Nuit d’Or Academy • Music Rights & Royalties
Lesson 1: The Industry Foundation
Module 1 Lesson 1
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1) Why music rights and royalties are the industry’s foundation

Music feels emotional, immediate, and “free” once it reaches your ears—but the music industry is built on a very practical problem:

The Core Conflict: Music can be copied and shared at almost zero cost, yet it takes real labor, skill, and investment to create.

If a society wants professional creation to exist at scale—songwriters writing full-time, producers refining records, labels funding recording budgets—then there must be a reliable way to:

  1. Define ownership (who controls the work),
  2. Control use (who can exploit it and under what terms),
  3. Compensate creators and investors (how money returns to the people who made the work possible).

That is exactly what music rights and royalties do.

Rights answer: “Who has control?”

Music rights create legally recognized control over certain uses of music. They turn creative output into a legible asset—something that can be owned, shared, sold, inherited, or licensed. Without rights, your music could be used everywhere without your permission or payment, and your only defense would be social outrage, which is not a business model.

Royalties answer: “How is value measured and paid?”

Royalties are the industry’s standardized method of payment when music is used. They make it possible for music to generate income repeatedly over time, in many contexts, without requiring the creator to personally negotiate every single use.

Put simply:

  • Rights are the rules of control.
  • Royalties are the mechanism of compensation when those rules permit use.

If you remove either one, the system collapses:

  • No rights → no reliable control → no predictable revenue → less professional creation and investment.
  • No royalties (or no enforceable payment mechanism) → rights become symbolic rather than economic → the market devalues music labor.