A composition royalty is a financial payment given to the authors and publishers of an original musical work. Royalty payments compensate rights holders for the use of their intellectual property.
There are two basic categories of composition royalties; performance royalties and mechanical royalties.
A performance royalty is generated from the public use of a piece of music (terrestrial radio (AM/FM), a business playing music, a live event, streaming)
A mechanical royalty is generated whenever a song is reproduced in any form. Traditionally, this has been a physical reproduction such as print, vinyl, CD, and tapes, but it also includes streaming since a file sent to streaming service and placed on their servers is considered a reproduction of your recording.
In order for Canadian creators to receive all the composition royalties they are entitled to, their works should be registered with SOCAN and Nielsen BDS for performance royalties and either CMRRA or SOCAN Reproduction Rights (SOCAN RR) for mechanical composition royalties.
Composition Royalty
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