By binger0
Wed Sep 15, 2004 6:59 am
Publishing
Writing and recording music is great, but you have to get it out to the public if you want to get paid. How you distribute music to the public is a matter of business opportunity and choice, but once you do, Mechanical Royalties, Performance Royalties, and Sync Licenses are the various means through which you earn publishing income.
MECHANICAL ROYALTIES
When an artist writes a song, she has a copyright in the song. When the song is fixed on compact disc, cassette, or vinyl, the record company pays Mechanical Royalties to the copyright owner. The current rate is 7.55 cents per copy for each song. So if you write and record a song, and 10,000 copies are made, the company owes you $755. Watch out: Most record companies include a “controlled composition clause” in their recording contracts, reducing the amount they pay you in mechanical royalties for your composition (typically to 75% of the statutory rate). Most record companies pay mechanical royalties directly to the copyright owner, but the Harry Fox Agency can collect mechanical royalties for song owners. See the recording agreement article for a further explanation of "mechanicals".
PERFORMANCE ROYALTIES
Each and every time you hear a song on the radio, in a club, or on television, somebody is supposed to get paid Performance Royalties by a performance rights organization like BMI, ASCAP, or SESAC. That is, if they are affiliated with BMI, ASCAP, or SESAC. Performance Royalties are composed of two parts: the Songwriter’s Portion and the Publisher’s Portion. The Songwriter’s Portion belongs to everyone credited as a songwriter. The Publisher’s Portion is for the publisher(s). BMI, SESAC, and ASCAP monitor the places where a song is played, collect royalties for the song, and then pay the administering music publishing company. The music publishing company then pays the songwriter(s). As an owner of 100% of the copyright, you are entitled to 100% of the performance royalties unless you sign a publishing agreement assigning all or a portion of your copyright.
SYNC LICENSES
Another way to make money is through a Sync License, which is an agreement for the use of a song on television or in a movie. Sync Licenses vary from several thousands of dollars for independent films to tens of thousands of dollars from major Hollywood films and national television ad campaigns. There is no fixed fee for this right and it is usually negotiated by the music publisher.
Income can also be earned though use of the music composition in video games, from foreign record sales, or sheet music sales.
MUSIC PUBLISHERS
A Music Publisher is an entity that is in business to exploit music compositions. A music publisher establishes a relationship with a composer or songwriter by signing a contract (a “Publishing Agreement”) with the songwriter to own and/or administer his/her song copyright. The Publishing Agreement empowers the company to control uses of the song and collect publishing earnings in exchange for a percentage (usually 25%-40%) of the song’s total income. Publishing Agreements will grant the songwriter all of the “Songwriter’s Portion” and grant the publishing company all of the “Publisher’s Portion”.
Some people start up their own music publishing companies, while others use external music publishers. If you have your own publishing company, you get the Publisher’s Portion of any publishing income. If you use an external publishing company, you can split the Publisher’s Portion between your publishing company and the external publishing company by signing a co-publishing agreement. With a 50/50 co-publishing agreement you get 75% of the total publishing income – all of the writer’s 50% share plus half of the music publisher’s.
PUBLISHING IN ACTION
Let’s look at an example using a group we all hold near and dear to our hearts: If N*SYNC recorded a song written by Justin Timberlake and published by Sheet Music Plus, Sheet Music Plus would get half of the Performance Royalty (all of the Publisher’s Portion), Justin Timberlake would take all of the Songwriter’s Portion (half of the Performance Royalty) while keeping Britney Spears. All other N*SYNC members take home nothing.
Let’s look at the pie if N*SYNC used their own publishing company to publish the same song. If they had their own Publishing Company (let’s call it Flash In The Pan Music), they could split the Publisher’s Portion with another company. So, Sheet Music Plus would get 25%, poor Joey Fatone and the other N*STINKERS, I mean N*SYNCERS, would get 5% each, and Justin Timberlake would receive 55% and still keep Britney Spears. If N*SYNC only used no other publisher but Flash In the Pan Music (their own company), Joey and the other N*STINKERS (oops, I did it again) would receive 10% each, while Justin gets 60%…and guess what? You got it. He still keeps Britney Spears. With a cut like that, is there any question why?
If you are not signed to a record company and you do not have any of your songs recorded, there is no money to collect. But there are some advantages to signing with a music publisher. Some music publishers take an active creative role in developing new writers, while others act as a development company. The group Everclear signed a publishing agreement with Rondor Publishing, who bought the band new equipment, offered tour support, and promoted the group to a music trade magazine. Eventually, Everclear signed a record deal and had a big hit.
If you already have a record deal with a major label or are selling tons of indie records, you probably shouldn’t transfer any rights to a music publisher unless they give you a good advance and can place your music so it ends up on radio, television, or in the movies.
“See also, Create a publishing company.”
DO-IT-YOURSELF
Where would we be without songs like “Have You Seen Her” and “’Bout It, ‘Bout It”? M.C. Hammer and Master P are examples of artists who did it themselves. Hammer got club djs to play his music while he was tearing up the dance floor. P would go around town pumping his music out of his phat ride. Both artists sold tapes out of their car trunks. They realized that they could make more money doing it on their own label than signing with another…until the big boys came calling. Whatever method you use to get your music heard, you should set-up your own publishing company.
see this for part 2
http://www.mpc-forums.com/viewtopic.php?t=17774
Writing and recording music is great, but you have to get it out to the public if you want to get paid. How you distribute music to the public is a matter of business opportunity and choice, but once you do, Mechanical Royalties, Performance Royalties, and Sync Licenses are the various means through which you earn publishing income.
MECHANICAL ROYALTIES
When an artist writes a song, she has a copyright in the song. When the song is fixed on compact disc, cassette, or vinyl, the record company pays Mechanical Royalties to the copyright owner. The current rate is 7.55 cents per copy for each song. So if you write and record a song, and 10,000 copies are made, the company owes you $755. Watch out: Most record companies include a “controlled composition clause” in their recording contracts, reducing the amount they pay you in mechanical royalties for your composition (typically to 75% of the statutory rate). Most record companies pay mechanical royalties directly to the copyright owner, but the Harry Fox Agency can collect mechanical royalties for song owners. See the recording agreement article for a further explanation of "mechanicals".
PERFORMANCE ROYALTIES
Each and every time you hear a song on the radio, in a club, or on television, somebody is supposed to get paid Performance Royalties by a performance rights organization like BMI, ASCAP, or SESAC. That is, if they are affiliated with BMI, ASCAP, or SESAC. Performance Royalties are composed of two parts: the Songwriter’s Portion and the Publisher’s Portion. The Songwriter’s Portion belongs to everyone credited as a songwriter. The Publisher’s Portion is for the publisher(s). BMI, SESAC, and ASCAP monitor the places where a song is played, collect royalties for the song, and then pay the administering music publishing company. The music publishing company then pays the songwriter(s). As an owner of 100% of the copyright, you are entitled to 100% of the performance royalties unless you sign a publishing agreement assigning all or a portion of your copyright.
SYNC LICENSES
Another way to make money is through a Sync License, which is an agreement for the use of a song on television or in a movie. Sync Licenses vary from several thousands of dollars for independent films to tens of thousands of dollars from major Hollywood films and national television ad campaigns. There is no fixed fee for this right and it is usually negotiated by the music publisher.
Income can also be earned though use of the music composition in video games, from foreign record sales, or sheet music sales.
MUSIC PUBLISHERS
A Music Publisher is an entity that is in business to exploit music compositions. A music publisher establishes a relationship with a composer or songwriter by signing a contract (a “Publishing Agreement”) with the songwriter to own and/or administer his/her song copyright. The Publishing Agreement empowers the company to control uses of the song and collect publishing earnings in exchange for a percentage (usually 25%-40%) of the song’s total income. Publishing Agreements will grant the songwriter all of the “Songwriter’s Portion” and grant the publishing company all of the “Publisher’s Portion”.
Some people start up their own music publishing companies, while others use external music publishers. If you have your own publishing company, you get the Publisher’s Portion of any publishing income. If you use an external publishing company, you can split the Publisher’s Portion between your publishing company and the external publishing company by signing a co-publishing agreement. With a 50/50 co-publishing agreement you get 75% of the total publishing income – all of the writer’s 50% share plus half of the music publisher’s.
PUBLISHING IN ACTION
Let’s look at an example using a group we all hold near and dear to our hearts: If N*SYNC recorded a song written by Justin Timberlake and published by Sheet Music Plus, Sheet Music Plus would get half of the Performance Royalty (all of the Publisher’s Portion), Justin Timberlake would take all of the Songwriter’s Portion (half of the Performance Royalty) while keeping Britney Spears. All other N*SYNC members take home nothing.
Let’s look at the pie if N*SYNC used their own publishing company to publish the same song. If they had their own Publishing Company (let’s call it Flash In The Pan Music), they could split the Publisher’s Portion with another company. So, Sheet Music Plus would get 25%, poor Joey Fatone and the other N*STINKERS, I mean N*SYNCERS, would get 5% each, and Justin Timberlake would receive 55% and still keep Britney Spears. If N*SYNC only used no other publisher but Flash In the Pan Music (their own company), Joey and the other N*STINKERS (oops, I did it again) would receive 10% each, while Justin gets 60%…and guess what? You got it. He still keeps Britney Spears. With a cut like that, is there any question why?
If you are not signed to a record company and you do not have any of your songs recorded, there is no money to collect. But there are some advantages to signing with a music publisher. Some music publishers take an active creative role in developing new writers, while others act as a development company. The group Everclear signed a publishing agreement with Rondor Publishing, who bought the band new equipment, offered tour support, and promoted the group to a music trade magazine. Eventually, Everclear signed a record deal and had a big hit.
If you already have a record deal with a major label or are selling tons of indie records, you probably shouldn’t transfer any rights to a music publisher unless they give you a good advance and can place your music so it ends up on radio, television, or in the movies.
“See also, Create a publishing company.”
DO-IT-YOURSELF
Where would we be without songs like “Have You Seen Her” and “’Bout It, ‘Bout It”? M.C. Hammer and Master P are examples of artists who did it themselves. Hammer got club djs to play his music while he was tearing up the dance floor. P would go around town pumping his music out of his phat ride. Both artists sold tapes out of their car trunks. They realized that they could make more money doing it on their own label than signing with another…until the big boys came calling. Whatever method you use to get your music heard, you should set-up your own publishing company.
see this for part 2
http://www.mpc-forums.com/viewtopic.php?t=17774
