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Disclaimer: This school is based on real-world experience, not legal theory. We are not attorneys. Any legal decisions you make should be consulted with a qualified attorney in your state of residence.

A - About (Identity)

Business Entities

Disclaimer: This school is based on real-world experience, not legal theory. We are not attorneys. Any legal decisions you make should be consulted with a qualified attorney.

M - Music (Metadata)

New Release

Disclaimer: This school is based on real-world experience, not legal theory. We are not attorneys. Any legal decisions you make should be consulted with a qualified attorney.

Catalog

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E - Education

Music Quest

"No matter what the game, if you don't know the rules, the game will play YOU."

MLC Stream Type Legend
Disclaimer: This school is based on real-world experience, not legal theory. We are not attorneys. Any legal decisions you make should be consulted with a qualified attorney in your state of residence.

I. Learn (Pre-Release)

- Understand What Each Piece is and does.

Full Industry
1. What is My Role?

Let's start with a practical perspective: an Artist artist hires a Songwriter songwriter to make the beat, lyrics and song structure. In royalty terms, each of these things is a Compositioncomposition that the artist performs and records into a Digital Audio Workstation (DAW) to make a Master Recordingmasterrecording Yes, the Wav file itself is one of the royalties we collect.

These 4 layers START to show the complete picture.

Full Industry

Who are the Labels and Publishers?

1. What is a Record Label?

I used to think of record labels as these giant, mythical palaces where only "big shots" got to hang out. I thought you had to be discovered by some all-powerful music executive to even get an invite.

What I didn't get is that a record label isn't necessarily a building—it's the business framework of the industry.

In simple terms, a record label is the business entity that handles all the stuff artists hate: distributing the music, protecting the copyrights for the sound recordings, collecting the royalties for those recordings, and managing the metadata. A label's job is focused on the master recording—the final product you hear on streaming services.

Aren't you doing that anyway?

2. What is a Publisher?

A music publisher is often times also the record label. Think of a publisher as a sort of middle man or promoter for the song. They manage and protect the copyright of the song and are responsible for collecting all the royalties associated with the composition.

Aren't you doing THAT also?

This business can also be an LLC or a sole proprietorship. What are those? I got you in the next chapter.

3. Practical Explanation
  • A. the Artist known as "the wonder Dawg"
    • Royalty 1: The "Artist" Wallet.

      artist

      FIRST HALF is Your Performance Rights Organization(PRO)
      • Who: PROS (ASCAP, BMI, SESAC, etc.)
      • PRO Royalty Flow
      • What they do: Collect Public Performance Royalties for Artists.
      • Where from: Any "public broadcast." This includes actual Radio/TV, bars, live venues, and non-interactive "radio-style" streaming (like Pandora).
      • Who they pay:

        Split: 50/50 between Artist & Publisher.

      The 2nd Half OF The "Artist" Wallet Comes from the Digital Performance Rights.
      • Who: SoundExchange
      • Digital Public Performance Royalty Flow
      • What they do: Collect Digital Public Performance royalties for the master recording.
      • Where from: Non-interactive "radio-style" digital streaming (Pandora, SiriusXM).
      • Who they pay: They split this money between the Label (50%) , the main Artist (45%) , and session musicians (5%).
      • artist
  • B. hired Song Writer, Marco Berrios — to be his beat maker and lyricist.
  • Royalty 2: The "Songwriter" Wallet.
    songwriter
    The FIRST HALF Also comes from your PRO)
    • Who: PROS (ASCAP, BMI, SESAC, etc.)
    • What they do: Collect Public Performance Royalties for the Songwriter.
    • PRO Royalty Flow
    • Where from: Any "public broadcast." This includes actual Radio/TV, bars, live venues, and non-interactive "radio-style" streaming (like Pandora).
    • Who they pay:

      Split: 50/50 between Songwriter & Publisher.

    The SECOND HALF to Royalty 2: The Mechanical Licensing Collective.
    • Who: The MLC (Mechanical Licensing Collective)
    • Mechanical Royalty Flow
    • What they do: Collect Mechanical royalties. This is an old word for a "copy" of a song. In the digital world, an "on-demand" stream is considered a "copy."
    • Where from: Interactive "on-demand" streaming (Pandora Premium, Apple Music) and all digital downloads (like from iTunes or a DTC sale on AmpWall).
    • Who they pay:

      Split: 50/50 between SongWriter & Publisher.

  • C. The beat, basslines, hooks, melodies, harmonies and the lyrics are known as the Composition
  • Royalty 3: The Composition Wallet (Your PRO)

    Who: PROs (ASCAP, BMI, SESAC).

    What: Public Performance royalties (Radio/TV/Venues).

    composition PRO Royalty Flow

    Split: 50/50 between Composition Rights Holder. This rights holder is often the Record Label. & the Publisher is also often times the Record Label.

  • D. the physical recording is recorded by Super Funky Tron. The physical recording is called the Master Recording
  • Royalty 4: The "Master Recording" Wallet (Your Distributor, SoundExchange and The MLC)
  • E. Super Funky Tron recorded the master so this makes Super Funky Tron the Record label, IF they register as the label.
  • masterrecording
    Sound Recording Wallets Flowchart
  • F. Super Funky Tron is also going to promote the song, which makes Super Funky Tron the Publisher, IF they register as the Publisher. This is why most record labels are also the publisher.
  • Who: Sound Recording Administrator (SoundExchange, The MLC AND Your Distributor).

    What: Songwriter Royalties for Public Perdormances(Radio/TV/Venues).

    songwriter PRO Royalty Flow

    Split: 50/50 between Songwriter & Publisher.

    This system is designed to be confusing in order to confuse artists and then steal from them.. Whether you sign with a major label or decide to build your own, you have to operate within that framework.

    3. Tying It All Together Label vs Publisher

    The Most Important Secret in the Music Industry:

    The industry wants you to think you are only an "Artist" or "Songwriter." They do this so you'll sign a contract with a "Label" or a "Publisher" who will "help" you.

    This is the redirect.

    You, the independent creator, are BOTH the Publisher AND the Label. The "thieves" of the industry are almost always "publishing companies" (often run by a "trusted friend") who offer "help" in exchange for you signing over your "Publisher's share" of the Composition. This is the single most valuable asset a creator has, and they trick you into giving it away.

    Never give up your Publisher's share. If you remember nothing else, remember this.

    II. Learn the Codes (Pre-Release)

    The barcodes that connect your copyrights to your bank account.

    Purpose: Establish the necessary entities to protect your work, track your music, and begin the process of collecting all types of royalties.

    IPI (Interested Party Information):
    • What it is: The ID number that identifies you. You get this number when you sign up with a PRO (like ASCAP or BMI).
    • Simple Analogy: It's the "Bank Account Number" that tells royalty collectors (like PROs and The MLC) who to pay.

    Purpose: Protect your Songwriter and Publisher rights.

    Action: Register yourself as a Songwriter AND Publisher with a PRO like ASCAP.

    Result: 2 Separate IPI numbers, 1 for the songwriter and 1 for the Publisher.

    ISWC (International Standard Musical Work Code):
    • What it is: The "Master ID" for EACH Composition (©).
    • Simple Analogy: It's the Social Security Number for your song. You only have one Social Security number but you can have multiple bank account numbers attached to the Social Security number. For our purposes, the ISWC is the root and the ISRC is the branch produced by that root.

    Purpose: Formally register your composition to get its unique ID.

    Action: Log into your PRO (ASCAP/BMI). Register the song with title, songwriter, publisher, and splits.

    Result: A unique ISWC (International Standard Musical Work Code).

    ISRC (International Standard Recording Code):
    • What it is: The ID for a specific Master Recording (℗) attached to the ISWC.
    • Simple Analogy: It's the Serial Number for a specific product. In our case, each version gets a new ISRC.
    • Key Detail: This is how you can have one ISWC (one song) linked to many ISRCs. The original track, the instrumental, the a-capella, and the remix would all have their own unique ISRC, but they all point back to the same ISWC because they are all versions of the same core composition.
    Establish Writer AND Publisher Accounts with The Mechanical Licensing Collective (MLC)

    Purpose: To collect digital mechanical royalties from interactive streaming services (Pandora, Apple Music, YouTube Music).

    Action: Register both a Songwriter account and a Publisher account with The MLC.

    Result: Separate account numbers for Writer and Publisher.

    Mechanical Licensing Collective

    The ID number that identifies YOU as a songwriter AND Publisher. These 2 numbers are issued by the MLC to tell them who to pay.

    Get your MLC account numbers
    3. Establish Accounts with SoundExchange

    Purpose: To collect digital performance royalties for the sound recording played on non-interactive digital services (Pandora, SiriusXM).

    Action: Register a Featured Performer account (Artist) and a Sound Recording Copyright Owner account (Label).

    Result: Separate account numbers for the Performer and Copyright Owner.

    SX Numbers

    The ID number that identifies YOU as an Artist and Publisher. These numbers are issued by SoundExchange to tell them who to pay.

    Get your SX numbers at SoundExchange
    4. Establish ISNI (International Standard Name Identifier)

    Purpose: A unique, persistent, and globally recognized identification number for public identities.

    Action: Unlike others, ISNI does NOT issue numbers directly. You MUST go through registration agencies like Sound Credit.

    Result: A 16-digit "digital passport" number.

    ISNI Numbers AND ISRC Codes

    The ID numbers that identifies YOU as an Artist and Each song. These numbers are issued by Sound Credit.

    Get your ISNI and ISRC at Sound Credit

    Understanding and Utilizing the codes

    Song/Release-Specific Identifiers & Registrations

    Purpose: Obtain unique codes for each track/release and formally register the intellectual property with relevant rights organizations.

    1. Obtain ISRC and UPC Codes

    Purpose: Essential unique identifiers for tracking sales, streams, and digital performance.

    Action: Use a service like Sound Credit OR initiate the release process with your distributor (e.g., DistroKid). Do not distribute yet; just get the codes.

    Result: ISRC (Track) and UPC (Album) codes.

    3. Register Release on Discogs

    Purpose: Officially catalog your release in the community database for discovery.

    Action: Create a profile and add your release with all details (ISRCs, UPC, Credits).

    Result: A Discogs Release ID.

    III. Learning and Choosing Your Business Structure

    Your business structure is the legal shield that separates your creative career from your personal life.

    First, a secret: to be a record label, you don't need a building or a team of executives. You simply need to declare yourself a record label and establish legal framework.

    Let's look at the two most common options.

    Option 1: Sole Proprietorship/DBA (The Simple Start)

    Think of a sole proprietorship as the most basic business structure there is. The business is simply an extension of you. "DBA" means "Doing Business As"

    • The Action: You don't have to do anything to be a sole proprietor at all. You are automatically a sole proprietor. You may need to file a "doing-business-as" (DBA) certificate if you use a business name other than your own legal name, like Super Funky Tron with the State you live in.
    • The Why: The biggest benefit is simplicity. There are no startup costs. All your business income and expenses are reported on your personal tax return, which can make tax season easier.
    • The Caveat: The major drawback is unlimited personal liability. There is no legal separation between you and your business. If your business is sued or goes into debt, your personal assets are at risk.
    Option 2: LLC - Limited Liability Company (The Professional Shield)

    An LLC is a separate legal entity from you, the owner. It's a more formal structure that provides a crucial layer of protection.

    • The Action: To form an LLC, you must file official paperwork (usually called Articles of Organization) with your state. After that, you need to get a separate business bank account and an Employer Identification Number (EIN) from the IRS. You must keep your personal and business finances completely separate.
    • The Why: The biggest benefit is limited liability protection. If your business is sued or racks up debt, your personal assets are protected. This is a game-changer. It also gives you more credibility in the industry and a clearer way to manage your business expenses.
    • The Caveat: It costs money to set up an LLC (fees vary by state), and there are often continuous taxes and fees. In many states, once you start the LLC, you are legally bound to continue paying taxes or be forced to shut down. Please research your state and options.
    My Decision: Start Where You Are

    For me, the choice was clear, but not by preference. The limited liability protection of an LLC was always the goal, but to be honest, I was broke and couldn't afford the fees. The only realistic choice I had was to start as a sole proprietorship.

    I want to remind you that while this is NOT LEGAL ADVICE, I found it as a perfectly valid way to begin. Knowing your options is the first step.

    II. Metadata Tagging & Distribution

    Purpose: Ensure precise metadata is embedded into your audio files for accurate royalty collection.

    1. Tag Your Master Audio File (WAV/FLAC)

    Action: Embed ALL collected metadata directly into your file using tagging software. Include:

    • Track Title
    • Artist Name
    • ISNI (Artist)
    • ISWC (Composition)
    • ISRC (Recording)
    • UPC (Release)
    • Discogs Release ID
    • SoundExchange Performer ID
    • SoundExchange Rights Owner ID
    • Genre
    • Release Date
    • Written By (Name + IPI)
    • Published By (Name + IPI)
    • P-Line (℗ Sound Recording Owner)
    • C-Line (© Composition Owner)
    • Copyright Notice ("All Rights Reserved")
    • Album Art (Embedded)

    Free Tagging Software:

    • Mp3tag (Windows)
    • MusicBrainz Picard (Cross-platform)
    • TagScanner (Windows)
    • Kid3 (Cross-platform)
    2. Final Metadata & File Quality Check

    Action: Thoroughly review all tagged information for spelling, accuracy, and completeness.

    3. Upload Files to DTC & Distributor

    Action: Complete the upload process. Ensure platform metadata matches your embedded tags exactly.

    Tab 3: Wallets & Paths

    I. The Two Paths

    Objective: Understand the two main highways for your music—Private vs. Public—and why we focus on the empowered path first.

    In music, there are two main paths to get your music to the world. They are built on one simple concept: owning vs. renting.

    1. The Private Performance Path (The "DTC" Path)

    What it is: The "Owning" model is the Direct-to-Consumer route. This path focuses on selling a copy of your music on www.Ampwall.com or similar websites (as digital downloads or physical goods) directly to your fans.

    The Concept: The fan can use this for their own Private Performance (listening at home, in their headphones, etc.). This includes vinyls, CDs and Downloaded WAV files.

    Analogy: This is like buying a pair of shoes. Your fan owns them. They can wear them whenever they want, in private. You get paid directly and fairly for your product.

    2. The Public Performance Path (The "Distributor" Path)

    What it is: This "Renting Model" is the traditional route of using a distributor to get your music onto public platforms like Pandora, Apple Music, YouTube Music, etc.

    The Concept: The Public Platforms rents out copies of the file you uploaded to the distributor. These platforms are all forms of Public Performance. Listeners pay for temporary access.

    Analogy: This is like renting shoes at a bowling alley. You pay for access, and the owner (the alley) gets paid for the public use. The owner of the bowling alley is then supposed to pay a royalty to the shoe manufacturer.

    A Quick Note on Transparency

    Even on this simple "Owning" path, there is one rule that good business follows. Because a "sale" is a legal "copy" of the composition, a Mechanical Royalty is owed to the Publisher. In a truly transparent model (like CreatorHelm/AmpWall), the storefront handles this by reporting the sale to The MLC, who then pays that royalty to... you, the Publisher.

    II. The "Renting" Path Deep Dive (The Four Wallets)

    When you "rent" your music on streaming platforms, the money gets split into four different "wallets".

    Wallet 1: The "Radio" Wallet (Your PRO)

    Who: PROs (ASCAP, BMI, SESAC).

    What: Public Performance royalties (Radio/TV/Venues).

    Split: 50/50 between Songwriter & Publisher.

    Wallet 2: The "On-Demand" Wallet (The MLC)

    Who: The MLC.

    What: Mechanical royalties (Interactive streams/downloads).

    Split: 100% to the Publisher.

    Wallet 3: The "On-Demand" Wallet (Your Distributor)

    Who Pays: Your Distributor (DistroKid, CarToon Core, etc.)

    Key Detail: The Aggregator Trap

    To get on platforms like Spoti-lie, artists are forced to use one of these distributors. But the secret the industry hides is that most of these "competing" distributors aren't competitors at all. They are just different front-doors that all lead to the same few back-end aggregators. The market is dominated by a few giants like:

    1. The Orchard (Owned by Sony Music Entertainment)
    • Subsidiaries: AWAL, Red Essential, IODA, Iris Distribution, Blind Dive Records, Sandbag, AutoKratz.
    • Partnerships: Metal Blade, Pure Noise, Sarm Music, Cooking Vinyl, Fat Possum, Thirty Tigers.
    2. Believe (Owners of TuneCore)
    • Subsidiaries: TuneCore, Groove Attack, Nuclear Blast, Naïve, AllPoints, Sentric Music Group, Canvasback, Play Two, Jo&Co, Morning Glory Music.
    3. Ingrooves (Owned by Universal)
    • Integration: Part of Virgin Music Group.
    • Acquisitions: Sovereign, Fontana Distribution.
    • Partnerships: Dirty Hit, Roc Nation, Hyperdub, Text Records.

    While there are rare exceptions, this means that whether you pick Distributor A, B or C, your money is often passing through another middleman (the aggregator) who takes a cut before you ever see a penny.

    Wallet 4: The "Digital Radio" Wallet

    Who: SoundExchange.

    What: Digital Public Performance royalties (Pandora/SiriusXM).

    Split: Label (50%), Artist (45%), Musicians (5%).

    Tab 4 - Post Ops & Final Touches

    Purpose: Maximize royalty collection after distribution and ensure your music is tracked.

    1. Register Musical Work with The MLC (Final Step)

    Confirm the link between the composition and its digital streams.

    2. Register Sound Recording with SoundExchange (Final Step)

    Register each sound recording using its ISRC(s).

    3. Register Lyrics with MusixMatch

    Ensure lyrics are synchronized and displayed on streaming platforms. Link: MusixMatch Pro

    4. Register for Chart Tracking (Luminate & Mediabase)

    5. US Copyright Office (Strongly Recommended)

    To provide critical legal protection for your intellectual property (both the musical composition and the sound recording). www.copyright.gov

    Your Quest is Complete.

    You know the rules. Now play the game.

    UPLOAD YOUR MUSIC NOW

    N - Next (Post-Ops)

    Release Quest Checklist

    Disclaimer: This school is based on real-world experience, not legal theory. We are not attorneys. Any legal decisions you make should be consulted with a qualified attorney in your state of residence.