Setting Up a System for Collecting Music Royalties Without a Collection Society

The process of collecting music royalties can be complex and varies based on where the music is being performed or used. While many artists prefer to rely on collection societies due to their convenience and efficiency, it is possible to set up a system for collecting royalties on your own. This article provides a comprehensive guide to assist artists in developing their own royalty collection system.

Understanding Different Types of Music Royalties

Before setting up a system for collecting music royalties, it is essential to understand the different types of royalties and how they apply to your specific situation. Royalties typically fall into two categories: mechanical royalties and performance royalties.

1. Mechanical Royalties

Mechanical royalties are paid to composers and publishers when a song is reproduced or distributed on a physical or digital medium. These royalties apply to physical CDs, downloads, and other physical copies of your music.

2. Performance Royalties

Performance royalties are paid when a song is played publicly, whether it be on the radio, in a club, or in a public venue. These royalties can vary widely depending on the venue and the format of the performance.

How to Set Up a System for Collecting Music Royalties Without a Collection Society

While it is possible to set up a system for collecting music royalties without relying on a collection society, it requires a significant amount of diligence and understanding of the legal and financial aspects of the process. Here’s a step-by-step guide to help you get started:

1. Identify Royalty Streams

Begin by identifying all the potential sources of royalty revenue. This includes mechanical royalties, performance royalties, and synchronization royalties (for when your music is used in film, TV, or advertisements).

2. Research and Understand Royalty Rates

Each type of royalty has its own rate, which can vary depending on the country, type of medium, and venue. It’s important to research these rates to ensure you are receiving the correct amount of compensation for your work.

3. Establish Relationships with Licensees

To collect performance and synchronization royalties, you will need to establish relationships with various licensees, such as venue owners, broadcasters, and filmmakers.

4. Track Usage of Your Music

Keep detailed records of every time your music is played or used, including the date, venue, and duration. This will help you accurately track and collect royalties.

5. Create a Breakdown of Royalties Due

Using the records you’ve kept, create a breakdown of royalties due to you. This will help you ensure that you are receiving the appropriate amount of compensation for your music.

6. Collect Payment

Once you have identified all royalties due to you, it’s time to collect payment from the relevant parties. This may involve sending invoices or setting up direct payment agreements.

Conclusion

While setting up a system for collecting music royalties without a collection society requires significant effort and attention to detail, it is a viable option for artists who want to maintain control over their royalties. By following the steps outlined above and staying informed about the changing landscape of music royalties, you can successfully navigate the process and ensure that your work is properly compensated.

For further assistance, consulting with a copyright lawyer or a music industry expert can be highly beneficial. This will help you navigate any legal or financial complexities that arise during the process.