Songwriters have been fighting for fair pay for centuries. The struggle to be compensated properly is nothing new, and the system we have today is a tangled mess of outdated laws, corporate greed, and digital loopholes. We’ve dug deep into the history of songwriting royalties, pulling together the key moments that shaped how musicians get paid, sometimes barely at all.
The Early Years: Copyright? Not for Musicians
In 1790, the first U.S. Copyright Act was passed, but it only protected books, maps, and charts. Music? Not even considered. It took 41 years for the law to be updated in 1831 to include "musical compositions," but even then, there were no enforcement mechanisms. If someone stole your song, there was nothing you could do about it.
Then came 1887 and the Berne Convention, an international agreement designed to protect authors’ works, including music. The U.S., in classic fashion, refused to sign.
It wasn’t until 1909 that the U.S. finally revised copyright law to grant mechanical royalties, payments for physical reproductions like player piano rolls. The flat rate? 2 cents per copy, a number that stayed in place for decades.
Fun Fact: This is why, for so long, sheet music was the primary way songwriters made money. If you weren’t getting paid for recordings, you were at least getting paid for selling printed music.
The Rise of Performance Royalties
As music became a public commodity, composers started demanding payment for their work being performed.
1914: ASCAP (American Society of Composers, Authors, and Publishers) was founded to collect royalties for public performances of songs. Bars, theaters, and radio stations were supposed to pay, but many refused.
1927: The first commercial radio stations began broadcasting music without paying a cent in royalties.
1939: BMI (Broadcast Music, Inc.) was created to counter ASCAP’s monopoly and offer licenses to smaller artists that ASCAP ignored.
Wild Detail: For years, ASCAP refused to acknowledge rock & roll, forcing early rock musicians to work with BMI instead. It’s ridiculous in hindsight, but at the time, rock music was considered dangerous, rebellious, and “the devil’s music.”
The Reality of Music Licensing for Venues
As someone who's spoken with numerous bar and venue owners, it's clear that paying fees to organizations like ASCAP, BMI, or SESAC is just part of owning a venue. It's akin to needing a stage, lights, and speakers; these fees are essential to ensure songwriters are compensated for their work. I don't see this as a bad thing; it's a necessary aspect of supporting the music industry.
Cost Insight: Many business owners are surprised to find out that an ASCAP license could cost as little as $2 to $3 per day. Generally, rates are based on factors like how music is performed (live, recorded, audio-only, or audiovisual) and the size of the establishment or potential audience. For example, rates for restaurants, nightclubs, and bars depend on whether the music is live or recorded, the number of nights per week music is offered, and whether admission is charged. It's important to note that obtaining licenses from multiple PROs (Performance Rights Organizations) may be necessary to cover the full spectrum of music played in a venue.
Mafia, Payola, and The Beatles Getting Screwed
1940s: The Mafia was heavily involved in the music business, running jukebox operations and radio pay-for-play schemes.
1950s: "Payola" (illegal pay-for-airplay) was rampant. Record labels bribed DJs to play their records, making some DJs millions before the industry cracked down.
1962: The Beatles signed one of the worst publishing deals in history, giving away 90% of their royalties to their publisher, Dick James. Even now, Paul McCartney doesn’t own the rights to many Beatles songs, despite years of trying to buy them back.
Insane Fact: The Beatles' publishing deal meant that Dick James' company controlled 51% of their music, while John Lennon and Paul McCartney combined only controlled 49%. That small percentage difference meant that even though they wrote the songs, they had no real control over them.
From Cassettes to Sampling: The Industry’s Next Crisis
1972: Sound recordings finally received copyright protection. Before this, record labels had no legal claim if their recordings were bootlegged.
1976: The U.S. Copyright Act was revised to grant songwriters ownership of their works for life plus 50 years.
1980s: Cassette tapes led to a piracy explosion, and the industry freaked out.
1985: The PMRC (Parents Music Resource Center) fought for Parental Advisory labels. While musicians saw it as censorship, it stuck around.
1989: De La Soul released 3 Feet High and Rising, packed with uncleared samples. The legal battles were so intense that the album still can’t be re-released on streaming platforms.
Where Do Songwriters Make Money Now?
Even today, getting paid as a songwriter is a disaster:
Mechanical Royalties:
Streaming services pay way less than downloads or CDs.
Labels take most of the earnings before songwriters see a cent.
Performance Royalties:
Collected through ASCAP, BMI, and SESAC.
Radio still doesn’t pay artists, only songwriters.
Sync Royalties (TV, Film, Ads):
The best-paying category, if you can land a deal.
Streaming Royalties:
A fraction of a cent per stream. Major labels negotiate bulk deals, meaning indie artists get even less.
Final Thoughts
Check out Musician U! We had a whole podcast about this exact topic. Listen here: Musician U on Spotify
The battle for fair pay isn’t over. With streaming services and major labels still finding ways to minimize payouts, songwriters and musicians need to stay informed and fight for their rights. Whether it’s through new legislation, technological advancements like blockchain, or simply making smarter business decisions, the next chapter of royalty reform is being written right now.
Stay loud. Stay informed. And always, always protect your music.
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