FAQ guide
Music Legal & Royalties for Independent Artists
Understand music copyright, royalties, master ownership, and how to avoid bad deals. AirTrax answers the legal questions every independent artist needs.
What are split sheets in music?
A split sheet is a legally binding document that establishes who owns what percentage of a song's composition — meaning the melody and lyrics — before it is officially registered with a Performing Rights Organization or distributed to streaming platforms. It is one of the most important pieces of paperwork in music, yet it is also one of the most commonly skipped, especially in informal studio sessions or collaborative songwriting situations. Every split sheet should clearly identify the full legal name of each contributor, their percentage of ownership in the composition, their PRO affiliation (ASCAP, BMI, or SESAC), their publishing entity name if applicable, and their signature with the date signed. Ideally, split sheets are completed and signed in the recording session before anyone leaves the studio. Trying to negotiate splits after a record starts generating income is significantly more complicated and can lead to legal disputes that are expensive and damaging to professional relationships. Keep your signed split sheets in a secure digital vault organized by project, and attach them to the relevant song in your digital asset management system for easy retrieval.
How do I collect all my music royalties?
Collecting 100% of your music royalties requires registering with multiple organizations, because no single entity collects every type of royalty on your behalf. Here's the full picture: Register with a Performing Rights Organization — ASCAP, BMI, or SESAC — to collect public performance royalties generated whenever your music is played on radio, TV, live venues, or through streaming services. Register your master recordings with SoundExchange to collect digital performance royalties from non-interactive streaming services like Pandora and SiriusXM. Register your compositions with the Mechanical Licensing Collective (MLC) to collect mechanical royalties from interactive streaming services like Spotify and Apple Music. Use an independent distributor like DistroKid, TuneCore, or CD Baby to collect master royalties (your artist streaming share) and ensure they're delivering your music with correct ISRC codes. Consider using a publishing administrator like Songtrust or DistroKid's Publishing service to collect international mechanical royalties from sub-publishers around the world. Check each platform's reporting quarterly and reconcile the income against your release data to identify any gaps.
What is a 360 record deal and why is it bad?
A 360 record deal — also called a multiple rights deal — is a recording contract in which the label takes a percentage of every revenue stream an artist generates, not just record sales. This includes touring income, merchandise revenue, endorsement deals, acting and brand partnership fees, sync licensing income, and sometimes even book deals. Labels justify this model by arguing they're investing in the artist's overall career development, not just album promotion, and therefore deserve a share of all income streams that benefit from their promotional support. For most artists, however, a 360 deal represents a severe and long-lasting financial disadvantage. Touring and merchandise are often the primary income sources for working musicians, and surrendering 15-25% of those streams to a label dramatically reduces the financial returns of a successful career. The rise of independent distribution, direct-to-fan platforms, and artist management SaaS like AirTrax has eliminated the need for most artists to accept these terms. Unless a label is offering an extremely significant advance and a genuinely world-class marketing and distribution infrastructure, a 360 deal should be approached with extreme caution and ideally declined entirely.
Do I need a lawyer for a music collaboration agreement?
Whether you need a lawyer for a music collaboration agreement depends on the stakes involved — the commercial potential of the music, the complexity of the arrangement, and the level of trust between the parties. For informal collaborations between friends or emerging artists, a clearly written split sheet signed by all parties offers basic legal protection without the cost of legal counsel. For more significant arrangements — co-production deals, joint ventures, or collaborations with signed artists — retaining an entertainment attorney is strongly advised. Music attorneys who specialize in the independent sector can draft or review collaboration agreements that address ownership splits, licensing rights, credit requirements, revenue distribution, and exit clauses. Entertainment law consultations typically run $200-500 per hour, but a one-hour review of a major collaboration agreement is almost always worth the investment. In the interim, industry-standard music collaboration agreement templates — many available through organizations like NOLO or Music Law Firm resources — can provide the foundational structure for lower-stakes arrangements. Always ensure any agreement clearly specifies who controls the master, who controls the composition, and how future licensing decisions are made.
What is the difference between mechanical and performance royalties?
Mechanical and performance royalties are the two primary categories of music publishing income, and understanding the difference is essential for ensuring you're collecting every dollar your music earns. Performance royalties are generated whenever your composition (the melody and lyrics) is performed or played publicly — this includes radio airplay, live performances, background music in restaurants or retail stores, and streams on interactive platforms like Spotify. Your Performing Rights Organization (ASCAP, BMI, or SESAC) collects these on your behalf and distributes them to you as a songwriter and to your publisher. Mechanical royalties are generated whenever your composition is reproduced — originally meaning physically manufactured records, but today encompassing digital downloads, on-demand streams, and ringtones. In the US, mechanical royalties from streaming are collected by the Mechanical Licensing Collective (MLC) and should be claimed through your distributor or publishing administrator. The split between these two royalty types is why songwriters who are also performing artists often collect through two separate income streams for the same song: performance royalties as the composer and mechanical royalties as the copyright owner of the underlying composition.