Mechanical Rights
Mechanical Rights are the most complicated rights. This rights are divided in 2 types. 1) Mechanical Rights from physical manufacture and (2) from digital downloads and streams.
1) With the manufacturing of CD's the label has to pay a fee to the PRO (or direct to the publisher USA / Latin America only) for every CD that is pressed. The PRO (or the publisher USA / Latin America only) will split and distribute this amount to all the songwriters that have written tracks on this CD.
2) Digital shops pay for every sold release 10% over the gross sale to the PRO (or direct to the publisher USA / Latin America only). The PRO (or the publisher USA / Latin America only) will split and distribute this amount to all the songwriters that have written for tracks on this release.
Example: So when iTunes sells an album for $11.99, $1.99 will be paid directly to the PRO (or direct to the publisher USA / Latin America only). This $1.99 will be split and distributed by the PRO (or the publisher USA / Latin America only) to the songwriters that have written tracks on this album.
Master Royalties
Master royalties are the royalties an artist / songwriter receives from digital and physical sales of an album, EP or single sold on iTunes, eMusic or in a physical store. These royalties are directly distributed to the artist / songwriter, label or distributor. There is never a performance rights organization (PRO) involved in the distribution of Master royalties.
Synchronization Rights
A sync license gives a user the right to use a song and sync it with a visual (TV shows, movies or some other kind of media output). Synchronization rights are funds a songwriter receives when someone licenses his song. Typically, a sync license is obtained from the music publisher.
Performance Rights
Performing rights are royalties paid to songwriters whenever one of their songs is performed (played) in public. Performing rights are paid when a song is broadcasted on radio / television, in clubs, in restaurants, in bars - anywhere music is played in public. The royalties are also collected whenever anyone does a cover version of a song.
Other Rights
Other Right types are: Master use fees, prints. Master use fees are fees that will be paid for any other use of the master than: synchronization, performance rights, mechanical rights, master royalties and prints. Prints is when the music or lyrics are published as score or in words, on any kind of print (digital and physical).