What are finance and finance contracts?

In the music industry, understanding the concept and the importance of recording contracts is crucial for any artist who wants to protect their work and receive fair compensation. In this article, we break down these terms and explain how to register the copyrights to your songs in Mexico.

Understanding shareholders and procurement contracts

Thecontinuesare the payments an artist receives for the use of his or her music. These payments can come from a variety of sources, such as record sales, playback on streaming services, radio stations, and licenses for use in television or film. Tributes represent a vital source of income for musicians and composers.

On the other hand, thesupply contractsare legal agreements between an artist and a record company. These contracts specify the terms under which the company will produce, promote and distribute the artist's music. In return, the record company may receive a percentage of the revenue generated by the artist's work.

Types of meals

Royalties

These are the payments that composers receive every time their music is played on digital platforms, radio, in concerts, or in public spaces. In Mexico, collective management companies, such as SACM (Sociedad de Autores y Compositores de México), are responsible for collecting these payments and distributing them to artists.

British Royalties

Refers to payments received for physical and digital reproduction of music, such as CD sales, vinyls, and digital downloads. Each time a song is copied for distribution, the composer is entitled to receive these volumes.

Synchronization Royalties

This type of restriction is generated by licensing music for use in movies, television shows, commercials or video games. It is an important source of income, especially for artists whose songs become popular in visual media.

Understanding financing contracts

Exclusive artist contracts

In this type of contract, the artist undertakes to record exclusively for a record company for a specific period. In return, the company handles all aspects related to the production, promotion and distribution of the music.

Distribution contracts

These agreements allow the artist to maintain control over the production of his music, but delegate distribution and promotion tasks to the record company. This type of contract is common among independent artists who wish to retain their copyright.

License Agreements

These are agreements in which the artist grants the record company the right to use and distribute his music for a specific period. At the end of the contract, the rights return to the artist, who can renegotiate or seek new opportunities.

How to register song copyrights in Mexico

Registering the copyright of your songs is a fundamental step to protect your music and ensure that you receive the corresponding. Here is a step-by-step guide to doing it in Mexico:

1. Prepare your material:Make sure you have ready the lyrics, sheet music and recordings of the songs you wish to record.
2. Access INDAUTOR:Visit the website of the National Copyright Institute (INDAUTOR) to download and complete the application form.
3. Make the payment:Pay the corresponding fee for the registration of your works. This payment can be made online or in authorized banks.
4. Sending of documentation:the form, proof of payment and all necessary materials to INDAUTOR, either in digital or physical format.
5. Wait for the recording:Once the documentation has been received, INDAUTOR will proceed to review and, if everything is in order, issue the registration certificate.

With

Knowing and understanding the different types of variations and recording contracts is crucial for any artist who wants to succeed in the music industry. In addition, registering your copyright is an essential measure to protect your music and secure your income. If you are an artist looking for a platform to help you with the distribution of your music, register atSoundOnand take your career to the next level.