Understanding the intricacies of performance rights (PR%) and mechanical rights (MR%), as well as how these interact with my publishing agreements, has been essential. Additionally, dealing with international platforms has taught me valuable lessons in managing my registrations efficiently. I'm happy to share my insights here with you.
What Are PR% and MR%?
When registering a track with a PRO like SABAM, it's crucial to understand PR% and MR%. These percentages determine how royalties are distributed:
- PR% (Performance Rights Percentage): This refers to the share of performance royalties I am entitled to as the songwriter or composer. Performance royalties are earned whenever my music is played publicly—whether on the radio, in concerts, or through streaming services.
- MR% (Mechanical Rights Percentage): This refers to the share of mechanical royalties I am entitled to. Mechanical royalties are earned whenever my music is reproduced, whether physically or digitally, such as on CDs, vinyl, or digital downloads and streams.
There are more types of music licenses, but these two are the only ones important for registration with your PRO. This was a major source of confusion for me in the beginning. If you want to learn more about the other types of music licenses, read my other article 'Understanding Music Licensing: A Comprehensive Guide'.
What is an IPI Number and Why is it Important?
When you register with a Performance Rights Organization (PRO) like ASCAP, BMI, or SABAM, you are assigned an IPI (Interested Parties Information) number. This unique identifier is used globally to track and manage the rights and royalties for songwriters, composers, and music publishers. The IPI number ensures that royalties are correctly attributed to the right individuals and entities.
How is the IPI Number Used?
- Royalty Tracking: The IPI number helps PROs and global royalty collection services like Songtrust accurately track and distribute royalties.
- Identification: It uniquely identifies you in the global music rights management system, ensuring your works are correctly credited.
- International Royalties: When your music is played internationally, the IPI number ensures that foreign PROs can accurately allocate and send royalties back to your home PRO.
Having an IPI number is essential for anyone serious about earning from their music, as it ensures that your rights are protected and your royalties are accurately tracked and paid out.
Registering My Track with SABAM
To ensure I receive my full royalties, I need to accurately register my ownership of performance and mechanical rights with SABAM.
As the sole owner of the rights to my music, I register:
- 100% PR%: Indicating that I own all the performance rights.
- 100% MR%: Indicating that I own all the mechanical rights.
In collaborations and remix projects, I usually register 50% for PR% and MR% and 50% for my collab or remix partners. You can, of course, agree other percentages with each other if the contribution or effort differs.
In a band we register the tracks as Band/Artist with an equal split for all the band members as Authors/Composers.
For own remixes of for example a 2 heads band, you can allocate 75% to the band member that made the remix and 25% to the other band member. For remixes made by others for your band track, you can allocate 50% to the other remixer and an equal split of the remaining 50% for all the band members. These are just examples, as also here you can agree upon other percentages.
Navigating Publishing Agreements
While registering with SABAM secures my ownership, my publishing agreement with the record label that releases my track outlines how the revenue from various sources will be split. Here's what my agreement includes:
- Sheet Music Royalties: A percentage of the retail selling price or monies received from sheet music sales.
- Mechanical Royalties: A share of the monies received from the mechanical reproduction of my works.
- Performance Fees: A portion of the "publisher's share" of performance fees collected.
- Synchronization Royalties: A share of the monies received from synchronizing my music with visual media, such as films or commercials.
- General Fees and Uses: Any other exploitation of my works not specifically referred to above.
Typically, a 50% share of net income from these sources is allocated to me as the writer.
Dealing with Worldwide Considerations
Initially, I relied on Songtrust, a global royalty collection service, to also handle my PRO registrations. While Songtrust promised to manage these registrations, I found they were not efficient in registering my works with SABAM in a reasonable timeframe. This delay impacted my royalty collection, prompting me to take matters into my own hands.
Major PROs Worldwide
Understanding the global landscape of PROs can help you navigate music rights more effectively. Here are some of the major PROs around the world:
- ASCAP (American Society of Composers, Authors, and Publishers) - USA: One of the oldest and largest PROs, representing a vast catalog of music and paying royalties to songwriters and publishers.
- BMI (Broadcast Music, Inc.) - USA: Another major PRO in the United States, BMI collects performance royalties for songwriters, composers, and music publishers.
- SESAC (Society of European Stage Authors and Composers) - USA: The smallest of the three main American PROs, SESAC is known for being selective and offering personalized services.
- PRS for Music (Performing Right Society) - UK: The main PRO in the United Kingdom, PRS for Music collects royalties on behalf of songwriters, composers, and music publishers.
- GEMA (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte) - Germany: Germany's main PRO, GEMA is responsible for managing performance and mechanical rights.
- SACEM (Société des Auteurs, Compositeurs et Éditeurs de Musique) - France: The main PRO in France, SACEM collects and distributes royalties to its members for the use of their works.
- APRA AMCOS (Australasian Performing Right Association and Australasian Mechanical Copyright Owners Society) - Australia and New Zealand: This organization manages both performance and mechanical rights in Australia and New Zealand.
Key Differences
- SABAM Registration: This process focuses on registering my ownership rights, ensuring that I, as the songwriter, am recognized as the owner of the performance and mechanical rights to my music. This enables SABAM to collect and distribute royalties accurately on my behalf.
- Publishing Agreement: This agreement with the record label details how the income generated from the exploitation of my music will be split. It includes royalties from sales, licensing, and other commercial uses.
Conclusion
By registering my tracks with SABAM myself, I can ensure that I declare 100% PR% and 100% MR%, reflecting my sole ownership of the rights. While my publishing agreement with the record label governs how these collected royalties and other revenues are shared, understanding the registration process has been vital.
Navigating these processes has been a learning experience, reinforcing the importance of managing my music rights and agreements proactively. As an independent producer, taking control of these aspects ensures I can focus on what I do best: creating music.
By staying informed and proactive about my music rights and agreements, I can maximize my earnings and protect my work globally.
This is a complex subject, and if you have any questions, need assistance, or spot any errors in this article, feel free to contact me. I'm always happy to help fellow artists navigate these waters.
