A complete guide to music licensing

Your artistry is your top priority if you’re a musician. You get out of bed in the morning and make music because you love it. But we’re not judging you for wanting to get paid as much as possible for your hard work.

To make that possible, you need to understand licensing. The global music industry was worth $26 billion in 2021, which means there’s a lot of cash moving around in this market. And you deserve your cut. You should be earning royalties on any copyrights you own and living the dream: making an income doing what you love.

So what is music licensing, and how does it help you get paid? We’ll get into the “fine print” below, but at its most basic, a license gives whoever holds it the legal permission they need to use a work. If you’re a copyright holder, you get to decide whether or not to grant someone that permission – and that’s lucrative for you because royalties run on licenses. Here’s how it all works.

Music licenses vs. copyrights: what’s the difference?

If you’re an artist, producer, composer or songwriter familiar with copyrights, you may look at a list of the types of music licenses and scratch your head. The names of these licenses sound just like the names of copyrights.

So what’s the difference? Well, think of holding copyright as proof of ownership. A license, on the other hand, is permission to use a copyrighted work. Every type of copyright has a license to cover it, which is why the names of common music rights and licenses sound so similar.

What is licensing in music vs. publishing?

Publishing and licensing can also be hard to tell apart because they both aid the process of getting your music out into the world. Plus, someone else, like your music publisher, manager or record label, will likely handle these tasks on your behalf. So musicians may think of publishing and licensing as part of a single behind-the-scenes process.

But the two acts do have slight differences. Publishing refers to the entire process of music management. A publishing company finds opportunities for your music, creates contracts for the transference of your music, and even helps compile royalties. Those contracts may very well include terms for licensing.

But music licensing is a rights transfer. It’s not the act of getting your music on the radio or streaming platforms but the agreement that ensures that whoever uses your music (including stations and apps) has permission to do so.

Types of music licenses

Whether your music debuts on Spotify or Broadway, a music license covers the legal use of your creative work and ensures you earn royalties on it. Let’s explore the different types of licenses:

1. Sync license: Visual media producers rely on the perfect soundtrack to get a movie scene or advertisement just right. Music helps evoke emotions in viewers. And when a producer lands on a good track, they have to obtain a synchronization license (also known as a “synch” or “sync” license) to use it. If that track happens to be yours, you’ll earn royalties from its use.
2. Master license: That movie producer who just stumbled across your music and can’t wait to use it in a scene will need another license: a master use license. With a master license, the license holder has permission to use a recorded version of a song in another project (like a movie). But that’s as far as this license goes – if that same person wants to cover your song, for example, they’ll have to get a different license.
3. Public performance license: Public performance licenses are the industry's most popular type of permission. Why? Because “public performance” is an extensive term. It doesn’t just refer to live shows – it covers music everywhere it’s played, from venues to radio stations to jukeboxes. Performing rights organizations (PROs) manage these licenses and collect all royalties owed to rights holders.
4. Mechanical license: A mechanical license, also known as a reproduction license, is that hardworking permission that makes it possible to play a piece of music on turntables or cassette decks or whatever other playback machine you’re using to play tunes. And for all you cover bands and DJs, remember that you’ll need a mechanical license to remix or reproduce a song for sale.
5. Print license: Remember when you were just starting out as a guitarist and you had to buy sheet music so you could jam along to your favorite rock songs? Print licenses cover sheet music reproductions, which means that band whose chords you were learning earned some royalties from your purchase.
6. Theatrical license: Broadway songsmiths, your work will be covered by a theatrical license. This permission covers any on-stage performance of your work.

What is stock music?

Remember when we said licenses ensure royalty payments for musicians? There’s an outlier to this rule: stock music. Musicians can sell their songs to stock music libraries for a one-time, flat fee instead of earning royalties off the tracks. This royalty-free music is covered by a blanket license, allowing people to sync the music with any content they want, whenever they want.

How can I license my music?

Licensing sounds like a job for a legal expert, so as a musician, you may be wondering what role you play in the process. Here are the steps:

1. Get your copyright: Apply for a copyright for your music. In the U.S., you’ll send in an application to the U.S. Copyright Office (USCO).
2. Sign with a publisher: If you sign with a publishing company, you won’t have to worry about licensing agreements – the company will take care of it for you.
3. Join a PRO: Register your songs with a Performing Rights Organization (PRO) like BMI, ASCAP or SESAC to ensure you earn royalties on the reproduction of your work.
4. Prepare your tracks: Embed your music with the right metadata and export it in high-quality formats. When opportunity knocks, your tracks will be ready to go.

Keep up to date on music licensing

Whether you’re a musician or someone who reproduces music or uses it in their work, you need to keep up to date on licensing and copyright laws. To all you audio-visual producers out there: Get a license before using someone else’s music so you don’t get hit with a penalty or fine for using copyrighted work without permission. And to all you musicians: Be sure to protect your intellectual property so you don’t miss out on a cent of royalties.