Mechanical royalties are received when the mechanical license is used in physical phonorecords permanent downloads ringtones limited downloads and interactive streaming. The license rate is negotiated between the copyright owner and the venue. Performing rights organizations like BMI, ASCAP, and SESAC handle the licenses for the majority of public performance licenses. If the music is playing in a public place, there’s a performance royalty involved. This can be through a live concert performance, airing on a radio station, or simply hearing an audio recording playing at your local coffee shop. When copyrighted songs are being performed, recorded, played or streamed in public a performance royalty is received. Now that we know the types of licenses, we can dive deeper into the types of music royalties that are paid out.
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