Collins Connect is an administrative service company that specializes in the setup and maintenance of Artist’, Producers and Records Labels royalty registration, collection, copyright’s and legal services.
“The greatest enemy of knowledge is not ignorance, but the illusion of knowledge”.~Stephen Hawking
There are two types of musicians:
Songwriters and performing artists, there are also two distinct copyright elements to a song, songwriters hold the rights to the lyrics and melody of a piece of music, while performing artists hold the rights to a particular recording of a song, which is called a “master recording”.
Performance Royalties are the fees music users pay when music is performed publicly. The use of music over the radio, in a restaurant or bar, or over a service like Spotify or Pandora is considered a public performance.
Mechanical Royalties are paid to songwriters and artists when music is licensed, but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify). Songwriting mechanical royalties are set by the government through what’s called a compulsory license.
Performance Rights Organizations (PRO) in the US are BMI, ASCAP, and SESAC. PRO’s represent songwriters and publishers of musical works. A Songwriter is someone who creates a musical composition: the melody, harmony, lyrics, arrangements, beats, etc. A Publisher is a person or company that handles the business side of music. Publishers may control the copyrights of a musical composition, licensing, etc.
Like BMI and ASCAP, SoundExchange collects and distributes royalties for featured artist’ and rights owner’s that own the “master” to recorded artistic content.
Digital performances (for example, Pandora) pay a recording digital performance royalty to SoundExchange and a songwriting digital performance royalty to the PROs.
But on the flip-side, BMI and ASCAP are governed by consent decrees, which means an arm of the US Judicial Branch (called a “rate-court”) can set the rates (per radio play, per stream, etc.). BMI and ASCAP collect for songwriting performance royalties. In exchange for the right to collect on behalf of songwriters across America, they are limited in their ability to negotiate by this rate court.
SoundExchange isn’t governed by a consent decree, which means they can negotiate on the free market. This is where things get complicated. Recording artists get paid nothing when their music is played on AM/FM radio (because there’s no performance right for recordings on terrestrial radio), but they are typically paid at least 5 times more than songwriters when music is performed digitally, like on Pandora. That’s because of SoundExchange’s negotiation power.AM/FM broadcasters do pay songwriters, but it’s at a royalty rate ultimately set by the courts.Current copyright regulation wasn’t created at a time when services like Spotify or Beats existed, (which are kind of a hybrid of ‘performance’ and a ‘sale’) so they pay both performance royalties and mechanical royalties to songwriters and artists.
Media Base and BDS Track Encoding Registration w/song upload – Much of your independent success is monitored by labels, management companies, booking agencies and music charts through Soundscan which tracks single and album sales. BDS monitors airplay. We register your music to report to these companies.
Spotify pays about 10% of its revenue to songwriters (split between mechanical and performance royalties) and about 60% to the artists. Services like Spotify don’t have to negotiate with songwriters, because the government sets the rates – through the consent decree for PROs and the a compulsory license for mechanical licenses.
Mechanical royalties for songwriting are usually paid by labels or artists to a third party, (traditionally for the major publisher it’s been HFA (the Harry Fox Agency), who pay the publishers.
Copyright – With a master recording copyright, a record label seeks to collect royalties from the use of a specific recording of a song. Master royalties are paid to a label when the label’s recording is used in an advertisement, film, television program, streaming service or other medium. Master royalties are typically paid in addition to synchronization or public performance royalties, as royalties paid to the publisher only grant the rights to the use of a song, not a specific recording of a song. Terrestrial radio stations do not typically pay master royalties, as radio play has traditionally been viewed as free advertisement for a recording. However, radio play may or may not have a positive impact on sales, and congress is considering legislating that the royalty be paid. At present, recording artists only earn master royalties from radio when their recordings are played in a non-interactive digital arena where the listener is a subscriber (i.e. satellite radio).
What Can Collins Connect Do For Me?
You create songs, we register them, we license them, we administer them, and most importantly – we collect your royalties around the world, from every single place that pays royalties. Our company operates a service for songwriters, producers, artists and labels.
Collins Connect offers 2 different Royalty Administration options to insure the Artist and or Label is paid the royalties they are due.
We will set up and register your catalog with Sound Exchange and your PRO (ASCAP/BMI/SESEC) so that you can begin collecting the past royalties that you are due as well as current and future royalties for a one time flat fee.
- Everything listed in option 1 as well as…
- Create and maintain song files for all active titles
- Register copyrights and sound recordings with the Library of Congress
- Clear and/or index titles with the performing rights societies, review and maintain accurate registrations, submit cue sheets, handle counter claims and erroneous registrations
- Register with and collect from international sub-publishing affiliates
- Submit song schedules and activity to foreign sub-publishers for collections
- Negotiate and execute all license types (no U.S. third party licensing agent utilized)
- Monitor and claim publishing for online videos (YouTube)
- Conduct line item audits on all source documents, ensuring that licensees are paying correct rates, reporting accurate units and paying for all licensed usages
- Render statements to client, and any designated royalty recipients under contract with client, on a quarterly basis
- All Music Registration – Your music will be submitted to “All Music” which is the official online database for album credits in the music industry.
Performance Rights Organization (ASCAP/BMI/SESEC) – We register your music catalog with your Writer and Publisher percentages.
SoundExchange – We register your information with SoundExchange as well as send an excel spread sheet of your entire music catalog (Original and Non Original sound recordings) so that you as an artist can be paid for your live performances (anywhere your music is played) whether that be streaming, Internet Radio shows, blogs, Satellite Radio, Direct licensing or Webcasting.
***Once your business is setup properly we turn all aspects over to you in a very organized and easily manageable system. We are paid only for services rendered, no monthly fees or backend royalties.
A la Carte Services
- Form Templates – Certain forms exist to protect you and keep you organized as an artist. We provide Artist’ and Producers with split sheets for song creation, cue sheets for cable air play, day sheets for live shows, and a marketing check list for your weekly/monthly needs as an artist to make sure you’re doing all you need to educate and interact well with your fans.
- ISRC/UPC Codes – ISRC codes are embedded into your album files during mastering, these codes are like your song’s fingerprint, identifying each individual track with its own unique serial number. The UPC Code is what is given to the full album or single being sold. That’s the barcode number on the back of most products you purchase.
- Contracts/Agreements – Management, Production, Recording Agreement, Joint Venture, Non Disclosure/Confidentiality
- Digital Distribution Setup – Release of your single or Album on iTunes, Apple Music, Amazon, Spotify, Google Play and hundreds of other digital distribution sites.
- Track Encoding and Registration – Much of an artist’ success is monitored by labels, management companies, booking agencies and music charts through Soundscan which tracks single and album sales. BDS monitors airplay.
- LLC Company Formation– Create and register your company/label with your county and state, complete all DBA, EIN and LLC paper work.