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ROYALTIES COLLECTION

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The Two Sides Of A Song

Music Production
Understanding the Two Sides of a Song


Every song is composed of two distinct yet interconnected elements: the composition and the recording.

 

  • The composition refers to the music and lyrics created by the songwriters and composers. It’s the foundation of the song—the melody, harmony, and words.

  • The recording, on the other hand, captures the performance of that composition, brought to life by artists, producers, and musicians.

 

Each side generates unique royalties and involves different rights holders. Songwriters and composers collect royalties for the use of their compositions, while performers and producers earn royalties from recordings. Understanding and managing both sides is essential for maximizing revenue and protecting your creative work.

Why Register Your Work?

 

Registering your music ensures you are recognized and compensated whenever your work is played, performed, streamed, or reproduced. By registering, you unlock access to various types of royalties:

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Publishing Rights and Royalties

 

Definition: Rights associated with the ownership of a song’s composition (lyrics, melody, harmony). These rights cover all uses of the composition.

Who Collects?: Collected by publishers, administrators, and Performance Rights Organizations (PROs).

Who Gets Paid?: Songwriters, composers, and publishers.

Applies To:

  • Performance royalties: Public use (e.g., radio, live events, streaming).

  • Mechanical royalties: Reproduction (e.g., CDs, digital downloads).

  • Synchronization royalties: Use in visual media (e.g., films, ads).

Performance Rights and Royalties
 

Definition: A subset of publishing rights that protect the public performance of a composition.

Who Collects?: PROs (e.g., ASCAP, BMI, SACM, Buma/Stemra).

Who Gets Paid?: Songwriters and publishers.

Applies To:

  • Radio and TV broadcasts.

  • Live performances.

  • Streaming on platforms like Spotify.

  • Public use (e.g., in stores, restaurants).

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Master Rights and Royalties
 

Definition: Rights associated with the ownership of the sound recording (the “master” recording of a song).

Who Collects?: Record labels or independent artists.

Who Gets Paid?: Master rights holders (typically labels or artists).

Applies To:

  • Streaming and digital platforms.

  • Physical sales (e.g., CDs, vinyl).

  • Licensing for visual media (e.g., sync deals).

Mechanical Rights and Royalties
 

Definition: Rights covering the reproduction and distribution of a composition.

Who Collects?: Mechanical rights societies (e.g., Harry Fox Agency, MCPS, Buma/Stemra).

Who Gets Paid?: Songwriters, composers, and publishers.

Applies To:

  • Physical formats (e.g., CDs, vinyl).

  • Digital downloads (e.g., iTunes).

  • Streaming (as mechanical royalties).

Vinyl Records
Vintage Radio
Neighboring Rights and Royalties
 

Definition: Rights for performers and producers for the public performance or broadcast of a sound recording.

Who Collects?: Neighboring rights organizations (e.g., SoundExchange, PPL, Sena).

Who Gets Paid?: Performers (artists, session musicians) and producers.

Applies To:

  • Radio and TV broadcasts.

  • Music played in public venues (e.g., restaurants, gyms).

Synchronization Rights and Royalties
 

Definition: Rights to use a composition or recording in synchronization with visual media (e.g., movies, TV shows, ads).

Who Collects?: Publishers and master rights holders negotiate sync deals directly.

Who Gets Paid?:

Songwriters and publishers (for the composition).

Master rights holders (for the recording).

Applies To:

  • Films and TV shows.

  • Video games.

  • Advertisements.

Film Reels

Below overview clarifies distinctions and relationships between rights, royalties, and their applications.

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Why Register with a PRO?
 

Performance Rights Organizations (PROs) play a crucial role in managing and collecting royalties for artists. PROs monitor public usage of music, ensure proper licensing, and distribute royalties to rights holders. Without a PRO, tracking the use of your music globally becomes nearly impossible.

Why Register via the Netherlands?
 

The Netherlands is the epicenter of the EDM world, home to top DJs, festivals, and industry connections. Partnering with SOMNIA and registering through Buma/Stemra and Sena provides access to a robust ecosystem of rights management. Buma/Stemra ensures your compositions generate the maximum performance and mechanical royalties globally, while Sena safeguards the earnings from your recordings through neighboring rights. Together, they offer unparalleled support to maximize your music’s reach and revenue potential.

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Buma/Stemra

What is Buma/Stemra?
 

Buma/Stemra is the Netherlands’ leading organization for managing performance and mechanical rights. It represents songwriters, composers, and publishers, ensuring that they receive royalties whenever their compositions are played, reproduced, or used worldwide. With a vast international network and reciprocal agreements, Buma/Stemra ensures global royalty collection and distribution.

Services Offered by Buma/Stemra:

  • Performance Royalties: Ensures songwriters and publishers are paid when their music is publicly performed (e.g., on radio, TV, or live events).

  • Mechanical Royalties: Collects royalties for the reproduction of music (e.g., CDs, vinyl, downloads, and streaming).

  • Global Reach: Reciprocal agreements with PROs worldwide to ensure international royalty collection.

  • Registration and Licensing: Assists members in registering their works and licensing their compositions for various uses.

  • Transparency and Accuracy: Provides detailed reports to members, ensuring transparency in royalty distribution.

Sena

 

What is Sena?

Sena is the Netherlands’ organization specializing in managing neighboring rights. It ensures that performers (artists and session musicians) and producers of recordings are compensated whenever their work is broadcast or played in public. Sena’s efficient system supports both national and international royalty collection for recordings.

 

Services Offered by Sena:
 

  • Neighboring Rights Royalties: Collects and distributes royalties for public performances and broadcasts of recorded music.

  • Global Reach: Works with international neighboring rights organizations to ensure royalties are collected globally.

  • Registration Assistance: Helps artists and producers register their recordings to claim royalties.

  • Royalty Distribution: Provides accurate and timely payments to performers and producers.

  • Support for Producers and Performers: Offers dedicated services to ensure both groups receive their fair share of royalties.

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​Why Choose Buma/Stemra and Sena?
 
  • Global Reach: Buma/Stemra and Sena’s international networks ensure efficient royalty collection worldwide. This is especially critical for global genres like electronic dance music (EDM).

  • Comprehensive Services: Buma/Stemra manages both performance and mechanical rights, while Sena specializes in neighboring rights, covering both sides of music royalties.

  • Expertise in EDM: With the Netherlands as a global hub for EDM, Buma/Stemra and Sena are uniquely positioned to handle the complexities of royalty management for this genre.

  • Transparency and Efficiency: Known for their structured and reliable processes, both organizations ensure timely and accurate royalty distribution, giving artists and performers peace of mind.

Why SOMNIA Music Publishing?
 

The music publishing landscape can be overwhelming, especially for independent artists or those working in globally popular genres like EDM. SOMNIA Music Publishing provides the expertise and tools to navigate this complex industry, in close collaboration with Buma/Stemra and Sena.
 

  • Global Management: We handle registrations with local and international PROs, ensuring your music is protected and monetized worldwide.

  • EDM Expertise: We also manage royalties for live performances, remixes, mashups, and derivative works - essential for EDM artists.

  • Maximizing Revenue: Our team ensures every possible royalty stream is captured, from streaming platforms to international festival performances.

  • Simplifying the Process: We take care of the paperwork and bureaucracy so the artist can focus on creating music.

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