STEPS TO PREVENT ROYALTIES FROM ENDING UP IN THE BLACK BOX

 

The “black box “in the music industry refers to unclaimed or unmatched royalties that are held by collection societies or rights organizations because they cannot identify or locate the rightful owners. To prevent their royalties from ending up in this black box, creatives can take several proactive steps.

  • Register with collection societies and rights organizations:
  • Performing Rights Organizations (PROs): Register with PROs such as ASCAP, BMI, or SESAC in the U.S., or PRS in the U.K. These organizations collect performance royalties on behalf of songwriters and publishers.
  • Mechanical Rights Organization: Register with organizations like the Copyright Society of Nigeria (COSON). The primary collective management organization in Nigeria that is responsible for collecting and distributing royalties on behalf of songwriters, composers, and publishers. While COSON mainly focuses on performance rights, it also plays a role in the administration of mechanical rights. Musical Copyright Society of Nigeria (MCSN) is another major collective management organization in Nigeria that focuses on the administration of both performance and mechanical rights.
  • Accurate Metadata:
  • Ensure proper Metadata: Provide accurate and detailed metadata for all your works. This includes song titles, writers, publishers, ISRC codes (International Standard Recording Code), ISWC codes (International Standard Recording Code), and ISWC codes (International Standard Musical Work Code).
  • Update Metadata Regularly: keep your metadata updated if there are changes in song titles, ownership, or other relevant details.



  • Claim your works: 
  • Submit Setlists: for live performances, submit setlists to your PRO to ensure you receive performance royalties 
  • Register New Works Promptly: Register new compositions and recordings as soon as they are released to ensure all potential royalties are accounted for.
  • International Registrations:
  • Global Rights Organizations: consider registering with international rights organisations if your music is distributed or performed globally. Organisations like CISAC (International Confederation of societies of authors and composers) can help.
  • Sub-Publishers: Use publishers in key markets to ensure your works are properly registered and royalties are collected internationally.
  1. Monitor and Audit: 
  • Regular Monitoring: Regularly check your royalty statements and payments from all collection societies and rights organizations.
  • Audit: Periodically audit your accounts and registrations to ensure all your works are correctly registered and you are receiving all due royalties.
  • Education and Networking:
  • Stay informed: keep up to date with industry news, changes in royalty collection practices, and new revenue opportunities.
  • Networking: Join industry groups, attend workshops, and network with other creatives and professionals to stay informed about best practices and new tools available.

By taking these steps, creatives can significantly reduce the risk of their royalties ending up in the black box and ensure they receive the compensation they deserve for their work.