Music publishing is about selling the rights to copyrighted music for a limited time. This means that a music publisher can license those privileges granted by copyright ownership to anyone for financial or promotional gain. When a song is heard during a movie, featured an advertisement, is performed by another artist, notated sheet music, featured in a video game, placed on television, programmed into a greeting card, or heard in any other form of public viewing, a publisher was most likely paid for that use. Most likely the writer of that music was paid as well. If a songwriter wants to make any money from their music besides performance, launching a publishing company and/or signing with a publisher is the next big step to success.
Music publishing began with sheet music. The advances in printing and mass production of household instruments gave way to a demand for printed music in Europe. Before the 1900s it was extremely difficult for any songwriting musician to track sales, let alone own exploit any exclusive rights to a new piece of music. Historic American composers like Stephen Foster were known to make large fortunes for sheet music publishers without any control over who sold his music, and no government backing to protect his works from being claimed by other writers.
Today copyright laws have changed to make it possible for authors to legislatively protect their works of art; whether it be sheet music, sound recordings, arrangements or public performances. Coincidentally, the music publishers job has become more of an administrative duty to handle licensing transactions, pay the appropriate writer(s) for licensed usage, and hopefully connect the published songs with more paying licensee(s).
For an individual to launch a music publishing company in the United States, they first must select and register the name of their publishing entity with a performing rights organization (P.R.O.). The main US societies include ASCAP – American Society of Composers Authors and Publishers, BMI – Broadcast Music Incorporated, and SESAC – formerly the Society of European Stage Author and Composers. These PROs may have a one-time fee to join as a publisher (I believe ASCAP charges about $35), and will accept three choices for a company name. As they seek out and collect royalties for your songs, they do not want to pay the wrong company. They will make sure that you will choose a name that has not been taken. They also have websites dedicated to displaying your company’s contact information to make it easier for licensees to find you. They will eventually list your songs as well next to your company name for this very reason.
Donald S. Passman, author of All You Need To Know About The Music Business also suggests filing if in California what is called a “fictitious business-name statement”. Passman explains that this document acts as a legal way to establish your name to be doing business as your company name: “This is a legal document filed with a county recorder and published in a newspaper… It tells the world you’re doing business under a name that isn’t your own and makes it legal to do so."[1] Passman also claims that a publisher will need this documentation to open a business bank account and for checks to be cashed under that company name.
The next thing a new publisher must do is to legally register selected repertoire with the Library of Congress in Washington. This will secure a publisher or writer's claim of those songs and keep the writers work protected from any infringers. It is possible to register many songs at a time under one company name and usually costs about $45 to apply and register. A publisher may have to re-register a song individually to sell a mechanical or synchronization license, but registering many songs at once is worth the price for the protection alone.
Copyright forms can be found at a local library, online (for less money) or by written request and always submitted to:
Library of Congress
Copyright Office
101 Independence Avenue, S.E.
Washington D.C. 20559-6000
Independent publishing companies and artist-run companies usually start by publishing their own works; if they intend to administer works from other writers they must decide on what kind of works they want to publish. Some publishers stick with a genre or style of music to do their business, but many other categories besides live performances or record sales royalties that may apply. Many educational publishers such as Hal Leonard and Mel Bay, sell rights to printed music in all styles; although this is especially common with classical or Broadway publishers. Some publishers specialize in selling library music or background music in film, television or commercials and others only cater to ringtone licenses or downloadable music.
Once all the songs are ready and the copyrights are assigned, business can begin. Many publishers, big and small both make deals with writers called an “administration deal”. Artist-run publishing firms may do all their own administrative activities such as issue mechanical licenses, register the compositions with the copyright office, and collect the royalties; but many, especially those who don’t have any knowledge of publishing, hire an administrating publisher to do the work for about 10 to 15% of gross income.
A new publisher should also be familiar with industry norms spelled out by contracts between publishers and writers. These norms should include the amount or percentage of money a publisher pays to its composer, depending on what type of use the music is being licensed for, (mechanicals, synchronization in film or music video, various types of broadcast, printing etc…) the term (length of time) contract is valid, the details regarding both domestic co-publishers and foreign sub-publishing rights, and the fine points of procedures and remedies for contract terms.
There are also many types of writer unions and guilds that a publisher should be familiar with before signing. In Music Business Handbook , David Baskerville talks about the Songwriters Guild of America as a entity that:
There are also many types of writer unions and guilds that a publisher should be familiar with before signing. In Music Business Handbook , David Baskerville talks about the Songwriters Guild of America as a entity that:
“provides a variety of useful services to its members: (a) offers a standard writer’s publishing contract; (b) collects royalties charging a 5.75% to a ceiling of $1750, with no charge thereafter; (c) reviews members publishing contract, free of charge; (d) audits publishers; (e) maintains a copyright renewal service; (f) administers writer-publishers catalogs (CAP, the Catalog Administration Plan); (g) provides a collaboration service; (h) maintains the Songwriters Guild Foundation; (i) operates an estates administration service; (j) provides financial evaluation of songs and catalogs to members and nonmembers; (k)offers workshops for writers; and (l) lobbies in Washington D.C., on behalf of songwriters. “[2]
Guilds like SGA are not songwriter unions; they cannot get a publisher in trouble with the law unless a publisher has breached their own contract; but a publisher should be familiar with the contracts that the SGA can provide for its writers for publishers, as they are extremely in favor of the writer and not the publisher.
A publisher also has to have just as much familiarity with contracts with record labels along the lines of what it should be receiving from a record label or other licensor to use the songs in their release. For example, if a record label sends a publisher a “quote request” offering ten cents per use of that song being sold on 10,000 copies of that release: 0.10 x 10,000 = $1000
That’s one thousand dollars to use that song- traditionally half to the publisher, half to the writer(s). A savy publisher immediate asks the following questions: Is that song worth $500? And to be licensed for how long? What are the other publishers getting on this release?
These are questions that should be answered in a publishers mind already before writing up their own contract or signing a license to a record label. Although the song value is part of the publisher's unique discretion, the term can last from one use in one broadcast up to a ten year license–– some licensors will try for “automatic renewals” every year or even “perpetuity” (for the entire life of the copyright). The term length usually depends on the type of use, maybe only a one use term on one live broadcast or maybe 5 – 10 years for a commercial release that might keep selling thousands of copies every year.
A publisher can also secure their money’s worth by accepting only the same royalty rate as every other publisher on the release. This is done by adding what is called a “most favored nations clause” to their license. Most favored nations is an article stating that no other publishers claiming rights on that specific commercial product can have a more “favorable” royalty rate. Therefore, if one publisher wants 10 cents per song instead of 9 cents on a negotiated license, all of the publishers must be paid 10 cents per song on every copy sold for that product. Artists contracts with major label affiliations become much more complicated if their publisher is owned by their record label.
The Association of Independent Music Publishers could also be a valuable resource for new publishers looking for information on industry standards or even looking to mix with potential clients:
“The AIMP provides a unique medium for those in the music industry to discuss with their colleagues various points of view from the cutting edge of the ever-changing music business. The opportunity to exchange ideas and opinions with others on issues of mutual concern is fostered by the informal atmosphere of the AIMP's monthly meetings, forums, and workshops.”[3]
Once a new publisher has all their cards in place such as the copyrights registered and performing rights organization established, it is really a matter of getting out into the business place for a publisher to hone in on their craft and find business. There are many guilds and organizations to help a new business find its customers; the real work is maintaining business once the company is launched.
No comments:
Post a Comment