Legal Glossary
168 music industry terms, listed alphabetically. Know what you're signing.
Did you know?
Producer points are backend royalties, not upfront fees. Clarify in every producer agreement.
Agreement Types
10 termsWorking out which music agreement fits your situation. Ask whether it is about the song (composition), the recording (master), using existing music, keeping something private, or getting paid, and the right document follows.
In Practice
Some situations need more than one document. A producer who co-writes needs both a producer agreement (for the master) and a split sheet (for the composition).
The deal for when one artist appears on another artist's track (the "feat." on the title). It sets the fee, any royalty, how the feature is credited, and the rights to use their name and image to promote the release.
In Practice
Feature royalties, when a royalty is given at all, often fall in the 10 to 25 percent range of the master, though plenty of features are fee-only.
A contract between an artist and a personal manager governing the manager's role, commission rate, term, and scope of representation.
In Practice
Standard commission is 15 to 20% of gross income. Managers typically want a long term; artists benefit from short initial terms with renewal options. Sunset clauses, key man provisions, and scope definitions are critical.
Watch out
Commission applies to all income: scope and sunset clauses are essential
A contract between a recording artist (or label) and a music producer governing creative services, producer points, advance, and rights.
In Practice
Defines whether the producer is a work-for-hire employee (no royalties) or an independent contractor earning points. Also covers sample clearance responsibility and credit requirements.
Watch out
Document all producer relationships: verbal agreements lead to disputes
A contract between a songwriter and a music publisher governing the ownership, administration, and licensing of musical compositions.
In Practice
Range from full publishing deals (publisher takes 50% or more of ownership) to admin deals (publisher takes 10 to 25% fee, writer keeps all ownership). The spectrum matters enormously to long-term earnings.
Watch out
Understand ownership vs. administration: they are not the same
A contract between an artist and a record label (or distributor) governing the creation, delivery, ownership, and commercial exploitation of sound recordings.
In Practice
The most significant agreement most artists will sign. Covers master ownership, royalty rates, advances, options, territory, and obligations for both parties.
Watch out
One of the most consequential documents in an artist's career: get legal counsel
The written permission from a rights holder to use a portion of their work in a new recording. It names the exact portion used, the rights being granted, the territory, the term, the media, and what is being paid.
In Practice
A sample of a released record normally needs two of these: one from whoever controls the master recording, and one from whoever controls the composition. The rights holder can simply say no, so ask before the release is locked.
Watch out
A clearance only covers the rights it names. Anything it does not name is still uncleared.
A contract between people who wrote a song together. It records the ownership splits the way a split sheet does, and adds credit protection, originality warranties, and rules for how changes get handled.
In Practice
Use a split sheet for a quick, friendly co-write, and a songwriter agreement when the stakes are higher, the relationship is newer, or you want real protection.
A contract granting permission to synchronize a musical work with visual media, specifying the use, territory, media, term, and fee.
In Practice
A full sync placement requires two agreements: a sync license for the composition and a master use license for the recording. Both typically needed from separate rights holders.
Watch out
Ensure both composition and master licenses are secured for any placement
A document where someone who appears on camera gives written permission to use their image and likeness in your video or content. Anyone under eighteen needs a parent or guardian to sign.
In Practice
For a music video with several performers, collect a release from each recognizable person up front rather than chasing them after the shoot.
Collaboration
7 termsBusiness arrangement where parties share profits and control.
In Practice
Alternative to traditional label deals.
Watch out
Shared ownership and control
Contract specifying payment and rights for a remix.
In Practice
Remixes are derivative works requiring permission.
Watch out
Clear permissions before remixing
Contract for musicians performing on recordings.
In Practice
Specifies payment (fee or royalty) and rights.
Watch out
Document all sessions
Contract between primary and featured artist for a collaboration.
In Practice
Specifies payment, credit, and rights for features.
Watch out
Document all collaborations
How ownership of a song or recording is divided between the people who made it, in percentages that add up to 100.
In Practice
Composition splits and master splits are separate: who wrote the song and who owns the recording are two different questions.
Watch out
Agree splits in writing early, while everyone still agrees
A document that defines the ownership percentages of a composition among co-writers and/or producers.
In Practice
Split sheets should be completed immediately after writing a song to prevent disputes.
Watch out
Always complete split sheets before releasing a song
The melody and lyrics written over an existing beat or instrumental.
In Practice
A topline writer contributes to the composition even though they didn't make the beat, which is why split sheets list topline as a contribution.
Collection
6 termsUnclaimed or unmatched royalties when ownership can't be determined.
In Practice
Proper registration prevents royalties going to black box.
Watch out
Ensure works are properly registered
Collective Management Organization: the umbrella for the organizations that collect your royalties. It covers three types: a PRO, an NRO, and the MLC.
In Practice
Your CMO registrations are your PRO (performance, compositions), your NRO (neighboring rights, masters), and the MLC (mechanical, compositions).
Watch out
Register with all three types so no royalty slice goes uncollected
Mechanical Licensing Collective: collects mechanical royalties on compositions from digital streaming services.
In Practice
Register with the MLC to receive streaming mechanical royalties. One of the three CMO types.
Watch out
Essential for digital mechanical collection
Neighboring Rights Organization: collects neighboring rights royalties on master recordings for performers. In the US this is SoundExchange.
In Practice
Session players and featured performers on a master recording register with an NRO. One of the three CMO types.
Watch out
Performers leave master-side royalties uncollected without an NRO
Performing Rights Organization: collects performance royalties on compositions for songwriters and publishers.
In Practice
ASCAP, BMI, SESAC, and Global Music Rights are US PROs. One of the three CMO types.
Watch out
Cannot collect performance royalties without PRO membership
The US Neighboring Rights Organization (NRO): collects neighboring rights royalties on sound recordings from satellite and internet radio. Not a PRO.
In Practice
Essential for performers to collect master-side digital performance royalties.
Watch out
Essential registration for performers
Contract Terms
30 termsTransfer of rights from one party to another.
In Practice
Deals often assigned to affiliated entities or successors.
Watch out
Want consent rights before assignment
Enforceable. Once an agreement is binding, each side can be held to it, including in court.
In Practice
On keysig, nothing is binding until every party has signed. A draft binds no one.
Using a work in any way that earns money: sales, streams, downloads, licensing, sync placements, merchandise. In a contract, 'exploit' is a neutral word, not an accusation.
In Practice
Royalties and points are usually calculated on the income commercial exploitation produces, so this phrase defines the pot the percentages come out of.
The other side of an agreement. Any party to the deal that is not you.
In Practice
keysig calls people 'parties' while you draft and 'signers' when you send. A counterparty is simply a party that isn't you.
Your right to approve creative decisions about your work.
In Practice
Varies from consultation to full approval rights.
Watch out
Negotiate for approval rights where possible
A signature made electronically instead of on paper. Legally recognized in the US under the ESIGN Act and in most of the world.
In Practice
keysig sends each signer a private signing link by email. The completed document carries a signing certificate.
The date an agreement starts applying, which is not always the same day it is signed.
In Practice
An agreement can be signed today with an effective date in the past (covering work already done) or the future.
A provision preventing you from working with other parties during the contract term.
In Practice
Common in label deals. Negotiate carve-outs for collaborations.
Watch out
Limits flexibility. Negotiate carve-outs
Signed by every party. An executed agreement is in force.
In Practice
keysig's interface says 'Signed'; 'executed' is the word the documents themselves use for the same state.
Clause excusing performance due to unforeseeable events beyond control.
In Practice
Standard provision for natural disasters, pandemics, etc.
Watch out
Standard. Understand impact on obligations
Cannot be taken back. Once an irrevocable right is granted, the person who granted it cannot cancel or undo it later.
In Practice
Grants in work-for-hire deals, releases, and licenses are often irrevocable. Read what is being granted carefully before signing, because there is no changing your mind afterward.
Watch out
An irrevocable grant is permanent. Be sure of the scope before signing
A provision allowing you to exit if a specific executive leaves the company.
In Practice
If your champion departs, you can terminate.
Watch out
Protective clause: allows exit if advocate leaves
What you look like: your image, photo, or any recognizable depiction of you. A likeness right controls how your appearance can be used commercially.
In Practice
Video releases and promotion clauses grant the use of your name and likeness. Check what uses are covered and for how long.
Pre-determined damages for breach specified in contract.
In Practice
Must be reasonable estimate of actual damages.
Watch out
Provides certainty about breach consequences
Breaking the agreement in a way that goes to the heart of the deal, not a technicality. A material breach usually lets the other side end the agreement.
In Practice
Termination clauses often require a material breach that stays uncured (unfixed) after written notice before the agreement can be ended.
Most Favored Nations: ensures you receive best terms offered to others.
In Practice
Common in producer agreements.
Watch out
Protective. Ensures parity with other parties
Label or publisher's obligation to release or promote minimum works.
In Practice
Protects against shelving your work.
Watch out
Demand quantifiable minimums
A licence that lets the rights holder grant the same permission to other people at the same time. The opposite is exclusive, where you are the only one who may use it.
In Practice
Sample clearances are almost always non-exclusive: the rights holder keeps the freedom to clear the same work for other artists. Exclusivity costs far more and is rarely on offer for a sample.
Label or publisher's right to extend agreement for additional periods.
In Practice
Gives them control over future projects.
Watch out
Locks in future work. Negotiate terms carefully
A contract provision allowing one party to extend the agreement for additional periods/albums.
In Practice
Options give the label/publisher control over future projects.
Watch out
Locks you into future projects. Negotiate carefully
A person or company named on an agreement and bound by it once they sign.
In Practice
Every keysig agreement needs at least two parties. The parties named in the document are exactly the people who sign it.
A guarantee that the label will release your work within a specified timeframe, or rights revert to you.
In Practice
Prevents labels from shelving your work indefinitely.
Watch out
Essential protection. Negotiate release commitments
A marked-up copy of an agreement showing the changes the other side wants, named for the traditional red strikethrough.
In Practice
The redline loop: you send a Word copy, their lawyer marks it up, and the changes come back for you to accept or reject.
A formal promise that stated facts are true, for example that you actually own what you are granting or that your work is original.
In Practice
If a warranted fact turns out false, the other side can hold you responsible for the fallout, which is what the indemnification clause is usually about.
Watch out
Only warrant facts you actually know to be true
A party who signs an agreement. On keysig, every named party signs, and the sender always signs first.
In Practice
'Party' is the drafting-time word and 'signer' is the sending-time word for the same person.
Agreement where advances increase with each option period.
In Practice
Rewards success with higher advances for subsequent projects.
Watch out
Understand step-ups and triggers
The duration of the agreement, often defined in years or number of releases.
In Practice
Shorter terms with options are preferable. Understand whether based on years, releases, or both.
Watch out
Shorter terms with options give you more leverage
The geographic region(s) where your agreement applies.
In Practice
Digital releases are typically worldwide. Physical may vary.
Watch out
Worldwide is standard for digital
Taking back an agreement that was sent for signature before everyone has signed. The signing links stop working and the agreement returns to an editable draft.
In Practice
Withdrawing is the right way to make changes after sending: take it back, edit, and send again. Signatures already collected no longer count.
A person who signs an agreement only to confirm they watched the parties sign it. A witness is not bound by the deal itself.
In Practice
Most music agreements don't need witnesses; the role exists for documents where an extra attestation is wanted.
Distribution
5 termsDistribution of recordings to streaming and download platforms.
In Practice
Aggregators handle this for independent artists.
Watch out
Essential for all modern releases
Contract to distribute recordings to streaming services and retailers.
In Practice
Percentage typically 15-30% for digital distributors.
Watch out
Understand exclusive vs non-exclusive terms
A contract governing the delivery of recordings to streaming platforms, retailers, and physical outlets, specifying revenue splits, term, and territory.
In Practice
Indie distributor splits are typically 15 to 30% for digital. Look for non-exclusive terms, transparent reporting, and rapid settlement cycles. Avoid perpetual term agreements.
Watch out
Prefer non-exclusive agreements with clear termination rights
Percentage retained by distributor from earnings.
In Practice
Typically 15-30% for digital.
Watch out
Compare fees across distributors
Distribution of physical formats to retailers.
In Practice
Requires larger volume commitments than digital.
Watch out
Consider if physical is viable for your market
Documentation
1 termDocument detailing music used in film/TV for PRO tracking.
In Practice
Essential for performance royalty collection from broadcasts.
Watch out
Ensure cue sheets are filed for broadcast uses
Enforcement
2 termsCourt order requiring party to do or stop doing something.
In Practice
Can stop releases that infringe your rights.
Watch out
Enforcement mechanism for protecting rights
Damages set by law for copyright infringement.
In Practice
Available only if work was registered before infringement.
Watch out
Requires timely registration
Identification
5 termsInterested Party Information: unique ID for songwriters and publishers.
In Practice
Linked to PRO membership for royalty collection.
Watch out
Essential for PRO registration
Interested Parties Information number: a unique 9-digit identifier assigned to songwriters and publishers by their PRO or CISAC. Essential for accurate royalty routing worldwide.
In Practice
Your IPI number links your compositions to your PRO account across borders. Without it, international royalties may go uncollected.
Watch out
Essential for international royalty collection
International Standard Recording Code: a unique identifier for a specific sound recording.
In Practice
ISRCs are assigned by your distributor. Essential for tracking streams and sales across platforms.
Watch out
Ensure all releases have ISRCs for proper credit and payment
International Standard Musical Work Code: unique ID for compositions.
In Practice
Helps track compositions across recordings.
Watch out
Useful for proper crediting
Universal Product Code: a barcode assigned to a release (album, EP, or single) for retail and distribution identification.
In Practice
Your distributor assigns a UPC to each release. It is used for SoundScan/Luminate chart tracking, physical retail, and digital storefront listings.
Watch out
Required for all commercial releases
International
1 termPublisher licensing works to local publisher in foreign territory.
In Practice
Essential for international royalty collection.
Watch out
Essential for international collection
Legal Protection
12 termsA private dispute resolution process in which a neutral arbitrator (or panel) hears evidence and issues a binding decision. Faster and cheaper than litigation but eliminates the right to appeal and may waive class-action rights.
In Practice
Many music contracts require binding arbitration. The AAA (American Arbitration Association) administers common rules. Arbitration is generally final and cannot be appealed on the merits.
Watch out
Binding: no meaningful appeal; waives jury trial
An obligation to keep specified information private and not disclose it to third parties. Common in NDAs, management agreements, and any deal involving sensitive financial or creative information.
In Practice
Confidentiality obligations typically survive the termination of the agreement for a defined period. Ensure the definition of "confidential information" is specific enough to be enforceable.
Watch out
Define what is confidential precisely; carve out publicly available information
The agreed process for resolving disagreements, from informal negotiation, to mediation, to binding arbitration, or litigation in court.
In Practice
Arbitration clauses often waive your right to jury trial and class actions. Understand what you are agreeing to before you sign.
Watch out
Arbitration waives jury trial rights. Understand the trade-off
Also called an integration clause. States that the written contract is the complete and final expression of the parties' agreement, superseding all prior oral and written discussions.
In Practice
After signing, you cannot rely on side conversations or email promises that are not in the contract.
Watch out
Everything agreed must be in writing. Verbal promises have no legal effect
The jurisdiction whose laws will apply to interpret and enforce the agreement.
In Practice
Governing law often pairs with a venue clause specifying where disputes must be litigated. Negotiate for your home jurisdiction where possible.
Watch out
Negotiate for your home jurisdiction where possible
Promise to compensate for certain losses or damages.
In Practice
Common in all agreements regarding copyright claims.
Watch out
Standard. Understand scope of indemnity
A contract in which one or both parties agree to keep specific information confidential. Can be mutual (both parties bound) or one-way (only the receiving party bound).
In Practice
Mutual NDAs provide equal protection. Unilateral NDAs protect only one party.
Watch out
Mutual NDAs are fairer; ensure duration and scope are defined
A legal document or clause in which one party waives their right to bring future claims against another party related to specified events or subject matter.
In Practice
A release is difficult to undo. Understand precisely what claims you are giving up before signing. Broad language like "any and all claims" should be narrowed to specific subject matter.
Watch out
Waives future legal rights: define scope carefully
The legal right of an individual to control commercial use of their name, image, likeness, and voice. Governed by state law in the US.
In Practice
Video release agreements and endorsement deals implicate right of publicity. Limit any consent in scope, territory, and duration.
Watch out
Limit scope, duration, and media uses when granting any consent
A standard clause stating that if any provision is found unenforceable, that provision is severed and the rest of the agreement remains in full force.
In Practice
Severability protects the entire contract from collapsing if a single clause is struck down.
Watch out
Standard protective clause, low risk
Contractual guarantees that certain facts are true, for example that you own the rights you are licensing and that the work does not infringe any third party's rights.
In Practice
Breaching a warranty triggers indemnification obligations. Do not warrant originality if you incorporated uncleared samples.
Watch out
Ensure every warranty you make is factually accurate
Guarantee about facts: originality, ownership rights.
In Practice
You'll warranty your work is original and doesn't infringe others.
Watch out
Ensure you can stand behind warranties
Licensing
18 termsLicense allowing use of any song in a catalog for a set fee.
In Practice
Venues and broadcasters obtain these from PROs.
Watch out
Standard licensing model for PROs
Rights to perform dramatic works incorporating music.
In Practice
Different from small rights licensed by PROs.
Watch out
Negotiated individually for theatrical works
A license or rights grant with no time limit: it lasts forever. Perpetual licenses are common in sync and work-for-hire deals.
In Practice
As a creator, prefer time-limited licenses with renewal options so you can renegotiate as the work's value changes.
Watch out
Perpetual grants limit your future renegotiation leverage
Re-recording portion of existing composition without using original master.
In Practice
Avoids master rights issues but still requires composition permission.
Watch out
Requires composition license only
Duration for which a license is granted.
In Practice
Sync licenses typically specify term or perpetuity.
Watch out
Understand duration and renewal terms
The side receiving permission to use a work. The licensor keeps ownership.
In Practice
In a sync license, the film or ad producer is the licensee.
The side giving permission to use a work they own.
In Practice
In a sync license, the artist or rights holder granting the use is the licensor.
Permission to use a specific sound recording in media.
In Practice
Separate from sync license. Both needed for placement.
Watch out
Required alongside sync license
Permission granted by the owner of a sound recording to use that specific recording in a film, TV show, advertisement, or other media. Required alongside a sync license (which covers the composition).
In Practice
Both a master-use license and a sync license are needed for any visual media placement.
Watch out
Required alongside sync license for any visual media use
Permission to reproduce and distribute a musical composition.
In Practice
Required for releases of compositions you don't own.
Watch out
Use Harry Fox or MLC for licensing
A license granted for each specific use of a musical work, as opposed to a blanket license covering an entire catalog. Common in advertising and production library contexts.
In Practice
Per-use licensing allows for precise fee negotiation but requires clearance for every use.
Watch out
More negotiating leverage per placement than blanket deals
Permission to print lyrics or sheet music.
In Practice
Less common in streaming era.
Watch out
Traditional licensing stream
Portion of an existing recording used in a new work.
In Practice
Requires clearance from both master and composition holders.
Watch out
Must clear before release to avoid infringement
Permission and payment required to use a portion of an existing recording in a new work.
In Practice
Requires permission from both master owner and composition holder.
Watch out
Failure to clear can result in injunctions and blocked release
Rights for non-dramatic public performance of music.
In Practice
What PROs license: radio, streaming, live venues.
Watch out
Basic performance rights collected by PROs
One-time payment for synchronizing music with visual media.
In Practice
Negotiated based on usage scope. Can range from hundreds to hundreds of thousands.
Watch out
Can be significant income. Negotiate carefully
Permission to synchronize a musical composition with visual media: film, TV, commercials, video games, etc.
In Practice
Sync fees are negotiated individually and can range from hundreds to millions of dollars.
Watch out
Ensure you have both master and sync rights or negotiate clearly
Permission to synchronize a musical composition with moving images. Granted by the composition's publisher or owner, separately from the master-use license.
In Practice
Sync fees vary enormously based on prominence of use, medium, territory, and brand. For major placements, negotiate both upfront fee and backend royalties.
Watch out
Negotiate both sync and master-use rights together when possible
Limitation
2 termsLegal doctrine allowing limited use without permission for certain purposes.
In Practice
Music sampling rarely qualifies as fair use.
Watch out
Obtain licenses instead of relying on fair use
Works not protected by copyright.
In Practice
Can be used freely.
Watch out
Your new version may have its own copyright
Management
5 termsThe percentage of an artist's earnings that a manager, agent, or lawyer receives as compensation. Standard manager commissions are 15 to 20% of gross earnings.
In Practice
Understand exactly what income streams are commissionable. Managers typically commission touring, recording advances, sync fees, and endorsements.
Watch out
Negotiate exclusions for income earned before the management relationship
A contract provision allowing the artist to terminate the agreement if a specific named individual, typically the executive or manager who signed them, leaves the company.
In Practice
Key person clauses protect artists from being handed off to managers or executives they didn't choose. Name the individual and specify the termination window after their departure.
Watch out
Protective. Name the specific person you are signing to
A legal authorization allowing one party to act on another's behalf in specified legal or financial matters. In music, a manager or publisher may hold limited power of attorney to register works or sign certain documents.
In Practice
A broad power of attorney is risky. Ensure it is limited to specific, defined actions rather than authorizing open-ended decisions.
Watch out
Limit scope precisely; broad POA carries significant risk
A provision reducing the manager's commission over time after the agreement ends.
In Practice
Typically decreases over 1-3 years post-term.
Watch out
Limits post-term obligations
The period after a management agreement ends during which the former manager continues to receive a reduced commission on deals they originated during the agreement. Typically 1 to 3 years at a reduced rate.
In Practice
Sunset commissions are standard and protect managers from losing all income when a contract ends. Negotiate the duration and declining rate schedule.
Watch out
Standard practice. Negotiate declining rates over time
Manufacturing
1 termLimited copies made to check quality before full production.
In Practice
Precedes full manufacturing.
Watch out
Quality control step
Marketing
3 termsSpecific promises by label to market your work.
In Practice
Get specific budget amounts in writing.
Watch out
Negotiate measurable commitments
Efforts to get music played on radio stations.
In Practice
Labels may spend $50,000-$300,000+ on campaigns.
Watch out
Essential for certain genres
Funds allocated for music video production.
In Practice
Can range from minimal to hundreds of thousands.
Watch out
Understand if recoupable
Ownership
14 termsThe permanent transfer of copyright or other intellectual property rights from one party to another. Unlike a license, an assignment is typically irreversible.
In Practice
An assignment ends your ownership of the right being transferred. Check whether the agreement includes full or partial assignment and whether reversion rights apply.
Watch out
Permanent transfer. Negotiate reversion rights if possible
The song itself: the melody and the lyrics, as opposed to any particular recording of it (the master). The two are separate copyrights and can be owned by different people.
In Practice
Every track carries two copyrights: the composition and the master recording. Splits, publishing, sync, and sample clearance all turn on which of the two is in play.
Watch out
Always know whether a deal covers the composition, the master, or both
The legal ownership of a creative work, giving the owner control over how it is reproduced, distributed, and used.
In Practice
A track carries two copyrights: one in the recording (the master) and one in the song underneath it (the composition).
Right to terminate copyright transfers after 35 years under US law.
In Practice
Section 203 allows creators to reclaim rights.
Watch out
Powerful reversion tool
Work created by multiple authors intending their contributions be merged.
In Practice
Each co-writer can license entire work subject to accounting.
Watch out
Understand joint work doctrine implications
The original sound recording of a song. The master owner controls the right to reproduce, distribute, and license the recording.
In Practice
Who owns the master is fundamental. Artists often sign away master ownership to labels in exchange for advances and distribution.
Watch out
Master ownership is critical. Negotiate reversion or co-ownership if possible
The original definitive audio recording of a song, as distinct from the underlying composition. Owning the master means you control reproduction, distribution, and licensing of that specific recording.
In Practice
Labels traditionally own masters in return for funding recordings. Independent artists increasingly retain master ownership and license distribution separately.
Watch out
Master ownership is fundamental. Retain it if at all possible
The right of a creator to be identified as the author of their work (attribution) and to object to changes that would harm their reputation (integrity). Limited under US law.
In Practice
In the US, moral rights apply mainly to visual art. In music, they are mostly waived contractually. European artists have stronger protections.
Watch out
Limited in the US, important in international deals
A clause returning rights to you after a certain period or condition.
In Practice
In the US, the Copyright Act allows termination of transfers after 35 years.
Watch out
Powerful protection. Negotiate reversion clauses
The complete ownership package: every right the owner has in the work. Transferring 'all right, title, and interest' means keeping nothing back.
In Practice
This phrase appears in assignments and work-for-hire agreements. It is the strongest form of transfer there is.
Watch out
This is a total transfer. Be certain that is the deal you want
Whoever owns or controls the rights in question. Often a label for a master recording and a publisher for a composition.
In Practice
In a sample clearance, the rights holder is the person or company whose permission you need, and the two rights are frequently held by different ones.
Joint ownership of copyright by multiple parties with defined percentages.
In Practice
Determined by split sheets or contract terms.
Watch out
Document splits immediately
A legal designation where the party commissioning the work, not the creator, is the legal author and owner from the moment of creation.
In Practice
Work-for-hire is permanent and irrevocable. You cannot later reclaim rights under copyright termination.
Watch out
High-risk: permanently surrenders all ownership and moral rights
A legal designation where the creator does not retain copyright ownership: the employer or commissioning party owns all rights.
In Practice
Common in producer agreements and session work.
Watch out
High-risk: you lose all ownership
Payment
2 termsFlat fee payment ending ongoing royalty obligations.
In Practice
Exchanges ongoing royalties for larger upfront payment.
Watch out
Evaluate if buyout is beneficial
A bill you send for music work you did, requesting payment and creating a record of what is owed. Good invoices state clear payment terms and, for larger jobs, a deposit.
In Practice
For music work, "due on receipt" or net 15 terms get you paid faster than defaulting to net 30.
Pricing
3 termsManufacturer's suggested retail price for royalty calculations.
In Practice
Understanding price basis is essential.
Watch out
Clarify your deal's price basis
Published Price to Dealers: wholesale price used for royalty calculations.
In Practice
Common basis for royalty calculations.
Watch out
Understand your deal's price basis
Suggested Retail List Price: alternative royalty basis.
In Practice
Same percentage on SRLP equals higher effective rate than PPD.
Watch out
Compare to PPD calculations
Promotion
1 termPerson or company that pitches songs to artists and supervisors.
In Practice
Common in UK and some territories.
Watch out
Understand fee/commission structure
Publishing
9 termsA publishing arrangement where the writer retains full ownership and pays an administrator a percentage to handle collection.
In Practice
Typically 10-25% administration fee. Maximum ownership retention.
Watch out
Maximum ownership retention, ideal for experienced writers
The percentage charged by a publisher or administrator for collecting and managing royalty income on your behalf. Typically 10 to 25% of collected royalties.
In Practice
Admin deals let you retain full ownership while paying someone to collect. Compare admin fee to what you'd give up in a co-publishing deal.
Watch out
Standard range is 10 to 25%; above 25% is unfavorable
An arrangement where a songwriter retains part of their publishing and partners with a publisher for the other portion.
In Practice
Allows writers to keep ownership of a portion (often 50%) while getting publisher services.
Watch out
Retains partial ownership while getting publisher support
An arrangement where a songwriter retains a portion of their publishing rights (often 50%) while assigning the balance to a publisher in exchange for services and advances.
In Practice
The writer retains the "writer's share" (50% of performance royalties paid directly by PRO) regardless. The co-publishing deal affects the "publisher's share."
Watch out
Better than a full publishing deal: you retain partial ownership
The business of managing and monetizing the composition (the song, as opposed to the recording): registering it, collecting what it earns, and working to earn more, in exchange for a share or a fee.
In Practice
A full publishing deal trades a bigger share for an advance and active work; an admin deal keeps your ownership and charges a smaller fee just to collect.
The 50% portion of performance royalties designated for the music publisher. In a co-publishing deal the songwriter may retain half of this share.
In Practice
Publishers collect the publisher's share through their PRO registration. In a full publishing deal you assign your publisher's share.
Watch out
Negotiate to retain as much publisher's share as possible
Rights associated with the musical composition (lyrics and melody), separate from the sound recording. Publishing generates royalties from performance, mechanical, and sync licensing.
In Practice
Songwriters earn publishing royalties regardless of who owns the master.
Watch out
Understand which rights you are granting and for how long
A songwriter with no outside publisher. They keep ownership of their songs and collect the publishing money themselves.
In Practice
On split sheets and songwriter agreements, writing 'Self-published' in the publisher field is the normal answer for an independent writer.
The 50% portion of publishing royalties designated for the songwriter, as distinguished from the publisher's share. If self-published, the songwriter collects both shares.
In Practice
PROs typically split performance royalties 50/50 between writer and publisher. In a publishing deal, you negotiate how much of the publisher's share you retain.
Watch out
Ensure you are registered to collect your own writer's share
Recording
6 termsA recording agreement where the label receives a percentage of all revenue streams, not just record sales, including touring, merchandise, endorsements, and publishing.
In Practice
360 deals emerged in the 2000s as labels sought to share in artists' diverse revenue streams. While they may offer larger advances, they reduce your overall earnings percentage.
Watch out
High-risk clause: reduces all revenue streams, not just recorded music
A guest artist appearing on another artist's track, usually credited with 'feat.' in the title.
In Practice
A featured artist agreement covers the guest's fee, any royalty share, how the credit reads, and promo rights.
Budget for recording costs managed by artist.
In Practice
Unspent funds may revert to label.
Watch out
Flexible but understand reversion
A musician hired to perform on a recording for a fee, without owning any of the recording.
In Practice
Session work is normally a flat fee under a work-for-hire arrangement, sometimes with neighboring rights royalties collected through SoundExchange.
The separate layers of a recording, like the vocal, drums, and instruments, delivered as individual audio files.
In Practice
Producer and work-for-hire deals often require delivery of stems alongside the final mix so the client can remix or edit later.
Budget for studio time, producers, engineers.
In Practice
Exceeding allowance may be your responsibility.
Watch out
Understand limit and overage handling
Release
1 termRelease making recording available to public through normal channels.
In Practice
Labels obligated to provide commercial release.
Watch out
Define what constitutes commercial release
Rights
1 termA new work based on an existing copyrighted work.
In Practice
Remixes, arrangements, and sampled works are derivatives.
Watch out
Requires permission from original holder
Royalties
21 termsAn upfront payment made to an artist, writer, or producer that is recoupable against future royalties. The advance is essentially a loan that must be paid back through earnings before additional royalties are paid.
In Practice
In recording and publishing agreements, advances are standard practice. Understanding recoupment is critical: you won't see additional royalties until the advance is fully recouped.
Watch out
Standard practice, but ensure clear recoupment terms
Your right to review the label's or publisher's books to verify royalty accounting.
In Practice
Essential for ensuring you're paid correctly.
Watch out
Essential protection. Always retain audit rights
A clause limiting the mechanical royalty rate the label will pay for songs you wrote yourself.
In Practice
Labels often cap rates at 75% of statutory for your own songs.
Watch out
Reduces your mechanical royalties. Negotiate for full rate
A practice where unrecouped advances from one project are recovered from royalties earned on other projects.
In Practice
This can lock you into debt across multiple albums or deals.
Watch out
Reduces your income across projects. Negotiate to limit
Royalty rate increase triggered by achieving sales thresholds.
In Practice
Rewards commercial success with higher rates.
Watch out
Negotiate achievable thresholds
All money received by the contracting party before any deductions. A royalty based on gross is more favorable to the creator than one based on net receipts.
In Practice
The difference between gross and net can be dramatic once deductions are subtracted. Always clarify which basis applies.
Watch out
Gross basis is more favorable. Push for it over net
A payment made to a creator when a project is cancelled after work has begun. Compensates for time and effort even though the deliverable will not be used.
In Practice
Kill fees are typically 50 to 100% of the full project fee. Confirm the trigger conditions in your agreement.
Watch out
Ensure kill fee is specified and adequate for your time investment
Royalty paid to songwriters and publishers when their composition is reproduced on physical media or digital downloads/streams.
In Practice
In the US, the statutory mechanical rate is set by law. Streaming services pay mechanicals through the MLC.
Watch out
Standard royalty, ensure proper collection through PRO and MLC registration
Rights related to public performance of sound recordings.
In Practice
SoundExchange collects these for satellite and internet radio.
Watch out
Important revenue for performers
Money received after deducting specified costs such as distribution fees, returns, and other agreed expenses.
In Practice
Contracts should list every permitted deduction. Vague language like 'reasonable costs' can be exploited.
Watch out
Define permitted deductions precisely to protect your earnings
Provision adjusting rates for emerging technologies.
In Practice
Addresses future formats.
Watch out
Negotiate fair treatment for new technologies
Reduction applied to royalty base for packaging costs.
In Practice
Typically 15-25% for physical sales.
Watch out
Reduces physical royalties. Negotiate lower rate
Royalty paid to songwriters and publishers when their composition is performed publicly: on radio, streaming, TV, in venues, etc.
In Practice
Collected by PROs (ASCAP, BMI, SESAC, Global Music Rights) and distributed to writers and publishers.
Watch out
Register with a PRO to collect performance royalties
A percentage of an album's royalty base paid to a producer or artist. One point equals one percent.
In Practice
Producer points are typically 1 to 5% and are paid from the artist's royalty, not in addition to it. Confirm whether points are calculated on retail, net, or PPD.
Watch out
Points come out of your royalty rate. Negotiate total rate inclusive
A percentage of an album's retail price or royalties paid to producers.
In Practice
Typically 1-5 points, deducted from artist's royalty rate.
Watch out
Deducted from your royalty rate
A royalty structure where producers are paid from the very first sale or stream, rather than after the label's advance is recouped.
In Practice
Most standard deals pay producers from record one. Artists often do not receive record-one treatment.
Watch out
Producers usually get record one; artists often do not
The process of deducting advanced payments from royalties earned. Royalties are applied against the advance until it is fully recovered before additional payments are made.
In Practice
Recoupment can be cross-collateralized across multiple albums or works, meaning earnings from one project can be applied to advances from another.
Watch out
Watch for cross-collateralization clauses
Allowances for product returns held from royalty payments.
In Practice
Standard practice. Should be released after specified period.
Watch out
Standard. Limit percentage and ensure release schedule
Provision allowing label to recoup production costs from artist royalties.
In Practice
Less common now but can significantly reduce earnings.
Watch out
High-risk: reduces effective royalty rate
Ongoing payments earned when music is used. Music earns on two sides, the composition (the song) and the master (the recording), through streaming, performance, mechanical, and sync royalties.
In Practice
Royalties only reach you if ownership is documented and your songs are registered with your PRO under the correct splits.
The percentage of revenue you receive from sales, streaming, or other exploitation.
In Practice
Rates vary widely. Negotiate for escalations based on thresholds.
Watch out
Understand base rate and escalations
Services
1 termMarketing and admin services without requiring master ownership.
In Practice
AWAL, Ingrooves offer label support while you retain ownership.
Watch out
Middle ground between label deal and pure distribution
Support
1 termFinancial support from label for touring expenses.
In Practice
May be recoupable from recording royalties.
Watch out
Helpful but clarify if recoupable
keysig is not a law firm. This glossary is for informational purposes only and does not constitute legal advice.