Short Answer
Complete Explanation
Owning the master recordings of a musical work means that the owner holds the exclusive right to reproduce, distribute, license, and otherwise exploit the original sound recordings. In the traditional recordâlabel model, the label typically owns the masters, while the artist receives royalties. When an artist owns the masters, they control how the recordings are usedâsuch as in streaming, film, commercials, or reâissuesâand retain a larger share of the revenue.
- Legal definition:
A master is the original audio recording from which all copies are made; ownership is a property right recognized under copyright law. - Financial impact:
Master ownership can increase an artistâs earnings because licensing fees and sales are paid directly to the owner rather than being split with a label. - Control over usage:
The owner decides which platforms, territories, and media formats may feature the recordings. - Transferability:
Masters can be bought, sold, or licensed, making them valuable assets in the music business. - Common arrangements:
Artists may regain master rights after a contractual reversion period, negotiate joint ownership, or purchase masters from a label.
Common Misconceptions
Owning a master automatically grants copyright over the composition.
Master ownership relates to the sound recording only; the underlying composition may be owned by songwriters or publishers.
An artist who owns their masters cannot be streamed on major services.
Streaming platforms license masters from the owner, regardless of whether that owner is a label or the artist.
FAQ
Can an artist sell their master recordings?
Yes, masters are considered personal property and can be sold, licensed, or transferred like any other asset, subject to any contractual restrictions.
Do master owners receive all streaming revenue?
Master owners receive the portion of streaming revenue tied to the sound recording license. However, performance royalties for the underlying composition may still go to songwriters and publishers.
How does a reversion clause work?
A reversion clause specifies a time period after which the rights to the master recordings revert to the artist, allowing them to regain ownership without purchasing the masters outright.
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