Breaking into the music industry isn’t just about making great music; it’s about knowing who owns it.
One of the most important concepts to understand as an artist is what it means to own your masters, since this determines who controls your recordings, royalties, and long-term income.
In this guide, you’ll learn how master ownership works, what it takes to retain control, and how it impacts royalties, licensing opportunities, and record label deals.
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What Are Master Recordings In Music?
Master recordings, also known as “masters,” are the original sound recordings of a performance or song used for various distribution methods.
Taken from the original music recording, the masters are polished audio products used for digital and physical releases.
Control of master recordings is fundamental to how ownership relates to music copyright laws and their use in other media.
Master recordings are distinct from the underlying composition, with the individuals responsible for writing a song holding the songwriting copyright.
What Does It Mean To Own Your Masters?
The concept of ownership of master recordings relates to who holds the legal rights to the original sound recordings and how they’re used.
This ensures artists have legal recourse if a third party uses their recorded music without authorization.
Copyright protection arises once a sound recording is fixed in a tangible form, creating a separate copyright from the underlying composition.
Some of the biggest independent artists have reacquired ownership of their master recordings after parting ways with major labels.
Related read: How to build a home recording studio.
Key Benefits Of Owning Your Masters
Securing your legal right to use your master recordings is just one of several reasons why artists are eager to retain ownership.
Here are some other key benefits independent artists can enjoy when owning their masters:
Retaining Full Creative Control
Many artists are eager to retain complete creative control over how they make music and use the recordings as they see fit.
Retaining the master rights allows them to control how their music is used in remixes, samples, and overall artistic direction.
Earning More Money From Your Music
Retaining ownership also allows artists to prioritize how their music is monetized, from collecting music royalties to physical sales.
This extends to digital download sales and collecting royalties from streaming services, such as Apple Music, Spotify, and Amazon Music.
Licensing & Sync Opportunities
Ownership of music masters also means deciding where songs can be monetized through music licensing deals.
Artists can land lucrative sync licensing deals across various media, including television shows, movies, commercials, and video games.
Building a Long-Term Music Legacy
Many of the best music producers of all time have developed extensive discographies that serve as long-term assets for revenue streams.
By retaining ownership of master rights, artists can continue to draw on master royalties that drive their professional careers.
Recommended read: The best music production equipment.
How Owning Your Masters Generates Income
Ownership of masters means the ability to control how and when a song generates revenue once it has been released.
Let’s take a look at the various revenue-generating sources that apply to master recordings in more detail:
- Digital and physical sales: Selling singles and albums on platforms such as Bandcamp and Juno can generate revenue alongside vinyl and CD sales.
- Music streaming services: While royalties vary by platform, there’s no limit to the number of streaming services on which artists can upload their music.
- Licensing deals: Owning your masters can increase your earnings through licensing, which you can negotiate without record label interference.
- Performance royalties: Master rights can also generate neighboring rights, which are collected through SoundExchange in the United States for noninteractive services, such as SiriusXM.
By combining multiple revenue streams, artists can maximize their potential earnings from their original sound recordings.
Publishing vs. Master Ownership: What’s the Difference?
Given that different copyrights apply to various aspects of the overall music, it’s important to distinguish between publishing rights and master rights.
Here’s an overview of the differences between publishing rights and master recordings to clarify their roles:
Record Labels and Master Ownership
For master rights, ownership is either held by the artists or, if they have a record deal, by the label, which may take ownership of the sound recording.
Many artists work with independent record labels that allow them to retain ownership of the master rights throughout the relationship.
In some cases, the record label may take ownership of the original recording for a limited period, as agreed with the artist.
Music Publishing Rights
For music publishing rights, ownership relates to the song itself, including the underlying melody, lyrics, and composition.
Publishers in the music industry, such as Universal Music Group, do not own the master rights or control how other artists use the recording.
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Who Typically Owns Master Recordings?
Up-and-coming artists who pay for their own recordings when producing singles, EPs, and albums automatically own their masters.
Other artists working with a record label, however, hand over control of the master rights in return for financing musical projects.
This latter arrangement is typical for major artists, who often own masters in perpetuity in exchange for paying artists royalties.
However, there are various circumstances under which master rights can be transferred between parties, depending on contractual agreements.
Music Contracts That Affect Master Ownership
Before signing a deal with a record label, artists must be completely clear on how any contract affects their rights as master owners.
Here’s a breakdown of the common types of contracts and how they apply to ownership of masters:
- Exclusive recording contracts: A standard contract for traditional label deals, under which artists transfer the copyright in their master recordings to a record company in exchange for an advance and royalties.
- Master recording splits: In some cases, artists share ownership of the masters with a music producer, typically in exchange for funding and/or services.
- 360 deals: Master ownership, along with revenue from merchandise and event ticket sales, can be included in the label’s share for 360 deals.
It’s also important to be aware of any contract termination agreement and how this impacts intellectual property ownership.
How Master Ownership Works in the Music Industry
While master ownership can depend on a range of factors, in the music industry, it’s primarily established by contract law.
Observing how the music industry works, however, ownership can be fluid, with some artists buying back their masters.
In 2024, Taylor Swift announced she had repurchased her master recordings, regaining control of her entire back catalog.
Before Swift, artists such as Prince, Jay-Z, Stevie Wonder, and Anita Baker had successfully secured ownership or rights to their works.
These and other artists have championed ownership rights for musicians, singers, and bands, influencing industry trends.
Discover more: Top 10 record labels looking for artists.
How to Own Your Master Recordings as an Artist
Ownership of the master copyright is a consistent aspect of the most successful independent artists, enabling them to control how they earn royalties.
Here’s how to ensure you own your masters and retain complete control of your creative freedom as your career develops.
Stay Independent
It goes without saying that maintaining full independence ensures you retain full ownership of your entire catalog.
While this approach can be challenging, it allows you to make money as an independent artist with potentially much higher profits.
You can claim all royalties from sales and streaming services, covering funding and recording costs yourself.
There are excellent tools for independent artists, such as digital music distribution services that help schedule releases across streaming platforms.
Negotiate Deals That Protect Your Masters
If you’re considering striking a deal with a record label, you can take steps to negotiate terms that protect your ownership.
Negotiating a smart contract may require allowing the label to own masters for a limited period rather than outright.
This type of record deal can strike a solid middle ground, allowing artists to regain their masters while accessing label resources.
Start A Record Label
Alternatively, you can start a record label yourself and use it as a platform for your releases, as well as for new independent artists.
Setting up a label is relatively straightforward and is an excellent option for those with a network of musicians and industry contacts.
You’ll retain master ownership of future royalties, with the option to reinvest in marketing campaigns and new-artist acquisition.
Buy Back or Create New Masters
While established acts like Kanye West and Taylor Swift can buy back their masters, it’s not always an option for artists.
If you’re starting a music career, the simple solution is to create new masters that are automatically assigned to the artist.
This can also be used for re-recording songs you no longer have control over, as was the case with Swift’s “Taylor’s Version” re-recordings.
Understand the Legal Side of Master Ownership
Whether you’re going it alone or negotiating a record deal, you should be completely clear on any legal and contractual requirements.
Keep a documented record of all agreements, payments, signed contracts, and the original documents.
It also pays to follow music industry trends, as technology such as blockchain-based smart contracts is changing how deals are structured.
How Artists Lose Ownership of Their Masters
Loss of master ownership can occur for various reasons, with contractual fine print that informs the structure of a deal.
Some of the primary ways that artists lose ownership of their masters include:
- Signing away to a record company: As we’ve explored above, the most common way to lose ownership is through a record label deal, which can transfer ownership of the master, either temporarily or permanently.
- Bulk sale of back catalogs: Selling a discography in bulk will also transfer ownership of the masters to the purchaser.
- Work-for-hire music projects: If you’re working for hire, producing or songwriting for another artist, the artist’s masters will remain with them.
In some extreme cases, physical degradation of magnetic tape can pose challenges to audio preservation of master recordings.
Read this next: How to promote your music.
Important Considerations When Owning Your Masters
Master rights can be complicated affairs, particularly if you don’t have a legal background and know how to negotiate contracts.
Here are some core factors to consider when approaching the process of managing your masters:
- Self-funding to retain master ownership: Funding your music recordings or using a home studio setup can help ensure you retain full ownership of the recordings.
- Adding buy-back clauses to label deals: A buy-back clause is an effective fallback for a label contract, allowing artists to regain ownership of their catalog after a predetermined period.
- Seeking clarity on ownership with collaborators: If you’re collaborating with songwriters and other creative partners, you may be expected to take on part ownership. Alternatively, work with collaborators who respect your vision from the outset and won’t claim any ownership rights.
You can consult a legal professional if you’re unsure how to proceed when negotiating deals with labels.
How Owning Your Masters Affects Royalties
Owning your masters opens several avenues for royalties, allowing you to make money with music consistently.
Here’s an overview of master ownership and how it impacts royalty payments across various platforms:
- Streaming service royalties: Master owners can collect master recording royalties whenever their music is played on streaming services after registering with a collection society.
- Digital and physical sales: Downloads and physical sales also generate royalties for master owners, whether through sites like Bandcamp or CD and vinyl formats.
- Neighboring rights royalties: In some territories, the performance of music on radio or in public spaces can trigger neighboring rights royalties, which are split between the master owner and performing artists.
In addition to revenue from licensing deals, master owners can draw on multiple income streams to support long-term career growth.
Final Thoughts on Owning Your Masters
Owning your masters gives you control over how your music is used, monetized, and protected over the long term.
Understanding who owns master recordings, how they generate royalties, and how record label deals affect ownership can help you avoid costly mistakes as your career grows.
By keeping ownership of your masters whenever possible, you give yourself greater creative freedom and stronger financial security as an artist.
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