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Publishing royalty collection on Bandcamp

There are two main copyrights in music. They are:  The copyright in the underlying musical work (composition) - the melody, chords, and ly...

There are two main copyrights in music. They are:

  1. The copyright in the underlying musical work (composition) - the melody, chords, and lyrics. This is owned by the songwriter(s) and, if applicable, their publisher(s). These are also referred to as publishing rights.

  2. The copyright in a sound recording of a musical work. This is typically owned by the artist(s) who performed and/or recorded it, but may also be owned by the record label that financed the recording. These are also referred to as master rights.

Note: for some Bandcamp artists (such as those using a DAW or similar software), both the composition and sound recording may be created simultaneously.

Any income generated by the copyright contained in the composition is typically referred to as publishing royalties.

On Bandcamp, when a fan purchases a digital track or album and certain types of merchandise, the songwriter(s) are typically entitled to two types of publishing royalties in relation to their compositions: mechanical royalties and performance royalties.

  1. Mechanical royalties are owed to the songwriter(s) and/or publisher(s) when the music is reproduced or copied digitally. On Bandcamp, these are owed when a fan purchases a digital track or album. This also applies to certain types of merchandise.

  2. Performance royalties are owed to the songwriter(s) (and in some cases, their publisher) whenever their composition is communicated or transmitted online. On Bandcamp, this may be when a fan previews music prior to purchase - like using the listening booth at their favourite record store.

If your releases are published, or you're affiliated with a rights management organisation or collection society—whether a PRO (performing rights organization, such as ASCAP or PRS), MRO (mechanical rights organisation, such as The MLC or MCPS) or a CMO (collective management organization, which handles both performing and mechanical royalties, such as GEMA, SACEM or APRA AMCOS)—then they will collect and distribute these royalties from your applicable Bandcamp sales. Whilst these organisations vary in the way they administer the rights they oversee, for ease of reference, we will use ‘collection society’ as a catch-all term.

The royalties owed will depend on your agreement with the collection society and their distribution policies. Equally, any co-writers or bandmates who are society members are entitled to receive their agreed share. If you have an agreement with a music publisher, they will collect and distribute the publishing royalties they control for you, according to your agreement with them. So, if you have a collection society membership and/or a publishing agreement, those parties should ensure you get all your royalties.

Whether or not you are a member of a publishing collection society is entirely up to you – you can use Bandcamp either way.

Bandcamp is currently refining its processes for collecting and distributing royalties for digital sales and certain types of merch sales (such as tote bags or t-shirts that include a digital download). We aim to ease the administrative load on artists and labels, ensuring payments are accurate, timely, and transparent. Managing publishing royalties is an essential aspect of digital transactions and ensures that Bandcamp operates in compliance with industry practices.

Bandcamp is committed to being an inclusive community for artists and fans alike. If you and your collaborators write, perform, and upload original music and do not belong to any societies or have publishing deals, you will be paid directly by Bandcamp, as you have always been. This process primarily aims to ensure that other artists and co-writers who may not be responsible for uploading their music receive their share as agreed upon by the collaborators.

For detailed and current information on publishing rights and royalties, please refer to the additional resources listed in our FAQ.

How Bandcamp Handles Your Publishing Royalties

If you or your collaborators are members of one or more collection societies, Bandcamp will ensure that your publishing royalties from affected sales are collected and allocated to the society managing your royalties.

You’ll notice a line item in your sales receipt called the “collection society share,” which reflects the portion of royalties allocated for the collection society. The society will then pay you royalties under the terms of your agreement with them.

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Important Exception: Mechanical Royalties for Sales in the US

Please be aware that the process for mechanical royalties differs for sales made to fans in the United States due to specific provisions in US copyright law.

For these sales:

  • Bandcamp does not deduct or pay mechanical royalties on your behalf. As the seller, you remain responsible for licensing the compositions and paying any mechanical royalties due to the relevant publisher or songwriter from your sales revenue.

  • Performance royalties for US sales are still handled by Bandcamp.

Publishing Royalty Calculation and Distribution on Bandcamp

On Bandcamp, the collection society share is calculated based on the specific agreement between Bandcamp and the applicable collection society. This rate is applied to the sales revenue from relevant sales in the territory where it was purchased, excluding any applicable sales taxes.

Following eligible sales by affiliated artists/labels, Bandcamp pays the collection society directly, and the society then distributes the payment to the songwriter(s) according to the agreed-upon royalty distribution practices in the songwriter(s) membership agreement with the society.

What this means for you, the artist/songwriter(s): For you and your co-writers to receive your shares, you must be properly registered with a collection society. Once affiliated, the royalties Bandcamp reports and pays to them will be distributed to you, and/or your publisher(s) according to the specific terms of your member agreement with your societies.

What this means for you, the record label: As the owner or distributor of the master recording, your revenue is separate from publishing royalties. For sales by affiliated labels, Bandcamp first fulfils the requirement to pay publishing royalties for the underlying composition to the songwriters, publishers, and collection societies. This ensures that publishing rightsholders are paid what is rightfully owed on the composition before the remaining revenue for the sale of the master recording is paid out to your account.

This also applies for labels who also act as the publisher. Even if a label has an internal agreement with their artists regarding publishing royalties, Bandcamp's obligation to collect the share for a registered composition remains. This ensures all songwriters and rights holders affiliated with a collection society receive their accurate portion of the publishing royalties based on the ownership splits. This is in keeping with industry standards across digital download stores and other Digital Service Providers (DSPs).

Bandcamp provides sellers with detailed receipts showing the collection society shares for applicable sales. This allows you to clearly see how much revenue is being allocated to the songs managed by the collection society for distribution.

Feedback and Resources

The process of prioritizing and getting features right depends heavily on feedback from our artist community. An open dialogue with our artist base has been and will always be key to our decision-making process. If you have any questions about this information or about your Bandcamp royalties, please feel free to reach out to us here.

For more information about how royalties work on Bandcamp, please see our FAQ below. If you have questions on how publishing royalties work in general, we have compiled a list of resources to get you started.

Frequently Asked Questions

Where can I view publishing royalties collected on Bandcamp?

For digital sales that include one or more tracks registered with a collection society, you will see a line item in your sales receipt called the “collection society share.”

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You will also see this information on your Payment Summary page.

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We’ve also added a column displaying the collection society share collected per sale in your sales reports and raw data reports, which can be found in your Tools section. More information on reading your sales reports can be found here.

If your works share a publisher or co-writer who is a member of these societies, Bandcamp will ensure that their publishing royalties are collected from sales of those works.

What sales are affected by publishing royalty collection?

We collect and distribute publishing royalties from both digital music sales and merch items that include digital downloads (such as, for example, tote bags, hats, and shirts that are bundled with a digital download). This won’t affect sales of CDs, vinyl, cassettes, or minidiscs.

For example, if you include a digital album or track with your t-shirt sales, we’ll only take a percentage of the value of the digital album or track, not of the merch price. So if you have a t-shirt for sale for $20 and it includes your newest digital album, which sells for $10, we’ll only collect a percentage of the cost of the digital album.

In another example, a $10 digital album bundled with a $3 patch, we will take a cut of the lesser price of the two (a % from the $3 patch).

How does each collection society calculate royalties for its members?

Collection societies calculate their members’ royalties based on their distribution policies and then pay according to the agreed-upon terms in each membership agreement. Royalty rates for some usage types can also be set by law (statutory) in some countries. The details of agreements between societies and their members are managed directly by those parties. Please consult your contracts or contact the applicable collection society directly if you have further questions.

How can I make changes to or dispute the royalty collection on a track or album?

Follow the instructions here to register your tracks or albums as society-affiliated or to make changes to already registered works.

If you believe Bandcamp is collecting publishing royalties on a track or album when it shouldn't be (for example, if some or all of your tracks or albums are not affiliated with a collection society), you can notify us by disputing the royalty collection.

Instructions on how to initiate a dispute can be found here.

If you have a significant number of changes required, please contact our Support team.

How do I list my collection society affiliation on Bandcamp?

Please see instructions on how to self-identify your affiliation to a PRO, CMO, or collection society on your Artist page here.

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