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Royalties
Royalties are revenue streams by which creative contributors are compensated for public performances of content they have created. Royalties are most commonly paid in the United States to composers, lyricists, arrangers and publishers for performances of their musical compositions over broadcast and digital media; royalties are now also paid to performers and recording companies for performances of their sound recordings of songs over digital media. In the United States, the process by which royalties are credited and paid is complicated and time-consuming. The process begins with the registration of musical compositions and sound recordings. In the case of "hit" songs, modern technologies such as digital audio fingerprinting then take over to verify performances that result in the crediting and payment of royalties. The process by which royalties attributable to performances of musical compositions in programming and advertising are credited and paid is more complicated. It requires the identification of the programming or advertising in which a musical composition is synchronized through the use of a "cue sheet," and the identification of the media and markets in which the programming and advertising have been performed. It also involves the submission of cue sheets and performance schedules in electronic formats by which the appropriate performing rights society can integrate them into its royalty distribution process. For musical compositions synchronized in advertisements, public service announcements, promotional announcements and trailers, the most critical data include: • Buy schedules. • Copies of cue sheets that identify: » The advertiser; » The title of the spot; » The spot's ISCI (typically, a code composed of four letters and four numbers) or Ad-ID; » The title of the musical composition(s) synchronized in the spot; » The composers, lyricists, arrangers and publishers of the musical composition(s) and the performing rights organizations with which they are affiliated); and » The duration and type of use of the musical composition(s) (for example, Background Instrumental, Background Vocal, Feature Instrumental, Feature Vocal). • An audio recording (for radio) or an audio-visual recording (for television) of the spot. • Digital audio fingerprint or watermark performance verification data. For musical compositions synchronized in infomercials, programs or films, the most critical data include: • Copies of cue sheets that identify: » The title of the special program, series or film; » The title or number of the episode within a series; » The titles of all of the musical compositions synchronized in the episode, program or film; » The composers, lyricists, arrangers and publishers of the musical compositions, and the performing rights organizations with which they are affiliated; and » The durations and types of performances of the musical compositions (for example, Background Instrumental, Background Vocal, Feature Instrumental, Feature Vocal). If you are a composer or publisher not being paid the royalties to which you are entitled, we invite you to contact us. We will explain how we can more efficiently register your works, verify performances over broadcast and digital media, and maximize the royalties due for these performances. |