FAQ: Copyright and royalties

Copyright gives music creators the following rights:

• Control how their work is used
• Receive compensation for the use of their work
• Be credited as the creator
• Prevent modifications or uses that could compromise their artistic integrity

Copyright protection begins automatically when you create your work.

• No membership in a copyright organization, registration, or formal declaration is required.
• Copyright remains valid throughout the creator’s lifetime, and even extends 70 years after the year of the creator’s death.
• If a work has more than one creator, the copyright of said work remains valid until 70 years has elapsed from the year of the death of the last living creator.

More information:
Music rights and royalties

Copyright consists of two components:

• Economic rights: The right to control how the work is used and receive compensation
• Moral rights: The right to be credited and prevent derogatory use of the work

Copyright belongs to the original creators:

• Composer
• Lyricist
• Arranger (if the arrangement meets originality requirements)

Rights are determined differently depending on how the work was created:

• Combined work:
  • Music and lyrics are created separately (for example, the singer wrote the lyrics and the guitarist composed the music)
  • Can be performed separately (for example, instrumental version)
  • Each creator controls their portion independently
  • Protection period: 70 years after each creator’s death
• Joint work:
  • Created through genuine collaboration, parts cannot be separated
  • Registered under both creators’ names as a whole
  • All usage requires a joint decision
  • Protection period: 70 years after the last surviving creator’s death
• Fixed connection:
  • Parts created separately but intended for joint use
  • Can be separated unless agreed otherwise
  • Creators control their portions
  • Protection period: 70 years after the last surviving creator’s death

Copyright can be:

• Partially or fully transferred to another party (e.g., publisher)
• Inherited
• Managed by Teosto

Read more:
Music rights and royalties

The protection period defines how long copyright lasts:

• Throughout the creator’s lifetime
• 70 years after the year of the creator’s death
• For works with multiple creators, counted from the death of the last surviving creator

After the protection period ends:

• The work enters the public domain
• It can be performed, recorded, and modified without permission

No royalties need to be paid

A work is protected when it:

• Is sufficiently original and unique
• Results from creative work
• Meets the threshold of originality

Meeting the threshold of originality means:

• No one else would likely create an identical work independently
• The work shows sufficient originality
• A simple idea or basic melody alone doesn’t qualify

Graphic rights refer to:

• The right to publish sheet music and lyrics in print or digital form
• The right to display music notation and lyrics visually (e.g., karaoke videos)
• The right to produce and publish sheet music books or songbooks

These rights:

• Are not included in the Teosto client agreement
• Are always managed by creators or publishers themselves
• Require a separate license and agreement

Plagiarism means presenting another’s work or parts of it as your own.

It’s plagiarism when a work is substantially identical to the original in its essential elements.

It’s not necessarily plagiarism when:

• Works share only random similarities
• Common musical elements are used
• The source of inspiration is recognizable, but the work stands as an independent creation

Artificial intelligence can be used as a tool in the creative process. It can support human creativity and streamline workflows related to music creation. However, AI cannot replace human creativity: under current legislation, only the result of a human’s creative work can be protected by copyright.

AI services must not be developed by unlawfully using the results of human creative work. Like any other service that utilizes protected content, AI operators must enter into agreements with rightholders or their representatives, such as Teosto. 

As technology evolves, it is essential to establish clear rules for the use of AI and AI-generated music. At Teosto, we are working with creative industry to promote responsible AI. This includes ensuring transparency in AI services, negotiating the use of works, securing fair compensation for rightholders, and safeguarding the competitiveness of the entire creative sector.

Read more:

AI in the Creative Industry

Generative AI that produces new content is typically trained using copyrighted works, which requires license to use protected music content. If an AI music service has not obtained the necessary rights in accordance with copyright law, it constitutes an infringement. 

Currently, users of AI music services cannot be certain whether they are violating copyright. Therefore, using AI-generated music in business may be unlawful. By obtaining a license for the use of music, you can ensure that you are not infringing on the rights associated with original protected works when using AI-generated music based on such content in your business.

Read more:

AI in the Creative Industry

Yes. You automatically have copyright protection for your work, whether or not you’re a Teosto client.

Yes. You can remove from Teosto’s management:

• Specific rights categories (e.g., live performances)
• Geographic territories
• Individual works

Whenever you remove rights from Teosto’s management, you take on these responsibilities:

• You negotiate usage permissions yourself
• You set your rates
• You invoice royalties directly
• You’re responsible for monitoring usage rights

Please find more details about copyright inheritance here.

To receive royalties for your music:

1. First, become a Teosto member
2. Register your work online as soon as it’s completed
3. Report performances when you play your own or others’ music at live events
4. We collect data about music usage from radio, TV, and online platforms
5. Keep your contact details, bank account, and tax information up to date in the online service.

We will pay royalties quarterly according to how your music has been used.

You can find royalty payment schedules in our payment calendar.

To ensure accurate royalty payments, it’s essential to handle the basics promptly:

1. Keep your information up-to-date:
   • Register works immediately after completion or before release
   • Review and confirm your work listed as “Unconfirmed” in the online service
   • Report all your performances
   • Verify that your banking and tax information is up to date

2. Monitor payments in the online service:
   • Review payment reports
   • Check work information and share percentages
   • Track performance report statuses

If you notice payment discrepancies:

• File a claim as soon as possible through the online service
• Provide the requested additional information
• Keep documentation for potential investigations

We collaborate with approximately one hundred international copyright organizations. These partner organizations pay royalties to Teosto members through us.

More information:
International royalties

There are several options for copyright royalty taxation:

• Tax card
• Business name
• Earned income and a personal publishing company
• Publishing and a limited company
• Personal limited company

The best choice for you depends on a variety of things. Read more through the page linked below.

More information:
Taxation and revenue models

We distribute collected royalties several times a year:

• Directly to domestic creators and publishers
• To international creators through sister organizations

We cover our operational costs by:

• Taking a small percentage of collected royalties
• Returns from investment activities

Please find more details about our revenue streams from annual reports.

A new AI-related category of rights will be incorporated into Teosto’s membership agreement effective from 17 September 2026. In the future, this new category of rights concerning AI use will include both audible music and lyrics in graphic form, approved for administration by Teosto in spring 2025 General Meeting. The new membership agreement will enter into force without the signing of a new agreement, and it will replace the previous agreement. Adaptation rights related to AI use will only be assigned to our administration if you give separate consent.

The new AI-related category of rights and assigning comprehensive rights related to the category make it possible for Teosto to conclude licensing deals with AI services and collect royalties on behalf of its customers for the AI-related use of their works. At the same time, it allows Teosto to protect your rights more effectively by reserving the rights related to works with regard to both music and graphic representations of lyrics. Reserving the rights means that the works cannot be used without permission for text and data mining (Copyright Act, section 13b), which is one of the limitations of copyright and may be part of the training of AI.

Notifications concerning the new AI-related category of rights will be made by the creators of works. Publishers will not need to give separate consent for the works they publish. However, a publisher may give separate consent concerning adaptation rights on behalf of a creator, or give advance notification of the removal of the AI-related category of rights before the change to the membership agreement takes effect.

Adaptation is one key way in which music is utilised in AI services. It is also an area that is expected to account for a significant share of royalties. Assigning adaptation rights to Teosto’s administration makes it possible to include works in licensing deals related to AI use when Teosto concludes such agreements in the future, either directly or through its licensing partners (such as ICE Core). When it comes to such agreements, Teosto always advocates for the collective interest of our rightholders.

If all of your rights covered by the new AI-related category of rights are administered by Teosto, we can also conclude agreements with AI services with regard to the training of AI models.

The adaptation rights assigned to Teosto’s administration only apply to AI-related contexts. Adaptation is one key way in which music is utilised in AI services. Assigning adaptation rights to Teosto’s administration is a prerequisite for Teosto to be able to conclude comprehensive agreements with AI services concerning the use of your works.

Adaptation means that works can be used in various ways to generate AI music in generative AI services. A service can produce AI music based on text prompts, and the music thereby generated may resemble the original work to some extent. For example, different works may be combined with each other, the genre may be changed, or the user’s own lyrics may be added to works.

At present, AI music generated by many generative AI services can only be used within the service. However, it is possible that, in the future, AI music generated by the users of the services may also be distributed outside the services. In such cases, separate royalties and other conditions will be agreed upon in connection with such distribution.

The new AI-related category of rights makes it possible for our members to remove the category of rights concerning AI use from Teosto’s administration with a single selection. The removal of the category of rights from Teosto’s administration can be carried out by using a form that will be available on Teosto’s web service starting from 17 August 2026. After the removal, the works will no longer be included in Teosto’s future licensing deals concerning AI use. This means that the works will be subject to the rightholder’s self-administration with regard to AI use, and the rightholder must personally see to agreements concerning the use of the works and the protection of the rights.

If you do not separately give your consent to assigning adaptation rights to Teosto’s administration, Teosto will not, at this stage, include your works in future licensing deals related to generative AI, and you will not receive royalties for them.

However, if you have not removed the AI-related category of rights from Teosto’s administration, Teosto will still ensure that it reserves the rights related to the works under its administration with regard to playing music and the graphic representations of lyrics. Reserving the rights means that your works cannot be used without permission for text and data mining (Copyright Act, section 13b), which is one of the limitations of copyright and may be part of the training of AI.

 When it comes to the new AI-related category of rights, the aim was to focus on the rights that are the most significant with regard to AI-related licensing at this stage. Lyrics in graphic form have been identified as a key area with regard to AI services, and bringing them under Teosto’s administration has been deemed to be necessary for Teosto to grant sufficiently comprehensive licences to AI services.

No. As is the case with other categories of rights, the category of rights related to AI cannot be broken down into multiple parts. If a rightholder does not want to assign the administration of rights concerning graphic representations of lyrics to Teosto, the rightholder must remove the AI-related category of rights from Teosto’s administration entirely. This means that Teosto will also not administer the AI use of the rightholder’s works in audio form.

No, you cannot. Assigning the AI-related category of rights to Teosto’s administration currently applies to the rightholder’s entire repertoire, and individual works cannot be separated from it. The same applies to the adaptation right in AI contexts. If you wish to remove individual works from AI use, you must remove them from Teosto’s administration entirely in accordance with Teosto’s existing self-administration arrangements. In this case, you will not receive any royalties for these works through Teosto for any other use either.

Yes, you can. You can remove the AI-related category of rights from Teosto’s administration even after the change to the membership agreement enters into effect by following the self-administration arrangements for categories of rights in accordance with the membership agreement.

Your works will then no longer be part of Teosto’s repertoire, and the AI service will no longer have the right to use your works on the basis of its agreement with Teosto.  

Teosto can only include in its agreements and licences the shares it administers in the AI-related category of rights. If a co-creator removes their AI-related category of rights from Teosto’s administration, Teosto cannot conclude agreements on the use of works on behalf of the creator in question. When your AI-related category of rights is under Teosto’s administration, Teosto will, however, represent the works with respect to your shares.

Depending on the terms of your publishing agreement, it is possible that you are not able to assign all of the rights concerning your works covered by the new AI-related category of rights to Teosto’s administration without the publisher’s consent. If necessary, talk to your publisher to confirm that you can assign the administration of the rights covered by the new AI-related category of rights to Teosto.

Teosto’s role is to ensure that the interests of our rightholders are taken into account in licensing deals. Teosto agrees on your behalf on the relevant terms and conditions, such as where the AI music generated can be used, and royalties related to such use.

In its agreements concerning AI-related use, Teosto aims to ensure that the service provider provides reports appropriate for the purpose of distributions on the use of works in the service.

As the market is still in its emergent stage, the practices are not yet clear. At present, AI music created in many generative AI services can only be used within the service. However, it is possible that, in the future, AI music generated by the users of the services may also be distributed outside the services; for example, in social media. This requires that the matter is agreed upon in licensing deals concluded with AI services.

On the basis of the moral rights stipulated by the Copyright Act, the creator has the right to prohibit the use of their work in contexts that are offensive or prejudicial to the creator’s reputation. Whether a context is offensive or prejudicial to the creator’s reputation is assessed by objective criteria in accordance with the Copyright Act. As moral rights are not within the scope of Teosto’s administration of rights, the member must make any such claims directly to the platform in question. 

If you have removed your AI-related category of rights from Teosto’s administration, your works are not included in Teosto’s licensing deals concerning AI-related use, and AI services are, therefore, not licensed to use them. In this case, Teosto also does not monitor the exercise of your rights, and you are responsible for protecting your works yourself. 

The rights represented by Teosto and record companies concern the rights of different groups of rightholders. Each entity representing rightholders concludes agreements with AI services on the exercise of rights for their part. Agreements concluded by record companies relate to the recording rights of works, while Teosto represents the copyright of works, i.e. composers, lyricists, arrangers and publishers. The AI service in question is responsible for ensuring that it has secured licences for the use of protected content from all of the relevant rightholders. In order for an AI service to have all of the rights it is required to have, it needs to also sign an agreement with the entity that represents creators and publishers.

The key consideration is how the works are used in these contexts. For example, on Spotify, music represented by Teosto will continue to be licensed for normal streaming by our licensing partner ICE Core. If services with which we have previously concluded licensing deals want to introduce generative AI features that enable the production of AI music based on original works, they need to separately agree with us on such use.

Teosto is currently actively promoting discussions with AI services. As is typical of all contract negotiations, we cannot comment on them while the negotiations are ongoing.

Teosto negotiates licensing deals with AI companies either directly or through its licensing partners (such as ICE Core). The agreements cover the scope of the use of works, the royalties to be paid, and reporting.

The agreements may set out restrictions on how works can be used in the AI service and how royalties are paid for the works used. The agreements may also specify that AI music generated in the service can only be used within the service. Even if licensing deals in the first stage limit the use of AI adaptations so that they can only be used within the service, it is possible that future agreements will include more detailed provisions on the distribution of AI adaptations outside the service. The market practices related to AI licensing are still developing, and Teosto will keep a close eye on any developments.

Unfortunately, it is not possible to reliably estimate the level of royalties from AI-related use at this stage, as we have yet to conclude agreements with AI services. Only a small number of licensing deals have been concluded in the market, and they mainly involve major record companies and publishers.

At this stage, the change concerning the category of rights does not affect distributions, the Distribution Rules or royalties paid. When distributable royalties begin to accrue, we will need to make the necessary amendments to the Teosto Distribution Rules which govern the key principles of distributions. Such decisions concerning distribution principles will be made by Teosto’s General Meeting in due time.

Teosto’s distribution principles are set out in the Distribution Rules, which are decided on by the General Meeting. Any amendments to the Teosto Distribution Rules will be decided on separately by the General Meeting when distributable royalties have been accrued. At this stage, the change concerning the category of rights does not affect distributions, the Distribution Rules or royalties paid.

In its agreements concerning AI-related use, Teosto aims to ensure that the service provider provides reports appropriate for the purpose of distributions on the use of works, and these reports will be used as the basis for the distribution of royalties.

If you discover unauthorized use of your works, follow these steps:

• Document the unauthorized use:
  • Save evidence (screenshots, links, or recordings)
  • Record when and how extensively the work was used
• Report the issue:
  • If you’re a Teosto client, contact our customer service
  • You can also contact the Copyright Information and Anti-Piracy Centre
• For online service takedown requests:
  • YouTube: use the ContentID system or copyright claim form
  • Other platforms: use the platform’s reporting system

If you notice an error in your work registration (such as incorrect shares or the wrong creator), you can correct it through the online service. If you’re the composer or lyricist, you can make corrections yourself.

For published works, only the publisher can make modifications.

Read more:
Registering works

After submitting a performance report, you cannot modify the event details yourself. If you notice an error, contact our customer service – they will help correct the information.

Read more:
Reporting performances