How do music royalties work?

Musicians earn royalties through the licensing or sale of recorded music and those who use it, known as licensees. These include record labels, TV companies, film producers and many more. Royalty income earned through these sources is known as 'secondary fees'.

How are music royalties collected?

Musicians are entitled to fees from third parties if and when their original recordings, compositions or productions are covered by a stipulating agreement. If artists post their music on Spotify, they may also be paid recording and publishing royalties.

How do I get royalties for my music?

The fastest and safest way to earn royalties on your music is to sign a publishing deal. In this case, the publisher effectively starts to own the copyright, taking on licensing responsibilities. You can also earn publishing and recording royalties via streaming platforms like Spotify.

How long do music royalties last?

Royalties last throughout the entire lifetime of the songwriter and an additional 70 years after they pass away. This can lead to more than a century of royalties, which is why some artists continue to make a living after one hit single.

Are music royalties taxable?

If royalties contribute to a musician's annual income, they count towards annual tax payments. Freelance musicians earning below the maximum Personal Allowance might not need to pay duties on royalties. However, it is strongly recommended that you should declare royalties to HMRC.

Am I owed music royalties?

Sometimes, royalties for recording and streaming are paid at a later date – or the payment might not go straight to the artist. If you're concerned about being owed royalties, Musicians' Union can advise you on the best ways to collect your money.

Songwriter Royalties

How unpublished composers and songwriters can receive fees and royalties due to them from the use of their works.

Last updated: 03 October 2023

By joining collection societies PRS (Performing Rights Society) and MCPS (Mechanical Copyright Protection Society), unpublished composers and songwriters can receive fees and royalties due to them from the use of their works.

PRS collect money for the broadcast (airplay) and public performance (in clubs, bars and so on) of works that have been registered with them. MCPS collects the licence fees due from the record company whenever registered music is reproduced for products such as CDs and digital downloads.

This additional source of royalty income is separate from the ‘artist’ royalty the record company is required to pay directly to the artists featured on the record under their recording contract. If, as is often the case, the songwriter and the artist are the same person, the record company will end up paying two different royalties to that particular member.

Both PRS and MCPS have agreements with affiliate organisations in 150 countries meaning that they are able to collect fees and royalties from around the world.

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