Understanding Rights in the Music Industry

As a music industry professional, it’s essential that you understand the ecosystem of rights involved in the creation, distribution and consumption of your music. The trouble is, these rights can be hard to understand. So let’s take a deep dive into the world of music rights and help you gain the clarity you need to both protect your work, and monetize it to your advantage.

Moral Rights vs Patrimonial Rights

Moral Rights

Moral Rights in the music industry pertain to the personal and reputational interests of creators. These rights ensure that musicians, songwriters, and composers are recognized as the authors of their works and that their creations are protected from alterations that could harm their reputation.

In many jurisdictions, such as in France and other countries with strong moral rights provisions, these rights are inalienable, meaning they cannot be sold or transferred. They include the right to attribution, ensuring that the creator is properly credited, and the right to integrity, which safeguards against any modifications or distortions that could negatively impact the creator’s reputation.

While moral rights are a fundamental aspect of copyright law in certain regions, their application can be limited or less emphasized in other countries.

Patrimonial Rights (or Economic Rights)

Patrimonial Rights (or Economic Rights) refer to the financial interests of creators in their work, encompassing the ability to control and profit from the use of their music. These rights include the right to reproduce, distribute, perform, and create derivative works based on the original composition.

In the United States, for instance, economic rights are the primary focus of copyright protection and are more prominently recognized than moral rights. Creators can license, sell, or transfer these rights, allowing them to earn royalties and other financial benefits from their work. The scope and duration of these rights vary by jurisdiction, but they generally form the backbone of how creators and their estates can commercially exploit their music.

Copyright

Copyright is the most fundamental right in the music industry. It automatically applies when a piece of music is created and fixed in a tangible form, such as a recording or written notation. Copyright grants the creator exclusive rights to:

• Reproduce the work (e.g. making copies).
• Distribute copies of the work to the public.
• Perform the work publicly (e.g. live performances or broadcasts).
• Make derivative works (e.g. remixes or adaptations).
• Display the work publicly (though this is more relevant for visual art).

There are two primary types of copyright in music:

• Composition Copyright: This protects the written music (melodies) and the lyrics.

• Sound Recording Copyright: Protects the specific recorded performance of a song.

These rights are typically owned by different entities, such as songwriters, publishers, and record labels, and can be licensed for various uses.

The duration of copyright protection varies depending on the jurisdiction. In most countries, including the United States and the European Union, copyright lasts for the lifetime of the creator plus 70 years after their death.

Performance Rights

Performance rights give the copyright owner of a musical work the right to receive royalties whenever their music is performed publicly. This includes:

• Live performances (concerts, clubs, etc.).
• Radio broadcasts.
• Television and other audiovisual broadcasts.
• Streaming services.

Performance rights are managed by Performance Rights Organizations (PROs) like ASCAP and BMI in the U.S., which collect and distribute royalties to the copyright holders.

Master Rights

Master rights refer to the ownership of the original sound recording, also known as the master recording, and does not represent ownership of the song itself. These rights are typically held by the record label or the artist (if they’re financing the production of their own music).

The owner of the master rights controls how the recording is used, reproduced, and distributed. This includes licensing the track for use in sync placements, streams, and physical sales. Master rights holders also earn royalties from these uses, often in conjunction with the owner of the composition copyright.

Neighboring Rights

Neighboring rights are related to performance rights but apply specifically to the performers and producers of sound recordings, as opposed to the songwriters or composers. These rights grant performers (such as musicians, vocalists, and conductors) and producers the ability to earn royalties when their recorded performances are broadcasted or publicly performed.

These rights are particularly important outside the U.S., where royalties from neighboring rights are more common. Organizations like SoundExchange in the U.S. and PPL in the UK manage these royalties.

Mechanical Rights

Mechanical rights allow the copyright owner of a composition to control and earn royalties from the reproduction and distribution of their music in physical formats (like CDs or vinyl), digital downloads, and streams. When a song is recorded and distributed, the mechanical rights holders (often the songwriter or music publisher) must be compensated.

These rights are usually managed by specialized organizations that issue licenses and collect royalties on behalf of the copyright holders.

Synchronization (Sync) Rights

Synchronization rights (or sync rights) are required when a musical work is used in sync with visual media, such as in films, TV shows, commercials, video games, or online videos. The copyright owner of the composition must grant a sync license before their music can be used in these contexts.

Sync rights can be highly lucrative, as they often involve substantial upfront fees and ongoing royalties depending on the usage.

Here are a few examples of artists whose careers were propelled by sync licensing deals.

Distribution Rights

Distribution rights are related to the right to distribute copies of the work to the public. This includes physical distribution (like selling CDs) and digital distribution (like offering downloads or streams).

These rights can be licensed or transferred, allowing record labels, distributors, and online platforms to make the music available to the public. Distribution rights are essential for getting music to consumers and are often tied to the mechanical rights.

Digital Performance Rights

Digital performance rights apply to the public performance of a sound recording over digital media, such as internet radio, satellite radio, and streaming services. These rights are distinct from traditional performance rights, which apply to live or broadcast performances.

In the U.S., digital performance rights are managed by SoundExchange, which collects and distributes royalties to recording artists and record labels.

Private Copying Levy

In some countries, including France, there is a private copying levy imposed on devices and media that can be used to make copies of copyrighted works, such as CDs, USB drives, and hard drives. This levy is collected and distributed to rights holders as compensation for the potential loss of revenue due to private, non-commercial copying by individuals. While this system is common in many European countries, the specifics of how it is applied, including the rates and the range of products covered, can vary significantly from one country to another.

How These Rights Interrelate

These various rights often overlap and interact in complex ways. So let’s take a closer look at these mechanisms:

• Composition vs. Sound Recording: A single song can have multiple copyrights, one for the composition and another for the sound recording. For example, if a song is covered by different artists, each recording has a separate sound recording copyright, but they all share the same composition copyright!

• Sync and Master Rights: To use a song in a film, the producer must obtain both sync rights (from the songwriter or publisher) and master rights (from the recording owner).

• Performance and Neighboring Rights: When a song is played on the radio, both the songwriter (through performance rights) and the performers (through neighboring rights) are entitled to royalties.

• Mechanical and Distribution Rights: Mechanical rights are critical for distributing copies of music, whether physical or digital. Distribution rights ensure the music can be legally sold or streamed to the public.

Conclusion

Navigating the rights landscape in the music industry can be challenging, but it’s essential for maximizing the value of your creative work. By understanding the different types of rights, from copyright to performance, sync, and beyond, you can better protect your interests, negotiate fair deals, and ensure your music reaches the widest possible audience while earning the revenue it deserves. If you’re involved in the music industry, whether as a creator, manager, or legal professional, mastering these rights is key to success.