Below are a couple of videos by David Ellefson, bassist for MEGADETH about royalties. He does a pretty good job of providing a simple explanation of the two types of royalties paid on recordings: “artist royalties” and “mechanical royalties.” On the first video he talks about “artist royalties” which is money paid to the band or artist that actually performed the song on the recording (after the band or artist recoups or pays back all of the money the record company loaned to the band or artist) and “mechanical royalties” which is money paid to the song writer (without a need to recoup).
Take a look. They are short and simple. Thanks David.
