Songwriting is often collaborative. It’s also something that’s best to document AT THE TIME of the songwriting. That’s just a good rule; agree on terms BEFORE there’s money and credit to fight over, and handle the necessary registrations BEFORE you publish.
Always Have a Co-publishing Agreement
Musical compositions are owned by the song’s “music publisher(s),” and usually the publisher(s) get half the money from exploitation of the song, and pay the other half to the writer(s). If a songwriter self-publishes, then the writer gets 100% of the income. (Exploitation’s not a bad thing in this context; it means making money on the song.)
If a writer co-writes a song, they should always have a Co-Publishing Agreement that specifies what each co-owner/co-publisher owns. Deciding on the song “splits” upfront, before there’s money to fight over, and before memories fade, can prevent arguments later on. The writers’ share splits can be in any agreed on fraction: 25% each for 4 songwriters (so 12.5% each of the entire song) for one example, or 50% for the producer/beats/hook writer (25% of the entire song) and 12.5% for each of the 4 artists who wrote their own verse (6.25% each of the entire song), for another example. The percentages can sound small, but music publishing is a business of pennies, and if sales/streams are in the hundreds of thousands, it can add up fast.
Musical Compositions and Sound Recordings
There are two separate copyrights in each recording. One is in the musical composition, that is, the music and the lyrics. When that composition gets recorded, there’s a second copyright, in the master sound recording of the song, and that master recording embodies the composition.
The composition’s copyright is owned by the publisher(s), and the recording’s copyright is owned by whoever paid for the recording, usually the record label.
If a recording is licensed for use in, for example, a film, half of the “sync” license fee is paid to the master owner (the label) and the other half is paid to the owner(s)/publisher(s) of the song (who then pays half of their half to the writer(s), if different from the publisher(s).
If you’re a songwriter who owns your own label, then you own all of it: the compositions as well as the sound recordings.
Register Your Compositions With the U.S. Copyright Office
Songwriters should register their copyrights in their musical compositions as soon as they’re written. See my Legal Guide – eCO Copyright Registration.
While it’s true that you get an automatic “common law” (unregistered) copyright in your composition as soon as you finish writing it, you can’t sue anyone for infringement unless and until you register it with the Copyright Office. Another big benefit of registering your compositions with the Copyright Office is that if there’s infringement, registration entitles you to statutory damages (so you don’t have prove your actual damages) plus your attorney’s fees (which makes it easy to find a lawyer to litigate your infringement case for you). An attorney’s fee claim is great leverage to have in asserting your claim. An alleged infringer knows that if a claim reaches a judge or jury, they’re on the hook not just for their own lawyer’s fees, but for your lawyer’s, too. Those are major incentives to register your works.
It costs as little as $45 to e-register a composition with the Copyright Office. It’s the most cost-effective kind of insurance you can buy.
Advertising Injury Insurance
Some copyright claims can be covered by insurance. Most businesses have, or should have, general commercial liability insurance, and that typically includes what’s called “advertising injury.”
Depending on a policy’s definitions. If there’s an advertising use of a song of yours, this kind of coverage could apply, entitling you to an insurance company-paid lawyer, as well as a “war chest” of funds to fight an infringement claim. While not as cheap as a copyright application, insurance can provide a lot of protection for your songs.