Since this term has been mentioned more than once, it is essential that we shed more light on it. Royalty Payment is the payment made to a party to owner of a particular asset for the right to use that asset. It is a little similar to renting an asset. The payment is usually a fixed price that has been agreed upon. It is usually a percentage of gross or net revenues gotten from the use of that asset.
As you can see, the payment is made by the user to the owner to use any intellectual property. Music royalties are payments that should be taken seriously. There is a direct and strong link of the royalty to the music composer or songwriter. This means that the payment cannot be ignored or taken for granted. Songwriters, music composers and music publishers have earned an exclusive copyright to a song as soon as it is written and recorded. This does not mean it is protected from infringement; anyone can play that song without paying a dime to you. Getting your song registered with the copyright authority would legalize the right to royalties. You can go as far as getting a license for your song. This makes it wrong for any radio or TV station to play the song without paying royalties.
Change has continued to effect in the form and percentage of royalties as technology and the internet is gaining ground. Now, there different kinds of royalties; we have
This royalty is from the performance of a composed song on stage or television by an artiste or a band.
Print Right Royalties
This royalty is paid for sheet music.
This one is collected from the recording of composed music on CDs and tape
It is the payment made for using your song in a movie or advertisement.
There are different modes and metrics of this payment;
This interest is more like the right to collect an advance payment for your music. It is the right to collect a stream of future royalty payment. This payment is usually made by an advertisement company. To use your music for an advert that would be played severally on TV and radio, Royalty interest is the best.
License agreement is quite simple. After the music composer of songwriter has registered the song with copyright authorities, they have the freedom of engaging in a license agreement. They are allowed to license the song out to another party under some terms or payment.
One day, when you become a songwriter, a composer or a music publisher, I hope you will get your music registered under a copyright authority because you deserved to be paid for the magic you made.