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Music Publishing

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by

Ron Marschall

on 8 October 2013

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Transcript of Music Publishing

Music Publishing
Royalties
money paid to you whenever your song is played, or manufactured into a recording
how songwriters earn money
There are 4 types of royalties
Mechanical Royalties
money collected each time a recording of the song is reproduced
9.1 cents
per song, per copy
a mechanical royalty is a compulsory license with a statutory rate
Performance Royalties
Money collected every time a song is broadcast on the radio, on a website, in a business establishment, or performed live.
NOTE: Public Performance does NOT pay "performers" only songwriters
Sync License
a song earns money when used in a movie, on T.V. in a video game or in a commercial.
Electronic Transmissions
does the use fall under a "performance" or is it a "mechanical" reproduction????
why does that matter?
Mechanical Royalties
are collected and distributed by
Harry Fox Agency
unless you're ...
or
while ...
Public Performance Royalties
are collected and distributed by
the major Performance Rights Organizations (PROs)
Society of European Stage Authors and Composers
American Society of Composers, Authors and Publishers
Broadcast Music, Inc.
collects royalties on the behalf of
sound recording copyright owners for certain kinds of non-interactive digital transmissions.
satellite and Internet radio
and streaming services like Pandora and now iTunes Radio
NOT the songwriter
the owner of the "master" / sound recording copyright
Publishing Companies
and
Publishing Contracts
The copyrights owned and administered by publishing companies are one of the most important forms of intellectual property in the music industry.
(The other is the copyright on a master recording that is typically owned by a record company.)
Assignment of copyright
songwriter or composer "assigns" the copyright of their composition to a publishing company for the term of the contract.
USE
In return, the company licenses compositions, helps monitor where compositions are used, collects royalties and distributes them to the composers. They also promote existing compositions to recording artists, film and television.
50/50
Songwriter's share
Publisher's share
your 9.1 cent Mechanical Royalty just dropped to 4.55 cents
Co-Publishing
If you start your own publishing company and then want to work with a larger publishing company you can try to negotiate a co-publishing deal
50/50
Songwriter's share
Publisher's share
50/50
larger Publishing company's share
Songwriter owned publishing company's share
/ \
<
<
example of 9.1 cent Mechanical Royalty
with a Co-Publishing deal:
4.55 cents to songwriter / 4.55 cents split between two publishing Co.
(2.275 cents each)





Songwriter ultimately earns 6.825 cents on mechanical royalties

Recoupment?
cross collateralization
money you earn as a songwriter may be used to recoup debts to your record label
Though the company name was once an acronym, today it is simply SESAC and not an abbreviation of anything.
460,000 songwriters, composers, and music Publishers and 8 million musical works
550,000 songwriters, composers, and music publishers and 7.5 million musical works
ASCAP and BMI collect nearly $1,000,000,000 annually each
Full transcript