The mechanism
The two are owned, licensed, registered and paid separately, often by different parties. Labels typically hold masters; writers and publishers hold compositions. A licence for one does not licence the other.
A worked example
A film wanting to use a track must clear both the master from whoever owns the recording and the composition from the publisher. Either can refuse independently.
What it is confused with
- Publishing Publishing is the business of administering the composition side. It is not a third copyright.
Why it matters
Almost every ownership dispute, catalogue sale and re-recording is about which of the two is being discussed, and conflating them makes any deal unreadable.
Sources: US Copyright Office
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Related: Recoupment · Black box royalties · 360 deal