Intellectual Property

Remember this!  Songs are properties just like real estate.  The rental price of a song is called a Royalty.  (Kind of like those folks wearing the crowns in Europe.)

The ownership of a song can be sold or transferred just like any other piece of property. 

Note: The word "Real" in Real Estate, is a really just an old spelling of the word "Royal".   

In songwriting: the originator ( creator ) of a piece may establish ownership of it by registering a copyright with the Federal Government.  The cost of registration is $45 at the time of this writing.  

Visit the U.S. Copyright Office to get the necessary forms and instructions. 

The application for an individual writer is pretty straightforward and they recently started offering online registration for only $35. 

Note: Two or more names may be put on a copyright registration as co-writers with the main writer.  This establishes their mutual rights to the song.  It is also wise for co-writers to create a written agreement among themselves which records the details of any verbal covenants.

Publishing is the business of purchasing the ownership rights to songs * and * collecting rental fees for the USE of those songs.

There are two major kinds of rentals ( or Royalties ) for a song. 

A. Mechanical Royalties.

These are the fees an artist pays for each copy of a recorded song whose rights belong to someone else.  Even if you simply cover an instrumental version of someone else's music, you must pay the publisher a mechanical royalty fee for each copy you sell. 

Under the compulsory license procedures, you need not ask the music publisher's permission to make the recording or negotiate a license fee. Instead, you merely inform the publisher of the recording and pay a license fee set by law.

As of Jan 30, 2008 the rate per physical copy of a song is 9.1 cents.

You can get a clear step-by-step guide to taking care of this duty by visiting cdBaby.net.

B. Performance Royalties. 

These are the fees that Radio Stations and Nightclubs pay for the right to play copyrighted music to the public for a profit.  Performance Rights Organizations such as ASCAP and BMI handle the collection and disbursement of performance royalty revenue.

For an excellent break down of how this income is collected, calculated and disbursed.  Please visit How Stuff Works.

Collecting Royalties for Your Own Music 

Once you have copyrighted your material, IF you intend to COLLECT royalties for its use, you might want to research and find a dedicated Publishing Management Service to handle the details. 

The other option is to become an expert your self by tapping into a ready-to-go business plan for Running Your Own Publishing Company.