What's the difference between a publishing company and a record label?

Publishing companies and record labels are responsible for two seperate aspects of a song:

  • A publishing company manages the musical composition (i.e., this song is written by x and y).
  • A record label produces and manages the actual musical recording.
This means that two separate companies are involved in clearing the rights for one song; therefore each is entitled to receive royalties for the part which they own.

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