The concept of royalty in the music industry includes the payment of royalties for the use of copyright patents.
Payment of royalties to authors is mandatory for all users of works, including music, using content for public performance, mechanical performance, compilation and processing, and so on.
The law provides that copyrighted persons have the right to demand payment of remuneration for any use of their works. The fee can be paid in the form of a one-time (lump-sum) payment, or deductions for each use of the work (royalty), or combined payments. The size and procedure for paying copyright remuneration for the creation and use of the work are established in the copyright contract or in contracts concluded between the author and the organization planning to use the musical work.
Therefore, royalties can be paid once, monthly, quarterly, or even once a year.
The frequency of royalty payment is also affected by the number of uses of the musical work. For example, if a song was never used during one quarter, then royalties will naturally not be paid if the contract is concluded with the condition of quarterly payments. The same can be said about another periodicity, which is indicated in the contract between the author and the organization using his work.
Some authors prefer a one-time (lump-sum) royalty payment. From one side, this guarantees respect for intellectual property rights and remuneration. But from another side, with periodic royalties, you can earn many times more, especially when a song or music will be played quite often.
Experts believe that the optimal period for obtaining royalties will be once a year. In this case, the total number of uses of the work during the year should be taken into account, then it is much more convenient.