What Happens to Unclaimed Music Royalties?
Music can earn money without the person owed that money ever receiving it.
This happens more often than many independent artists realise.
The song gets streamed, performed, broadcast or licensed.
The money is generated.
But the collection system cannot confidently identify who should receive it.
The royalties become unmatched or unclaimed.
Why do royalties go unclaimed?
Common causes include:
- Missing songwriter registrations
- Incorrect names
- Missing IPI numbers
- Incorrect ownership splits
- Conflicting publishing claims
- Missing performer registrations
- Changes in publishers
- Poor metadata
The music industry uses several databases and collection societies rather than one universal system.
A mistake can break the chain.
Distribution alone doesn’t collect everything
Your distributor primarily accounts for revenue associated with the sound recording from the services it delivers to.
Songwriters can also generate separate publishing income.
These can include:
- Mechanical royalties
- Performance royalties
- Other composition income
If nobody correctly registers the composition, some of that money can remain unmatched.
Ditto’s newly published royalty guide specifically highlights unclaimed income as a major problem for independent artists.
What happens to the money?
Collection societies generally hold unmatched income for a defined period while trying to identify the correct rights holder.
If the money remains unclaimed after the relevant holding period, some systems may redistribute it according to their applicable rules rather than holding it forever.
That’s why waiting indefinitely isn’t a strategy.
How can you reduce the risk?
For every original song, keep:
- Songwriter legal names
- Ownership percentages
- PRO membership
- IPI details
- Publisher information
- ISRC
- Release title
- Artist information
Register compositions promptly.
Join the appropriate PRO
A performing-rights organisation helps collect eligible performance royalties connected to your songwriting.
Examples include PRS, ASCAP, BMI and organisations in other territories.
RouteNote Publishing currently requires eligible songwriters to be signed up with a PRO.
Consider publishing administration
A publisher or administrator can register and collect composition royalties across multiple territories and societies.
RouteNote Publishing currently collects from more than 100 countries and societies.
Audit your catalogue
Take your ten highest-earning songs.
For each one, ask:
- Is the composition registered?
- Are all writers correct?
- Are the percentages correct?
- Is each writer connected to a PRO?
- Is somebody administering the publishing?
You spent a lot of time creating the music.
Make sure the industry knows who to pay.