← Week 1🏠 Course HomeWeek 3 →

Week 2: Understand What You Own

⏱️ Block 1 · Foundation · ~2 hours

🎯 Week Goal

Before building anything, know the asset you're building around. Every song you write and record gives you TWO completely separate things that can be owned, licensed, and monetized independently.

📌 Learning Objectives

  • Distinguish the composition (©) from the master recording (℗)
  • Name the six exclusive rights in the copyright "bundle of rights" in plain English
  • Explain why owning both © and ℗ matters financially
  • Trace the four royalties generated by a single Spotify stream

© COMPOSITION

  • What: Lyrics + Melody
  • Managed by: Your Publishing Company
  • Earns: PRO royalties (ASCAP/BMI/SESAC), mechanical royalties (The MLC/Harry Fox/Music Reports), sync fees — publishing side (direct/sync agencies), lyric display royalties (LyricFind/Musixmatch)

℗ MASTER RECORDING

  • What: The audio file
  • Managed by: Your Record Label
  • Earns: Master mechanical royalties (your distributor), master performance royalties (SoundExchange), sync fees — master side (direct/sync agencies), YouTube Content ID & social (distributor/rights manager)

🍳 The Recipe & The Dish

The © is the recipe. The ℗ is one specific dish made from that recipe. The recipe owner gets paid every time someone makes a dish — or even describes how to make it.

💰 Why Independent Artists Win

Same $30,000 Sync DealMajor-Label ArtistYOU (Independent)
Publishing sync fee ($15,000)ArtistYOU
Master use fee ($15,000)LabelYOU
Your total$15,000$30,000

🎫 The Bundle of Rights — Your 6 Exclusive Rights

Copyright is legally known as a "bundle of rights" — the moment you write a song, you automatically own 6 exclusive rights, bundled together like a stack of tickets. Anyone who wants to use your music needs the correct ticket from your bundle.

RightWhat It IsExamplesCollected By
1 · ReproductionMaking copies of your songStreaming, downloads, CDs, cover songsHFA, The MLC, Music Reports
2 · DistributionGetting your song to the publicPutting it on Spotify, selling downloadsYour distributor
3 · Public PerformanceYour song played where the public can hear itRadio, streaming, restaurants, live showsYour PRO (ASCAP / BMI / SESAC)
4 · Public DisplayDisplaying your lyrics publiclyLyric sites, music videos, merchandiseLyricFind / Musixmatch
5 · Derivative WorksCreating a new work based on yoursRemixes, samples, arrangementsYou — direct negotiation
6 · Digital PerformanceNon-interactive digital broadcastingPandora, SiriusXM, internet radioPRO (composition) + SoundExchange (recording)

⚡ One Stream = Four Royalties

When your song plays on Spotify ONE TIME, you can earn from FOUR sources:

  • Mechanical royalty (HFA / MLC / Music Reports collects)
  • Performance royalty (PRO collects)
  • Master royalty (Distributor pays you)
  • Lyric display royalty (LyricFind / Musixmatch — if lyrics are showing)

This workbook installs all four meters.

✅ Week 2 Checklist

Check off each item as you complete it.

  • I can explain the two assets created by every song (© composition and ℗ master)
  • I can name all six exclusive rights in the bundle of rights and who collects for each
  • I can trace the four royalties from one Spotify stream
  • I answered all four written questions above
  • I added a "What I Own" section to my Master Business Document
📎 Submit: Your four written answers (screenshot or copy into your module summary doc).

🖨️ Print My Week 2 Report (for Canvas upload)

← Week 1🏠 Course HomeWeek 3 →