If you are in a band or producing records in today’s independent music economy, there is one question that matters more than streaming numbers, more than social media engagement, and more than playlist placement.
Who controls the master?
And right behind it:
Who is collecting the publisher share?
This article will walk you through how bands can form an LLC to control their masters with one authorized agent while still distributing income equally, how to structure publishing so you collect 100 percent of both writer and publisher shares, and how producers should think about licensing beats without accidentally giving away ownership.
We will define master and composition clearly, break down writer versus publisher shares, and show how modern infrastructure can automate licensing without forcing you to build your own legal system from scratch.
First: Define the Two Assets You Actually Own
Before you form anything, file anything, or register anything, you need clarity on what you are protecting.
Every piece of recorded music contains two separate intellectual property assets.
1. The Master Recording
This is the specific recorded performance. The audio file. The waveform. The finished track.
If you re-record the same song tomorrow with the same arrangement, that is a new master.
2. The Composition
This is the underlying song. Melody. Lyrics. Harmony. Structure.
If someone covers your song acoustically, they are creating a new master, but the composition remains yours.
This distinction matters more than most bands realize. It determines who gets paid in sync licensing, streaming, performance royalties, mechanicals, and beyond.
This is where most producers and bands get it wrong. They think owning “the song” means owning everything. Legally, it does not.
Why Bands Lose Control by Default
Bands often operate informally.
- Four members split everything evenly.
- No operating agreement.
- No centralized entity.
- Everyone has equal say.
This feels democratic. It also makes licensing nearly impossible.
Supervisors, brands, ad agencies, and production companies do not want four signatures on every deal memo. They want one authorized agent who can approve the master immediately.
When you do not structure properly, opportunities die in email threads.
Forming an LLC to Control the Master
The simplest, cleanest solution for a band is forming a limited liability company.
Here is what that does:
- The LLC becomes the legal owner of the master recordings.
- The LLC designates one authorized agent to sign licenses.
- The members define internal income splits in the operating agreement.
Externally, there is one entity.
Internally, revenue can still be split 25 percent each. Or however you agree.
This is how you create professional infrastructure without sacrificing fairness.
The key concept: ownership and income distribution are separate decisions.
The LLC owns the master. The operating agreement dictates how money flows.
100 Percent Master Control with One Authorized Agent
When the LLC owns the master:
- The master license is issued by the LLC.
- The authorized agent signs.
- The payment goes to the LLC bank account.
- The LLC distributes revenue per agreed percentages.
From the outside, you look like a label.
From the inside, you remain a band.
This matters in sync licensing. If a supervisor wants to place your track in a TV show and you can clear both sides quickly, you become easy to work with. Easy gets placed.
Now Let’s Talk About the Composition
This is where most bands lose long term money.
The composition generates two types of performance royalties:
- Writer Share
- Publisher Share
When you register with a PRO such as ASCAP, BMI, or SESAC, you register as a writer.
But if you do not register a publisher entity, the publisher share may sit unclaimed or get administered by someone else.
This is a mistake that costs real money over time.
Writer vs Publisher Share Explained Clearly
Performance royalties are typically split 50 percent writer, 50 percent publisher.
If your band writes a song equally:
- Each member gets an equal portion of the writer share.
- The publisher share goes to the publisher entity.
If you never create a publisher entity, you are leaving that half structurally unmanaged.
The smart move is this:
- Form the LLC.
- Register the LLC as a publisher with your PRO.
- Register each member individually as writers.
Now you control both halves of the composition.
That means in a sync:
- 100 percent of the master fee goes to your LLC.
- 100 percent of the publisher share goes to your LLC.
- Writer share goes directly to each member.
You have full structural control without giving up splits.
How Sync Licensing Pays When You Structure Correctly
In most sync placements, there is typically one negotiated sync fee.
However, that single fee legally covers two separate rights:
- The master use license (for the sound recording)
- The synchronization license (for the composition)
Even when quoted as one number, the deal is clearing both sides.
If your LLC controls the master and your LLC is registered as the publisher, you are clearing and collecting on both rights.
- 100 percent of the master side
- 100 percent of the publisher share of the composition
The writers still receive their writer share directly through the PRO on the backend.
- Writer share paid directly to writers.
- Publisher share paid to the LLC.
This is how you stop slicing your revenue pie in half.
This is not theoretical. This is the structure used by independent artists who understand long term ownership.
Producers and Beat Licensing: What Actually Happens
Now let’s shift to producers licensing beats to rappers or artists.
Most producers do not sell the master when they license a beat.
They license the instrumental.
This typically means:
- The producer retains ownership of the underlying composition.
- The rapper creates a new master by recording vocals.
- The new track becomes a derivative master.
This is important.
The recording is new. The composition is not entirely new.
If the producer created the melody, chord progression, and structure, that composition ownership remains.
The rapper may own the new master recording depending on the agreement, but composition ownership must be split properly.
This is where confusion explodes.
Why Beat Licenses Must Define Master and Composition Separately
A beat license should clearly state:
- Who owns the instrumental master.
- Who owns the newly recorded master.
- How publishing splits are allocated.
- Whether the license is exclusive or non-exclusive.
If you do not define these clearly, disputes are inevitable.
Most producers license beats under non-exclusive agreements. That means:
- The producer retains master ownership of the instrumental.
- The artist can monetize the derivative master.
- Publishing is split per agreement.
If the artist records new vocals, that file is technically a new master recording. But it still contains the producer’s composition.
This matters when sync opportunities appear later.
How Producers Can Capture 100 Percent of Their Master Side
If you are a producer releasing instrumental albums or sync-ready tracks, forming an LLC gives you the same control structure as a band.
- LLC owns the master.
- LLC registered as publisher.
- You registered as writer.
Now when you license a track directly:
- You collect 100 percent of the master fee.
- You collect 100 percent of publisher share.
- You collect your writer share.
No label slicing the master. No third party publisher collecting half the backend.
This matters more than people realize.
The Missed Opportunity: Uncollected Publisher Share
If your band or production team never registers a publishing entity, you are structurally ignoring half of your performance income.
Over years of TV placements, background uses, digital streaming, and international performance, that half compounds.
This is not about chasing pennies. It is about owning the system you built.
Infrastructure Is the Difference Between Amateur and Professional
Owning your masters and publishing means nothing if you cannot license efficiently.
This is where most independent musicians stall. They own everything but cannot deploy it.
You need:
- Clear contracts
- Automated license generation
- Centralized catalog control
- Immediate payment processing
Building that system from scratch is expensive and legally risky.
This is where tools like License Pro matter.
License Pro as Modern Licensing Infrastructure
License Pro is licensing infrastructure built for musicians, producers, and publishers who want direct control of their catalog without relying entirely on third-party marketplaces or traditional gatekeepers. It allows you to operate like a rights holder, not just a creator.
Instead of sending contracts manually, building checkout systems from scratch, or negotiating every small license over email, License Pro gives you a structured system.
Specifically, it allows you to:
- Create and manage a searchable music catalog.
- Offer direct sync licenses and beat licensing from the same platform.
- Automatically generate legally structured license agreements.
- Embed your licensing catalog into your own website or share it as a standalone storefront.
- Accept payments directly and automate license delivery.
This is how you move from one-off transactions to scalable licensing. You stop improvising your business model and start operating with repeatable systems.
How Bands Can Use the Same Infrastructure
This is not just for producers.
Bands can use the same system to:
- License instrumentals for film, television, and trailers.
- Offer stem licenses for remixes or post-production use.
- Provide direct licenses to indie filmmakers and content creators.
- Create tiered commercial licenses without negotiating every deal manually.
When the LLC owns the master and is registered as publisher, every transaction becomes clean.
One entity licenses.
One entity collects.
Members get paid per internal agreement.
The Psychological Shift of Ownership
When you formalize ownership, something changes.
You stop thinking like collaborators hoping for attention.
You start thinking like rights holders managing assets.
This shift affects:
- Negotiation confidence
- Long term catalog planning
- Creative discipline
- Financial forecasting
If you have been making music for years, you have probably felt the frustration of watching opportunities stall because paperwork was unclear.
This is fixable.
Long Term Career Thinking
Owning 100 percent of your master and publishing is not about ego.
It is about leverage.
When streaming revenue dips, sync revenue sustains.
When trends change, ownership remains.
When a catalog matures, backend royalties compound.
Control of masters plus control of publishing equals durability.
And durability is the only strategy that survives decades.
Final Perspective
If you want control, formalize it.
Form your LLC through your state’s Secretary of State website or use LegalZoom if you prefer a guided filing process.
Get your EIN free at IRS.gov. Register the LLC as your publisher. Register each member as a writer with your PRO.
Own the master. Own the publishing. Build infrastructure around it.
Most artists chase money. Professionals structure ownership.
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