Let’s say I write and record a song. It does reasonably well on the charts, makes me some money, and then is forgotten about for 40 years. Another guy records the song, and his version is then used in a popular TV commercial.
Does the guy who recorded the commercial version get a cut? Or does he just get a one-time fee for his vocal work, and I continue to get the royalties from the commercial use?
Inspired by the Volkswagen commercial that uses Come On Get Happy.
The songwriter always gets royalties.
The performer for the commercial is usually paid a flat fee. If he’s featured in some way, or has some clout, he can get residuals.
Minor hijack: Musical theatre has grand rights.. Any time a song is sung in a musical production, the songwriters have to be paid. Grand rights are non-transferable, only being paid to the songwriters. If a show is playing in several venues, the amount of money paid in grand rights can be hefty.
It’s why the guys who wrote songs for ABBA (Mamma Mia!) and The Four Seasons (Jersey Boys) are now making buckets of money for songs they wrote decades ago.