International Mechanical Royalties

International mechanical royalties are payments made to songwriters when their compositions are used outside of the United States. These royalties are paid in relation to the composition of a song, not the recording itself. They can be generated from a variety of uses, including: Physical recordings: For example, CDs or vinyl records Digital downloads: For example, songs downloaded from iTunes Streaming: For example, songs streamed on Spotify or Apple Music Cover versions: When someone reproduces and releases a song as a cover In the United States, mechanical royalties for physical recordings and permanent digital downloads are usually paid at a fixed rate. For example, a song that's five minutes or less might be paid at 9.1 cents per copy, with an additional 1.75 cents for each additional minute. However, international mechanical royalties are typically paid as a percentage of the wholesale price, rather than a fixed rate. Most countries have their own mechanical right society that receives and pays out royalties for compositions generated in that region. Songwriters who are based in the U.S. and don't have a publishing administrator may not often collect international mechanical royalties. Admin publishing companies, such as Redemption Music Media and Royalty Solutions Corp, can collect these royalties on behalf of the songwriter and pay out the remaining balance after taking their commission.

International SoundExchange
Royalty Collection

SoundExchange, the world's largest neighboring rights organization, can collect international royalties for artists and rights owners when their music is played in other countries. SoundExchange has collection agreements with organizations in over 35 countries, covering 80% of the neighboring rights market outside of the US. When music is played in a partner country, they send the royalties to SoundExchange, who then pays them out to the artist or rights owner. To receive international royalties, artists must be SoundExchange members and complete an International Mandate. SoundExchange may also request additional metadata to register and collect royalties, such as the country of recording, copyright owner nationality, and first release country. SoundExchange collects royalties for featured artists and sound recording copyright owners, but not for songwriters or publishers.

International Performance Royalties

International royalties are payments an artist receives for the use of their work in a foreign country. These royalties can come from a variety of sources, including: Music streaming services Television or radio play Live event performances Sales of physical copies, such as CDs The amount of royalties an artist earns from foreign territories can vary depending on several factors, including:Local copyright laws Fees collected from local music users Each country's use of a performing rights organization (PRO) like ASCAP or BMI For example, ASCAP has reciprocal agreements with PROs around the world that allow those PROs to license an artist's work and collect fees on their behalf. However, each foreign society pays ASCAP on a different schedule, depending on its own distribution policies. Performance Royalty Organizations have these reciprocal agreements with many foreign territories and rights organizations however diligence is always necessary to ensure all revenue is are being collected and no royalties are being missed. Some societies, like APRA AMCOS NZ, pay international royalties on a monthly basis. Others may delay payments. Artists who earn royalties from foreign societies that withhold taxes and pay them directly to the local government may be able to claim those taxes as a foreign tax credit deduction on their US tax return. This can help reduce their US tax liability, but it's best to consult a tax advisor to determine the best method of reporting.