Any person or entity, other than a collective management organisation, that holds a copyright or related right or, under an agreement for the exploitation of rights or by law, is entitled to a share of the royalty.

Income collected by a collective management organisation on behalf of copyright owners or right holders, whether deriving from an exclusive right, a right to remuneration or a right to compensation.

The authors of musical works are composers, lyricists and/or songwriters. A songwriter may contribute music, lyrics, or both. A songwriter is anyone who creates or writes an original song.

This means the first fixation of a sequence of sound capable of being perceived aurally and of being reproduced but does not include a sound track associated with a cinematograph film. This is created when a performance of a musical work has been fixed in a recording medium such as a CD or digital file.

When an artiste under a recording contract writes or co-writes his/her songs, these songs are referred to as controlled compositions. By the rule of the game, the record companies are expected to pay mechanical royalties to the relevant copyright owners or the controller of the copyright in the songs, which is reproduced on the records.

CMO means an association of right owners which has as its principal objectives the negotiating and granting of licenses, collecting and distributing of royalties in respect of copyright works or related rights.

The term “mechanical royalties” initially referred to royalties paid whenever a song was reproduced by a mechanical device. One of exclusive rights the law grants to copyright owners, is the right to authorize the reproduction of their works. The term “mechanical royalties” was applied to the reproduction of songs in music boxes, player pianos rolls, and later, phonograph records. This term is still used, and “mechanical royalties” now refers to royalties paid for the reproduction of songs on storage devices like flash or hard drives. A mechanical right licence is also required for many digital uses – permanent downloads, limited downloads, on-demand streams, ringtones, caller back tunes, etc.
Each time a song is performed in public or in a commercial environment, the composer of the song is entitled to receive royalty income for that public performance. It doesn’t matter whether the song is performed by a live band, or if a recorded version of the song is played, broadcast, communicated, transmitted, streamed or made available. They all qualify as a public performance. That means a song is performed publicly when a recording of it is broadcast on a radio station, when it is played television or as part of a television programme or when it is played in a nightclub or when it is streamed online (via the internet) or performed at concerts or events. To comply with the copyright law, the radio station, television network, club, online music service or concert who are referred to as users must have a performing rights licence authorizing the public performance.

Any person, entity or organisation that is carrying out acts subject to the authorisation of rightholders, remuneration of rightholders or payment of compensation to rightholders and is not acting in the capacity of a consumer.

Music like your laptop, mobile phone, car, land, jewelry, etc. is property. It is regarded as Intellectual Property under the law. Just like you will need the permission or authorization of the owner of a property to use his/her property, you are equally required by law to seek the permission or authorization of the owner of the music before you can use his/her music in a public or commercial environment.
When music is therefore performed or used in a public or commercial space, a music copyright licence is required. Song writers, composers, performers, publishers and owners of sound recording are entitled to compensations when their music is performed or used in a public or commercial space. This compensation or reward commonly referred to as royalty in the music industry supports their livelihood and enables them to keep producing the good and sweet music that supports many businesses.

Failure to obtain a music copyright license for the use of music in public or commercial environment may result in legal action against you for copyright infringement, and you may be liable to pay damages, costs, injunctions, accounts for profits, etc.

It is the responsibility of music users to understand and meet their copyright obligations. Operators of Television and Radio stations (both terrestrial, satellite and online), communication and telephone companies, Online Music Service, Nightclubs, Hotels, Restaurants and Bars, Event Centers, Shopping Malls and Plaza, Supermarkets, Shops, Hair-dressing Salons and Barber’s shops, Taxi Cabs, Buses and Luxurious Buses, Cinema Halls, Airlines and Airport lounges, Advert and Activation Agencies, Corporate Businesses, Deejays, Owners of Banking Halls and Organizers of musical shows & concerts etc. are advised to get in touch with the rightholders or their CMO for appropriate licence to use music. If music is used in your premises or business, it is your responsibility to ensure that the correct licences are in place so that you do not fall foul of the law.