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22. What are royalties? How do they work? (Songwriting)




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This article is from the Songwriting FAQ, by Greg Skinner gds@best.com.

22. What are royalties? How do they work? (Songwriting)

Royalties are money that is paid for the sale or use of music.
The amount of money you get from royalties depends on the type of
contract you sign with the record label and the performing rights
organization you join.

A performance royalty is paid for a public performance of a song.
Public performances include live performances, songs played on the
radio, songs featured on television, songs played in the doctor's
lobby, etc. A mechanical royalty is paid for the manufacture or sale
of a song.

Performing rights organizations collect money from organizations who
use their members' music and distribute it to their members.

 

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