Glossary

A record contract where the label takes a percentage of all revenue streams — recordings, touring, merch, endorsements, and more — not just album sales.

Artists and Repertoire. The label division responsible for discovering new talent and overseeing the artistic development of recording artists.

A publishing agreement where you keep ownership of your songs but hire a company to handle paperwork, registration, and royalty collection for a fee (typically 10-20%).

Money paid upfront by a label or publisher against future royalties. It's not a gift — you must earn it back (recoup) before you see additional royalty payments.

American Society of Composers, Authors and Publishers. One of the three major US PROs that collect performance royalties for songwriters and publishers.

Broadcast Music, Inc. One of the three major US PROs that collect and distribute performance royalties.

A representative who secures live performance opportunities for artists. Typically earns 10-15% commission on show fees.

The complete collection of songs or recordings owned by an artist, songwriter, label, or publisher.

A publishing agreement where the songwriter keeps 50% ownership (their writer's share plus half the publisher's share), while the publisher gets the other 50%.

The underlying musical work — the melody, lyrics, and harmony — as distinct from any particular recording of it. Protected by its own copyright.

A provision in copyright law that allows anyone to record a cover version of a previously released song, as long as they pay the statutory mechanical rate.

Legal protection for original creative works. In music, every song generates two copyrights: one for the composition and one for the sound recording (master).

A contract clause that allows a label or publisher to offset losses from one project against profits from another. If Album A loses money, they can recoup it from Album B's earnings.

Digital Audio Workstation. Software used to record, edit, and produce music (e.g., Ableton Live, Logic Pro, FL Studio, Pro Tools).

A company that delivers your music to streaming platforms, download stores, and sometimes physical retail. They handle the logistics of getting your music to listeners.

Electronic Press Kit. A digital portfolio containing an artist's bio, photos, music, press coverage, and contact information, used for booking shows and media outreach.

Total income before any deductions, fees, or expenses are subtracted.

An organization that licenses and collects mechanical royalties on behalf of music publishers in the United States.

A musician who operates without a major label deal, handling (or outsourcing) their own recording, distribution, marketing, and business operations.

Interested Parties Information number. A unique identifier assigned by a PRO to songwriters, composers, and publishers for tracking royalty payments worldwide.

International Standard Recording Code. A unique 12-character identifier assigned to each individual recording, used to track plays and royalties across platforms.

International Standard Musical Work Code. A unique identifier for a musical composition (not a recording), used to track the underlying song across different recordings.

An arrangement where a company provides label-like services (marketing, distribution, radio promotion) without taking ownership of the master recordings.

Granting permission to use a song or recording for a specific purpose (film, TV, ad, video game) in exchange for a fee.

An artist's primary business representative who advises on career decisions, negotiates deals, and coordinates the team. Typically earns 15-20% commission.

The original sound recording of a song. The master copyright is separate from the composition copyright and is typically owned by the artist or label.

Payment generated when a composition is reproduced — originally from physical pressing, now primarily from streams and downloads. Collected by the MLC in the US.

The Mechanical Licensing Collective. Created by the Music Modernization Act (2018) to collect and distribute mechanical royalties from streaming services in the US.

Income remaining after all deductions, fees, commissions, and expenses have been subtracted from gross revenue.

When one entity controls both the master recording and the composition copyright for a song, simplifying the licensing process.

A clause in a record contract that gives the label the right (but not obligation) to fund additional albums beyond the initial commitment, usually on their terms.

Payment earned when a song is performed publicly — on radio, in venues, on TV, in restaurants, or through streaming. Collected and distributed by PROs.

Percentage points of royalties. A producer might get '3 points' meaning 3% of the retail price or revenue, depending on the deal structure.

Performance Rights Organization. Collects and distributes performance royalties to songwriters and publishers. Major US PROs: ASCAP, BMI, SESAC.

The person who oversees and shapes the sound of a recording. May also create beats, arrange music, and engineer sessions. Compensation varies from flat fees to royalty points.

The portion of performance royalties paid to the publisher by the PRO (typically 50%). In a co-pub deal, the songwriter keeps half of this share.

The business of managing, licensing, and monetizing musical compositions. Publishers collect royalties, secure sync placements, and administer copyrights on behalf of songwriters.

The process of a label or publisher recovering their advance and expenses from an artist's royalties. Until recouped, the artist won't receive royalty checks.

A contract provision that returns rights (masters or publishing) to the artist after a specified time period or if certain conditions are met.

A payment made to a rights holder (artist, songwriter, producer, publisher) each time their music is sold, streamed, performed, or licensed.

The legal process of obtaining permission (and typically paying a fee) to use a portion of someone else's recording or composition in your own work.

One of the three major US PROs. Unlike ASCAP and BMI, SESAC is invitation-only and privately owned.

A US organization that collects and distributes digital performance royalties for sound recordings from non-interactive streaming (internet radio, satellite radio).

A document that records the agreed ownership percentages among all songwriters and producers on a track. Should be signed before the song is released.

The mechanical royalty rate set by the Copyright Royalty Board. Currently 12 cents per song for physical and download sales in the US.

On-demand access to music via internet platforms like Spotify, Apple Music, and YouTube Music. Artists earn fractions of a cent per stream.

Permission to use a musical composition in visual media (film, TV, ads, video games). Requires both a sync license (composition) and a master license (recording).

Money provided by a label to cover touring losses, especially for developing artists. Usually recoupable from the artist's royalties.

A legal arrangement where the person or company who commissions the work is considered the author and copyright owner, not the creator.

The portion of performance royalties paid directly to the songwriter by the PRO (typically 50%). This share cannot be transferred to a publisher.