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

A publishing company manages the composition of a song—the music and lyrics written by the songwriter(s).

A record label manages the recording—the actual audio performance of that composition.

To license a song properly, you often need permission from both: the publisher (for the composition) and the label or licensing company (for the recording). Each party earns royalties for the rights they control.

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How does music licensing work?