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TableofContents

Introduction 1-2

MusicCopyrightBasics 3

Compositionsvs.SoundRecordings 4-5

BeingYourOwnRecordLabel 6

BeingYourOwnMusicPublisher 7

WearingMultipleHats:BeingFourIncomeParticipants 8-12

AssertingYourRightsandCollectingYourRoyalties 13-18

Conclusion 19

LegalNotice:

Thisguideissolelyforgeneralinformationalpurposesanddoesnotconstitutelegalorotherprofessionaladvice.

©2017TuneRegistry,LLC.AllRightsReserved.

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IntroductionADIYmusicianisamusicianwhotakesa“Do-It-Yourself”approachtobuildingamusiccareer.Thatis,aDIYmusicianmust literally do everything themselves. A DIYmusicianmight have a small network offriends, family, collaborators, and acquaintances that assists them with tasks from time to time.However, virtually all decisions, all failures, and all successes are a result of the DIY musician’scapabilitiesandefforts.BeingaDIYmusician canbeoverwhelming.ADIYmusicianhasa loton theirplate including:writing,recording,promoting,releasing,andmonetizingnewmusic;planning,marketing,andproducingtours;reaching, building, and engaging a fan base;managing socialmedia; securing publicity; and somuchmore.ADIYmusicianmayhireamanagerand/orattorneytoassistthemwiththeircareer,buttheyarenotsignedtoorbackedbyarecordlabeloramusicpublishingcompany.JustthreedecadesagoitwasvirtuallyimpossiblefortheaverageDIYmusiciantogettheirmusicwidelydistributed without the help of a record company.While some DIY musicians were successful inreleasingmusic locallyanddeveloping local fanbases,widespreaddistributionand reachwashard toachieve.Butalothaschangedoverthelast30years!Today,DIYmusicianshaveaccesstomoreopportunities,resources,andinformationthaneverbefore.Today,DIYmusicians can establish themselves andbuild respectablemusic careerswithout giving upcompletecontrolof their creativeprocessandcopyrights. In fact, in recentyears,DIYmusicianshaveearnedrecognitionandaccoladesasaresultoftheiraccomplishmentsinthemusicindustry. Thankstotechnologicalinnovationsacrosseverysectorofthemusicindustry,ithasneverbeeneasierfor a DIYmusician to put out newmusic, perform in front of interestedmusic lovers, reach out andinteractwithfans,andtapintonewincomestreams.Butwithchangecomeschallenge.The lowering of the gates to themusic industry has resulted in a flood of up-and-comingmusiciansfightingtocutthroughthenoiseandplantthemselvesonthefieldofindustrysuccess.Competitionisatanall-timehigh.DIYmusicianscompetedirectlywithmajorrecordingartistsforashareofthestreamingmarketandattentionacrosssocialmediaplatforms.Competition–andtechnology–hasfundamentallychangedthewayinwhichsomecreativescreate.Inadditiontobeingabetter--and/ormorestrategic--creative,theDIYmusicianmustbewell-informedandwell-preparedtobetheirownadvocate.Theymustunderstandtherolesthattheymustperform,and why, to ensure that their catalog of music is properly represented and monetized. They must

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understand their rights, how those rights are exploited, and how to administer these rights in theabsenceofalabelorpublisher.Today’sDIYmusicianmustunderstand that fromtheperspectiveof thegreatermusic industry, theyaretheirownlabelandpublisher.The DIYMusician's Starter Guide to Being Your Own Label and Publisherwaswritten to (1) help DIYmusicians become better advocates for themselves by demystifying some of the confusing conceptsbehind how the digital music industry operates, (2) to address and offer solutions to many of thechallengesthatDIYmusicians face in theircareers,and (3) toeducateDIYmusiciansontheprocesseswithwhichtheymustbecomefamiliartoincreasethepossibilityofbeingproperlycompensatedforthe

useoftheirmusicacrossthedigitalmusicecosystem. This guide was written by Dae Bogan. Dae is the Co-Founder andCEO of TuneRegistry, a music and rights metadata managementplatform developed for the independentmusic community. Dae isalso a SXSW Music Mentor and an educator who teaches musicbusiness and entrepreneurship at the University of California, LosAngeles (UCLA),CaliforniaStateUniversity,Northridge (CSUN),andSAE InstituteLosAngeles.DaeholdsaB.A. inSociology fromUCLAandanM.A.inMusicIndustryAdministrationfromCSUN.Inthisguide,youwilllearnaboutthebasicsofmusiccopyrightsandthe business implications of the difference between compositions

and sound recordings. Youwill learnwhat itmeans tobe your own label andpublisher and the fourdifferenthatsyouwearintheworldofmusicroyalties.Youwillalsogainpracticalknowledgeandstepsfor asserting your rights and capturing the royalties that your music earns across the digital musicindustry.AMessageFromDae:Ithasbeenapleasurewriting thisguide. Ihavewornmanyhats in themusic industryover theyears,includingartistmanager,indielabelowner,musicpublisher,andtheheadofthemusicdivisionofaretailchain. Now, as a music tech entrepreneur and music business educator, it is my goal to bring myexperiencesandknowledgetogether tocreateuseful tools forDIYmusicians.Feel free tomessagemeaboutthecontentsofthisebookatanytimeviaTwitter@daeboganmusic.

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MusicCopyrightBasicsDIYmusicians shouldhaveat leastabasicunderstandingof theunderlyingprinciples that shapehowmusicisexploitedandmonetizedinthemusicindustry.Theseprinciplesarefundamentallyderivedfromcopyrightlawandthenadvancedbyindustrypractices.Copyright is a form of legal protection provided by the laws of the United States to the creators ofintellectual property. We currently operate under the Copyright Act of 1976 and its subsequentamendments.Thelawentitlestheownerofacopyrightsixexclusiverights,summarizedasfollows:

1. RightofReproduction.Therighttomakereproductionsorcopiesofthework(e.g.,duplicatinganMP3,printingsheetmusic,creatingacoversong).

2. RightofDistribution.Therighttomaketheworkavailabletothepublicbysale,rental,lease,orlending(e.g.,physicaldistribution,uploadingtotheinternetordigitalservices).

3. RightofPublicPerformance.Therighttoperformpublicly(e.g.,performingliveorbroadcastingaperformancetothepublicviatelevision,radio,internet,satellite,orcable).

4. RightofPublicDisplay.Therighttodisplaypublicly(e.g.televisionorradiobroadcast).5. Right of Derivative Works. The right to prepare a new work derived from or based on the

originalwork(e.g.,remixes,newarrangements,adaptations).6. Right of Digital Performance in Sound Recordings. The specific right to perform sound

recordings via non-interactive digital transmissions – internet, satellite, or cable -- is derivedfromtheDigitalPerformanceinSoundRecordingActof1995.

These exclusive rights shape how the music industry exploits music. Therefore, it is important tounderstandwheretheserightscomeintoplayasyounavigatetheindustryasaDIYmusician.ImportantCopyrightFacts:

● Copyrightissecuredautomaticallywhenaworkiscreatedandfixedinatangibleform,suchas

thefirsttimeitiswrittenorrecorded.● Copyrightprotectionisavailabletobothpublishedandunpublishedworks.● Generally,copyrightprotectionlastsfromthemomentofcreationuntil70yearsafterthedeath

oftheauthor.● Although it is not required to secure copyright protection, copyright registration is a legal

formality intended to make a public record of the basic facts of a particular copyright. Thebenefits of registering your copyright include: a public record of the copyrighted work; theabilitytofileacopyrightinfringementclaimincourt;primafacieevidenceincourtofthevalidityofthecopyrightandofthefactsstatedinthecertificate;statutorydamagesandattorneyfeesforcopyrightinfringement;andregistrationwiththeU.S.CustomsService.

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Compositionsvs.SoundRecordingsThemusicindustryisanetworkofinterdependentsectorsandstakeholdersthatexistforthepurposeofbringingmusictothepublicandmonetizingmusicexperiences.Morespecifically,itisanindustrybuiltaroundtheexploitationofcompositionsandsoundrecordings.Many DIYmusicians whowrite and record their ownmusicmay find it difficult to wrap their headsaround the business implications related to the difference between a composition and the soundrecording inwhichthecomposition isembodied.Asinger-songwriterwhocomposesamelody,writesthe lyrics, performs the song, andhires an engineer to help record andbounce (an audio productiontermreferringtomovingamixeddownmulti-trackaudiosessiontothenextphaseformasteringafinalmaster sound recording) a final sound recordingmayonlyoperate from thehigh-level perspectiveof“makingmusic.”Theymaysimplyviewtheresultingoutputasnewmusic.Butitismuchmorethanthat.Music is a set of assets. Copyright is attached to compositions and sound recordings that are thenexploited through an innumerable array of products, services, and experiences. To maximize theirbusinessinterestsinnewmusic,itisimperativethataDIYmusicianunderstandshowtoderiveasmuchvalueaspossiblefromtheassetsthattheyhavecreated.Theymustunderstandthatthecopyrightinthecomposition isseparate fromthecopyright in thesoundrecordingandthat thisnotionmanifests inanumberofwaysinthemusicbusiness.TwoAssetsandTwoCopyrightsIneverysoundrecordingthereexistsatleasttwodistinctcopyrights.Thecopyrightinacompositionisindicatedinprintbythesymbol“C”inacircle(©).Thecopyrightinasoundrecordingisidentifiedbyasimilarsymbol,butwitha“P”inthecircle(℗).Thesignificanceoftheseparationofthesetwoassetscannotbeoverstated.Thedifferenceisbestexemplifiedwhenyouconsidertherelationshipsbetweenasongwriter,apublisher,anartist,andalabel:

ScenarioA:Valerieisasinger-songwriterwhomakesacousticfolkmusic.Sheisnotsignedtoarecord labelorpublisher. She is completelyDIY.Valeriewritesand recordsanewsongcalled“GingerHouse”andreleasesitindependently.Valerieownsboththecopyrightinthecompositionandthecopyrightinthesoundrecording.ScenarioB:DuaneisarappersignedtoarecordlabelcalledRiseHighRecords.Duanecreateshisownmusicbutdoesnothaveapublishingdeal.Duanewritesandrecordsanewsongcalled“LiveItUp”atRiseHighRecords.Duaneownsthecopyrightinthecomposition,butRiseHighRecordsownsthecopyrightinthesoundrecordingbecauseDuaneenteredintoanexclusiverecordingcontract.

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Scenario C: Jonathan is a country singer-songwriter signed to a record label called AmericanRecords.HeisalsosignedasasongwritertoapublishingcompanycalledHiramMusic.Jonathanwritesandrecordsanewsongcalled“VictoryIsOurs”atAmericanRecords.Jonathanassigned thecopyrights inallofhiscompositionswhenheentered intoapublishingdeal with Hiram Music, so Hiram Music owns the copyright in the composition. AmericanRecordsownsthecopyrightinthesoundrecordingbecauseJonathanenteredintoanexclusiverecordingcontract.

ScenarioD:Christina isapopsinger signed toa record label calledLoft24Records.Kevin isasongwritersignedtoapublishingcompanycalledMaxposeSongs.Kevinwritesapopsongcalled“Truly Inspired” and his publisher Maxpose Songs pitches the song to the A&R manager atLoft24Records.TheA&RmanageratLoft24RecordslikesthesongandsharesitwithChristinawhoagreestoperformandrecordthesongatLoft24Records.Kevinassignedthecopyrightsinallofhiscompositionswhenheenteredintoapublishingdealwith Maxpose Songs, so Maxpose Songs owns the copyright in the composition. AlthoughChristinaisthesinger,shedoesnotownthemusicthatsheperforms.Loft24Recordsownsthecopyrightinthesoundrecording.

Ineachoftheabovescenarios,youcanseehowthedifferencebetweenthecompositionandthesoundrecordingbecomesclearerasmorestakeholdersenterthemix.LimitedRightsinSoundRecordings

You’velearnedintheMusicCopyrightBasicssectionthatcopyrightlawprovidessixexclusiverightstocopyright owners. However, the first five rights – reproduction, derivative works, distribution, publicperformance,andpublicdisplay–wereestablishedbeforesoundrecordingsbecameprevalent.SoundrecordingswerenotbroughtintothescopeofFederalcopyrightprotectionuntil1972.However,soundrecordingsdidnotreceivethesamepublicperformanceorpublicdisplayprotectionsthatcompositionsreceived.Infact,soundrecordingswereperformedpubliclywithoutalicenseforovertwodecadesaftersoundrecordingswererecognizedbytheFederalCopyrightAct.Thischangedslightlyin1995.In1995,CongresspassedtheDigitalPerformanceRightinSoundRecordingsActof1995(DPRA),whichcreated a new limited performance right for sound recordings. The protection was limited toperformancesviadigitaltransmissions– internet,satellite,andcable–so it isnotasexpansiveasthepublicperformanceright inthecomposition.Thismeansthatwhenmusic isbroadcastoverterrestrialAM/FMradio,thereisnoprotectionforthesoundrecordingbutthereisprotectionforthecomposition.However,whenmusicisperformedoverinternetradio,boththecompositionandsoundrecordingareprotected.

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BeingYourOwnLabelBeing signed to an artist-focused record label that believes in yourmusic, supports your career, andtreatsyouwithrespectmaybethedreamofmanyDIYmusicians,buttherealityismostDIYmusiciansmayneverbesignedtoarecordlabel.AndduetothemanyresourcesnowavailabletoDIYmusicians,manydonotwanttobesignedtoarecordlabelatall.Whetheryouremainunsignedforjustafewyearsor the restof your career, you couldbenefit fromunderstandingwhata record labeldoes.Asaself-releasing DIYmusician, you are your own record label and are responsible for performing the tasksnecessarytomaximizethepotentialofyoursoundrecordings.BasicFunctionsofaRecordLabel

● A&R (Artist and Repertoire) –Creative advocacy and strategy behind the selection,development,andguidanceofmusicprojectsandcontributors

● RecordMasters –Arrange for and finance the recordingofmaster sound recordings inwhichthelabelultimatelyownsthecopyright

● Distribution –Plan and execute the distribution of music products containing the soundrecordings(physical,downloads,streaming)

● Promotion&PR–Secureopportunitiesforartiststopromotereleasesviaradioandtelevision;pressplacementssuchasinterviews,features,andreviews;andpublicappearances

● Marketing –Develop and execute marketing strategies to reach music consumers and driveawarenessanddemandfortheupcomingrelease

● Business&LegalAffairs–Deal-makingandlicensingbetweenthelabelandthird-partyentitiesseekingtolicensemusicforuseinallwaysmusicisused

ThereareavastnumberofcompaniesthatprovidetoolsorhelpDIYmusicianswithperformingallofthe functions of a record label – including online audio production and mastering services, musicdistributors and aggregators,marketing firms, public relations consultants, and a growing number ofstartups thatofferservices forpitchingmusic tobloggers, influencers,andplaylistcurators.Therearealso companies that specialize in social media management and advertising to help you grow andengageyourfanbasebyconvertingfollowersintofansandbuyersofyourmusic.Inaddition to recordingandpromotingnewmusic,self-releasingDIYmusiciansmustunderstand thewaysinwhichsoundrecordingsaremonetized.Obviously,soundrecordingsearnincomewhenmusicissold in physical and digital retailers and when the sound recording is streamed on interactive (e.g.,Spotify,AppleMusic, orAmazonMusic) andnon-interactive (e.g., Pandoraor SlackerRadio) services.However,soundrecordingsalsoearnincomefromavarietyoflicensingactivitiesthatrequireamasteruse license, including placing sound recordings in film and television, using sound recordings inpromotional compilation CDs, and the use of sound recordings in a variety of newmedia apps andproducts.

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BeingYourOwnPublisherIfyouhavenotenteredintoacontractwithapublisherandyouarenotcomposingunderawork-made-for-hireagreement,thenthemomentyoucreateacopyrightablecompositionyouarethepublisher.Asaself-publishingDIYmusician,itisimportanttounderstandwhatamusicpublisherdoesanddeterminehowyouwillperformthosetasks.Theessentialpurposeofamusicpublisher istoadminister,exploit,andprotectitscopyrightedworks.BasicFunctionsofaMusicPublisher

● Administrationentails○ thefilingofanoticeofcopyrightwiththeU.S.CopyrightOffice,○ theissuingoflicenses,○ collectingofroyalties,and○ payingwriterstheirshareoftheproceeds.

● Exploitationinvolves○ gettingartiststorecordyoursongs,and○ gettingyoursongsusedinfilms,television,radio,andtelevisioncommercials,etc.

● Publishers also police the use of copyrighted works and take action to prevent or stopinfringement.

Publishersmustunderstandhowmusicismonetizedinordertoeffectivelycollectroyalties.Someofthelicensesthatpublishersissueincludemechanicallicenses,publicperformancelicenses,synchronizationlicenses,andprint licenses.Publishersalsocollectforeignpublishing income throughdirectaffiliationwith music rights organizations in foreign territories or through partnering with sub-publishers whoadministeronbehalfoftheoriginalpublisherinthesub-publisher’sownterritory.Asaself-publishingDIYmusician,itbehoovesyoutolearnaboutthevariouswaysinwhichlicensesareissued andhow their associated royalties are collected anddistributed. Then, you candecide to self-publishwithorwithouttheassistanceofathird-party. Ifyouchoosetoworkwithathird-party,thereare generally two options: a publishing administrator or a co-publisher. The difference between apublishingadministratoranda co-publisher is theamountof copyrightownershipeach takesand thescopeofservicesthateachprovides.Apublishingadministrator takesnocopyrightownership.Theywillgenerallyonly registeryourmusicwithmusicrightsorganizationsandpayyoutheroyaltiesthattheycollectonyourbehalf,lessa10%to20%commission for their services.Aco-publisherwill takea50%ownership stake inyour copyrightsandpayyou50%ofthepublishingincome.However,co-publisherswillperformallofthefunctionsofamusicpublisherasdescribedabove.Co-publishersarealsomuchmoredifficulttopartnerwithastheyareveryselectiveonwhotheysign.

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WearingMultipleHats:BeingFourIncomeParticipantsNowthatyouhaveabasicunderstandingofmusiccopyright,howcompositionsandsoundrecordingsdiffer, and the basic functions of a record label and amusic publisher, understanding how all of thiscomestogetherintheworldofDIYshouldbecomeeasiertograsp.As a DIYmusician youwearmultiple hats, especially as an income participant in themusic that youcreate.An incomeparticipant isapersonorentityentitled,throughcontribution,contract,orstatute,to receivea shareof certain incomestreams (or royalty streams) thatmusicearns.Distinguishing thenuanceddifferencesbetweeneachof the fourbasic incomeparticipantswillenableyou tobebetterpreparedtocapturemoreincomefromyourmusic.FourBasicIncomeParticipantsinMusic

1. Songwriter

2. Publisher3. Artist4. Label

Scenario D in the Composition vs. Sound Recording section best exemplifies the four incomeparticipants: Kevin (songwriter), Maxpose Songs (publisher), Christina (artist), and Loft24 Records(label). The relationships between the income participants are clearly reflected in theways in whichmusicislicensedandhowroyaltiesareallocatedanddistributed.SongwritersandPublishersparticipateinasetofroyaltystreamsthataredistinctlydifferentfromthesetofroyaltystreamsinwhichArtistsandLabelsparticipate:RoyaltyStreamsforSongwriters&Publishers(CompositionIncome)

● Physical&DownloadMechanicalRoyalties.Physicalanddownloadmechanical royaltiesstemfromtheissuanceofamechanicallicense,whichgrantstothelicenseetherighttoreproduceandrighttodistributeacompositioninaphonorecord.Aphonorecordisthephysicalmediainwhich the sound recording is stored (e.g. CD, vinyl, cassette). In theUS, anyone can secure acompulsorymechanical license as long as they follow the guidelines as stipulated by Section115oftheUSCopyrightAct.Thecurrentstatutoryroyaltyrateformechanicallicensesis9.1centspercompositionor1.75centsperminuteor fraction thereof foracomposition longer than5minutes.So, if someonewantsamechanicallicensetomakeanddistribute1,000copiesofyour4-minutecomposition,theymustpay$91(1,000x9.1=$91).Thisrateappliestophysicalgoodsandpermanentdigitaldownloads.Thestatutoryroyaltyrateforaringtoneis24cents.Unlikemostwesterncountries,

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theUnitedStatesdoesnothaveanofficialmechanicallicensingandroyaltycollectionsbodyofthegovernment. Instead, individualsandentities seeking to secureamechanical licensemustcontactthecopyrightownerandlicensefromthemdirectlyorutilizeoneofseveralmechanicallicensingagentsthatrepresentpublishersand/orlicensees.OneoftheseorganizationsistheHarryFoxAgency(HFA).HFAistheleadingproviderofrightsmanagement,licensing,androyaltyservicesfortheU.S.musicindustry.HFAwasestablishedin1927 by the National Music Publishers' Association as an agency to license, collect, anddistribute royalties on behalf of musical copyright owners. HFA’s Rumblefish is a rightsadministrator representing numerous digital music services that need, among other things,mechanical licenses for the use of compositions on their respective platforms. HFA andRumblefishwork in concert to license thecompositionsofHFA’saffiliatedpublishers to thesedigital services (and many other types of companies seeking mechanical licenses, includingdigital service providers, streaming companies, labels, gamers, AV/VR, video, mobile apps,jukeboxcompanies,backgroundmusic,lyrics,tablature,karaoke,andmore.).Music Reports Inc. (MRI) is another widely used rights administrator on behalf of similarcompanies and broadcasters to secure and administer a number of licenses, includingmechanicallicenses.PhysicalanddownloadmechanicalroyaltiesarepaidtothePublisherwhothenpaystheSongwriterasharebasedontheiragreement.

● InteractiveMechanicalRoyalties. Interactivemechanicalroyaltiesstemfromtheissuanceofa

mechanicallicensetointeractivestreamingmusicservicesthatenableenduserstoselectandplay specific tracks (e.g., Spotify, Google Play Music, Apple Music, Amazon Music, Tidal, orNapster). The license is for thecomposition embodied in thephonorecord (e.g.MP3).Unlikephysical and downloadmechanical royalties, interactivemechanical royalties are not a fixedamountperuse.

Instead, interactivemechanicalroyaltiesarecalculatedfromaformulathattakes intoaccounttheservice’smonthlyrevenue,numberofsubscribers,andnumberofstreams.Therefore, theperstreamrateofinteractivemechanicalroyaltiesdiffersbetweenservicesandfluctuatesfrommonthtomonthwithinservices.BothHFAandMRIissueandadministerinteractivemechanicallicensesandpayout interactivemechanicalroyalties. InteractivemechanicalroyaltiesarepaidtothePublisherwhothenpaystheSongwriterasharebasedontheiragreement.

● Public Performance Royalties (Compositions). Public performance royalties stem from the

issuance of a public performance license, which grants to the licensee the right to publiclyperform(orpubliclydisplay,inthecaseofaudiotransmissionsandbroadcasts)acomposition.Withfewexceptions,virtuallyallusesofyourcompositionearnspublicperformanceroyalties.When your composition is performed live in amusic venue, as backgroundmusic at a retailstore,atbarsorrestaurants,onwebsitesordigitalmusicapplications,broadcastovertheradio

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or television,or transmitted through the internet, cable,or satellite services,allof theseusesrequireapublicperformancelicense.In theUnitedStates,ASCAP,BMI, SESAC,andGlobalMusicRightsare theperformance rightsorganizations (PROs) that issue public performance licenses. Licensees pay fees that are thenpaid out to songwriters and publishers as public performance royalties. Public performanceroyaltyratesvarydependingonthetypeoflicensee.Publicperformanceroyaltiesarepaidoutasfollows:50%directlytotheSongwriterand50%directlytothePublisher.

● Synchronization Fees. Licensingmusic for use in movies, television shows, commercials, and

manyother typeofaudio-visualworks, requiresasynchronization license (also referred toas“synclicense”)fortherighttosynchronizeacompositiontoamotiongraphicembeddedinanaudio-visualmedium such as a film, tape, or video file. Likemechanical licensing, the UnitedStatesdoesnothaveanofficialsynclicensingandroyaltycollectionsbodyofthegovernment.Instead, producers seeking a sync licensemust contact the copyright owner and license fromthem directly or utilize one of several sync licensing agents that represent publishers and/orproducers. Generally, there is a one-time upfront sync fee paid for the placement of thecompositionintheaudio-visualwork.Insomecases,especiallyinthemovieindustry,syncfeescanbepaidoveraperiodoftimeandgrowbasedonboxofficesalesordistribution.Syncfeesvarygreatlydependingonthepopularityof themusic, thetypeofusewithintheaudio-visualmedia, theproducer licensing theuse, and the typeandbreadthofdistributionof theaudio-visualwork.SyncfeesarepaidtothePublisherwhothenpaystheSongwriterasharebasedontheiragreement.

● Print&Display Fees. The text of compositions is used inmany types ofmedia that requires

someformofaprintordisplaylicense.Aprintlicensegivesauserpermissiontoprintorcopylyricsand/ormusic foracomposition inaprintedproject.This includes,but isnot limited to:songsheets,asongbook,sheetmusic(e.g.,choralarrangement,orchestration),abookusingorreferencingsonglyrics,andsonglyrics licensedtobeprintedonvariousformsofmerchandise(e.g.,T-shirts,mugs,orcanvasbags).A license is also required to display the lyrics of a song on an internet web page or in astreamingmusicmobileapp.Printanddisplay licensesmustbeentered intodirectlybetweentheproducerof thematerialandthepublisherof thecomposition,or their respectiveagents.There are no statutory royalty rates for print and display licenses, so the fees and paymenttermsarenegotiated foreachdeal.Printanddisplay feesarepaid to thePublisherwhothenpaystheSongwriterasharebasedontheiragreement.

● InternationalRoyalties.Compositionsused inothercountriesrequiremanyofthesametypes

oflicensesastheydointheUnitedStates.Everycountryhasitsownmusicrightsorganizationsand royalty collection societies administering mechanical and public performance licenses.

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However,collectingtheseroyaltiescanbedifficultwithoutasub-publisheroradministratorthatwill collect international royalties. Sub-publishers and administratorswill collect internationalroyalties and pay the original publisher, less a commission. The Publisher then pays theSongwriterasharebasedontheiragreement.

RoyaltyStreamsforArtists&Labels(SoundRecordingIncome)

● MasterUseFees.Generallyspeaking,mostusesofsoundrecordingsthatrequirepermissionaregranted through the issuanceofamasteruse license.Masteruse licensesgrantoneormorerights to a licensee (i.e. right to reproduce a sound recording, right to distribute a soundrecording, and right to create a derivative work based on the original sound recording) inexchange for a one-timemaster use fee and/or ongoingmaster use royalties. Amaster uselicenseoftenaccompanieslicensesforcompositionssincecompositionsareembodiedinsoundrecordings.For example, an interactive music service must secure a master use license for the soundrecordings thatusers selectandplayon itsplatformandapublicperformance license for thepublicperformanceofthecompositionembodiedinthesoundrecording.Afilmproducermustsecureamasteruselicensetouseasoundrecordinginasceneandasynchronizationlicenseforthecompositionembodied inthesoundrecording.Masteruse licensesarenegotiateddirectlybetweenthelicenseeandtherecordlabel.MasteruseincomeispaidtotheRecordLabelwhothenpaystheArtistasharebasedontheiragreement.

● Digital Radio Royalties. In the United States, there is no public performance right for sound

recordings.Therefore,broadcasterssuchasterrestrialAM/FMradioandtelevisionnetworksarenot required to secure amaster use license or paymaster use royalties for the broadcast ofsoundrecordingsover theirstations/channels.However,asyou’ve learned in theCompositionvs.SoundRecording sectionabove, theDigitalPerformanceRight inSoundRecordingsActof

1995(DPRA)createdanewlimitedperformancerightforsoundrecordings.Althoughthere isnopublicperformance rightforsoundrecordings intheUnitedStates,DRPAdoes provide a right to the digital performance in sound recordings, which requires properlicensing for the use of sound recordings in digital transmissions including internet (i.e.,Pandora), cable (i.e.,Music Choice), and satellite (i.e., SiriusXMRadio).SoundExchange is theonlyentityauthorizedbyCongresstoadministerthestatutorylicensesdescribedinsections112and 114 of the Copyright Act. SoundExchange issues licenses and collects license fees fromeligibleserviceproviders.Eligible service providers must, among other requirements, provide non-interactiveperformancesofsoundrecordings,whichmeansthat the listenercannotchoose to listentoaspecificsoundrecording(aradio-likeexperience).Therearedifferentstatutoryratesbasedonthe type of service provider, but the current rate for a commercialwebcaster is$0.0017 per

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performancefornon-subscriptiontransmissionsand$0.0022perperformanceforsubscriptiontransmissions. SoundExchange pays outdigital radio royalties as follows: 45%directly to theArtist,50%directlytotheRecordLabel,and5%toaspecialfundforbackgroundvocalistsandsessionmusiciansmanagedbytheAFM&SAG-AFTRAIntellectualPropertyRightsDistributionFund.

● Private Copy& Record Rentals Royalties. TheAlliance for Artists and Recording Companies(AARC) collects and distributes home-taping/private copy royalties and rental royalties asestablishedbytheAudioHomeRecordingActof1992(AHRA)andforeignhome-taping/privatecopy and rental royalties received through reciprocal agreements with music rightsorganizations around the world. AARC provides a music royalty, generated by the sales ofdevices and media such as blank CDs, personal audio devices, automobile systems, mediacenters,andsatelliteradiodevicesthathavemusicrecordingcapabilities.Theroyaltiesearnedare based on a complex formula that takes into accountmusic sales as reported byNielsenSoundScan. Private copy and record rental royalties are paid directly to Artists and RecordLabelsseparately.

● NeighboringRightsRoyalties.Althoughwedonotrecognizeabroadpublicperformancerightin

sound recordings in the United States, most developed nations do recognize this right. Thepublicperformanceright insoundrecordingsiscalledtheneighboringright,becausetherightneighbors thepublicperformanceright incompositions.Soundrecordingsperformedinpublic(e.g.,radioortelevisionbroadcasters,barsandnightclubs,restaurants,retailstores, livemusicvenues,etc.)earnneighboringrightsroyalties incountries that recognizethis right.However,those royalties do not flow back to the US because we do not recognize neighboring rights.Additionally, we do not send neighboring rights royalties back to the countries who dorecognizetherightwhentheirartists’musicispubliclyperformedintheUS.Therefore,alabelmustengageaneighboringrightsadministratorthatcancollecttheneighboringrightsroyaltiesin international territories in certain circumstances and pay the label, less a commission. TheLabelthenpaystheArtistasharebasedontheiragreement.

AsaDIYmusician, youwearmultiplehats–Songwriter,Publisher,Artist,andLabel –until youhaveassigned those responsibilities to a third-party. Until that time, you must be aware of the differentincomeparticipations theserolesareentitledtobasedonthedifferentroyaltypoolsconsidered,andhowtoassertyourrightsandclaimallofyourroyalties.

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AssertingYourRightsandCollectingYourRoyaltiesCongratulationsformaking it this far!We’vecovereda lotofmaterial intheprevioussectionsandbynowyourheadmaybespinning.Learningaboutcopyrights,incomeparticipants,androyaltystreamsisgreat.Learningaboutallofthatandhowtoassertyourrightsandcollectyourroyaltiesisevenbetter.So,let’sgettoit.FourStepsTowardAssertingYourRightsandCollectingYourRoyaltiesStep1:Changeyourmindsetaboutthemusicbusiness.It iseasytogetlostinthecreativeprocessorboggeddownbythemanythingsthatyoumustdoasaDIYmusician.And it canbedifficult toachieveeverything thatyouwould like toachievewithout thenecessaryfinancialorhumanresourcestosupportyourcareer.Nevertheless,youmustbeawareofthefactthatyourmusicgeneratesroyaltiesinmanywaysonceithasbeenreleasedandthatitisyourdutytoassertyourrightsandcollectthoseroyalties.Step2:Prepareyourselftoassertyourrights.Nowthatyou’vedecided to take thebusinessaspectofyourmusiccareerseriously,youmustdecidehowyou’regoingassertyourrights.Becauseyouwearmultiplehatsasthesongwriter,publisher,artist,and label,youmustthinkabouthowyouaregoingtoorganizeandmanagetherightsassociatedwithyourassets;thatiscompositionsandsoundrecordings.Onestrategy fororganizingandmanagingyour rights is togroup the roles into twobuckets:creatorsandcompanies.Thisisthewaythegreatermusicindustrythinksaboutthestakeholdersinmusic;anditis reflected throughout themusic-licensing framework in theUS.Creators– songwritersandartists–createthemusicandcompanies–publishersand labels–holdtherights inthesecreations.Acreatorwhowas signed toapublisherand labelwouldhave little todo in regards toassertinghis rightsandcollectingroyalties,becausethecompaniesrepresentinghimmakerightsadministrationapartoftheirresponsibilities.ButasaDIYmusician,youmustbeboththecreatorandcompany.Beingthecreatoriseasy.Youmayhaveastagename,butthatdoesnotchangethefactthatyourlegalnameand tax information isgenerally required forbeingan incomeparticipantasasongwriteroranartist.So,beingthecreatoriseasy...it’syou.Beingthecompanyrequiresabitofwork.While it istruethatyoucanreleasemusicasanindividual,the music industry has always operated through a lens whereby a company owns the rights incompositionsandsoundrecordings.Forthisreason,youmaywanttoformalegalbusinessentity,whichwillactasbothyour labelandpublisher for thepurposeofassertingyourrights.Asabusinessentity,youwillwearonehatasa“musiccompany”.

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● FormaBusinessEntity.Choosealegalentitystructure(DBA,LLC,orCorporation)andformthe

entitywithin the scope and procedures of your state laws. A single-member Limited LiabilityCompany(LLC)isrelativelyeasytoforminmoststatesanditprovidesseveralbenefitsincludingno federal taxation of the business entity and a layer of personal protection against businessliabilitiessuchaslawsuits.Consultwithalegaland/orfinancialprofessionaltomakeadecisionthatisbestforyou.

● Apply for an Employer IdentificationNumber (EIN).Once you’vebeennotifiedby your state

thatyourbusinessformationhasbeenprocessed,youcanvisittheIRSwebsitetoapplyforanEmployer Identification Number (EIN) online. An EIN will act as your business’s taxidentification number (similar to your social security number as an individual). The IRS EINwebsite link is: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

● Open a Business Bank Account. Although you can have all of your music career income

depositedtoyourpersonalbankaccount,youmaywanttokeepyourbusinessincomeseparatefromyourpersonal income(thishelpswithmaintainingthebenefitsofanLLC).Consultwithalegal and/or financial professional tomake a decision that is best for you. Visit your bank ofchoiceandopenupabusinesscheckingaccount.Youwillneedyourcertifiedbusinessformationpaperwork,EIN,andpersonalidentification.

Onceyou’ve createdyourmusic companyandestablishedabankaccount, youarenowwellonyourwaytoassertingyourrightsandcollectingyourroyalties.Step3:Jointheorganizationsthatadministerlicensesanddistributeroyalties.As you’ve learned throughout this guide, many different organizations issue and administer licensesgrantingvariousrightstoyourcompositionsandsoundrecordingstoanarrayofusers;thatis,onceyourmusichasbeenreleased.Someoftheseorganizationsrequiredirectpermissionfromyou,whilesomeoperateunderstatutoryprovisionsthatdonotrequireyourexplicitpermission.Forthesereasons,itisimperative that youproperly assert your rights to your compositionsand sound recordingsby joiningandcreatingaccountswitheachofthem.Youwillneedtosign-upasaCompany(publisherorlabel)andinsomecasesasaCreator(songwriterorartist)aswell.

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MusicRightsOrganizations&AdministratorstoJoin

● CompositionRelatedOrganizations(Songwriter&Publisher)

○ MechanicalRoyalties.TheHarryFoxAgency(HFA)isamembership-basedorganizationthat represents the US mechanical rights of its affiliated publishers. However, non-affiliatedpublisherscan (andshould)createanaccountwithHFA inorder toproperlysecure physical, download, and interactive mechanical licenses (and participate inother license types made available through its Rumblefish rights administrationcompany).

Inaddition,MusicReports Inc. (MRI) andLoudr representdigital serviceprovidersbyhandling the administration of licenses and filing of statutory notices. These rightsadministrators collectively handle themechanical licensing activities for all of the topdigital music platforms in the US, including Spotify, AppleMusic, Google PlayMusic,Amazon Music, Tidal, Napster, Deezer, Groove Music, and many more. Mechanicalroyalties are paid to the publisher, so yourmusic company should create an onlineaccountwithHFAasapublisheratwww.harryfoxagency.com,createanonlineaccountwithMRI as a publisher at www.musicreports.com, and join Loudr as a publisher athttps://loudr.fm/publishers/noi. You must create an account with each company inordertoassertyourrightswithasmanydigitalserviceprovidersaspossible.

○ Public Performance Royalties. The performance rights organizationsASCAP and BMI

are non-profit organizations that represent over 1million songwriters and publisherscollectively. SESAC and Global Music Right (GMR) are highly selective invite-onlyorganizations. Therefore, you should choose between ASCAP and BMI. Because PROspayout50%ofpublicperformanceroyaltiesdirectlytothesongwriterand50%directlytothepublisher,youshouldjoinasasongwriterandyourmusiccompanyshouldjoinasapublisher.ASCAPhasa$50perapplicationfeetojoin,soyou’llpay$100totaltojoinASCAP.BMIhasnoapplicationfeeto joinasasongwriter,butdoeshavea$150applicationfeetojoin as an individually-owned publisher, so you’ll pay $150 total to join BMI. Visitwww.ascap.com and www.bmi.com to learn more about each PRO and join one ofthem.(Tip:PROsrequireyourcompanynametobeunique.Therefore,itmaybeagoodideatosubmityourpotentialcompanynametoASCAPorBMIbeforeformingthebusiness.IfyouformabusinessbythenameofLoft24PublishingandyougotojoinASCAPorBMIandaLoft24Publishingalreadyexistsintheirsystem,you’llhavetocomeupwithanewname.)

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○ YouTubeRoyalties.YouTubeenablesanyonetouploadvideosthatcouldcontainyourcompositions.Forexample,acoversongvideooraprankvideowithyourmusicplayinginthebackground.BecauseYouTubeisavideoplatformitmustsecuresyncrightsandpublic performance rights for the use of your composition on the platform.Unfortunately, songwriterswith a low following cannotdirectly licensewith YouTube.However, there are royalty collection agencies with YouTube direct licenses that cancollectyourYouTubesyncroyalties(andbydoingso,theyalsotriggertheflowofpublicperformanceroyalties fromYouTubetoyourPRO).Audiam isanexampleofaroyaltycollection agency that collects YouTube royalties for publishers, but there are severalavailable.

○ International Royalties. Your compositions earn royalties all over the world. For

example, if yourmusic is played on BBC Radio 1 in the UK, BBC Radio 1 pays publicperformanceroyaltiestoPRSforMusic (UK’sversionofASCAP/BMI/SESAC),or ifyourmusic is streamed on Spotify in Canada, Spotify pays public performance royalties toSOCAN (Canada’s versionofASCAP/BMI/SESAC), or if yourmusic is downloaded fromiTunesinGermany,iTunespaysmechanicalroyaltiestoGEMA.

To collect international royalties, publishers partner with sub-publishers that areestablished in the territory where the royalties are generated or they hire a localpublishing administrator or royalty collection agency who can collect internationalroyalties fromaroundtheworldforacommission.KobaltandSongtrustareexamplesofpublishingadministratorsthatcollectinternationalroyaltiesforpublishers,buttherearemanymore.

● SoundRecordingRelatedOrganizations(Artist&Label)

○ Digital Radio Royalties. SoundExchange is the only entity authorized by Congress to

administerthestatutorylicensesdescribedinsections112and114oftheCopyrightAct.Theypayoutsoundrecordingdigitalroyaltiesfortheuseofsoundrecordingsonnon-interactive digital services. Because SoundExchange pays out 45% of sound recordingdigitalroyaltiesdirectlytotheartistand50%directlytothelabel,youshouldjoinasanartistandyourmusiccompanyshouldjoinasalabel.

ItisfreetojoinSoundExchangeandtheyconvenientlymakeiteasyforyoutoregisterasboth the artist and label (which SoundExchange refers to as the “sound recordingcopyright owner”) during the registration process. Visit www.soundexchange.com tolearnmoreandregister.(Tip: In order for SoundExchange to collect your international sound recording digitalroyalties,electtobecomeamemberofSoundExchangeduringtheregistrationprocess).

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○ Private Copy & Record Rentals Royalties. The Alliance for Artists and RecordCompanies (AARC) is the only entity authorized by Congress to administer theAudioHome Recording Act licenses and foreign reciprocal licenses royalties. Because AARCpaysoutprivate copyand record rentals royaltiesdirectly to theartist anddirectly tothe label, you should joinasanartist andyourmusic company should joinasa label(whichAARCreferstoasthe“soundrecordingcopyrightowner”).ItisfreetojoinAARC,but you must join individually as an artist and individually as a label. Visitwww.aarcroyalties.comtolearnmoreandregister.

○ NeighboringRightsRoyalties. Soundrecordingsearnperformance royaltiesoutsideof

the United States referred to as neighboring rights royalties. The music rightsorganizationsoutsideoftheUSdonotsendtheneighboringrightsroyaltiestoUSmusicrightsorganizations.Instead,theypaythefundsouttolocallabelsandartists.Tocollectsound recording neighboring rights royalties, labels must hire a neighboring rightsadministrator (similar to a publishing administrator for the composition) that willattempttocollecttheroyalties,foracommission,andpaythelabel.

○ YouTube Royalties. Just like the composition can earn sync and public performance

royalties on YouTube, the sound recording can earnmaster use royalties (because async license also requires a master use license when an existing sound recording isused). Ifsomeoneusesyoursoundrecording intheirvideo,YouTubecanplaceadsontheir video and pay you every time YouTube earns money. Instead, artists generallypartnerwithaMulti-ChannelNetwork(MCN)likeFullscreenandInDMusictohelpthemcollect theirmaster royalties. Many digital music distributors also provide YouTubemasterroyaltiescollection.Checkwithyourdistributor.

Asarecap,you,thecreator,mustjoin:

● ASCAPorBMI(forpublicperformanceroyalties)asasongwriter,● SoundExchange(fordigitalradioroyalties)asanartist,and● AARC(forprivatecopy&recordrentalsroyalties)asanartist.

Andyourmusiccompanymustjoin:

● ASCAPorBMI(forpublicperformanceroyalties)asapublisher,● HarryFoxAgency(formechanicalroyalties)asapublisher,● MusicReportsInc.(formechanicalroyalties)asapublisher,● Loudr(formechanicalroyalties)asapublisher,● Audiamorasimilarservice(forYouTubesyncroyalties)asapublisher,● SoundExchange(fordigitalradioroyalties)asalabel,● AARC(forprivatecopy&recordrentalsroyalties)asalabel,● AnMCNordistributor(forYouTubemasterroyalties)asalabel,and

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● ANeighboringRightsAdministrator(forneighboringrightsroyalties)asalabel.

Step4:Registeryourmusicandgetpaid.Onceyou’ve joined thevariousmusic rightsorganizationsandhaveprovided themwithyourbankinginformation, they will be able to deposit royalty payments into your bank account based on yourearnings. Themost important thing that you cando to ensure that royalties are paid to you ismakeaccurate, complete, and timely registrations of music metadata to all of the organizations thatadministerlicensesanddistributeroyalties.Metadataistheinformationaboutyourmusicthatisdisseminatedthroughoutthemusicindustrytoawidevarietyofrecipients(i.e.,musicrightsorganizations,digitalserviceproviders,metadatasuppliers,etc.) and used for a variety of purposes such as identifying stakeholders (Writers, Publishers, Artists,Labels),servinguptrackdetails(e.g.,TrackArtists,TrackTitle,TrackNumber,TrackGenre,BPM),audiorecognition,smartrecommendations,andaccountingtoandpayingincomeparticipants.Completemusicindustryregistrationrequiresyoutoregisteryourmetadatawitheachorganizationandthen continue to register all new compositions and sound recordings that you create. Unfortunately,each organization has its own unique process and web forms for registering metadata. And eachindividualregistrationcantakeseveralminutestocomplete,providedthatyouhaveallofthemetadatareadilyavailable.Asaresult,astandardalbumof12to14trackscouldhaveover100allocationsofincomeparticipationresultingindozensofuniqueregistrationsandhours,orevendays,ofdata-entryandprocessingtime.DIYmusiciansdonothaveanendlesssupplyoftime.DIYmusiciansneedsmart,efficient,andeasy-to-usetoolstohelpwithsomethingas importantascatalogmanagementandmusicregistrations.This iswhereTuneRegistrycomesinhandy.TuneRegistryisanall-in-onemusic&rightsmetadatamanagementplatformfortheindependentmusiccommunity. TuneRegistry provides a secure environment for music creators and rights holders tocollect, organize, store, and manage metadata in an easy-to-use cloud-based catalog. What setsTuneRegistry apart from similar catalog software is our powerful Registrations Engine, whichstreamlinesthedeliveryofregistrationstomusicrightsorganizations,dataservices,andmusicindustryentitiesinourever-growingnetworkofexchanges.Onceyou’vejoinedanorganizationtowhichTuneRegistrydelivers,younolongerhavetologintothatorganization's system to make the necessary registrations. Simply create a composition or soundrecording record file once in your TuneRegistry catalog and initiate multiple registrations with youraccount.TuneRegistry enables you tomanageall of yourmetadata inoneplaceand todeliver itnotonlytomusicrightsorganizations,butalsodataservicesthatpowerfeatures indigitalmusicservices,musicapps,andaudiodevices.

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ConclusionBeinga seriousDIYMusician isa special kindof challenge.Givingyourall toyourmusic careeroftenrequiressignificantemotionalandfinancialinvestment.Andwithasmallornon-existentsupportteam,the pressure can be cumbersome. Nevertheless, keeping up with the business aspects of the musicindustry is a necessary part of being properly accounted to and compensated for your art. The DIYMusician’sStarterGuidetoBeingYourOwnLabelandPublisheraimstohelpyounavigatethebusinesswith theawareness and confidence toassert your rights andunlock yourmusic’spotential.With thisguide,youshouldbecomeyourownadvocate.FeelfreetoTweetquestionstoDaeBoganat@daeboganmusic.And don’t forget to check out TuneRegistry, the DIY Musician’s tool for organizing and managingcompositionsandsoundrecordings,andgettingmetadataregisteredwithease.

Visit www.TuneRegistry.com to learn more. Use code DIYEBOOK to get 50% off the first two months of any paid plan.