. They handle the collection of streaming revenue (your master royalties) and payment to you. Major distributors include DistroKid, TuneCore, CD Baby, and AWAL, each with different pricing models and service levels.
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Step 2: Register with SoundExchange

SoundExchange collects neighboring rights royalties from non-interactive digital platforms in the United States. These royalties are separate from what your distributor collects and represent payments for the public performance of your sound recordings.
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Registration with SoundExchange is free, and failure to register means these royalties accumulate in their unclaimed funds rather than being paid to you. If you are both the performer and the rights holder on a recording, you should register in both capacities.

Mistake 1: Registering only with a PRO

Many artists believe PRO registration covers all their royalties. It does not. PROs collect performance royalties only. Without publishing administration and MLC registration, you miss mechanical royalties from streaming, which represents a significant portion of publishing income in the streaming era.
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Mistake 2: Skipping SoundExchange registration

Your distributor collects streaming revenue from Spotify, Apple Music, and similar interactive platforms. But non-interactive services like Pandora, SiriusXM, and internet radio pay separate neighboring rights royalties through SoundExchange. These royalties will accumulate unclaimed until you register.
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Mistake 3: Failing to document co-writer splits

When multiple writers contribute to a song, each writer's percentage must be documented immediately through a split sheet agreement. Ambiguous or undocumented splits lead to disputes and can prevent proper registration, leaving royalties uncollected while ownership is contested.
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Mistake 4: Not understanding what a deal includes

Some 360 deals and distribution agreements include provisions that affect publishing rights. Before signing any contract, identify exactly which rights you're licensing or assigning. If a deal affects both your master and composition rights, understand the terms for each separately.

Copyright protection is automatic the moment you create an original work and fix it in tangible form. Government registration with the U.S. Copyright Office is not required for ownership, but it provides legal benefits including the ability to sue for statutory damages and attorney's fees if infringement occurs. Registration costs $35-85 depending on the type and method.
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No. You can only affiliate with one PRO at a time for your writer share. However, if you also own your publishing company, that entity may affiliate with a different PRO in some cases. Research the rules carefully before making decisions about your publisher affiliation.
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For works created today, copyright lasts for the life of the author plus 70 years. For works of corporate authorship or work-for-hire, protection lasts 95 years from publication or 120 years from creation, whichever is shorter. This applies to both composition and sound recording copyrights.
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Royalties that cannot be matched to a rights holder are held for a period (typically 2-3 years depending on the organization), after which they may be redistributed to other members, often proportionally based on market share. This means unclaimed money from smaller artists may eventually be paid to larger catalog owners rather than reaching its rightful owners.
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You do not need a traditional publishing deal, but you do need publishing administration to collect mechanical royalties and manage international collection. Publishing administrators provide these services without requiring you to assign any ownership of your copyrights. This is distinct from a publishing deal where you may share ownership or assign rights in exchange for advances and active song promotion.

Audit your current registrations. Verify your status with each organization:

First, confirm your PRO membership is active and that your catalog is registered with complete metadata including all co-writer information and IPI numbers.
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Second, verify you have publishing administration in place, whether through a publishing administrator service, a publishing deal, or self-administration if you have the infrastructure to manage global collection.
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Third, check your SoundExchange registration. Ensure you're registered as both a performer and a rights holder if you own your masters.

Fourth, review your distributor agreement. Understand what royalties they collect and what falls outside their scope.
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If any of these registrations are missing, you're likely leaving money uncollected. The global recorded music industry reached $29.6 billion in 2024, with streaming accounting for 69% of total revenues. Ensuring you have proper collection infrastructure is essential to participating in this growing market.

IFPI Global Music Report 2025. The International Federation of the Phonographic Industry's annual report details global recorded music revenues reaching $29.6 billion in 2024, with paid subscription streaming growing 9.5% and 752 million global subscribers. Available at ifpi.org.
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Mechanical Licensing Collective (MLC) Data. The MLC reports over $424 million in unmatched mechanical royalties from digital streaming platforms, highlighting the importance of proper publishing registration for songwriters. More information at themlc.com.
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Songtrust Publishing Administration Guide. Songtrust provides educational resources on global royalty collection and the role of publishing administration in capturing mechanical and performance royalties worldwide. Available at blog.songtrust.com.
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Music Business Worldwide Industry Analysis. MBW offers ongoing coverage of streaming economics, royalty collection trends, and the impact of industry developments on artist income. Available at musicbusinessworldwide.com.

This article is part of the AndR knowledge base. For personalized guidance on copyright registration and royalty collection strategy, contact your AndR representative.