Who Issues Music Licenses under U.S. Copyright Law?
A song may have one title, but the licenses behind it often come from several different entities.
Disclaimer: This Article is for general informational purposes only and does not replace legal advice for specific situations.
TL;DR
Under U.S. Copyright Law, no single organization controls all music licenses. Instead, licensing authority is distributed among multiple entities depending on the type of right being used.
For Musical Compositions, licenses may be issued by composers, music publishers or collective management organizations.
For Sound Recordings, licenses are typically issued by record labels, recording artists or relevant collective management organizations depending on the use.
Understanding who has authority to issue which license is essential for anyone using music in streaming, film, advertising, live venues, or digital platforms.
Why is licensing authority fragmented?
The U.S. music copyright system is built on a fundamental legal structure: two separate copyrights exist in most recorded songs. See more: "What is Music Copyright?"
1. Musical Composition: The underlying music (melody) and lyrics.
Typical owners:
- Songwriters
- Music Publishers
2. Sound Recording (Master): The recorded performance of that Musical Composition.
Typical owners:
- Record labels
- Independent artists / Recording artists
- Producers
Because these copyrights are legally distinct, different parties control different licensing rights. As a result, obtaining permission to use a song often requires multiple licenses from different entities.
The key Music Licensing authorities in the U.S.
The U.S. system relies on a mix of collective management organizations, statutory licensing bodies, and private rights holders.
1. Performing Rights Organizations (PROs)
PROs administer public performance rights for Musical Compositions. See more: "What is Public Performance License?"
Major PROs in the United States include:
- ASCAP (American Society of Composers, Authors and Publishers)
- BMI (Broadcast Music, Inc.)
- SESAC (Society of European Stage Authors and Composers)
- Global Music Rights (GMR)
They license the public performance of songs for: radio broadcasts, television, live venues, restaurants and bars, streaming platforms, digital services. Instead of negotiating song-by-song, businesses obtain blanket licenses from PROs covering large repertoires.
PROs then collect and distribute public performance royalties to songwriters and publishers.
2. The Mechanical Licensing Collective (MLC)
The Mechanical Licensing Collective (MLC) administers Mechanical Licenses (for Musical Composition) for digital streaming and downloads from within the United States only. See more: "What is Mechanical License?"
Created under the Music Modernization Act (2018), the MLC operates a centralized system for digital mechanical licensing.
Its responsibilities include:
- Issuing blanket Mechanical Licenses to digital streaming services
- Collecting mechanical royalties
- Matching royalties with musical works
- Maintaining a public musical works database
- Distributing payments to publishers and self-administered songwriters
Streaming platforms such as Spotify, Apple Music, and Amazon Music obtain mechanical licenses through the MLC.
Note: The MLC administers mechanical royalties only for U.S. interactive streaming and downloads. It does not collect royalties from non-U.S. platforms, physical sales (vinyl/CDs), lyric-based uses, or certain user-generated content platforms such as YouTube, TikTok, and Facebook.
3. Music Publishers
Music Publishers represent songwriters and administer the copyright in Musical Composition (i.e., the melody and lyrics).
They grant licenses for certain uses of Musical Compositions that are not typically administered through collective management organizations (CMOs), including:
- Synchronization Licenses (use of music in films, television programs, advertisements, video games, and other audiovisual content). See more: "What is Synchronization License?"
- Print Licenses (sheet music and lyric reproductions). See more: "What is Print License?"
- Licenses for certain derivative works or adaptations
For synchronization uses, the Music Publisher licenses the underlying Musical Composition, while the Sound Recording (master) must be licensed separately from the record label that owns the Sound Recording.
4. Record Labels (and master rights holders)
Record Labels and master rights holders typically control the Sound Recording (master) rights.
They issue licenses for various uses of Sound Recordings, including:
- Master Use Licenses (use of sound recordings in films, television programs, advertisements, video games, and other audiovisual media). See more: "What is Master Use License?"
- Sampling permissions (use of portions of an existing recording in a new recording)
- Commercial licensing of sound recordings
Note: Independent artists who own their master recordings may grant these licenses directly.
The Synchronization Licensing rule: In synchronization uses, two separate licenses are required:
| License Type | Issued By |
|---|---|
| Synchronization License | Composer / Music Publisher |
| Master Use License | Artist / Record Labels / Master Right Holders |
Without permission from both parties, a song cannot legally be synchronized with visual media.
5. SoundExchange
SoundExchange administers statutory digital performance royalties for Sound Recordings.
It collects royalties from non-interactive digital services, including:
- Pandora (non-interactive radio-style streaming)
- SiriusXM
- Internet radio platforms
These royalties are distributed to:
- Featured artists
- Non-featured performers
- Record Labels
Unlike PROs, SoundExchange administers rights only for Sound Recordings, not Musical Compositions.
Quick Music Licensing map (U.S.)
| Use Case | Main License Type | Issued By |
|---|---|---|
| Playing music in a bar or restaurant | Public Performance License | PROs (ASCAP, BMI, SESAC, GMR) |
| Streaming music (Spotify) — Mechanical royalty | Blanket Mechanical License | MLC |
| Streaming music (Spotify) — Performance royalty | Public Performance License | PROs |
| Streaming music (Spotify) — Recording royalty | Sound Recording License/Agreement | Artists / Record Labels (typically via Distributors) |
| Non-interactive digital radio | Digital Performance License/Agreement | SoundExchange |
| Non-interactive digital radio — Composition | Public Performance License | PROs |
| Using music in a film or advertisement | Synchronization License (Musical Composition) | Composers / Publishers |
| Using music in a film or advertisement | Master Use License (Sound Recording) | Artists / Record Labels / Master Right Holders |
| Sampling an existing recording | Sample Clearance — Musical Composition | Composers / Publishers |
| Sampling an existing recording | Sample Clearance — Sound Recording | Artists / Record Labels / Master Right Holders |
| Download Stores (iTunes) | Mechanical License | Publisher / MLC |
| Cover Song Recording | Mechanical License | Publisher / MLC |
Conclusion
The U.S. music licensing system is decentralized and operates through a network of stakeholders, including music publishers, record labels, performing rights organizations (PROs), the Mechanical Licensing Collective (MLC), and SoundExchange. Each entity administers and licenses specific rights.
Understanding which entity has the authority to grant each type of license is essential for artists, businesses, digital platforms, and content creators operating in the U.S. music market.