What Are Recording-Generated Royalties?

They’re about as basic as royalties get.

Recording-generated royalties (sometimes referred to as sound recording royalties) are generated on behalf of a sound/sound recording rather than a composition. This is the most basic royalty performing artists and labels earn when their master recording is downloaded, physically bought, or streamed.

Unlike composition royalties — which are collected by PROs and publishers — master-generated royalties are handled by distributors. They’re in charge of collecting royalties directly from record stores and streaming platforms on behalf of the sound recording recording owner. The distributor must then distribute these royalties back to the label. If an artist is not with a label, they will collect royalties directly from their distributor.

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