Splits Done Right: The Conversation Every Co-Write Needs Before the Record Button

You have the session booked. The collaborators are lined up. Someone brings a hook, someone else brings a chord progression, and by the end of the day you have a song. Then comes the part that songwriters consistently underestimate: who owns what, and what needs to happen on paper before the royalties start flowing.

This article covers the mechanics of co-write splits: how the royalty system is structured, what BMI says about how it distributes those royalties, what documentation is required when shares need to change, and how The MLC ties your registration to digital mechanical royalty payments.

This is not legal advice. For agreements that involve significant ownership stakes or publishing deals, consult an attorney with music industry experience. This is an explanation of how the systems work.

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#### The Basic Structure: Writer Share and Publisher Share

When a song generates performance royalties, from radio play, streaming, live performance, and other licensed uses, performing rights organizations like BMI collect and distribute those royalties.

According to BMI's official FAQ, BMI designates one half of royalties for the songwriter or composer, and one half for the publisher or copyright holder.

That 50/50 structure is the foundation. On a co-write, the writer share is divided among the songwriters according to the agreed splits. The publisher share is divided among the publishers associated with those songwriters.

If you do not have a publisher, BMI says you will receive the publisher's share as the writer. In that case, BMI may show "Manuscript" as a publishing placeholder, which indicates that writer and publisher shares are flowing directly to the writers.

For a deeper explanation of what publishing means in this context, see /definitions/.

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#### The Co-Write Split Conversation

The split conversation is most productive before recording begins, and certainly before either party registers the work. Here is why: changing splits after a work is registered with a PRO requires documentation and a formal update request. Agreeing before registration is administratively cleaner.

A co-write split covers at minimum:

• What percentage of the writer share each collaborator receives
• What publisher or publishing administrator is associated with each writer
• Whether any collaborator is contributing a pre-existing sample, interpolation, or hook that changes the ownership math

The specific form of that agreement varies. Some collaborators use formal split sheets; others use email confirmations or contracts prepared by their attorneys. The point is that the agreement exists in writing and all parties have signed or otherwise confirmed it.

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#### When Splits Need to Change: What BMI Requires

If a registered work needs a share update, for example, because an original split agreement was entered incorrectly or a new arrangement has been reached among the parties, BMI has a defined process.

According to BMI's instructions for updating registered works, you should not submit a new work registration to correct information on an existing work. You submit an update request.

When an update request would reduce or remove a BMI licensed composer, author, or publisher share, supporting documentation is required. BMI accepts signed contracts (including administration agreements, sub-publishing agreements, and assignments), court orders, signed settlement agreements, signed stipulations, written acknowledgments by all parties, declarations made under penalty of perjury, and notarized affidavits.

BMI also recommends submitting a letter of direction signed by all parties agreeing to the proposed changes. Any missing information can delay processing.

The practical implication: if you and a co-writer later disagree about what was agreed, and one of you wants to change the registered splits, BMI will require documentation that supports that change. A contemporaneous written agreement signed at the time of the session is cleaner evidence than a disputed recollection.

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#### The MLC and Digital Mechanical Royalties

Performance royalties (handled by BMI, ASCAP, and SESAC) are one revenue stream. Mechanical royalties are a separate stream, covering the reproduction of a song in recorded form. For digital audio, streaming and download services operating in the United States, mechanical royalties flow through The Mechanical Licensing Collective.

According to The MLC's explanation of how it works, DSPs operating under the blanket license send usage data and royalties to The MLC each month. The MLC then matches those DSP-reported streams and downloads to the songs registered by members and calculates the royalties owed. Royalties are distributed to members on a monthly basis.

The key requirement: your work must be registered. The MLC's work registration page describes three methods: individual work registration in the Member Hub, bulk registration via a template upload, and submission of a Common Works Registration file for large catalogs of hundreds or thousands of works.

If your song is not registered with The MLC, the matching process cannot link DSP-reported streams to your work. Royalties for unmatched works are held in a pool and distributed according to The MLC's procedures, but active registration is how you make a direct claim.

For a full explanation of The MLC and how it fits into the broader mechanical licensing landscape, see the FTSMusic article on The Mechanical Licensing Collective.

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#### What a Complete Pre-Session Splits Conversation Covers

You do not need a lawyer in the room to have this conversation. You do need the conversation.

Before the record button: agree on percentages for each writer. Agree on what publishing entity or administrator is attached to each writer. If anyone is bringing in a pre-existing element that changes the composition ownership, acknowledge that explicitly. Write it down, confirm it in writing with all parties, and keep a copy.

After the session: register the work with your PRO and with The MLC using the agreed splits. If you are affiliated with BMI, registration details and the process for confirming how your publisher share flows are available through your BMI account.

The split conversation is not a bureaucratic formality. It is the point at which the ownership of a song becomes defined. Unclear splits do not stay theoretical, they surface when royalties arrive and the numbers do not match someone's expectations.

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#### Internal Reference: Key Definitions

• Publishing: See /definitions/#publishing
• Mechanical royalties: See /definitions/#mechanical-royalties
• Performance royalties: See /definitions/#performance-royalties

For context on how ASCAP and BMI operate, see What ASCAP and BMI Actually Do.