The Major Players in
the Music Industry
• Mechanical rights agency: The right to record a song -- mechanical rights -- for most publishers is obtained through the Harry Fox Agency in the United States, or the Canadian Mechanical Rights Reproduction Agency (CMRRA) in Canada. These agencies issue the mechanical royalties for songs, keep track of them, make sure the users pay, and provide statements to the publishers. They charge a set percentage of gross royalty collections for their service.
Who Gets What?
• First thing we need to do is distinguish between recording-artist royalties and songwriter/publisher royalties.
• Recording artists don't earn royalties on public performances (when their music is played on the radio, on TV, or in bars and restaurants). This is a long-standing practice that's based on copyright law and the fact that when radio stations play the songs, more CDs and tapes are sold. Songwriters and publishers, however, do earn royalties in these instances -- as well as a small portion of the recording sales.
The only current instance in which artists earn royalties for "public performances" is when the song is played in a digital arena (like in a Webcast or on satellite radio), is non-interactive (meaning the listener doesn't pick and choose songs to hear), and the listener is a subscriber to the service. This came about with the Digital Performance Rights in Sound Recordings Act of 1995. Artists please take the time out print out this check list and familiarize yourself with the industry knowledge that you will need to become successful.
Rahru is the Creative Director and Founder of Haute Choc’lat Multimedia Group. She primarily serves as an Entertainment Publicist, Journalist, and the Executive Director of The Gospel Songwriters Association. Haute Choc'lat Multimedia Group is a boutique PR/Social Media & Marketing Firm based in Atlanta Georgia; that seeks to establish strategic relationships in the Christian Market Place in the areas of Music, Entertainment, Ministry, and Non-profit arenas.
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