The studio has two music licenses, one from PRS, the other from PPL, to be renewed annually.
PPL = for use of recorded music on behalf of the record companies and the performer’s rights.
PRS = the use of the lyrics and composed music in any public performance of music, on behalf of the song writers, composers and publishers.
So how do these companies know which bands or artists to send the royalities to? They don't ask me which music has been played in the studio.
And I've had many, many professional musicians in the studio who say they've never received any royalties from either company.