In the music industry, a music publisher or publishing company is responsible for ensuring the songwriters and composers receive payment when their compositions are used commercially. Through an agreement called a publishing contract, a songwriter or composer "assigns" the copyright of their composition to a publishing company. In return, the company licenses compositions, helps monitor where compositions are used, collects royalties and distributes them to the composers. They also secure commissions for music and promote existing compositions to recording artists, film and television.

​

The copyrights owned and administered by publishing companies are one of the most important forms of intellectual property in the music industry. (The other is the copyright on a master recording which is typically owned by a record company). Publishing companies play a central role in managing this vital asset.

Successful songwriters and composers have a relationship with a publishing company defined by a publishing contract. Publishers also sometimes provide substantial advances against future income. In return, the publishing company receives a percentage, which can be as high as 50% and varies for different kinds of royalty.

​

There are several types of royalty:

• Mechanical royalties derive from the sale of recorded music, such as digital downloads. These royalties are paid to publishers by record companies.

• Performance royalties are collected by performance rights organizations such as SESAC, Broadcast Music, Inc., American Society of Composers, Authors and Publishers or PRS and are paid by radio stations and others who broadcast recorded music; and are paid by venues, event organizers for live performances of the compositions.

• Synchronization royalties are required when a composition is used in a film or television soundtrack. These royalties typically pass through the hands of a music publisher before they reach the composer.

Publishers also work to link up new songs by songwriters with suitable recording artists to record them and to place writers' songs in other media such as movie soundtracks and commercials. They will typically also handle copyright registration and "ownership" matters for the composer.